Vehicle-to-Grid Technology Market: EVs Giving Back

The global vehicle-to-grid technology market size accounted for USD 5,600 million in 2024 and is expected to exceed around USD 67,150 million by 2034, growing at a CAGR of 28.2% from 2025 to 2034.

Vehicle-to-grid Technology Market Report Highlights

• By region, Europe dominated the market, securing the highest revenue share of 36% in 2024.
• By region, Asia Pacific is expected to witness the fastest growth during the forecast period.
• By component type, the electric vehicle supply equipment (EVSE) segment led the market with the highest revenue share of 84.13% in 2024.
• By application type, the battery electric vehicle (BEV) segment held the largest market share of 64.15% in 2024.
• By application type, the plug-in hybrid electric vehicle (PHEV) segment is projected to grow at a remarkable CAGR of 29.18% during the forecast period.

Industry Valuation and Growth Rate Projection

The vehicle-to-grid technology market refers to the production, distribution, and application of the vehicle-to-grid technology refers to the technology of bidirectional flow of electricity between the electric vehicle and the grid. Vehicle-to-grid technology allows energy to be pushed back to the power grid from the battery of an electric vehicle (EV). With vehicle-to-grid technology, a battery can be discharged based on different signals like energy production or consumption nearby. Vehicle-to-grid technology, also called bidirectional charging, refers to smart charging solutions. These are technologies used to optimize the charging and discharging of a vehicle by managing the vehicle’s charging power in an effective, flexible, and economical way.

For network operator vehicles to the grid can also help to offset costly infrastructure upgrades, something that helps bring down electricity costs for all end consumers in the long run. In terms of the environment, vehicle-to-grid helps reduce carbon emissions by allowing EVs to use larger amounts of renewable energy. The benefits of the vehicle to the grid for buildings are visible when the electricity from the car batteries is directed to where it is most needed. Vehicle-to-grid helps manage electricity demand and cut down on unnecessary costs towards electricity system expansion.

Technological advancements in vehicle-to-grid technology are driving the growth of the vehicle-to-grid technology market. The latest advancement in electric vehicle technology is battery technology. These processing advances have resulted in higher energy densities, longer ranges, and faster charging times. Solid-state batteries offer high energy densities, enhanced safety, and faster charging times.

Continuous improvements in vehicle-to-grid technology, including more efficient inventors, innovative energy management systems, and enhanced battery chemistries, are improving the reliability and performance of vehicle-to-grid systems. These innovations are important for overcoming technical barriers and ensuring the long-term viability of vehicle-to-grid solutions. Technological advancement benefits include personalized learning, global connectivity, better learning techniques, resistance to change, remote working, privacy, increased productivity, better customer experience, time-saving, cost efficiency, automation, and better information access.

Rising industrialization and urbanization are driving the growth of the vehicle-to-grid technology market. Rising industrialization and urbanization can significantly benefit vehicle-to-grid technology by increasing electric vehicle tools in developed areas. Vehicle-to-grid helps balance out electricity demand and avoid unnecessary costs for expanding the electricity system. Data from early adopters suggest that a switch towards EVs can improve a power grid’s load factor and bring down the overall electricity supply cost.

The benefits of electric vehicles include better performance, lower maintenance due to an efficient electric motor, being environmentally friendly as they do not emit, and no fuel required, so we save money on gas. It also includes the benefits of lower battery degradation, reduced cost, and initial investments. The benefits of industrialization and urbanization include a more effective division of labor, economic growth, and a growth spurt in technological innovation. It also includes benefits of the creation of employment opportunities, enhanced transportation & communication, technological & infrastructural advancements, and quality educational & medical facilities.

Supportive government regulations for vehicle-to-grid deployment are expected to be a major future driver for the vehicle-to-grid technology market. Due to public pressure and climate commitments, many governments are changing their policies around electric vehicles, especially in emerging economies such as China and India. This is expected to drive the expansion of the electric car market. The effects of this will likely spill over into the vehicle-to-grid market. Governments around the world have pledged to combat air pollution, reduce CO2 emissions, and promote electric vehicles. The growing adoption of EVs will also reduce the dependence on imported oil, which remains a special concern for many governments. Since most nations rely on a handful of oil producers, governments are looking to move away from OPEC and Russia through emphasis on electric vehicles. 

According to a report published by Global Electric Vehicle (EV) Outlook in 2024, Electric car sales neared 14 million in 2023, 95% of which were in China, Europe, and the United States.