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The global vehicle to grid technology market facilitates the transfer of energy stored in electric vehicles to the electricity grid or to supply electricity back to a building when needed. Vehicle to grid technology provides bi-directional power transfer capabilities and enables electric vehicles to store energy from the grid during low demand periods and return it to the grid during peak demand periods. This reduces the need for building new power plants and transmission lines, while also lowering carbon emissions from the transportation sector.
The global Vehicle To Grid Technology Market is estimated to be valued at US$ 119.1 Mn in 2023 and is expected to exhibit a CAGR of 43% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends: The increasing popularity of electric vehicles and growing need to reduce carbon emissions from the transportation sector are major factors driving the growth of the vehicle to grid technology market. As more electric vehicles get added to the roads, there is a need to efficiently manage the power demand-supply balance in the electricity grid. Vehicle to grid technology facilitates the use of electric vehicles as distributed energy storage systems, allowing electric vehicles to supply power back to the grid during peak demand hours. This helps reduce greenhouse gas emissions from conventional power plants. Automakers are focusing on developing viable technical and business solutions to leverage vehicle to grid technology.
SWOT Analysis
Strength: Vehicle to grid technology allows efficient use of electric vehicle batteries to support the power grid during peak demands and periods of low renewable energy generation. This helps reduce the overall costs related to power transmission and distribution.
Weakness: High upfront infrastructure costs are required for setting up the vehicle to grid system including installation of bi-directional chargers and upgrading of existing power distribution infrastructure. There are also additional upgrade costs associated with electric vehicles to make them capable of transferring power from batteries to the grid.
Opportunity: Growing demand for renewable energy integration and the need to balance intermittent power supplies from solar and wind farms creates opportunities for vehicle to grid technology adoption. The technology helps maximize utilization of existing grid and renewable energy assets to support sustainable development goals.
Threats: Slow adoption rates of electric vehicles and lack of standards for vehicle to grid communication protocols pose threats. there are also concerns around battery degradation and customers’ reluctance to provide their EV batteries to support the grid.
Key players related content comprises – Key players operating in the vehicle to grid technology market are 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, Volvo Group. These companies are investing in developing bidirectional chargers and upgrading vehicle electronics to allow power transfer from electric vehicle batteries to the grid. Strategic partnerships are also being formed between automotive giants and power infrastructure providers to roll out large vehicle to grid projects worldwide.
Key Takeaways
The global Vehicle To Grid Technology Market is expected to witness high growth over the forecast period supported by increasing electric vehicle sales worldwide. The global vehicle to grid technology market is estimated to be valued at US$ 119.1 Mn in 2023 and is expected to exhibit a CAGR of 43% over the forecast period 2023 to 2030.
Asia Pacific currently dominates the market due to the presence of leading electric vehicle manufacturers and growing investments to develop charging infrastructure in countries like China and Japan. This region is witnessing heavy investments by governments as well as automotive companies to promote adoption of electric vehicles and the supporting charging infrastructure including bi-directional chargers required for vehicle to grid facilities.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
