Vehicle to Grid Technology Market

Market Definition

Vehicle to grid (V2G) technology is a smart energy management solution that enables electric vehicles (EVs) to exchange electricity bidirectionally with the power grid.

It allows EVs to draw energy for charging and supply stored energy to the grid, optimizing energy utilization and enabling efficient interaction between transportation and electricity networks. The V2G market encompasses technology providers, automakers, utility companies and charging infrastructure developers

Vehicle to Grid Technology Market Overview

The global vehicle to grid technology market size was valued at USD 4.63 billion in 2024 and is projected to grow from USD 5.73 billion in 2025 to USD 31.1 billion by 2032, exhibiting a CAGR of 27.34% during the forecast period.

Rising adoption of electric vehicles (EVs) is enhancing distributed energy storage, allowing EVs to store and supply electricity back to the grid and support peak load management. Additionally, the growing focus on renewable energy integration and reducing carbon emissions is boosting V2G adoption, enabling EVs to complement intermittent renewable sources and support a sustainable energy system.

Key Highlights:

1. The vehicle to grid technology industry size was recorded at USD 4.63 billion in 2024.
2. The market is projected to grow at a CAGR of 27.34% from 2025 to 2032.
3. Europe held a share of 36.56% in 2024, valued at USD 1.69 billion.
4. The electric vehicle supply equipment segment garnered USD 1.74 billion in revenue in 2024.
5. The battery electric vehicles (BEVs) segment is expected to reach USD 20.88 billion by 2032.
6. The commercial segment is anticipated to witness the fastest CAGR of 30.53% through the projection period.
7. North America is anticipated to grow at a CAGR of 26.81% over the forecast period.

Major companies operating in the vehicle to grid technology market are NUVVE HOLDING CORP, GENERAL MOTORS, Hyundai Motor Company, Toyota Motor North America, Inc, Nissan Motor Co., LTD, Renault SAS, Honda Motor Co., Ltd, The Mobility House GmbH, Fermata Energy, LLC, ABB Ltd, Dreev, IoTecha, EDF Group, E.ON SE, and OVO Group Ltd.

Increasing partnerships between government, research institutes, and utilities are fueling market expansion by demonstrating EVs as decentralized energy storage, thereby supporting broader adoption of V2G technologies.These partnerships combine policy initiatives, technological advancements, and infrastructure investment to facilitate the broader adoption and commercialization of V2G technologies

• In May 2025, IIT Bombay partnered with the Kerala State Electricity Board (KSEB) to launch a vehicle to grid pilot project aimed at integrating EVs as decentralized energy storage units. The initiative seeks to enhance grid stability, manage peak demand, and support solar energy adoption, thereby advancing V2G deployment and Kerala's clean energy transition.

Market Driver

Rapid Growth in Electric Vehicle Adoption

The growth of vehicle to grid technology market is propelled by the rapid global adoption of electric vehicles (EVs). The expanding fleet of EVs allows consumers, utilities, and companies to adopt V2G technologies for energy storage and bidirectional electricity flow. 

This expansion supports smart energy management, facilitates renewable energy integration, enhances grid stability, and promotes peak load management. It also accelerates the deployment of V2G infrastructure and contributes to sustained market growth.

• In May 2025, the International Energy Agency (IEA) reported that global electric vehicle sales exceeded 17 million units in 2024, increasing by 25% compared to 2023.

Market Challenge

High Cost of Bidirectional Chargers and V2G-Compatible Infrastructure

A key challenge hindering the expansion of the vehicle to grid technology market is the high cost of bidirectional chargers and V2G-compatible infrastructure. The deployment of advanced hardware requires significant investment in technology, installation, and integration with existing grid systems. 

These substantial upfront expenses increase the cost of V2G solutions and limit adoption among consumers, fleet operators, and utility companies. This, in turn, slows the large-scale implementation of V2G technologies.

To address this challenge, market players are investing in research and development to produce more efficient and cost-effective charging solutions. Companies are collaborating with automakers, utilities, and technology providers to standardize components, reduce manufacturing costs, and streamline installation processes of bidirectional chargers and V2G-compatible infrastructure. Some manufacturers are adopting scalable deployment models and offering incentives and leasing options to lower upfront expenses for consumers and fleet operators.

Market Trend

Advancement of Bidirectional Charging Technologies

A notable trend influencing the vehicle to grid technology market is the advancement of bidirectional charging technologies that enable electric vehicles to both draw power from and supply energy back to the grid. 

Companies are investing in hardware optimization, smart software integration, and predictive energy management to improve efficiency and reliability. These developments enhance grid stability, support peak load management, facilitate renewable energy integration, and offer scalable, cost-effective V2G solutions.

• In June 2025, Octopus Energy partnered with BYD to launch the UK’s first vehicle to grid bundle, combining a V2G-capable BYD Dolphin, bidirectional charger, and smart energy tariff. The initiative enables EVs to supply electricity back to the grid, helping balance peak loads and reduce consumer energy costs.

Vehicle to Grid Technology Market Report Snapshot

Market Segmentation

• By Component (Smart Meters, Electric Vehicle Supply Equipment, Home Energy Management (HEM) Systems, Power Converters and Transformers, and Others): The electric vehicle supply equipment segment earned USD 1.74 billion in 2024, mainly due to rising deployment of bidirectional chargers and growing adoption of V2G-enabled electric vehicles across residential and commercial sectors.
• By Vehicle Type (Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEVs), and Fuel Cell Electric Vehicles (FCEVs)): The battery electric vehicles (BEVs) segment held a share of 57.32% in 2024, fueled by increased production, government incentives, and higher consumer preference for fully electric vehicles that support V2G integration.
• By End User (Residential, Commercial, and Others): The commercial segment is projected to reach USD 19.7 billion by 2032, owing to growing deployment of V2G systems in fleets, ride-sharing services, and corporate facilities to optimize energy management and reduce operational costs.

Vehicle to Grid Technology Market Regional Analysis

Based on region, the Market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Europe vehicle to grid technology market share stood at 36.56% in 2024, valued at USD 1.69 billion. This dominance is primarily reinforced by strong government policies and initiatives, such as the European Green Deal and the Fit for 55 package, which promote renewable energy integration, EV adoption, and decarbonization. 

Increasing adoption of electric vehicles creates a strong demand for distributed energy storage, allowing EVs to support peak load management and enable efficient integration of renewable energy sources.

The region's advanced smart charging infrastructure and energy management systems improve operational efficiency and enable seamless bidirectional energy flow. Additionally, increasing investment from energy companies and technology startups in V2G is accelerating the commercialization and large-scale deployment of vehicle to grid solutions across the region.

• In June 2025, Amber Electric secured USD 29 million to advance its vehicle to grid technology and expand into the UK and European markets. This funding will allow EVs and home batteries to sell electricity back to the grid, optimize energy use, and support wider adoption of V2G solutions.

The North America vehicle to grid technology industry is set to grow at a robust CAGR of 26.81% over the forecast period. This growth is attributed to the rising adoption of electric vehicles (EVs), which is expanding the potential for distributed energy storage and grid integration. 

Supportive government initiatives such as the U.S. Inflation Reduction Act and federal funding for smart grid and energy storage projects are fostering a favorable regulatory environment for the adoption and expansion of vehicle to grid technologies.

Technological advancements in areas such as smart charging infrastructure and energy management systems are improving operational efficiency, enabling bidirectional energy flow, and enhancing the scalability of vehicle to grid solutions. Additionally, strategic mergers and acquisitions among V2G technology providers are consolidating expertise and accelerating the deployment of advanced V2G solutions across the region.

• In May 2025, Nuvve acquired Fermata Energy to expand its intelligent bidirectional energy solutions. The acquisition strengthens Nuvve’s V2G capabilities, accelerates deployment of EV-to-grid technology, and enhances energy management, grid services, and predictive charging for fleet operators and utilities.

Regulatory Frameworks

• In the U.S., the Federal Energy Regulatory Commission (FERC) regulates the market, overseeing electricity markets, grid interconnections, and energy transactions. FERC ensures compliance with grid safety standards, interoperability requirements, and market participation rules, supporting reliable integration of electric vehicles as distributed energy resources.
• In the UK, the Office of Gas and Electricity Markets (Ofgem) monitors the market, setting rules for grid connections, energy trading, and service interoperability. It ensures compliance with safety standards, contributes to demand side management, supports renewable energy integration, and enhances grid reliability while enabling consumer participation in energy markets.
• In China, the National Energy Administration (NEA) governs the market, supervising renewable energy integration, grid stability, and electric vehicle to grid projects. The NEA sets technical standards for bidirectional charging, approves pilot programs, monitors energy storage deployment, and ensures alignment with national clean energy policies and peak load management objectives.
• In India, the Central Electricity Regulatory Commission (CERC) regulates the market, overseeing grid access, tariffs, and energy market participation. CERC ensures technical safety standards, supports renewable energy absorption, enables demand response, and fosters innovation in energy storage and electric vehicle grid interactions.

Competitive Landscape

Key players operating in the vehicle to grid technology industry are forging strategic partnerships with automakers and technology providers to integrate V2G systems into existing grid infrastructures, enhancing energy management and grid stability. They are investing heavily in research and development to advance bidirectional charging technologies and improve the efficiency, reliability, and scalability of vehicle to grid system. 

Additionally, market participants are deploying smart charging infrastructure and sophisticated energy management platforms that enable seamless communication between electric vehicles and the grid while supporting peak load management and renewable energy integration.

• In June 2025, Utrecht collaborated with Renault Group to launch Europe’s first large-scale vehicle to grid car-sharing service, "Utrecht Energized." This initiative enables shared EVs to act as distributed energy storage, stabilizing the local grid and promoting sustainable urban mobility.

Key Companies in Vehicle to Grid Technology Market:

• NUVVE HOLDING CORP
• GENERAL MOTORS
• Hyundai Motor Company
• Toyota Motor North America, Inc
• Nissan Motor Co., LTD
• Renault SAS
• Honda Motor Co., Ltd
• The Mobility House GmbH
• Fermata Energy, LLC
• ABB Ltd
• Dreev
• IoTecha
• EDF Group
• ON SE
• OVO Group Ltd.

Recent Developments (Expansion)

• In March 2025, Nuvve Holding launched NUVVE Japan to expand its global presence and promote vehicle to grid (V2G) technology. The company aims to advance V2G deployment in alignment with Japan’s sustainable energy and electric vehicle infrastructure goals.