The vehicle to grid technology market will exhibit a humongous CAGR of 48 percent in the given projection period and is expected to reach US$ 17.43 billion by 2027.
Vehicle-to-Grid (V2G) refers to an advanced smart charging technology that transfers energy from the battery of an electric vehicle (EV) to the power grid or vice-versa. The V2G technology involves drawing unused power from the battery and transferring it to the smart grid for providing electricity during peak hours or power failures. It also acts as an additional or secondary source of power when weather-dependent renewable energy resources are not available. It is also a sustainable and cost-effective source of energy with zero-carbon emissions and can be used with plug-in EVs, battery EVs and plug-in hybrid or hydrogen cell EVs.
Rising adoption of electric vehicles across the globe has greatly transformed the energy sector. Battery-powered cars proved to be largely effective in controlling carbon emission. Developed regions such as North America and Europe have significantly adopted the electric vehicle technology, along with this; the developing countries have shown tremendous interest for adoption of electric vehicles as a mode of future transportation. Prime factor responsible for the rising demand for electric vehicles is green revolution drives in several nations to protect environment from increasing pollution.
The global V2G (vehicle-to-grid) technology market is expected to reach a market size of US$ 17.43 Billion by the end of 2027 and register a high revenue CAGR of 48% from 2020 to 2027.
Highlights of V2G (Vehicle-to-Grid) Technology Industry
- In 2019, Electric Vehicle Supply Equipment (EVSE) captured substantial revenue stake around 82% due to its growing application for connecting electric vehicles to the grid.
- The EVSE are the foremost component that joins electric vehicles to the electric grid and therefore escalating trend for smart energy and renewable generation will bolster the demand for EVSE components.
- In terms of revenue, Battery Electric Vehicles (BEVs) occupied noteworthy share of about 64% in the global vehicle-to-grid technology market in 2019. The primary influence behind this growth is the early employment of vehicle-to-grid technology in the vehicle.
- On the other hand, Plug-in Hybrid Electric Vehicles (PHEVs) is projected to display the fastest growth within the estimate period due to high-power return capacity and large battery size
Globally, Europe dominated the overall vehicle to grid market with around 36% market share in terms of revenue in 2019. Asia Pacific is projected to record robust growth and anticipated to reach market value around USD 5,521 million by 2027. The adoption rate of electric vehicles is growing, and numerous countries across the world are investing intensely in R&D. Nations like France, Canada, the Netherlands, and India have introduced numerous campaigns to boost the adoption of electric vehicles. As per one survey, there are around 50 V2G physical projects delivering clear use cases worldwide. Out of these 50 projects around 25 are in Europe, 7 in Asia-Pacific and 18 in North America. Northern European states lead with Denmark, Netherlands, UK and Germany the market leaders in the Europe. Activity in the U.S. is primarily in Hawaii, California, and Delaware. This project data depicts that Asian contribution has been more concentrated as a manufacturing partner than being a home for implementation, with some notable exceptions.
In Denmark, Nuvve Corporation declared 4 years of successive vehicle to grid operations of electric vehicles in September 2020. The company has been carrying out current frequency regulation service for Energinet, the Danish grid operator, for 4 successive years. The initial fleet of vehicles commenced service in September 2016 at a municipal water and gas Utility Corporation in Denmark named Frederiksberg Foraying.
Numerous participants in vehicle-to-grid technology market are growing offerings to fleets, schools, and houses. Revenue prospects in the vehicle-to-grid technology market are prompting battery electric vehicles and Plug-in Hybrid Electric Vehicle manufacturers to offer consumers with additional services associated to their vehicles. Since software is a significant component of V2G technology, vehicle owners can earn supplementary revenue from corporations who seek to purchase critical data generated from the intelligent and interconnected communication technology. This decisive data will benefit car manufacturers and technology providers bid improved services to consumer.
The coronavirus pandemic enforced layoffs and outlay cuts across the solar sector and hit global electric vehicle sales across the world. Yet, few start-ups catering the EV charging market have sustained pulling in new investments in spite of the ambiguity. Some of the prominent players in the vehicle-to-grid technology market include:
- Nissan Motor Corporation
- Mitsubishi Motors Corporation
- NUVVE Corporation
- ENGIE Group
- OVO Energy Ltd
- Groupe Renault
- Honda Motor Co., Ltd.
COVID-19 scenario analysis:
- Automobile makers, consumer electronics, and pharmaceuticals in various countries, especially rely on China and other developed countries near them for the supply of several raw materials and parts such as compressors, electronic components, and various sensors.
- The global automobile sector has faced the most challenges during the COVID-19 pandemic. For instance, its production houses are shutting down, inventories are overflowing, and the demand is decreasing.
- The coronavirus outbreak has heavily impacted the manufacturing industry's an original equipment manufacturer (OEM). However, parts suppliers have yet to return to full production capacity.
- Due to nationwide lockdown, companies have faced consequent delays in delivery that might impact the market at multiple levels from postponed new car model launches, shattered supply chains, financially drained SMEs, and dampened vehicle sales.
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