The vehicle-to-grid technology market is still emerging, but with a rise in dedication to integrating that technology with investment in infrastructure and compatible electric vehicles, significant growth is expected along with revenue potential, according to a report from Transparency Market Research.
The study says the vehicle-to-grid technology (V2G) has demonstrated the potential for energy systems to balance energy demand for electric transportation as well as storage opportunities. The worldwide market for V2G technology was estimated to be worth $2.78 billion last year and is expected to increase at a CAGR of 16.45% to $12.75 billion through 2031.
The report finds that the opportunities will only increase as electric vehicles see more use, combined with increased implementation of renewable energy sources across multiple applications. Currently, infrastructure is the biggest obstacle to V2G technology increasing, but Transparency Market Research says key players in the market are invested rapidly in such tools as turbo-charging stations.
According to the study, an increase in the technology and infrastructure can also play a role in reducing volatility in the grid.
V2G technology can generate power on its own and charging infrastructure can feed electricity from a parked vehicle’s battery back into the electric grid while it is also being charged. The technology can store the energy produced during lower demand times and use it during higher demand periods.
It is also seen as a key piece to improving building energy management systems, especially as the need for charging stations could impact 10% of commercial properties, according to a report from Guidehouse. A pilot program by SWTCH Energy in Canada is studying how V2G technology can help buildings capture that energy.
With the increase in electric vehicles, a study from EPRI found that V2G technology could have up to a $1 billion impact in yearly grid benefits in California alone. If half the state’s current electric vehicles were V2G capable, that could result in $39 million of annual savings from improved grid efficiencies.
To go along with this, automotive manufacturers are increasingly making V2G-compatible cars. So is the desire to use renewable energy to power these vehicles.
The Transparency Market Research report finds that North America holds a key share of the market, bolstered in the United States by the introduction of more compatible V2G cars. Transparency Market Research specifically points out Mitsubishi and Nissan, which recently unveiled compatible vehicles.
The United Kingdom is also increasing investments in electric mobility and smart energy management. That is going along with an increase in electric vehicle charging stations across Europe.
Some of the key players in the V2G technology market according to Transparency Market Research are EnerDel, OVO Energy, ENGIE Group, NUVVE, Denso, Groupe Renault, Honda, Hitachi Energy, Mitsubishi, and Nissan.