Precedence Research predict that the global vehicle-to-grid technology market is projected to garner revenue around US$ 17.43 billion by 2027 by recording compound annual growth rate (CAGR) of 48% during the forecast period 2020 to 2027.
Vehicle-to-grid technology is system that enables bi-directional flow of electrical energy between electrical grid and the vehicle. During charging a battery the electrical energy flows from grid to vehicle, but during peak hours when grid requires energy the flow of energy is from electric vehicle to the grid. The concept of vehicle-to-grid was introduced to develop an environment-friendly mobility. Several players have shown interest in the technology that will take their electric vehicle market position to another level. Furthermore, the technology encourages the public to contribute in the smart power generation. This will help the government of various regions to fight against blackout conditions along with providing necessary power to the emergency services such as hospitals.
Increasing awareness for smart power generation coupled with rising adoption of autonomous vehicles has significantly triggered the demand for vehicle-to-grid technology. Further, the government of various regions offering incentives and other benefits over the petrol and diesel powered vehicles to accelerate the adoption of battery powered vehicles propels the market growth prominently.
However, high initial cost of the technology over specific period of time hinders the market growth. In addition, harsh driving pattern of the motorist may decrease the performance of the autonomous vehicles that again leads to restrict market growth. Repairing companies, automobile owners, and oil industries show resistance to the high cost of existing technology. Nonetheless, the increased battery life and change of preference in the customer's choice expected to fuel the market in the coming years.
- North America and Europe are the prime revenue contributors to the global vehicle-to-grid technology market. Government initiative in terms of incentives offered by them to promote the electric vehicle adoption in the region. Furthermore, the auto-manufacturers in the regions are offering long-term warranty to their customers that again fuel the market growth.
- Asia Pacific seeks opportunistic growth during the forecast period owing to green revolution drives in several countries. China, Japan, and India are some of the Asian countries that have invested significantly in the smart mobility solutions.
- Battery Electric Vehicles (BEVs) captured significant revenue share in the global vehicle-to-grid technology market in 2019. The main factor behind this is the early implementation of vehicle-to-grid technology in the vehicle. On the other hand, Plug-in Hybrid Electric Vehicles (PHEVs) exhibits the fastest growth during the forecast period owing to large battery size and high power return capacity.
- By component, Electric Vehicle Supply Equipment (EVSE) contributed significant revenue share in 2019 owing to their increasing usage for connecting electric vehicle to the grid. The EVSE are the main component that connects EV to the electric grid and thus increasing trend for renewable and smart energy generation will flourish the demand for EVSE components.
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North America and Europe are the major markets in the global vehicle-to-grid technology market. Early adoption for new technologies and environment awareness among the public are the key factors contributing to the market growth. Technological advancement and high per capita income are other prime factors accelerating the market for electric vehicles and thus vehicle-to-grid technology market. From past records, Europe has taken major initiatives in the deployment of electric vehicles and vehicle-to-grid technology. For instance, in September 2019, Nissan Motor Co. Ltd., a Japanese automotive giant announced to work with a French utility company EDF Group to accelerate the adoption of electric vehicles across Europe through smart charging.
Asia Pacific is projected to offer explicit growth during the forecast period. Several Asian countries such as China, Japan, and India are participating in green revolution and are investing significantly in the smart solutions that trigger the market growth. As per a research study conducted by Morgan Stanley in 2019, Chinese government has planned to invest US$ 800 Bn in autonomous electric vehicles, high-speed rail, smart grid technology, powerful 5G networks shared mobility, and big data technologies by 2030.
Key Players & Strategies
The global vehicle-to-grid technology market poses high competition with significant on-going developments in the market. The market players are increasingly focused towards establishing their strong footprint in the electric vehicle and vehicle-to-grid market. In February 2019, OVO Energy Ltd announced that Mitsubishi Corporation invested in the company at an exchange of 20% stake in business. The company has intention to invest the amount in emerging market in Asia Pacific and Europe for acceleration of intelligent energy technologies in the regions.
Some of the key players of the market are Nissan Motor Corporation, Mitsubishi Motors Corporation, NUVVE Corporation, ENGIE Group, OVO Energy Ltd, Group Renault, and Honda Motor Co., Ltd among others.