Vehicle-to-Grid Market Set for 31.1% CAGR Growth; USD 6.9 Billion in 2025 to USD 78.8 Billion by 2034

According to Towards Automotive analyst, the vehicle-to-grid (V2G) market size was USD 5.3 billion in 2024 and is projected to reach USD 78.8 billion by 2034, growing at a CAGR of 31.1% from 2024 to 2034, ultimately reaching around USD 78.8 billion by 2034.

Ottawa, July 08, 2025 (GLOBE NEWSWIRE) -- The global vehicle-to-grid (V2G) market size stood at USD 6.9 Billion in 2025 and is projected to reach USD 78.8 Billion by 2034, according to a study published by Towards Automotive, a sister firm of Precedence Research.

The V2G market is expanding rapidly due to multiple contributing factors that are driving the

industry. The high rise of the adoption of electric vehicles and government initiatives to promote the use of electric vehicles are among the major reasons for the growth of the market.

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Key Highlights of the V2G Market

North America dominated the market with the help of government initiatives to promote EVs in the region along with the rising consumer awareness for the use of sustainable products.
Asia Pacific is expected to grow in the forecast period due to rising urges for EVs and storage solutions in countries like China and Japan.
By vehicle type, battery electric vehicles dominated the market due to their bidirectional charging feature.
The electric vehicle supply equipment segment held the largest share in 2024 due to the high need for electric vehicle charging stations and the required infrastructure needed for the stability of the developing technology.

Market Overview

The Vehicle-to-grid (V2G) technology helps charge their electric vehicles with the help of an electric supply and also sends the power back to the electrical grid when required. The technology helps allow EVs to act as the energy distributor resource and is also helpful for the stabilization of electrical grids. The advanced technology also helps in integrating renewable sources of energy and aiding cost-savings for EV owners and grid operators as well.

How Does EV Industry Support V2G Market?

Higher adoption of electric vehicles these days is helping the V2G market enhance its pool of potential consumers. Hence, people are becoming acquainted with the technology and are adapting it as well. The capability of the V2G technology to store power in the battery and supply it back to the grid allows one to use the stored energy for various other purposes such as to powerhouses, and commercial and industrial buildings.

Such helpful factors help the growth of the V2G market as well. The vehicle-to-grid technology requires well-equipped charging stations with advanced software that helps in communication with the central power grid to understand the ideal supply-demand balance and provide power in the required situations.

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What are Latest Trends in Vehicle-to Grid Market?

Increased adoption of electric vehicles has helped the vehicle-to-grid market expand by enhancing its pool of potential customers. The technology also inclines renewable sources of energy and allows one to use the stored energy whenever required.
Government initiatives to promote V2G technology are also helping the V2G market to expand. Governments of various regions are releasing funds for people to adapt to the technology easily and are also promoting the benefits of the technology. It also helps to enhance the investment in the sector for its future growth.
V2G technology is evolving with smart grid systems for healthy power supply and demand. The technology helps in the efficient management of supplying power and giving power as well.

What is the Role of AI in the growth of V2G Market?

AI plays a major role in the growth of the V2G market by helping the technology enhance its reliability, scalability, and efficiency. AI ensures an efficient and proper flow of energy between the smart grid and electric vehicle for a proper energy flow without any interruptions. AI algorithms also help to predict energy demands and manage the power supply and demand for improved efficiency. It helps in managing the grid power and lowers the strain on it during the peak moments.

AI also helps to gather data from stored energy sources like EVs such as weather information, renewable energy availability, and energy consumption patterns. Machine learning models help in efficient energy management and allow proper management of energy in EVs along with proper utilization of electric grids as well.

Rapid Advancements in the Combined Charging System: Market’s Largest Potential

Electric vehicle charging infrastructure today is evolving and developing helpful to charge EVs in less time compared to the traditional methods. Today EV charging stations are equipped with bidirectional charging capability helpful for vehicle-to-grid technology to work. Hence, such situations are helpful for the growth of the V2G market in the foreseen time. The V2G technology helps to enhance the overall experience of the combined charging system making it a reliable, efficient, and improved system to make our daily lives smoother and more hassle-free.

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What are the Major Growth Drivers of the V2G Market?

There are multiple growth drivers contributing to the growth of the V2G market. They help in the enhancement of technology adoption by people and help them avail their benefits to the most. The higher adoption of electric vehicles today is helping the market to expand. EVs act as a perfect source of energy storage with the help of V2G technology. Hence, higher adoption of EVs leads to higher potential customers for vehicle-to-grid technology.

Government initiatives of different regions also help in the promotion of vehicle-to-grid technology helpful for the growth of the market. Advancing technology and AI also helps in the expansion of the vehicle-to-grid market. It helps in the proper management of power supply and demand helpful for efficient and reliable performance of the technology along with energy-consuming EVs and smart grids.

What are the Challenges for the Vehicle-to-Grid Market?

A few potential challenges may act as a barrier to the growth of the vehicle-to-grid market. Frequent charging and discharging of EV batteries due to the grid may lead to degradation of the vehicle’s battery. Hence, it may lead to an economic disturbance for an individual owing the EV. Another major challenge faced by the V2G market is grid instability observed due to improper supply and demand of power in the grid causing power fluctuations leading to voltage issues and grid instability.

Such scenarios lower the resilience of people over adapting the technology further creating an issue in the growth of the market. Economic challenges in the form of expensive V2G capable chargers and bidirectional energy converters also pose a challenge to the growth of the V2G market as they are expensive compared to standard chargers. Lack of public awareness about the V2G technology is another challenge faced by the V2G market. It also leads to lower chances of potential customers adopting the technology.

Rapid Advancements in the Combined Charging System are helping the Market to Grow in the Future Period

Electric vehicle charging infrastructure today is evolving and developing helpful to charge EVs in less time compared to the traditional methods. Today EV charging stations are equipped with bidirectional charging capability helpful for vehicle-to-grid technology to work. Hence, such situations are helpful for the growth of the V2G market in the foreseen time. The V2G technology helps to enhance the overall experience of the combined charging system making it a reliable, efficient, and improved system to make our daily lives more smooth and hassle-free.

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Segmental Insights

Vehicle Type Insights:

The Battery Electric Vehicle (BEV) segment dominated the V2G Market. Battery electric vehicles have huge batteries which are not just helpful for the usage of the vehicle but they are also helpful in the storage of charge in huge amounts which can be supplied back to the grid in case of requirements. As consumers today are adopting the use of electric vehicles, the growth of V2G technology is also expanding leading to the growth of the market. BEVs help to stabilize the grids during peak energy demands when renewable sources of energy are low as well.

Component Insights:

The electric vehicle supply equipment (EVSE) segment held the largest share in 2024. The segment represents a higher demand for infrastructure and equipment helpful to charge electric vehicles. The demand is directly linked with the growth of V2G technology paving the way for the growth of the market. The improved infrastructure of the electric vehicle chargers helps in the involvement of V2G technology allowing the system of bidirectional energy flow allowing the grid to get charged by the electric vehicle’s stored power as well. Hence, the growth of EVSE also helps in the growth of the vehicle-to-grid market as well.

Technology Insights:

The power management segment led the vehicle-to-grid market in 2024. Within this context, power management technologies dominated, underpinning the transition from experimental pilots to large-scale fleet and utility deployments. Their dominance is especially evident through the widespread roll-out of bidirectional charging systems and smart inverters, critical for peak load management, grid frequency stabilization, and seamless integration with renewable energy sources.

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Regional Insights

Which Region Dominated the Vehicle-to-Grid Market in 2024?

North America dominated the vehicle-to-grid market in 2024. The growth of the adoption of EVs, the inclusion of smart grids, government initiatives, and funding, and proper knowledge about the V2G technology in the region helped the growth of the vehicle-to-grid market in North America. The use of electric vehicles to support sustainability has also helped in the growth of the market in the region. People today prefer sustainability and hence opt for options that help in promoting eco-friendly options as well.

Higher adoption of EVs helps to promote potential customers of V2G technology allowing more people to get acquainted with the benefits of the technology. Development in the grid systems also helps in the development of the market. It helps to enable smooth and barrier-free communication between the grid operators and the EV-to-grid power supply consumer to maintain a perfect balance.

What to Expect from Asian Countries for Vehicle-to-Grid Market?

Asia Pacific is observed as the fastest-growing region in the growth of the vehicle-to-grid market in the forecast period. The growing use of EVs, government initiatives and funding, advancing technology, and improving consumer knowledge about the potential benefits of V2G technology is helping the growth of the V2G market in the Asia Pacific in the foreseen period.

Governments of countries like India, China, Japan, and South Korea are providing funding for EVs and renewable energy sources which directly helps in the adoption of V2G technology leading to the growth of the market.

Another advantage of promoting the use of EVs involves promising to follow sustainable options. It helps the government to adopt sustainability as well helpful to improve consumer awareness. Smart city initiative in Asia Pacific is also a growth driver of the V2G market in the foreseen period.

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Recent Developments in Vehicle-to-Grid Market

In October 2024, in Yokohama, Japan, Nissan announced that it would launch affordable Vehicle-to-Grid Technology in 2026. The V2G technology with bidirectional charging will be available on its selected electric vehicles. The announcement also supports the company’s goal named ‘Ambition 2023’ which strives to support a cleaner, safer, and more inclusive world.
In June 2025, Octopus Energy and Chinese EV giant BYD unveiled the UK’s first vehicle-to-grid technology named ‘Power Pack Bundle’. The new product combines a leased bidirectional Zaptec Pro charger to access Octopus’ smart energy tariff. The brand also promises free charging to customers at home who fulfill the required demand of the brand for long journeys.

Top Companies of the Vehicle-to-Grid Market

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
Nissan
Fermenta Energy

Segments Covered in the Report

By Vehicle Type

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

By Components

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

By Technology

Power Management
Software

By Charging Type

Unidirectional Charging
Bidirectional Charging

By Region

North America
Latin America
Europe
Asia Pacific
Middle East and Africa

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