Vehicle-to-Grid (V2G) Technology Market Size - By Vehicle Type (Smart Meters, Electric Vehicle Supply Equipment, Home Energy Management, Software Solutions), Vehicle Type (BEVs, PHEVs, FCVs), Charging Type, Application, Regional Outlook & Forecast, 2024 -

Vehicle-to-Grid (V2G) Technology Market Size - By Vehicle Type (Smart Meters, Electric Vehicle Supply Equipment, Home Energy Management, Software Solutions), Vehicle Type (BEVs, PHEVs, FCVs), Charging Type, Application, Regional Outlook & Forecast, 2024 - 2032

Vehicle-to-Grid technology market size is projected to expand at over 50% CAGR from 2024 to 2032, led by the rising adoption of electric vehicles (EVs), soaring grid optimization needs, and the rapid integration of renewable energy sources.

Vehicle-to-grid technology (V2G) offers bidirectional energy flow between EVs and the grid, ensuring vehicles to act as energy storage units during high demand and feed surplus power back to the grid. For instance, in November 2023, Swedish multinational manufacturing corporation Volvo launched an energy solutions division to conduct a pilot program for vehicle-to-grid technology. The rising focus of several government bodies to minimize carbon emissions, provide incentives for EV adoption, and the surge in smart grid initiatives will also promote the adoption of V2G technology. The transition of the automotive industry towards electrification to enhance grid resilience and promote energy efficiency will drive the market expansion.

The V2G technology market is segregated into component, charging type, vehicle type, application, and region.

The market share from the bidirectional charging segment is anticipated to witness significant CAGR from 2024 to 2032, owing to the increasing demand for flexible energy systems. Bidirectional charging allows electric vehicles to draw energy from the grid and supply excess energy back for enhancing the grid stability. Robust capability to address peak demand challenges, promote grid reliability, and align with the broader trend of integrating sustainable and dynamic energy solutions will add to the segment growth.

V2G technology industry value from the plug-in hybrid electric vehicles (PHEVs) segment is projected to rise at substantial CAGR from 2024 to 2032, due to their increased adoption. PHEVs offer a dual power source, allowing them to contribute significantly to V2G capabilities. PHEVs also render flexibility in supplying energy back to the grid during peak demand periods to enhance grid stability.

Regionally, the North America vehicle-to-grid technology market size is projected to expand at rapid pace from 2024 to 2032. The growth can be attributed to the surge in EV adoption, stringent environmental regulations, and the growing focus on grid modernization. Moreover, the rising government incentives, advancements in smart grid infrastructure, and the strong commitment to adopt sustainable energy practices will drive the regional market expansion.