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The global vehicle to grid technology market allows electric vehicles to connect to and power the electricity grid. Vehicle to grid technology facilitates bi-directional power flow where electric vehicles can return electricity back to the grid during periods of high demand. This helps store renewable energy that cannot be used immediately, offsetting high costs of upgrading transmission networks. Vehicle to grid technology provides several advantages such as optimizing power output from renewable energy sources and reducing emissions from fossil fuel powered peaker plants by using electric vehicles as distributed energy storage assets. With growing sustainability concerns, many governments are offering subsidies and incentives for electric vehicles which is expected to boost adoption of vehicle to grid technology.
The global Vehicle To Grid Technology Market is estimated to be valued at US$ 119.1 Mn in 2024 and is expected to exhibit a CAGR of 43% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the vehicle to grid technology market is the increasing integration of cloud computing technologies. Cloud systems help aggregate large quantities of data from electric vehicles and batteries which helps optimize demand response programs. This data is analyzed to predict both electric vehicle and building load patterns. Cloud platforms also support over-the-air updates that enable new functionalities and services to be added to electric vehicles without visiting service centers. Furthermore, blockchain technology is being explored to facilitate secure transactions in vehicle to grid networks and provide payment settlements between electric vehicle owners and grid operators. With advancements in cloud and blockchain technologies, vehicle to grid networks are expected to become more efficient and lucrative.
Key players operating in the Vehicle To Grid Technology market include Nissan Motor Corporation, Mitsubishi Motors Corporation, Honda Motor Co., Ltd., BMW Group, Tesla, Inc., General Motors Company, Ford Motor Company, Toyota Motor Corporation, Daimler AG, and Volvo Group. The key players are focusing on partnerships, new product launches and mergers & acquisitions to strengthen their global reach. For instance, BMW partnered with various utilities in Europe and US to assess V2G potential of its EVs.
Porter’s Analysis
Threat of new entrants: Low barrier to entry for new startups due to availability of venture capital funding and growing need for cleaner technologies.
Bargaining power of buyers: Growing demand for EVs provides bargaining power to large fleet operators and buyers.
Bargaining power of suppliers: Dominated by few technology companies controlling key patents and battery suppliers.
Threat of new substitutes: Emerging technologies like renewable energy integration and hydrogen fuel cells pose threat.
Competitive rivalry: Intense competition expected among auto giants to tap revenues from EV charging and grid services.
Key Takeaways
The global Vehicle To Grid Technology Market is expected to witness high growth. The global Vehicle To Grid Technology Market is estimated to be valued at US$ 119.1 Mn in 2024 and is expected to exhibit a CAGR of 43% over the forecast period 2024 to 2031.
North America currently dominates the market due to supportive government policies and presence of key players in the US and Canada. Asia Pacific is expected to grow at fastest pace during the forecast period led by China, Japan, and South Korea. Moreover, government initiatives to develop charging infrastructure and incentives for purchasing electric vehicles also support the growth. Asia Pacific region is expected to grow at fastest pace during forecast period led by China, Japan and South Korea. Rising sales of EVs and investments in smart grid projects will drive the Vehicle To Grid Technology adoption in the region.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
