Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Vehicle-to-Grid Technology Market size was valued at USD 5.6 billion in 2024 and is projected to reach USD 145.9 billion by the end of 2037, rising at a CAGR of 28.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of vehicle-to-grid technology is assessed at USD 7.2 billion.
The V2G technology market is rapidly expanding due to the increasing adoption of electric vehicles and the rising need for grid stability. The global surge in EV adoption serves as a fundamental catalyst for vehicle-to-grid technology. As more consumers and businesses transition from internal combustion engine vehicles to EVs, the number of battery-powered cars with bidirectional charging capabilities is growing. According to the Global EV Outlook Report 2024, electric car sales in 2023 reached 14 million units, marking 3.5 million units higher than in 2022. The sale of electric cars also witnessed a 35% year-on-year increase where 95% of electric vehicles were reported to be sold only in China, followed by Europe and the U.S. This rapid increase in EV ownership amplifies the potential resource pool for V2G integration as a larger fleet of EVs can collectively contribute significant energy storage capacity to the grid.
The increasing adoption of electric vehicles has catalyzed the implementation of V2G technology, enabling EVs to serve as a dynamic energy asset within the power grid. A notable example of this integration can be seen in New York City. In October 2024, New York City introduced its first fleet of solar-powered electric school buses equipped with V2G capabilities. This initiative, led by Con Edison and First Student, integrates these buses into a smart energy hub designed to support the local grid during peak demand periods. These buses are outfitted with solar panels and complemented by a 500-kW solar array on the depot’s rooftop, enabling them to generate and store renewable energy. Thus, this project exemplifies how the proliferation of EVs, particularly in public transportation, can be leveraged to support and stabilize the electrical grid through V2G technology.
Vehicle-to-Grid Technology Market: Growth Drivers and Challenges
Growth Drivers
- Advancements in charging infrastructure: The expansion of EV charging infrastructure is critical for the adoption of vehicle-to-grid technology. According to the International Energy Agency Report 2024, in 2023, the global public charging network experienced a growth of over 40%, with fast chargers witnessing a 55% increase, outpacing the growth of slow chargers. Notably, fast chargers now represent over 35% of the public charging stock. These developments facilitate more efficient and widespread implementation of V2G services, which allows for quicker energy transfer between EVs and the grid.
- Integration with renewable energy sources: The shift towards renewable energy sources such as wind and solar energy is a significant driver of the vehicle-to-grid technology market. These energy sources are intermittent, i.e., power generation fluctuates based on weather conditions. Thus, V2G enables EVs to act as mobile energy storage units, storing excess renewable energy when production is high and discharging it back to the grid when demand rises. This helps balance electricity supply and demand, reducing the need for costly grid infrastructure upgrades.
- Supportive government policies and initiatives: The implementation of strict guidelines by the governments is instrumental in the growth of vehicle-to-grid technology. For instance, in January 2025, the U.S. Department of Energy’s EV Grid Assist initiative to promote Vehicle-to-Grid Integration (VGI) supports stakeholders in understanding the challenges and opportunities associated with integrating EVs into the grid. It further helps to achieve transportation electrification goals through validated data, tools, and technical assistance. These efforts aim to enhance coordination among utilities, regulators, manufacturers, and technology providers, thereby accelerating the adoption of V2G solutions.
Challenges
- Infrastructure limitations: The lack of widespread bidirectional charging infrastructure is a major barrier to V2G adoption. Most EV chargers are unidirectional, and upgrading to V2G-compatible systems requires significant investment. Additionally, many power grids are not designed for bidirectional energy flow, which tends to require costly modernization. Concerns over battery degradation due to frequent charge-discharge cycles also discourage EV owners from participating in V2G programs.
- Regulatory and market barriers: The absence of standardized regulations makes it difficult to implement V2G technology at scale. Different regions have varying policies on grid integration, energy pricing, and incentives that create uncertainty for investors and stakeholders. Many utilities in this sector remain hesitant due to concerns over grid stability and unpredictable energy flows from EVs. Moreover, unclear business models and compensation structures limit the financial appeal of V2G for EV owners.
Vehicle-to-Grid Technology Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
28.5% |
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Base Year Market Size (2024) |
USD 5.6 billion |
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Forecast Year Market Size (2037) |
USD 145.9 billion |
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Regional Scope |
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Vehicle-to-Grid Technology Segmentation
Application (Battery Electric Vehicles, Fuel Cell Vehicles, Plug-in Hybrid Electric Vehicles)
Battery electric vehicles segment is set to hold vehicle-to-grid technology market share of more than 65% by 2037, as they serve as mobile energy storage units that help balance electricity demand and supply. The growth can be attributed to rising EV adoption, advancements in bidirectional charging, and increasing investments in smart grid infrastructure. Governments and utilities are investing in BEV-based V2G programs to improve grid resilience and optimize energy management. As battery efficiency improves and charging networks expand, BEVs are becoming a key driver of V2G technology adoption.
Component (Electric Vehicle Supply Equipment, Smart Meters, Software, Home Energy Management)
The electric vehicle supply equipment segment in vehicle-to-grid (V2G) technology market is expected to register rapid growth during the forecast period as they are essential for enabling vehicle-to-grid technology by supporting bidirectional energy flow between EVs and the grid. Its growth is driven by increasing EV adoption, government incentives for smart charging infrastructure, and rising investments in grid modernization. Advanced EVSE solutions help optimize energy distribution, reduce peak demand pressure, and enhance renewable energy integration. As utilities and automakers collaborate to expand charging networks, EVSE is becoming a key component of V2G adoption worldwide.
Our in-depth analysis of the global vehicle-to-grid technology market includes the following segments:
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Application |
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Component |
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Customize this ReportVehicle-to-Grid Technology Industry - Regional Scope
Europe Market Analysis
Europe vehicle-to-grid technology market is predicted to account for revenue share of around 38% by 2037, due to strong government policies, rising EV adoption, and ambitious renewable energy targets. The European Union’s push for carbon neutrality by 2050 and incentives for smart grid development are accelerating V2G integration. Additionally, a study conducted by the Fraunhofer Institutes for Transport & Environment (T&E) in October 2024 projects that the adoption of vehicle-to-grid technology could lead to annual savings of Euro 22 billion across the European Union by 2040. This reduction represents an 8% decrease in the costs associated with building and operating the EU’s energy system. UK and Germany lead the large-scale V2G pilot projects and bidirectional charging infrastructure. As energy security becomes a priority, V2G technology is gaining traction as a solution for grid stabilization and renewable energy storage.
The vehicle-to-grid (V2G) technology market in the UK is expanding due to strong government initiatives such as the Smart Systems and Flexibility Plan, which promotes bidirectional charging infrastructure. Energy providers and automakers are collaborating on large-scale V2G trials to integrate EVs into the national grid to enhance energy resilience. With a growing renewable energy sector, V2G is helping to balance supply fluctuations, particularly from wind power. Additionally, financial incentives for EV owners participating in V2G programs are driving consumer adoption.
The vehicle-to-grid technology market in Germany is expanding due to its strong push for decentralized energy solutions and grid stability amid rising renewable energy adoption. The government’s Energiewende policy encourages V2G integration to manage surplus electricity from wind and solar farms. Automakers in the country are actively developing V2G-compatible EVs, driving technological advancements. Additionally, regulatory reforms supporting bidirectional charging infrastructure are accelerating V2G programs in the country.
Asia Pacific Market Analysis
Asia Pacific is anticipated to garner a robust vehicle-to-grid (V2G) technology market share from 2025 to 2037 due to rapid urbanization, increasing electricity demand, and government-led smart grid initiatives. Countries such as Japan, South Korea, and China are investing in bidirectional charging infrastructure to enhance energy efficiency. Automakers and energy companies are collaborating to support grid stability and peak load management. The rising renewable energy adoption and the push for energy security are further accelerating V2G integration across the region.
China’s V2G technology market is expanding due to the government’s push for electrification and grid modernization under its Dual Carbon goals. State-owned utilities and tech firms are investing in large-scale V2G pilots to manage the country’s massive EV fleet as a decentralized energy resource. The rapid development of ultra-fast and bidirectional charging infrastructure is enabling seamless energy exchange between EVs and the grid. For instance, in August 2024, China’s Jiangsu province initiated a large-scale V2G pilot program involving 1277 electric vehicles across 482 charging stations. This initiative allows EVs to charge during off-peak hours and discharge energy back to the grid during peak periods, effectively reducing peak electricity consumption by 17,000-kilowatt hours daily, sufficient to power approximately 2100 households. Additionally, China’s focus on energy self-sufficiency is driving policies that encourage V2G adoption to balance renewable power fluctuations.
The vehicle-to-grid technology market in South Korea is experiencing growth attributed to the government’s commitment to renewable energy integration and smart grid development. The nation’s focus on enhancing energy security has led to investments in V2G infrastructure aiding electric vehicles to support grid stability. Collaborations between automakers and energy providers are fostering innovation in bidirectional charging technologies. For instance, in October 2024, Kia Corporation and Korea Electric Power Corporation (KEPCO) signed a memorandum of understanding to develop a future electrification and power ecosystem based on purpose-built vehicles (PBVs). This collaboration aims to create PBV models optimized for KEPCO’s operational needs and plug-in charge systems. These advancements have positioned South Korea as a key player in Asia Pacific.
Companies Dominating the Vehicle-to-Grid Technology Market
- NUVVE Corporation
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- WeaveGrid
- ENGIE Group
- OVO Energy Ltd
- Groupe Renault
The competitive landscape of the vehicle-to-grid technology market is shaped by automakers, energy providers, and tech firms competing to develop advanced bidirectional charging solutions. Companies such as Nissan, Nuvve, and Enel X are leading in V2G deployments while Tesla and Volkswagen are integrating V2G into their EV ecosystems. Further, strategic partnerships, government collaborations, and advancements in smart grid technology are key factors driving market competition. Here are some leading players in the vehicle-to-grid (V2G) technology market:
In the News
- In February 2025, Nuvve Holding Corp partnered with Resource Innovations and ComEd for a pilot program using bidirectional charging with electric school buses in northern Illinois. This program, running until late 2025 will study how V2G can benefit energy grids, communities and clean transportation.
- In January 2025, WeaveGrid, a software company specializing in electric vehicle (EV) grid integration, received investment from Hyundai Motor Company and Kia Corporation. This investment strengthens WeaveGrid's role in helping automakers connect EVs to the power grid securely and efficiently. Their EV Management System (EVMS) enables smart.
Author Credits: Saima Khursheed
- Report ID: 7426
- Published Date: Apr 01, 2025
- Report Format: PDF, PPT
