According to Precedence Research, the global vehicle-to-grid technology market size accounted for USD 11.89 billion in 2026 and is estimated to grow from USD 17.43 billion in 2027 to approximately USD 49.75 billion by 2034.
In terms of CAGR, the worldwide V2G technology market is growing at a double-digit compound annual growth rate (CAGR) of 28.13% from 2025 to 2034. Driven by the rising adoption of electric vehicles and the growing demand for smart grid integration and renewable energy storage solutions.
ehicle-to-Grid Technology Market Overview
What is a Vehicle-to-Grid Technology Market?
The vehicle-to-grid technology market is an innovative solution to energy and transportation that allows electric vehicles to draw energy also feed it back to the grid. This incorporation has increased the stability of the grids, made it possible to use renewable energy, and generated economic advantages to consumers and utility providers.
The V2G market is growing mostly due to the high rate of EV adoption across the globe, with the favourable government incentives and environmental policies. The growth in renewable energy integration needs, the surge in investments in smart grid infrastructure, and the energy storage systems necessities are boosting adoption.
Try Before You Buy – Get the Sample Report@ https://www.precedenceresearch.com/sample/1019
Vehicle-to-Grid Technology Market Key Insights:
- Europe accounted for the largest market share of 35.80% in 2024.
- By component type, the electric vehicle supply equipment segment contributed the largest market share of 83.13% in 2024.
- By application, the battery electric vehicles (BEVs) segment generated the biggest market share of 63.89% in 2024.
- By application, the plug-in hybrid electric vehicles (PHEVs) segment is expected to grow at a strong CAGR of 28.59% from 2025 to 2034.
Latest Trends in the Vehicle-to-Grid (V2G) Technology Market
- Large-Scale V2G Deployments
- Expansion of grid-capable electric vehicles in shared mobility and fleet operations.
- Commercial rollouts of bi-directional EVs are accelerating in urban centers.
- Bidirectional Charging Becoming Standard
- Increasing adoption of bidirectional charging in new EV models.
- EVs are being used not just for mobility, but also as mobile energy storage.
- EVs as Home Batteries
- Households are beginning to use EVs to power homes during peak hours.
- Integration with residential solar systems is on the rise.
- Utility-Driven Load Management
- V2G is being used to stabilize grids under increasing EV load.
- Utilities are exploring time-of-use pricing and demand-response programs.
- Software & Grid Integration Advancements
- Surge in intelligent energy management systems.
- Software platforms are enabling seamless communication between EVs and grids.
- Infrastructure Development
- Growth in EVSE (Electric Vehicle Supply Equipment) tailored for V2G.
- Enhanced charging stations designed for two-way energy flow.
- Standardization & Interoperability
- Adoption of universal communication standards like ISO 15118.
- Push
Vehicle-to-Grid Technology Market Opportunity
Shift Towards Cleaner Energy Systems:
The vehicle-to-grid technology market is graced with tremendous opportunities as global energy systems are being shifted toward cleaner and smarter energy systems. The increase in electricity demand and rapid urbanization, especially in the Asia Pacific, is spurring the growth and creation of a sustainable and steady supply of power.
Policymakers and governments are also increasing support toward clean energy, and therefore, V2G systems are more likely to experience enhanced uptake. In the case of energy providers, it opens a new business world based on flexibility, energy storage, and demand response, with V2G serving as a key to the clean energy transition.
Challenges in the Vehicle-to-Grid Technology Market
High Upfront Prices:
Although this approach has great potential, there are still several challenges identified that may impede the mass introduction of the V2G technology. The major disadvantage is the high upfront price of some components, required most notably the bidirectional chargers and electric vehicle supply equipment (EVSE), and it is still costly to consumers as well as utility providers.
Several car owners, repair firms, and stakeholders in the oil industry will resist such costs, hence delaying entry into the market. Issues of data safety and the so-called range anxiety, where drivers are afraid of running out of electricity in their cars, also contribute to the lack of adoption.
Vehicle-to-Grid Technology Market Key Regional Analysis:
How Big is the Europe Vehicle-to-Grid Technology Market?
According to Precedence Research, the vehicle-to-grid technology drugs market size was valued at USD 129.80 billion in 2024 and is expected to grow at a CAGR of 28.05% from 2025 to 2034, reaching approximately USD 17.66 billion by 2034.
How Did North America Dominate the Vehicle-to-Grid Technology Market?
North America dominated the Vehicle-to-Grid Technology Market in 2024, due to the robust government efforts to shift towards the use of electric vehicles and minimize the emission of carbon. The exit of subsidies, taxes, and warranties granted by manufacturers in the long term has been an incentive to switch to EV with V2G. Advanced grid infrastructure and an increasing rate of renewable energy integration are central to the role of the U.S. and Canada.
The region also has an established infrastructure of charging stations and an increasing number of ties between car manufacturers, utilities, and technological companies. North America is expected to experience a great deal of continuity over the forecast period with its continuous policy support, awareness among the masses, and technological preparedness of the region to adopt large-scale V2G.
Europe experiences the fastest growth in the market during the forecast period, due to strict emission requirements and ambitious renewable energy plans. The policies of the European Union, insisting on its clean energy transition, the creation of funding opportunities allocated to promoting clean energy and carbon neutrality, are contributing to the faster adoption of EVs and V2G adoption.
Germany can be distinguished by its intensive promotion of the renewable energy integration and grid stability, thus being one of the main V2G markets. The availability of major EV manufacturing brands, as well as the well-developed automotive industry, is also an advantage for fast growth in the market.
Read Also: Parkinson’s Disease Therapeutics Market Size Surpass USD 13.34 Bn by 2034
Vehicle-to-Grid Technology Market Segmentation Analysis:
Component Type Analysis
The electric vehicle supply equipment segment dominated the vehicle-to-grid technology market in 2024. EVSE serves as the portal to the two-way flow of energy, and the charging can occur; the recouping of the stored energy to the grid can also be performed. This capability covers critical functions like load peak management, integration of renewable energy power sources, and backup power during power cuts.
The increased rate of power generation with renewable sources of energy and the international movement towards the intelligent energy supply further accelerated the need for the high-tech EVSE. Moreover, the increasing adoption of EVs worldwide causes a greater need for scaled charging systems. Therefore, EVSE is the most significant and high-growth component segment in the V2G technology market.
Application Type Insights
The battery electric vehicles (BEVs) segment held the largest share in the vehicle-to-grid technology market in 2024, owing to their increasing use and availability around the world and their energy storage capacity. Their batteries will also have the potential as distributed energy storage systems and can sell excess stored energy to the grid during times of peak demand. This is used to perform such important functions as frequency control, peak-shaving, and renewable energy integration.
The trend toward environmentally friendly mobility, the subsidizing of EV acquisition by the government, adds additional power to the BEV demand. BEVs are gradually becoming a focal point when it comes to demand-supply variability, thus further solidifying their position in the market as products of V2G technology.
The plug-in hybrid electric vehicles (PHEVs) segment experiences the fastest growth in the market during the forecast period. PHEVs are a compromise between the traditional powertrain and the electric one that enables drivers to enjoy both possible working powers, eliminating the fear of running out of power.
The increasing popularity of PHEVs is due to their convenience, good price, and low costs of ownership compared to more purely electric vehicles. There are also positive government policies, an increase in investments in the charging systems, and growing awareness of sustainable motion that are catalyzing their use. With a growing number of consumers and fleets converting to hybrid-electric vehicles, PHEVs will become a major factor in encouraging V2G implementation around the globe.
Recent Developments:
- In July 2025, the Kerala State Electricity Board, V2G project was launched collaboratively with IIT Bombay, which is the first in India. This was implemented in two steps with the feasibility study and system development. The initiative promoted rooftop solar integration, peak-load control, and frequency regulation, and it was a world record in energy sustainability management.
- In July 2025, Ausgrid introduced a vehicle-to-grid solution for electric vehicles. The V2G system decreased the need to invest in expensive infrastructure transformation, the easy way of transporting energy, and the strengthening of the electric power grid during its peak.
- In June 2025, BYD joined with Octopus Energy to launch the first V2G bundle in the UK. The tariff was bundled with the package of a bidirectional Zaptec Pro charger and a leased BYD Dolphin. It offered grid stabilization, predictable monthly pricing, in addition to home charging being free or discounted.
Case Study: Nissan LEAF and NUVVE’s Vehicle-to-Grid (V2G) Deployment in Denmark
Nissan, one of the global leaders in electric vehicles, partnered with NUVVE Corporation and the Danish utility company Energinet to pioneer one of the world’s first large-scale vehicle-to-grid projects. The initiative focused on demonstrating how electric vehicles (EVs) could be transformed into mobile energy storage units that support grid stability, while also providing economic benefits to EV owners.
Implementation:
- The pilot project involved deploying a fleet of Nissan LEAF EVs, each equipped with bidirectional charging technology.
- The vehicles were connected to NUVVE’s Grid Integrated Vehicle Platform (GIVe), which allowed real-time communication between EVs and the power grid.
- EVs discharged stored energy back into the grid during peak demand and recharged during off-peak hours.
Outcomes & Benefits:
- Grid Stabilization: The system provided frequency regulation services to the Danish grid, helping balance fluctuations caused by renewable energy sources like wind and solar.
- Economic Advantage: EV owners earned compensation from Energinet for supplying stored energy, effectively reducing the total cost of vehicle ownership.
- Scalability: The project demonstrated the scalability of V2G technology, showing how EV fleets could act as a distributed energy resource (DER) on a national scale.
- Environmental Impact: By leveraging renewable energy storage, the program contributed to Denmark’s clean energy transition strategy.
Key Learning:
This case study highlighted that consumer participation and supportive utility policies are critical for V2G adoption. It also demonstrated that integrating V2G with renewables can reduce reliance on fossil-fuel-based peaker plants, cutting carbon emissions.