Vehicle-to-Grid Technology Market (By Component: Smart Meters, Electric Vehicle Supply Equipment (EVSE), Software, and Home Energy Management (HEM); By Application: Battery Electric Vehicles (BEVs), Fuel Cell Vehicles (FCVs), and Plug-in Hybrid Electric Vehicles (PHEVs)) - Global Market Size, Trends Analysis, Segment Forecasts, Regional Outlook 2020 - 2027
The global vehicle-to-grid technology market is projected to garner revenue around US$ 17.43 billion by 2027 by recording compound annual growth rate (CAGR) of 48% during the forecast period from 2020 to 2027.
Rising adoption of electric vehicles across the globe has greatly transformed the energy sector. Battery-powered cars proved to be largely effective in controlling carbon emission. Developed regions such as North America and Europe have significantly adopted the electric vehicle technology, along with this; the developing countries have shown tremendous interest for adoption of electric vehicles as a mode of future transportation. Prime factor responsible for the rising demand for electric vehicles is green revolution drives in several nations to protect environment from increasing pollution.
Furthermore, some of the regions such as North America have amended their regulations to support the vehicle-to-grid technology. For instance, National Electric Code (NEC) was amended in 2011 that describes the equipment construction, wiring methods, equipment locations, and control & protection of Electric Vehicle Supply Equipment (EVSE). Additionally, International Codes (I-Codes) that is applicable for vehicle-to-grid technology include International Residential Code (IRC), International Energy Conservation Code (IECC), and International Building Code (IBC). Each code is revised in three years with the required amendments made. The aforementioned factors significantly drive the vehicle-to-grid technology market.
Electric Vehicle Supply Equipment (EVSE) expected to outpace the global vehicle-to-grid technology market by the year 2027. The EVSE is helpful in charging the electric vehicles and supplying energy back to the grid. This factor drives the EVSE segment significantly in the coming years. 95% of the times, the electric vehicles are not in use, the vehicle-to-grid technology helps to use that energy by supplying energy back to the grid. This helps in achieving the electricity requirement during peak hours. In addition, they also fulfill the requirement during blackouts and natural calamities to run the necessary or emergency services.
Battery Electric Vehicles (BEVs) held significant revenue share in the global vehicle-to-grid technology market in 2019. The prime factor behind the significant growth of the segment is 100% powered by energy storage system in the vehicle. This helps the vehicle to return back maximum power to the grid. Further, in 2018, Nissan Motors Co. Ltd. announced its first electric car Nissan Leaf that secured regulatory approval for power backup for Germany’s electric grid. With the pilot project in January 2019, the company sold 8 kWh of electricity back to the grid.
On the other hand, Plug-in Hybrid Electric Vehicles (PHEVs) exhibits the fastest growth over the forecast period. PHEV consist of larger battery and plug-in charger that can power it to run up to 20 to 60 miles after charging for only one hour. Larger battery size has higher capability to revert the large amount of power back to the grid. Thus, PHEVs expected to return back more power grid and the owners can earn more through this. In addition, the rising popularity of PHEVs being more driver-friendly along with their lucrative benefits over the BEVs has significant potential to drive the market in the years to come.
North America and Europe are the key regions in the global vehicle-to-grid technology market with significant revenue contribution in 2019. Government initiatives promoting the use of battery-powered vehicles to control carbon emission rate are the major factors that propels the market growth. In addition, long-term warranty offered by the manufacturers along with subsidies and benefits offered by the government on the adoption of electric vehicles attract large consumer base. Auto manufacturers in these regions are also taking initiative to promote vehicle-to-grid technology as it improves their value chain by improving the battery life. For instance, in December 2018, Nuvve Corporation signed a partnership agreement with EDF Group to implement vehicle-to-grid technology in the European market.
On the contrary, Asia Pacific projected lucrative growth for vehicle-to-grid technology during the forecast period. The prime factors contributing to the significant growth are green revolution drives in Asian countries such as China, Japan, India, and South Korea. For instance, China has vision of fully electric-powered mobility in the region by 2025 and is investing significantly for the same.
Key Companies & Market Share Insights
The global vehicle-to-grid technology market is highly competitive with prominent on-going developments in the market. The market players are largely focused towards technology investment, partnership and merger & acquisition strategy for cementing their footprint in the market. In June 2018, Hitachi and Mitsubishi collaborated together to establish vehicle-to-grid charging network for PHEVs and BEVs at several places in Japan. Similarly, in June 2019, ENGIE entered into an agreement with Fiat Chrysler Automobiles (FCA) to offer new electric-powered mobility solutions in fourteen different countries of Europe. The company planned to offer FCAs with its charging station for its customers and dealers in Europe. Thus, significant initiative from auto-manufacturers to promote the vehicle-to-grid technology has prominent impact on the market growth.
Some of the prominent players in the vehicle-to-grid technology market include:
- Nissan Motor Corporation
- Mitsubishi Motors Corporation
- NUVVE Corporation
- ENGIE Group
- OVO Energy Ltd
- Groupe Renault
- Honda Motor Co., Ltd.
Segments Covered in the Report
This report analyses and projects market revenue and growth trend at global, regional, and country levels and offers an analysis of the modern industry developments in each of the sub-segments from 2016 to 2027. This research report bifurcate global vehicle-to-grid technology market on the basis of component, application, and region:
By Component Type
- Smart Meters
- Electric Vehicle Supply Equipment (EVSE)
- Home Energy Management (HEM)
By Application Type
- Battery Electric Vehicles (BEVs)
- Fuel Cell Vehicles (FCVs)
- Plug-in Hybrid Electric Vehicles (PHEVs)
By Regional Type
- North America
- Asia Pacific
- South Korea
- Rest of the World
Frequently Asked Questions About This Report
Vehicle-to-grid technology is system that enables bi-directional flow of electrical energy between electrical grid and the vehicle. During charging a battery the electrical energy flows from grid to vehicle, but during peak hours when grid requires energy the flow of energy is from electric vehicle to the grid.
The global vehicle-to-grid technology market is recording compound annual growth rate (CAGR) of 48% during the forecast period from 2020 to 2027.
According to Precedence Research, the global vehicle-to-grid technology market revenue is expected to garner over US$ 17.43 billion by 2027.
Battery Electric Vehicles (BEVs) held significant revenue share in the global vehicle-to-grid technology market in 2019.
North America and Europe are the key regions in the global vehicle-to-grid technology market with significant revenue contribution in 2019.
Asia Pacific projected lucrative growth for vehicle-to-grid technology during the forecast period.
The key companies operating in the vehicle-to-grid technology market such as Nissan Motor Corporation, Mitsubishi Motors Corporation, NUVVE Corporation, ENGIE Group, OVO Energy Ltd, Groupe Renault, Honda Motor Co., Ltd.