Vehicle-to-Grid (V2G) Market - Forecasts from 2024 to 2029

Vehicle-to-Grid (V2G) Market - Forecasts from 2024 to 2029

The Vehicle-To-Grid (V2G) market is anticipated to reach US$25.540 billion by 2029, at a CAGR of 38.24%, from US$5.059 billion in 2024.

Vehicle-to-grid (V2G) is a technology that enables electric vehicles (EVs) to establish a two-way communication channel with the public power grid. The V2G technology allows EVs not only to use electricity from the grid for their own charging needs but also to contribute surplus energy back to the grid when required, effectively supporting and balancing the grid's energy demand. The V2G market growth is being propelled by surging electricity demand the growing adoption of electric vehicles (EVs), and the expansion of grid infrastructure.

Under the battery type segment of the global V2G market, the lithium-ion category is forecasted to attain a greater market share. Similarly, the battery electric vehicle (BEV) category of the E-vehicle segment is forecasted to grow massively. In the end-user segment of the market, the residential category is estimated to grow at a greater rate.

One of the major driving factors estimated to push the global vehicle-to-grid market forward is the expanding EV landscape worldwide. The EV market witnessed major growth in the recent few years, which is largely credited to the development of the electric vehicle and its battery technologies. Similarly, with the expansion of the global electric vehicle charging and operational infrastructure, the demand for EVs also increases, giving a push to new technologies like vehicle-to-grid technology.

Vehicle To Grid (V2G) Market Drivers:

Increasing demand for electricity is estimated to drive the vehicle-to-grid market

The expanding demand for electricity and power worldwide is estimated to play a significant role for the growth of the vehicle-to-grid market. The demand for energy and power is forecasted to growth rapidly, majorly with the continuous rise in population, growing urbanization, and developing industrial landscape, especially in the developing nations. With the growing demand for energy, V2G technology can emerge as a viable solution that can turn electric vehicles into active participants in the energy market. V2G enables EVs to provide excess energy stored in their batteries back into the grid during periods of high demand. The Central Electricity Authority, of the Indian Government stated that in 2022, power consumption experienced a substantial increase of 9.5%, reaching 1,503.65 billion units compared to the previous year.

Vehicle To Grid (V2G) Market Geographical Outlook
Asia Pacific is forecasted to hold a major share of the global Vehicle To Grid (V2G) Market.

The Asia Pacific region is predicted to hold a substantial market share in the global V2G market, which can majorly be credited to the increasing governmental initiatives and investments in EV and V2G technologies. The Asian Pacific region is amongst the biggest and fastest growing regions in the global EV market, offering numerous developed and developing countries, like China, India, Japan, Vietnam, and Malaysia, among others, which observed a growing industrial and technological landscape in the EV sector, pushing the need for electricity and power in the region.

The Asia Pacific region is also amongst the biggest manufacturers of electric vehicles worldwide, with China, India, and Japan being the biggest producers and consumers of EVs. The infrastructural landscape of electric vehicles in countries like India, Japan, Singapore, and Malaysia has also witnessed a major development, that is further projected to boost multiple EV-based technologies like vehicle-to-grid (V2G), vehicle-to-home (V2H), and vehicle-to-everything (V2X).

The total EV sales in Malaysia grew massively rapidly, reaching an increase of about 286% in 2023 as stated by the Malaysian Green Technology and Climate Change Corporation. The total EVs delivered in Malaysia in 2023 was recorded at about 10,159 units, which previously in 2022 was recorded at 2,631 in 2022. Similarly, the International Trade Administration of the USA published that the total EV registration in Taiwan increased from about 7,064 units in 2021 to about 16,106 units in 2022. The organization further stated that in 2022, EV passenger cars attained about 3.4% of all new vehicle registrations in the nation.

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Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
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The Vehicle to Grid (V2G) Market is segmented and analyzed as:

By Battery Type

Lithium-Ion
Lead Acid
Nickel Metal Hydride Battery
Others

By E-Vehicle

Battery Electric Vehicle (BEV)
Plug-in Hybrid Electric Vehicle (PHEV)
Hybrid Electric Vehicle (HEV)

By End-User

Residential
Commercial

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
UK
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
South Korea
India
Australia
Others