Vehicle-to-Grid (V2G) Technology Market Size, Share, Report 2025 to 2034

Vehicle-to-Grid Technology Market Size and Growth 2025 to 2034

The global vehicle-to-grid (V2G) technology market size was valued at USD 11.42 billion in 2024 and is expected to be worth around USD 129.83 billion by 2034, growing at a compound annual growth rate (CAGR) of 27.51% from 2025 to 2034. The U.S. V2G technology market size was valued at USD 2.46 billion in 2024.

Vehicle-to-Grid is a technology that allows electric vehicles to dynamically inter-operate with the power grid by allowing a bi-directional energy flow from the vehicle battery to the grid. This technology enables EVs to shift surplus energy during off-peak times to the grid during peak periods that can provide grid support on a distributed energy storage front. V2G systems are critical for the balance of supply and demand of energy and in the reduction of fossil fuel reliance. They support renewable energy integration and provide potential savings for EV owners in being able to sell back stored energy to the grid or use it at home during peak times. They present an advancement in managing sustainable energy, enhancing energy resiliency.

Report Highlights

• The Europe region has accounted highest revenue share of 34.80% in 2024.
• The Asia-Pacific has generated revenue share of around 30.24% in 2024.
• By component, the electric vehicle supply equipment (EVSE) segment has captured revenue share of 81% in 2024.
• By vehicle type, the battery electric vehicle segment has garnered revenue share of 62.79% in 2024.
• By charging type, the unidirectional segment has recorded revenue share of 71% in 2024.

Vehicle-to-Grid Technology Market Growth Factors

• Rising EV Adoption: With electric vehicles (EVs) being exponentially adopted across the globe, the possibilities of V2G technology would increase accordingly. As more EVs enter circulation, the possible capacity for energy storage and transfer back to the grid will also increase. This establishes a very supportive environment for V2G technology to flourish, with EVs providing a decentralized way to stabilize energy demands and reduce dependence on traditional power grids during peak hours.
• Demand for Energy Storage: The growth of energy sources, such as solar and wind, increases the demand for energy storage solutions, with V2G technology representing a flexible and decentralized solution for energy storage. By utilizing EV batteries as additional storage media to help stabilize grids that depend upon intermittent renewable sources, V2G can smooth out and provide access to electricity reliably and constantly, during differently loaded peaks and when renewable output is low.
• Grid Smart Transmutation: Smart grid systems are gaining momentum in part due to the appeal of V2G. Smart grids provide two ways of communicating and adaptively distributing electrical power, which ossifies well into V2G systems by which EV batteries of the energy fed back to the grid seamlessly. This integration allows for better utility, lower power losses, and a proactive energy distribution system that can synergistically deal with real-time demand in both urban and rural areas.
• Electric Infrastructure Modernization: The modernization of outdated electric grid infrastructure supports V2G adoption since upgraded grids have the capacity to ensure an outstanding and viable management of decentralized energy sources. Governments and utilities are investing in further upgrades of the grid in order to better the reliability, efficiency, and sustainability that will benefit the pumping up of V2G adoption. With enhanced infrastructure, utilities would be able to pull energy from EVs, eventually creating a far more resilient grid that can efficiently plug-in renewable energy and stored energy.
• Technological Advancements: Ongoing innovation in battery technologies, two-directional charging systems, and energy management software is a vital force behind the growth of V2G systems. Improved storage technology would enhance the life-cycle and capacity of batteries on electric vehicles available today, while the innovation of bi-directional charging allows automatic flows of energy between V2G systems and electrification of vehicles. Thus, whatever developments the future may witness will ease the addition of consumer and utility V2G deployment efforts through low auxiliary operational burdens, thus compromising cost effectiveness thought reducing operating costs or assisting low adoption.

Vehicle-to-Grid Technology Market Trends

• Bi-directional Charging Technology: V2G is a bi-directional charging mechanism, where EVs act as consumers and expend V2G. The recent developments in this area are such that chargers optimize energy flow, improve speed of charging, and protect battery health; this provides an additional push to V2G via increasing efficiency of energy transfer between EVs and the grid, rendering V2G solutions attractive to both the consumer and grid operators.
• V2G in Fleet Vehicles: Many businesses are beginning to apply the V2G technology within their commercial EV fleets for optimal energy use and cost-effective usage. Basically, by making use of V2G, companies can harness excess energy during off-peak hours while using it as a power source during high electric demand periods. This trend is very vigorous in areas like logistics, public transit, and delivery services, where fleet vehicles are in use and operate on relatively predictable schedules both of which align well with the demand for a certain type of grid energy.
• Vehicle-to-Building systems: These technologies can be seen as a branching extension of V2G that allow EVs to acquire power and directly supply it to buildings so as to strengthen energy independence. The V2B system allows either businesses or households to bring down their charges on peak demand through the tapping of stored energy within EVs. This trend indicates a more sustainable approach to the operation of urban infrastructure in the least grid-dependent manner, one replete with maximizing the harnessing of renewable energy during peak hours or remote areas.
• Growing V2G Pilot Programs: Interest in V2G is probably now summoning forth a plethora of pilot programs around the world testing the feasibility and scalability of V2G. Often endorsed by governmental and utility interests, these pilot programs recognize realist performance cases for V2G practice, therefore paving the way for the standard protocols and policies that will set the stage for widespread and eventual regulatory adoption of V2G.

Report Scope

Vehicle-to-Grid Technology Market Dynamics

Drivers

• Increased EV Penetration: Growth of electric vehicle sales is one of the major drivers which improve the acceptance for vehicle-to-grid. Since V2G provides numerous benefits to the power system, it often appears as a solutions provider to grid stability and storage. The increased adoption of EVs makes it even more attractive as a decentralized solution for demand balancing by the utilities, while surplus energy gets stored timely. The growth of ownership would lead to an increased demand for V2G infrastructure and motivate utilities to think about V2G solutions with investment to make the best possible use of the batteries.
• Decentralization of the energy system: V2G technology greatly enhanced the decentralized energy system shift, where energy storage and generation are distributed instead of centrally based. Addressing disruptions or outages in services, decentralized power systems bring efficiency and cost-effectiveness to electrical systems in light of expected usage volatility demands over time, V2G improves the grid's resilience and flexibility-Service to grids, more importantly, during peak demand types of loads.
• Utility Grid Stability: This isolation includes different aspects of grid stability related to V2G besides an increasing array of other options for deliverable stability not from V2G. In general, V2G systems are able to release stored energy during peak hours for grid stabilization so that they reduce the risk of a blackout or legitimacy. This is particularly valuable to utilities due to reduced operational downtime and enhanced quality and reliability of power, especially in regions with greater penetration into renewables.
• Consumer Demand for Sustainability: The increasing awareness of the environmental impacts drives consumer interest in sustainable practice, including V2G. V2G provides an attractive proposition for consumers who want to cut their carbon footprint by allowing EV owners to provide power back to the grid. This factor also reinforces seeing those EVs as not only sustainable transport but also an important and valuable part of a green energy ecosystem.

Restraints

• High sensors setup costs: The high costs associated with V2G set up are because of the requirement for bi-directional chargers and upgradation of the grid. Even though the benefits from this evolution concur over time, the per-pot utility-in-cost to each consumer for the initial implementation becomes a major deterrent to the creation of V2G. These installation and procurement costs can work against adopting V2G, especially for small utility operators or for those consumers who may otherwise be disinclined to bear such an expensive option unless offered a sufficient incentive or subsidy.
• Concern with battery wear: Continuous charging/discharging cycles associated with V2G will increase excessive wear on the battery. The effectiveness of V2G depends highly on the availability of the battery in electric vehicles, leading to battery life concerns that inhibit consumer motivation toward total V2G acceptance. This constraint affects not just owners of individual electric vehicles but also businesses and fleet owners who do not want to incur long-term high financial burdens and energy inefficiency arising from the operation of V2G.
• Limited availability of bi-directional EVs: More limited availability of bi-directionally functional EVs also becomes another difficulty toward the scaling up of V2G. Currently, only a few models of EVs support bi-directional flow of energy for V2G applications. As a result, almost every EV model is designed simply for unidirectional charging. The same incompetence offers more hindrance against large-scale adoption of V2G. The market might yet walk up the fast lane, as these manufacturers which incorporate bi-directional charging will dominate others in EV markets.

Challenges

• Risks of Battery Degradation: Regular periods of discharging and charging due to the V2G system from the vehicle will result in accelerated wear on batteries and lesser life of the vehicle battery life. Since battery replacement is very expensive, the possible degradation would be concerning for users, especially for those expecting a long life for the vehicles. Further advancement in battery technologies is required in order to withstand V2G conditions.
• Investment in High Infrastructure: Setting up the V2G infrastructure requires a considerable investment in bi-directional chargers and connectivity to grids. The cost can be a disincentive to adoption on a large scale without major subsidies to alleviate this cost burden. Reducing those costs or increasing subsidies is vital to keep V2G alive and open the market to individual user adoption and utilities.
• Limited Bi-directional Chargeable Models of EVs: At the moment, the limited array of EVs supporting bi-directional charging, which is an imperative requirement for V2G activation, also limits the expansion of the market. More manufacturers will have to support this function in order to enhance V2G participation to meet energy grid demand to usher bi-directional compatibility to the manufacturing forefront in the subsequent years.

Vehicle-to-Grid Technology Market Segmental Analysis

The V2G technology market is segmented into vehicle type, components, battery, charging type, application and region. Based on vehicle type, the market is classified into battery electric vehicles, plug in hybrid electric vehicles and fuel cell vehicles (FCVs). Based on components, the market is classified into electric vehicle supply equipment (EVSE), smart meters, home energy management (HEM) and others. Based on battery, the market is classified into by battery type and by charging type. Based on charging type, the market is classified into unidirectional charging and bidirectional charging. Based on application, the market is classified into domestic and commercial.

Vehicle Type Analysis

Battery Electric Vehicles (BEVs): The BEVs segment has dominated the market in 2024. BEVs are the major propulsion sources for the V2G market, having fully electric powertrains and enabling charging and discharging via V2G systems. With zero emissions, long ranges, and suitability for grid services, BEVs continue to be popular. Their relatively much larger battery capacities make them appealing for providing services to the grid, and with growing adoption, they will become central to the V2G market within the context of load management and demand response, in addition to being enablers for the V2G market.

Plug-In Hybrid Electric Vehicles (PHEVs): PHEVs offer full flexibility with electric as well as combustion engines, making them versatile for V2G applications. They might have a comparatively lower battery capacity than BEVs; however, in times of peak demand, they can still contribute easily to provide load support via V2G commuter functions. PHEVs hold a very important position in regions where some infrastructure can support V2G. They allow the gradual switch of consumers, fully honoring the grid while transitioning to full electric vehicles. However, this greater transition relevance is tempered somewhat by the disadvantages conferred by a lower battery size with limited energy contributions compared to BEVs.

Vehicle-to-Grid Technology Market Revenue Share, By Vehicle Type, 2024 (%)

Fuel Cell Vehicles (FCVs): FCVs use hydrogen as fuel, producing only water as an emission, making them a clean option for energy supply. While less common than BEVs or PHEVs, FCVs are gaining traction, especially for heavy-duty or long-range needs. Although not widely adopted in V2G systems, FCVs can theoretically supply stored energy back to the grid, adding diversity to energy sources. Future advancements in hydrogen infrastructure may boost FCVs’ participation in V2G as a clean, alternative energy resource.

Component Analysis

Electric Vehicle Supply Equipment (EVSE): The Electric Vehicle Supply Equipment segment has dominated the market in 2024. The EVSE, commonly called charging stations, is a very important component of V2G operation as it allows bidirectional power flow from the vehicle to the grid or from the grid to the vehicle. This includes chargers that are used for competitive energy intake as well as drawing energy back to the grid. With advancements in bi-directional charging within the EVSE, its feasibility and scalability of V2G systems have increased greatly. The establishment of higher efficiency within EVSE contributes a lot to the viability of V2G and contributes to workability in residence, commercial, and fleet applications.

Smart Meters: Smart Meters are the tools to provide real-time monitoring and communication between EVs and the grid, necessary for V2G. The meter allows the monitoring of energy used and ensures effective billing and data management, enabling utilities to learn about energy use patterns. For V2G, smart meters help facilitate a seamless integration and allow exact control of energy flow so that energy discharge from EVs matches real-time demand on the grid. In addition to that, they help in managing peak load, which is what makes them an essential aspect of V2G in both residential and commercial development.

Home Energy Management (HEM): An HEM system controls and optimizes the flow of energy within homes in such a way that V2G-supporting energy utilization takes place. They first identify when and how much energy can be backed by an EV toward either a home or a grid: thus, they enable households to avoid feeding on peak energy consumption costs. With HEM, households can program automatic energizing for based on periods, price signals, or renewable generation availability at peak intervals. This kind of system allows consumers to cut costs while supporting grid stability; hence its integral role in residential V2G deployment.

Other: This category includes additional elements such as communication modules, data management systems, and energy storage systems that may be regarded as V2G functionality enhancers. Communication modules will facilitate secured transactions of information between the electric vehicles, grid operators, and consumers. Data management systems make it possible to use predictive analytics in optimizing V2G interactions in balancing the grid. Secondary storage batteries in this regard will make the V2G ecosystem more flexible and resilient as they will provide extended support to the grid in conjunction with EVs.

Vehicle-to-Grid Technology Market Regional Analysis

The V2G technology market is segmented into several key regions: North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa). The Europe region has dominated market in 2024.

What makes Europe the leader in the V2G technology market?

The Europe vehicle-to-grid (V2G) technology market size was estimated at USD 3.97 billion in 2024 and is projected to hit around USD 45.18 billion by 2034. Europe is leading the V2G market with a major share in countries such as the UK, Germany, the Netherlands, and Norway. Given the strict emissions regulations put forth by the EU and aggressive renewable energy targets, the push for V2G development has placed it as one of the world's active markets. In Germany and the Netherlands pilot projects are being carried out on implementation of V2G in intelligent networks, while the high activity of EV in Norway opens vast opportunities for V2G. A few key initiatives in UK related to V2G are also emerging through public private partnership mode.

What are the driving factors of North America vehicle-to-grid technology market?

The North America vehicle-to-grid technology market size was valued at USD 3.28 billion in 2024 and is expected to reach around USD 37.34 billion by 2034. North America is an important shareholder of the V2G technology, taking lead in development with the U.S. and Canada. V2G adoption - prominent especially in cities where there is a high EV penetration - gained momentum due to the strong impetus for renewable energy integration and supportive government policies. US is the frontrunner of V2G technology as it has many developed projects with utility companies thanks to the existing EV infrastructure and sophisticated grid technology. Canada is also more focused on the research, development and implementation of V2G technology as a component of its clean energy strategy.

Asia-Pacific vehicle-to-grid technology market growth

The Asia-Pacific vehicle-to-grid technology market size was accounted for USD 3.45 billion in 2024 and is predicted to surpass around USD 39.26 billion by 2034. The V2G technologies are developing rapidly in Asia-Pacific under the lead of Japan, South Korea, and China. In Japan, V2G came into existence, integrated into its strategy for boosting energy resilience following the earthquake of 2011, and the government continued supporting grid-friendly EV solutions. V2G is considered by China, the world’s largest rental market for EVs, as a suitable solution for managing peak loads and providing energy reserving. V2G is progressing in South Korea in terms of investments due to its importance in grid reliability. V2G has continuous energy consumption and government assistance will be very helpful in V2G development.

Vehicle-to-Grid Technology Market Revenue Share, By Region, 2024 (%)

LAMEA holds emerging potential for V2G technology market

The LAMEA vehicle-to-grid (V2G) technology market was valued at USD 0.71 billion in 2024 and is anticipated to reach around USD 8.05 billion by 2034. LAMEA holds emerging potential for V2G technology, with Brazil and South Africa leading in renewable energy initiatives within Latin America and Africa, respectively. The Middle East is showing interest in V2G through its commitment to sustainable energy projects, with the UAE exploring V2G within smart city developments. The region’s adoption is slower due to infrastructure limitations, but rising renewable energy investment in Brazil and South Africa indicates potential growth in the future. LAMEA’s diverse energy needs could benefit from V2G as a cost-effective energy solution.

Vehicle-to-Grid Technology Market Top Companies

• Nuvve Holding Corp.
• E.ON U.K. plc.
• ABB Ltd.
• Honda Motor Co., Ltd.
• Enel Spa
• The Mobility House GmbH
• Mitsubishi Electric Corporation
• Virta Global
• Ovo Energy
• Flexitricity

The V2G technology market is led by prominent players like Nuvve, The Mobility House, and Virta, who leverage their deep expertise in energy management and EV infrastructure to drive market advancements. These companies focus on integrating EVs with power grids, enabling bidirectional charging, and offering scalable solutions for both private and commercial applications. By forming strategic partnerships with automakers and utility providers, they contribute to energy resilience and grid stability. Their initiatives support global carbon reduction goals, creating a competitive edge in the rapidly growing V2G sector.

CEO Statements

Christopher Yang, Group Vice President, Toyota EV Charging Solutions

• “Bidirectional charging is a great way for customers to leverage their electric vehicles in a way that supports the grids and their home electricity ecosystem.”

Tyler Anthony, President and CEO, Pepco Holdings

• “V2G is designed to connect with the local energy grid and is part of our roadmap to ensure a successful and equitable energy transition. This collaboration with Toyota allows us to better understand V2G technology and its impact on the grid, our customers, and overall service reliability”

Recent Developments

Recent partnerships in the V2G technology market signify a transformative move towards innovation and strategic collaboration. Leading companies like Nuvve Holding Corp., E.ON U.K. plc, ABB Ltd., and Honda Motor Co., Ltd. are at the forefront of developing advanced V2G systems. These systems enable electric vehicles to not only draw power from the grid but also return energy during peak demand times, thus enhancing grid stability. Such initiatives aim to optimize energy management, support renewable energy integration, and promote sustainability in transportation, ultimately driving the transition to a greener energy ecosystem. Some notable examples of key developments in the V2G technology industry include:

• In July 2024, Nissan Thailand partnered with the Faculty of Engineering at Chulalongkorn University, the Electricity Generating Authority of Thailand (EGAT), and Haupcar Company Limited to launch a Vehicle-to-Grid (V2G) project. This initiative utilizes the Nissan LEAF, equipped with bi-directional charging, to support transportation and advance sustainable energy management research.
• In May 2024, Tata Power Delhi Distribution Limited signed an MoU with the India Smart Grid Forum (ISGF) to launch a V2G technology demonstration in North Delhi. This collaboration marks a pivotal step towards enhancing grid stability and EV utility in India.
• In October 2023, Punggol was selected to host Singapore’s largest V2G testbed. Led by SMRT Corporation's Strides division, the consortium received a grant to initiate technology trials, with planning starting in November 2023.

Market Segmentation

By Vehicle Type

• Battery Electric Vehicles
• Plug In Hybrid Electric Vehicles
• Fuel Cell Vehicles (FCVs)

By Components

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

By Battery

• By Battery Type
  
  • Lithium-ion
  • Nickel-Metal Hydride
  • Lead-acid
  • Ultra-capacitors
• By Charging Type
  
  • 20-40kWh
  • 41-70kWh
  • 71-100kWh
  • Above 100kWh

By Charging Type 

• Unidirectional Charging
• Bidirectional Charging

By Application

• Domestic
• Commercial

By Region

• North America
• APAC
• Europe
• LAMEA