Vehicle-to-Grid Technology Market: Giving Rise to New Business Models

Market players are combining vehicle-to-grid technology (V2G) with V2X communication and power conversion technology, to facilitate data exchanges between vehicles and their environments. This helps create an intelligent and interconnected transportation ecosystem between technology providers and vehicle owners.

Combining BEVs (Battery Electric Vehicles) with vehicle-to-grid technology is creating revenue opportunities for various stakeholders in the market. This technology helps consumers to be a part of smart grid solution systems, which empowers them with price arbitrage and enables them to control energy reserves. Thus, vehicle owners can provide ancillary services to large distribution network operators and earn revenue by providing operators with energy reserves.

Revenue opportunities in the vehicle-to-grid technology market are triggering BEV and PHEV (Plug-in Hybrid Electric Vehicle) manufacturers to provide consumers with additional services linked to their vehicles. Since software is an important component of V2G technology, vehicle owners can earn additional revenue from companies who wish to purchase crucial data generated from the intelligent and interconnected communication technology. This crucial data will help car manufacturers and technology providers offer better services to consumers. This interconnected network helps players in the vehicle-to-grid technology market in gaining important insights about consumers and other stakeholders in the value chain with much ease and in a cost-efficient manner. The vehicle-to-grid technology market is estimated to grow at an astounding CAGR of ~46%, to reach a revenue value of ~US$ 18 Bn by the year 2027.

vehicle to grid technology market infographic

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Depending on the location proximity, vehicle, and charger, vehicle-to-grid technology helps translate savings for various stakeholders in the value chain. Market players are offering competitive prices to vehicle owners for energy reserves to avoid costly charges during high demand times.

Players in the vehicle-to-grid technology market are increasing offerings to fleets, schools, and homes. For example, school buses have large batteries and enough scope to charge the batteries during downtime at night as well as in the middle of the day. Also, vehicle owners can save on energy costs at home by self-consuming the electricity stored in their PHEVs, and avoid price uncertainties during peak demand hours. Consumers can also build their own renewable energy sources by installing solar panels at their homes to reach self-sufficiency. This ensures direct sales of vehicle-to-grid technology to consumers via automakers of electric vehicles.

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Standardization of Regulations and Battery Management Systems to Overcome Restraints in the V2G Technology Market

Countries such as France have strict regulatory norms to control how electricity can be injected into a grid from individual producers. Also, multiple administrative steps require approval from government authorities. Such complicated procedures are highly unwelcome for BEV and PHEV owners. As such, market players are overcoming tight regulations by establishing standardized V2G protocols by striking the right balance between protecting the grid network and the smooth implementation of this technology.

There is a direct impact of vehicle-to-grid technology on car batteries, since the implementation of the technology reduces their life cycle. Depreciation of batteries is estimated to affect automakers the most in the value chain. Since automakers offer warranty on batteries to consumers, they could suffer revenue losses due to rapid battery depreciation. To compensate for these losses, automakers could device schemes with grid operators. Even with improvements in the battery life cycle, contracting would be an issue, as automakers will have to split the revenue gains amongst grid operators and consumers. Thus, it is necessary for them to strategically manage change, develop improved batteries, and educate consumers about the proper usage of the batteries.

vehicle to grid technology market segmentation

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Analysts’ Viewpoint

Market players should tap into high incremental opportunities in Europe and Asia Pacific. Increased research and development is helping technology providers integrate V2G with vehicle-to-everything (V2X) technology. The high adoption of bi-directional chargers will be seen in vehicle-to-grid technology. Stakeholders in the V2G technology market are developing mobile applications to provide insights on the status of batteries to consumers. There is the need for the standardization of regulations and battery depreciation management systems for vehicle owners. Market players should collaborate with automakers to devise energy compensation models to innovate on contracts with consumers.

  • According to Transparency Market Research’s latest research report on the global vehicle-to-grid technology market for the historical year 2017 and the forecast period of 2019–2027, reduction in carbon emissions and energy saving by using vehicle-to-grid (V2G) technology are expected to drive the global vehicle-to-grid technology market during the forecast period
  • In terms of revenue, the global vehicle-to-grid technology market is estimated to reach a value of ~US$ 860 Mn by the end of 2019. The global vehicle-to-grid technology market is projected to expand at a CAGR of ~46% throughout the forecast period. 

 

The ‘Competition Landscape’ section of the vehicle-to-grid technology market report has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global vehicle-to-grid technology market.

Global Vehicle-to-Grid Technology Market: Key Developments

Manufacturers operating in the global vehicle-to-grid technology market, such as NUVVE Corporation, Engie Group, and OVO Energy Ltd., are strengthening their market position by improving product quality and expanding their business. Certain key developments in the global vehicle-to-grid technology market are as follows:

In December 2018, Nuvve Corporation entered into a strategic partnership with EDF Group to support the former’s electric mobility plan. With this partnership, the two companies are expected to develop electric vehicles and vehicle-to-grid solutions for the European market. In June 2019, ENGIE signed an agreement with Fiat Chrysler Automobiles (FCA) for offering new e-mobility solutions in 14 countries in Europe. With its subsidiaries, i.e. ENGIE Eps and EVBox, the company would be providing FCA with charging stations for its dealers and customers in markets in Europe. In February 2019, OVO Energy Ltd announced a strategic investment from Mitsubishi Corporation at the exchange of 20% stake in the business. The company intends to use this investment for venturing into new markets in Europe and Asia Pacific, and for accelerating the development of its unit for intelligent energy technologies, i.e. Kaluza.

Global Vehicle-to-Grid Technology Market: Competition Landscape

Detailed profiles of manufacturers of vehicle-to-grid technology products have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies Key players operating in the global vehicle-to-grid technology market are:

  • Nissan Motor Corporation
  • Mitsubishi Motors Corporation
  • NUVVE Corporation
  • ENGIE Group
  • OVO Energy Ltd
  • Groupe Renault
  • Honda Motor Co., Ltd. 

V2G Technology Market: Lack of Infrastructure a Major Challenge

A bidirectional charger or an electric vehicle supply equipment (EVSE) is required to charge an electric vehicle battery and supply electricity back to the grid. Advancements in the batteries of electric vehicles have been very sluggish as compared to other technologies. Lack of infrastructure and high initial costs of electric vehicles with vehicle-to-grid technology make it difficult for these vehicles to compete with conventional vehicles with internal combustion engines. This factor is restraining the global vehicle-to-grid technology market. 

Collaborations and Partnerships among Key V2G Technology Market Players

Manufacturers are focusing on collaborations and partnerships with other players (electric vehicle manufacturers) in order to promote vehicle-to-grid technology.

  • For instance, in June 2018, Mitsubishi and Hitachi collaborated to set up a vehicle–to-grid charging network for battery electric vehicles and plug-in hybrid electric vehicles at several locations across Japan. This collaboration is expected to lead to the development of a sustainable business model for renewable energy and stabilization of power networks. This project is headed by TEPCO, Japan’s energy company.

Such strategic partnerships by manufacturers with different car manufacturers and energy companies are augmenting the global V2G technology market. 

Reduction in Carbon Emissions and Energy Savings: Key Market Drivers

Electric vehicles have the potential to reduce carbon emissions. Electric vehicles mostly use batteries, and this causes a reduction in carbon emissions by giving preference to battery-operated vehicles. Increasing adoption of electric vehicles in Europe has lowered carbon emissions, thereby improving the air quality. Since V2G technology is implemented in electric vehicles, it indirectly helps reduce carbon emissions. For instance, the carbon emissions from different types of vehicles when driven for 10,000 miles are:

  • Electric Vehicles: 0.96t CO2e
  • Petrol Vehicles: 2.99t CO2e
  • Diesel Vehicles: 2.88t CO2e

Electric vehicles with vehicle-to-grid technology can supply electricity back to the grid when these vehicles are not in use. A majority of the time, electric vehicles are stationary at office premises. During this idle time, the batteries of these vehicles can be utilized for supplying electricity back to the grid, thereby saving grid energy. 

Global Vehicle-to-Grid Technology Market: Scope of the Study

[166 Pages Report] This report by Transparency Market Research studies the global vehicle-to-grid (V2G) technology market for the 2019–2027 period. The primary objective of this report is to offer insights and key market trends pertaining to the global vehicle-to-grid technology market that are gradually helping transform global businesses.

The report begins with an executive summary for various segments - by component, application, and region - and their share in the global vehicle-to-grid technology market. It is followed by a market introduction, market dynamics, and overview of the global vehicle-to-grid technology market, which includes TMR analysis of the market drivers, restraints, and trends affecting the global vehicle-to-grid technology market. Furthermore, in order to understand the Y-o-Y growth trends in the global vehicle-to-grid technology market, Y-o-Y growth analysis with elaborated insights on the same have been provided.

The next section of the report highlights the USPs, which include value chain analysis describing raw material suppliers, manufacturers, and distributors operating in the market. Each section in the value chain analysis consists of some listed examples for better understanding of the entire supply chain, added to which is the profitability margin validated by primary interviews. Another USP of the report on the global vehicle-to-grid technology market is the data about essential market perspectives, which contains the views of leading players operating in the global V2G technology market. Porter’s five forces analysis is another point added to the report, which explains how the number of manufacturers affects the entire market scenario.

The next section of the report highlights the global vehicle-to-grid technology market, by region, and provides the market outlook for the 2019–2027 period. The study analyses the drivers that influence the vehicle-to-grid technology market across different regions.

In order to ascertain the size of the global vehicle-to-grid technology market, in terms of value, revenue generated by key developers of vehicle-to-grid technology, including manufacturers of vehicles, and their respective production capacities, have been taken into consideration. The forecast presented here assesses the total revenue generated, by value, across the global vehicle-to-grid technology market. In order to provide an accurate forecast, TMR initiated by sizing up the current vehicle-to-grid technology market with the help of the parent market. We collected data from secondary research and validated it through primary research. We also formed a basis of how the global V2G technology market is expected to expand in the near future by taking into account the opinions of market experts. Given the characteristics of the global vehicle-to-grid technology market, we triangulated the outcome on the basis of three different types of analyses: based on the supply side, downstream industry demand, and economic envelope. In addition, it is imperative to note that, in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR but also analyze the market based on key parameters to understand the predictability of the market and identify correct opportunities for the market.

Global Vehicle-to-Grid Technology Market – Competition Landscape

In the final section of the report on the global vehicle-to-grid technology market, a 'dashboard view' of the companies has been provided to compare the current market scenario and the contribution of companies to the global vehicle-to-grid technology market. Moreover, the report is primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to segments of the global vehicle-to-grid technology market. Report audiences can gain segment-specific manufacturer insights to identify and evaluate key competitors based on in-depth assessment of their capabilities and success in the vehicle-to-grid technology marketplace.

Global Vehicle-to-Grid Technology Market:

The global vehicle-to-grid technology market has been segmented on the basis of component, application, and region. Segments of the global vehicle-to-grid technology market have been analysed in terms of their market share to understand an individual segment’s relative contribution to market growth. This detailed level of information is important for identifying key trends in the global V2G technology market.

Component

Electric Vehicle Supply Equipment (EVSE)
Smart Meters
Home Energy Management (HEM)
Software

Application

Battery Electric Vehicles (BEVs)
Plug-in Hybrid Electric Vehicles (PHEVs)
Fuel Cell Vehicles (FCVs)

Region

North America
Europe
Pacific
Asia
Middle East & Africa
South America

 

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