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The vehicle-to-grid market size is estimated to grow at a CAGR of 31.5% and the size of the market is forecast to increase by USD 29,788.38 million between 2022 and 2027. The growth of the market depends on several factors, including improvements in EV battery technology, the ability to meet peak electricity demands, and changes in grid structure allowing decentralized power generation.
This market report extensively covers market segmentation by product (power electronics and software), vehicle type (BEV, PHEV, and FCEV), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The improvements in EV battery technology are notably driving the market growth, although factors such as Interoperability issues may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Vehicle To Grid Market Driver
The global surge in the number of electric vehicles (EVs) is fueled by the need for energy independence and government support. As the adoption of EVs grows, existing technologies are being pushed to their limits, necessitating the development of newer technologies. As a result, significant investments are being made in research and development (R&D). Technological advancements in EVs have reduced battery costs while increasing their energy densities over the years. The increasing energy density in EVs results in higher-capacity batteries, and the growing number of EVs has led to the widespread availability of battery charging infrastructure. The need for grid integration is driven by better energy storage options and their easy integration into the grid. Some manufacturers are focusing on establishing new EV battery facilities, which will contribute to the growth of the global vehicle-to-grid market during the forecast period.
EVs have the potential to reduce pollution and dependence on fossil fuels, and governments around the world are providing incentives and building infrastructure to support their adoption. As a result, the adoption rate of EVs has been steadily increasing, and global EV sales are witnessing continuous growth. Since EVs have batteries, they are identified as a technology that can meet peak hour demand by integrating them into the grid to allow two-way communication and power flow between the grid and vehicles. On average, vehicles are idle or parked 95% of the time, enabling the use of EVs as an energy storage system for supplying power back to the grid during peak loads.
Significant Vehicle To Grid Market Trends
The rise in the number of EV charging stations is the key trend in the vehicle-to-grid technology market. The main energy source for electric cars is batteries, which are mainly charged from an external energy source. As EVs have a shorter driving range compared to hybrid and ICE vehicles, they require more on-road and off-road charging facilities to improve their utilization rate. Some government organizations are focusing on increasing the number of charging stations for electric vehicles.
The number of EV charging stations is expected to grow significantly during the forecast period. Government incentives and subsidies on EV charging stations should improve transportation electrification. Increasing sales of EVs contribute to the growing number of charging stations worldwide. The number of charging stations in Asia and Europe will grow at a rapid rate during the forecast period owing to cost reductions and entrepreneurial development in these regions.
Major Vehicle To Grid Market Challenge
The growth of the vehicle-to-grid technology market is facing a major challenge due to interoperability issues. Efficient integration of electric vehicles into the grid is essential to regulate voltage fluctuations, meet peak demand, and balance renewable power generation. Successful integration requires various factors such as reference architecture, code and standards, management, active network management, advanced measurement infrastructure, and security systems to enable seamless communication between electric cars, charging stations, and communication and control systems.
However, the existing standards, architecture, and components are designed independently by different organizations, causing a lack of uniformity. This necessitates compliance with different standards, which may not be fully compatible with other technologies, resulting in interoperability issues. Although several private and public charging stations have been installed to meet the increasing demand for EVs, their communication and control capabilities are limited due to a lack of unified standards, hindering their integration with the grid.
Key Vehicle To Grid Market Customer Landscape
The Vehicle-to-grid market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Vehicle-to-Grid Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the vehicle-to-grid technology market.
ABB - The company offers vehicle-to-grid solutions, which can be used to temporarily supply homes (V2H) and buildings (V2B) backup power during power outages. The company offers electrification and building management solutions, products, and services for utilities, industry, transport, and infrastructure.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The vehicle-to-grid technology market share growth of the power electronics segment will be significant during the forecast period. The segment includes drive systems, control units, bi-directional chargers, networking devices, and communication equipment which are responsible for communication between vehicle-to-grid enabling technologies. Drive systems which are the critical components for integration, need to be reliable to ensure the safe operation of the entire process of converting and reversing the flow of power without having an impact on other systems of the vehicle. The sales of drive systems will increase exponentially enabling the demand for the market during the forecast period.
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In 2017 the power electronics segment was valued at USD 2,527.30 million and it continues to grow exponentially during the forecast period. The power electronics segment has a component which is known as bi-directional chargers that allow the flow of power from the grid and supply the power when required. It has meters that show complete charge details and the ancillary services provided by the vehicle to the grid. An EV supply equipment, which can be present at the residence, workplace, or public station, acts as a device that allows a vehicle to charge or discharge power to the grid. The networking equipment, computers, wires and cables, processors, and circuits integrate or connect with the rest of the technologies, such as the drive systems, and enable vehicle grid integration (VGI).
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the vehicle-to-grid technology market during the forecast period.
The US is the leading market for vehicle-to-grid in North America. This growth is attributed to rapid investments in the development and deployment of vehicle-to-grid infrastructure. This was coupled with aggressive government strategies and targets to stimulate sales of BEVs and PHEVs in the region. Integrating EVs into the grid can save costs for utilities as well as help offset the overall ownership cost for EV owners. Utilities can benefit by avoiding the use of their less efficient or reserve plants to meet the peak demand. Some organizations in the region are focusing on launching new projects that increase the demand for V2G technology. Such large EV projects in the region can accelerate the growth of the market during the forecast period.
The market in the region witnessed certain challenges in 2020 and 2021 due to the Covid outbreak. However, new product launches by EV manufacturers are contributing to the growth of the market. For instance, Tesla announced the release of the first Model S Plaid in production in June 2021. It is a four-door EV with a supposedly 390-mile range. The Plaid features a roomier back seat, a better entertainment system, and charges more quickly at Tesla superchargers. Such initiatives will accelerate the growth of the regional vehicle-to-grid market during the forecast period.
The research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Vehicle To Grid Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 31.5% |
Market growth 2023-2027 |
USD 29,788.38 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
30.5 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, Japan, China, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., AC Propulsion Inc., ChargePoint Inc., Continental AG, Coritech Services, Edison International, Fermata LLC, Hitachi Ltd., Honda Motor Co. Ltd, Liikennevirta Oy Ltd., Mercedes Benz Group AG, Mitsubishi Motors Corp., Nuvve Holding Corp., OVO Energy Ltd, Renault SAS, Tesla Inc., TransnetBW GmbH, Ford Motor Co., Qualcomm Inc., and Wallbox N.V. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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