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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 Overview:
Vehicle to grid (V2G) technology involves the exchange of power between electric vehicles and the grid. It helps in utilizing electric vehicles as distributed energy storage systems when they are parked and connected to the grid. Vehicles equipped with bi-directional charging equipment can feed electricity stored in their batteries back to the grid during peak demand hours and help balance the distribution network. This provides the grid operator with flexibility and reduces stress on generation assets. The technology also monetizes parked electric vehicles by allowing owners to earn revenues by supplying power to the grid.
Market key trends:
One of the major trends pushing the adoption of V2G technology is the rapid growth in electric vehicle sales worldwide. Automakers are aggressively expanding their electric model lineups to meet government mandates for lower vehicular emissions. As more electric vehicles get added to the fleet each year, their decentralized storage capacity can be leveraged via V2G systems. Another significant trend is the development of robust ancillary service markets that value distributed energy resources. Increased participation of electric vehicles in these markets by providing functions like frequency regulation is incentivizing wider deployment of V2G infrastructure. Standardization of communication protocols between electric vehicles and the grid is also underway to facilitate seamless integration of this flexible load resource.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the requirement of high capital investment and the dominance of existing key players.
Bargaining power of buyers: The bargaining power of buyers is high as the market has large number of players offering similar products with some differentiated features.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are few large players providing critical inputs and components.
Threat of new substitutes: The threat of substitutes is low as there are limited substitute product providing energy storage solutions.
Competitive rivalry: High.
Key Takeaways
The global Vehicle To Grid Technology market is expected to witness high growth, exhibiting CAGR of 43% over the forecast period, due to increasing demand for decentralized energy storage solutions.
Regional analysis
North America is expected to dominate the global Vehicle To Grid Technology market over the forecast period owing to early adoption of advanced vehicle technologies and supporting government policies for clean energy in the US and Canada. Asia Pacific is expected to exhibit fastest growth in the market due to increasing sales of electric vehicles in China.
Key players
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. Key players are focusing on development of advanced bi-directional charging systems to capitalize on growing demand for vehicle-to-grid power services
