The Vehicle To Grid Technology Market is estimated to be valued at US$ 171.38 Mn in 2023 and is expected to exhibit a CAGR of 43.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Vehicle to grid technology allows the transfer of electricity from electric vehicles to the power grid or to off-grid storage systems. It helps in supporting other renewable energy resources integration to the overall power grid. It aids in minimizing the emission of greenhouse gases with reduction in dependency on fossil fuel generated energy. By enabling two-way power flow, V2G offers several advantages such as improving the efficient use of renewable energy and energy storage capacity of electric vehicles.
Market key trends:
The increasing adoption of electric vehicles across the globe is one of the major factors driving the growth of the vehicle to grid technology market. According to International Energy Agency, the global electric car stock crossed 10 million in 2022, which is a 75% increase from 2021. With the growing sales of electric vehicles, the need for vehicle to grid technology is expected to increase significantly over the forecast period. Furthermore, rising investment by key companies in the development of vehicle to grid related infrastructure and services is also expected to support the market growth. For instance, in 2022, Nuvve Holding Corp. collaborated with OVO Energy to develop V2G hubs across the UK.
Porter’s Analysis
Threat of new entrants: New entrants face high initial costs for infrastructure development and need to attain economies of scale to efficiently utilize the grid capacity. This poses challenges for new companies.
Bargaining power of buyers: Buyers have high bargaining power as there are several V2G technology providers. Buyers can negotiate on price and gain better offers.
Bargaining power of suppliers: Suppliers have low bargaining power due to availability of substitute components. This allows buyers to negotiate on price and purchase components at competitive rates.
Threat of new substitutes: New energy storage technologies can replace grid services currently provided through V2G technologies.
Competitive rivalry: Intense due to presence of global players competing on technology, features and pricing.
SWOT Analysis
Strength: V2G technology helps maximize utilization of electric vehicles and reduce dependence on fossil fuels. It allows car owners to gain revenue by supplying grid services.
Weakness: High initial investment and dependency on electric vehicle adoption. Technology is still in development phase and not commercially proven.
Opportunity: Growing global focus on renewable energy offers significant growth prospects. Rising electric vehicle sales will drive V2G deployment.
Threats: Safety concerns regarding battery degradation and issues related to simultaneous vehicle charging and discharging. Stiff competition from new energy storage technologies.
Key Takeaways
The Global Vehicle To Grid Technology Market Size is expected to witness high growth, exhibiting CAGR of 43.9% over the forecast period, due to increasing deployment of renewable energy sources. V2G technologies play a vital role in supporting renewable energy Integration by providing grid balancing services through storage of excess renewable energy in EV batteries.
Regional analysis: North America dominates the global V2G technology market and is expected to maintain its lead over the forecast period. This is attributed to rapid adoption of EVs and supportive government policies for renewable deployment in the US and Canada. Asia Pacific is anticipated to grow at the fastest pace owing to rising EV sales and investments in smart grid technologies in major countries like China and India.
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. Leading players are focused on collaborations and new product launches to strengthen their global presence.
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