Electric vehicles have lots of benefits and one that is set to grow in popularity is vehicle-to-grid technology, which is expected to grow by at least 48 percent globally by 2027, using 2020 as a reference. The value of the market for the technology is expected to reach US$17 billion.
Vehicle-to-grid (V2G) is a technology that permits energy stored in a vehicle’s battery to be supplied back to the power grid, which means the flow of electrical energy is bi-directional. Applications include powering up homes, schools and motor fleets.
According to figures released by Precedence Research, for 2019, battery electric vehicles (BEVs) accounted for 64 percent of the global V2G technology market, primarily driven by the fact that BEVs enjoyed the earliest deployment of the technology. But plug-in hybrid electric vehicles are projected to experience the fastest growth before 2027 due to high-power return capacity and large battery size.
The V2G market growth is expected to be powered by the exponential growth in the availability of charging stations across the world. This is because as more charging stations appear, it will result in additional vehicles being integrated into the grid, sparking off even more growth for V2G.
This is especially going to be the case as the automotive industry continues to recover from the effect of the pandemic that forced a slowdown. Vital players in the V2G world like BMW AG, Nissan Motor Co., and Tesla are beginning to return to and surpassing the normal output. They will be buoyed by possible future government incentives.
China for example is going to put in place incentive to grow its local automotive industry, with a focus on ‘new infrastructure’, obviously referring to supporting facilities for electric vehicles.
Europe has dominated the V2G market, pulling in around 36% of the total revenue in 2019 that trend is expected to continue as the governments continue to push for wider adoption of electric vehicles. The continent accounts for about half of all projects involving V2G, as Denmark, UK and Germany occupy pole position. Denmark for example have hosted Nuvve Corporations operations for more than 4 years, in which the company has been carrying out current frequency regulation services of Danish grid operator, Energinet.