Vehicle to Grid (V2G) Technology Market Worth USD 251.16 Bn by 2034
According to projections from Towards Automotive, the global vehicle-to-grid (V2G) technology market is set to increase from USD 21.55 billion in 2026 to nearly USD 251.16 billion by 2034, reflecting a CAGR of 35.93% during 2025 to 2034.
Ottawa, Oct. 21, 2025 (GLOBE NEWSWIRE) -- The global vehicle-to-grid (V2G) technology market, valued at USD 15.85 billion in 2025, is expected to rise to approximately USD 251.16 billion in 2034, based on a report published by Towards Automotive, a sister firm of Precedence Research.
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Key Takeaways
- By vehicle type, BEVs dominated the vehicle-to-grid (V2G) technology market in 2024.
- By vehicle type, FCVs are the fastest growing segment.
- By component, electric vehicle supply equipment (EVSE) led the market as of this year.
- By component, the home energy management segment is seen to have the fastest rate of growth.
- By application, the domestic segment led the market share in 2024.
- By application, the commercial segment is expected to grow at the fastest rate.
- By region, North America held the largest market share as of 2024.
- By region, Asia-pacific is seen to grow the fastest throughout the forecast period.
What is Vehicle to Grid (V2G) Technology?
The vehicle-to-grid (V2G) technology market is an emerging segment within the electric vehicle (EV) ecosystem. This technology enables two-way communication between electric vehicles (EVs) and the power grid, allowing vehicles to not only charge from the grid but also feed electricity back into it. This innovative technology supports the grid by providing an additional source of energy storage, helping to balance supply and demand, particularly during peak hours or when renewable energy production is low.
With the rapid growth of the EV market, V2G technology holds the potential to completely revolutionize how electricity is stored and distributed. Governments around the world are increasingly recognizing the potential of V2G, offering incentives and implementing policies to promote its adoption. This growth is also a part of a broader goal of reducing carbon emissions and promoting energy efficiency.
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Market Trends
- The adoption of smart contracts for energy trading is gaining traction in the global V2G market. These blockchain-based systems enable automated, transparent energy transactions between EV owners and grid operators. This ensures fair compensation and builds trust among participants.
- Wireless charging with V2G capabilities is another trend. By eliminating physical connectors, wireless systems offer greater convenience for EV users. These advancements make bidirectional energy transfer more accessible and user-friendly.
- The development of ultra-fast charging stations with bidirectional features is transforming the market. These stations help to significantly reduce charging time while enabling energy flow back to the grid. This caters to time-sensitive users and enhances the practicality of V2G technology.
Market Dynamics
Drivers
Growing Adoption of Smart Grids
The widespread adoption of smart grids is a key driver propelling market growth. Smart grids are great for intelligently managing energy supply and demand, thus helping in enhancing grid stability, reliability and efficiency. Vehicle-to-grid systems leverage this aspect by serving as flexible energy resources. When connected to the smart grid, EVs are able to store a surplus amount of energy during low-demand periods and they also feed this energy back into the grid during peak demand times.
This load-balancing capability significantly optimizes power distribution and helps prevent blackouts as well as power quality issues. Additionally, the widespread employment of smart grids and rapid technological advancements is promoting the usage of renewable energy sources, which is vital for the growth trajectory of the vehicle-to-grid technology.
Restraint
Consumer and Regulatory Barriers
Despite powerful drivers, the market does face a few challenges that could limit its growth and development. Limited consumer awareness about V2G technology is one such significant challenge. Many EV owners remain unaware about the benefits of bidirectional energy transfer, such as earning incentives or reducing energy costs. This lack of understanding slows down adoption.
Regulatory and policy inconsistencies across various regions can also hinder its growth. Some governments, especially in developing or under developed regions lack clear guidelines or support for V2G integration, creating an uncertain environment for stakeholders. This makes it difficult for companies to scale solutions, thus slowing down market penetration.
Opportunity
Advanced Technologies and New Models
The adoption of smart contracts for energy trading is gaining traction in the V2G market and opening up new avenues of opportunities. These blockchain-based systems enable automated, transparent energy transactions between EV owners and grid operators. This innovation ensures fair compensation and also builds trust among consumers. Wireless charging with V2G capabilities is another trending development. By eliminating physical connectors, wireless systems offer greater convenience for EV users. This makes bidirectional energy transfer more accessible and user-friendly.
Peer-to-peer energy sharing models are also on the rise. With the help of these systems, EV owners can now trade surplus energy with neighbors or local businesses. This approach supports community energy resilience and reduces dependency on centralized grid systems. The development of ultra-fast charging stations with bidirectional features is transforming the market, highlighting the potential for growth and development.
Regional Analysis
Why is North America dominating the market?
North America dominated the market in 2024. This dominance is driven by several key factors such as robust government support, including tax incentives for electric vehicle (EV) adoption and initiatives for grid modernization. The increasing penetration of renewable energy sources further enhances the demand for V2G solutions in the region. Government initiatives promoting renewable energy integration, quick adoption of technological advancements and carbon emission reductions further boost market growth, positioning the region as a global leader and competitor.
U.S Market Drivers:
- One of the main reasons propelling the rise of the U.S vehicle-to-grid technology market is the growing need for renewable energy sources.
- To encourage EV owners to participate in V2G initiatives, governments in the U.S. are offering tax credits and reimbursements. Rules mandating the use of electric vehicles (EVs) in particular industries, such as public transportation are also driving up the demand for V2G technology.
- The U.S. vehicle-to-grid technology market is now seeing growth due to the rise in EV purchases, which is also propelling the shift towards cleaner and more sustainable energy solutions.
- The increasing acceptance and knowledge of EVs among consumers in the country is also driving the popularity of V2G systems.
What are the advancements in Asia-Pacific?
Asia Pacific is expected to grow at the fastest rate during the forecast period. Government policies and regulations, smart city initiatives and technological advancements are crucial drivers of the market. Governments in China, Japan and South Korea are actively implementing supportive policies and regulations that help to promote electric vehicles (EVs) and renewable energy. By integrating EVs with the power grid, governments are aiming to reduce carbon emissions and enhance energy security, creating a favorable environment for the V2G market.
China Market Driver:
- Supportive government policies and incentives in the country help to boost market growth by encouraging the integration of V2G systems, which can help reduce peak demand and lower energy costs.
- The adoption of smart contracts for energy trading is gaining traction in the Chinese V2G market is on the rise. These blockchain-based systems enable automated, transparent energy transactions between EV owners and grid operators.
- Innovations in battery chemistry, such as solid-state batteries and battery recycling are revolutionizing the Chinese market, optimizing the overall efficiency of the grid and reducing carbon emissions.
- Fleet electrification and the deployment of private charging stations are gaining traction in the country, facilitating the convenience and accessibility of charging infrastructure.
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Segmental Analysis
Vehicle Type Insights
Which vehicle type dominates the market in 2024?
The BEVs segment dominated the market in 2024. This segment presents significant opportunities for growth and innovation. As the adoption of BEVs continues to rise globally, the potential for utilizing their batteries as distributed energy storage resources becomes increasingly vital. V2G technology enables BEVs to not only charge from the grid but also discharge stored energy back to the grid when needed, providing valuable grid services such as peak shaving, frequency regulation and renewable energy integration.
The fuel cell vehicle (FCV) is seen to be the fastest growing segment. FCVs utilize hydrogen fuel cells to generate electricity, which can potentially serve as mobile energy storage units in a V2G system. By integrating FCVs with V2G technology, excess electricity generated by the fuel cells can be fed back into the grid during periods of high demand, providing valuable grid services such as peak shaving and frequency regulation, thus making it a popular choice.
Component Insights
Which component led the market as of this year?
The electric vehicle supply equipment (EVSE) segment led the market 2024. This dominance can be attributed to the fact that it offers significant opportunities for expansion. As the demand for electric vehicles (EVs) grows, the need for robust EVSE infrastructure becomes critical in order to support bidirectional charging capabilities. This infrastructure allows EVs to not only draw power from the grid but also return energy during peak demand, enhancing grid stability.
The home energy management segment is expected to have the fastest growth rate throughout the forecasted years. As smart home technologies advance, the link between V2G and home energy management can facilitate automated energy trading, further maximizing savings and sustainability. This evolving landscape helps to positions V2G as a key player for more smarter, more resilient energy systems.
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Application Insights
Which application held the largest market share in 2024?
The domestic segment held the largest market share as of 2024. This segment is characterized by its innovative integration of electric vehicles (EVs) with power grid systems, enabling bidirectional energy flow. This application allows EVs in enhancing grid stability and efficiency. The market is further driven by the increasing adoption of EVs and renewable energy sources, along with rising consumer awareness of sustainable practices.
The commercial segment is expected to have the fastest growth rate as of this year. Businesses that participate in demand response programs and use V2G capabilities can optimize energy usage, decrease peak demand costs and generate cash by offering grid services during peak demand periods. Commercial properties such as shopping malls, office buildings and industrial sites can utilize V2G technology to supply grid services and generate income.
Vehicle-to-Grid (V2G) Technology Market Top Vendors and their Offerings
- Nuvve Corporation is a pioneer in V2G technology, focusing on software platforms that enable bidirectional energy flow between electric vehicles (EVs) and the grid. Its innovative solutions help balance energy demand and stabilize grids, making it a preferred partner for utility companies and fleet operators worldwide.
- Enel X, part of the global energy company Enel, leverages its expertise in renewable energy and smart grid technology to offer scalable V2G solutions. By partnering with EV manufacturers and utility providers, Enel X ensures seamless integration of V2G systems to enhance energy efficiency and grid resilience.
- Nissan Motor Corporation leads in V2G integration by incorporating bidirectional charging capabilities into its EV models, such as the Nissan LEAF. Its strategic focus on empowering EV owners to contribute to grid stability positions Nissan as a key innovator in this market.
- Mitsubishi Motors emphasizes V2G technology as part of its broader commitment to sustainable mobility. By equipping its plug-in hybrid and electric vehicles with grid-compatible systems, Mitsubishi supports renewable energy adoption and peak load management.
Vehicle-to-Grid (V2G) Technology Market Top Key Players
- Hitachi Ltd.
- Honda Motor Co.,Ltd.
- Mitsubishi Motors Corporation
- Nissan Motor Corporation
- NRG Energy Inc.
- ABB Ltd.
- AC Propulsion Inc.
- Denso Corporation
- NRG Energy Inc.
- Nuvve Corporation
- OVO Energy Ltd.
- Toyota Shokki
- Edison International
- Engie Group
- Groupe Renault
Recent Developments
- In September 2025, State-owned distributor Horizon Power has stated that a trial using bi-directional charging with electric vehicles to supplement the grid and take up excess power has proved to be a success. The 12-month trial was conducted in Exmouth, a town of nearly 3,000 people in Western Australia's north-west, and involved testing Horizon's Distributed Energy Resource Management System (DERMS) in real-world conditions. It makes use of a vehicle's large battery to both power the car and power the supply grid when parked, known as vehicle-to-grid services, or V2G.
- In October 2025, Illinois has decided to carry out a Vehicle-to-Grid Program with electric school buses. The program will test whether the buses can supply energy back to the grid, potentially benefitting both school districts and electric customers. Its testing will determine how the chargers and buses can best transfer energy when parked and plugged into the grid.
Segments Covered in the Report
By Vehicle Type
- BEVs
- PHEVs
- FCVs
By Component
- Smart Meters
- Electric Vehicle Supply Equipment (EVSE)
- Home Energy Management
- Software Solutions
By Application
- Domestic
- Commercial
By Region
- North America
- Latin America
- Europe
- Asia Pacific
- The Middle East and Africa
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Towards Automotive is a leading research and consulting firm specializing in the global automotive industry. We deliver actionable insights across key segments such as electric vehicles (EVs), autonomous driving, connected cars, automotive software, aftermarket services, and more. Our expert team supports both global enterprises and start-ups with tailored research on market trends, technology, and consumer behavior. With a focus on accuracy and innovation, we empower clients to make informed decisions and stay competitive in a rapidly evolving landscape.
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