Vehicle-to-grid Market Size to Apex USD 78.8 Bn by 2034 | Towards Automotive Analysis

The global vehicle-to-grid (V2G) market size is calculated at USD 6.9 billion in 2025 and is expected to reach around USD 78.8 billion by 2034, growing at a CAGR of 31.1 % from 2024 to 2034.

/EIN News/ -- Ottawa, April 17, 2025 (GLOBE NEWSWIRE) -- The global vehicle-to-grid (V2G) market size was valued at USD 5.3 billion in 2024 and is predicted to hit around USD 78.8 billion by 2034, a study published by Towards Automotive a sister firm of Precedence Research.

Get All the Details in Our Solutions – Request a Brochure: https://www.towardsautomotive.com/download-brochure/1331

Market Overview

As the transition toward a sustainable future accelerates, the global focus on clean energy and environmental responsibility continues to intensify. This growing emphasis drives the demand for innovative solutions to address pressing global energy challenges. Among these, electric vehicles have emerged as pivotal contributors not only in reducing carbon emissions but also in reshaping the energy landscape. Advancements in battery technology are enhancing the performance of EV’s while simultaneously enabling a transformative paradigm in energy management through vehicle-to-grid (V2G) systems. These systems position electric vehicles at the forefront of the energy revolution.

The contributing factor toward market growth is government and regulatory bodies across the globe are actively promoting the adoption of V2G technologies. Through a combination of legislative measures, tax incentives, infrastructure mandates, and traffic-related benefits, policymakers are encouraging the seamless integration of V2G systems into national energy strategies. One of the most significant advantages of V2G technology lies in its potential to reduce energy costs for both consumers and grid operators. By optimizing energy flow and enabling bidirectional energy exchange, the V2G solution represents a critical step toward a smarter, more sustainable, and economically efficient energy.

You can place an order or ask any questions, please feel free to contact us at sales@towardsautomotive.com

Major Trends in the Vehicle-to-grid Market

• Expanding Vehicle-to-grid Ecosystem: The V2G ecosystem plays a pivotal role in the growth of the market by providing bidirectional energy flow between electric vehicles (EVs) and the grid. V2G technology transforms EVs into distributed energy resources. This amalgamation increases the grid capabilities through various functions such as load balancing, peak shaving, and frequency regulation. 
• Expanding Charging Infrastructure: The expansion and modernization of charging infrastructure is driving the growth of the market. The growing deployment of bio-directional chargers, smart grid integration, and fast charging stations is accelerating the readiness of V2G systems. Urban areas now increasingly incorporate EV charging networks, while public and private sector collaborations are investing in scalable and intelligent charging solutions.
• Partnerships Between Energy Providers and Automakers: Utility companies and automakers play a central role in enabling V2G integration. By incorporating EV’s as distributed energy resources, they are redefining demand-response strategies and peak load management. Partnerships between energy providers and automakers are driving pilot projects and commercial-scale implementations, supporting the shift toward decentralized energy ecosystem.
• Technological Advancements: Rapid innovations in battery technology, power electronics, and grid communication protocol are fuelling the growth of the market. Enhanced battery life, higher energy density, and improved vehicle-to-infrastructure communication systems are enabling smoother energy transfer and real-time grid responsiveness.

Get the latest insights on automotive industry segmentation with our Annual Membership: https://www.towardsautomotive.com/get-an-annual-membership

Limitations and Challenges in the Vehicle-to-grid Market

Technical Challenges: Integrating electric vehicles into grid systems requires advanced infrastructure, seamless communication protocols, and a high degree of interoperability. Current grid networks, especially in developing regions, may not be fully equipped to handle bidirectional energy flow. Coordination between multiple stakeholders, automakers, and regulatory bodies is complex and often fragmented, delaying unified implementation.

Limited Adoption: The adoption of V2G technologies remains relatively limited due to a lack of awareness, standardization, and initial investment costs. Consumers may be hesitant to allow grid access to their vehicle batteries due to concerns over battery degradation, reduced driving range, or insufficient financial incentives. Additionally, many EV models are yet not V2G-compatible, limiting participation across the market.

Renewable Energy and Its Impact on Fleets: The intermittent nature of renewable energy sources, such as solar and wind, poses challenges to fleet operators participating in V2G networks. While V2G has the potential to stabilize the grid during fluctuations, coordinating fleet charging and discharging with variable renewable energy output requires precise forecasting and dynamic control mechanisms.

Future Growth Opportunities

The overall development of the vehicle-to-grid market is still in its nascent stage. Regulatory frameworks are still evolving, but inconsistencies across countries and regions create uncertainty of stakeholders. Investment in research and development is essential yet limited in scale. Moreover, a unified vision for V2G integration combining environmental, economic, technical, and objective remains to be fully established. Managing large fleets within the V2G ecosystem demand sophisticated energy management systems, predictive analytics, and responsive control platforms, all of which require substantial investment and technologies.

• A recent survey revealed that there is an increased recognition of V2G potential to address challenges in the electricity sector, particularly concerning grid stability and renewable energy integration.
  

Why North America Dominated the Market?

North America dominated the vehicle-to-grid market by holding the largest share in 2024. This is mainly due to the heightened adoption of electric vehicles, strong utility infrastructure, and active government participation. The U.S. is a frontrunner due to significant investments in smart grid technologies and bi-directional EC charging infrastructure. The region also benefits from robust public-private partnerships and a proactive approach to energy resilience, making it a favourable environment for V2G implementation.

Elevate your automotive strategy with Towards Automotive. Enhance efficiency and drive better outcomes—schedule a call today: https://www.towardsautomotive.com/schedule-meeting

Major North American Countries Supporting Market Growth

• United States: There is a high adoption of EVs due to growing environmental concerns. The country has extensive pilot projects and leading automotive players like Tesla and Nuvi. Regulatory support from the Department of Energy contributes to market growth.
• Canada: The country is pioneering clean energy initiatives and EV adoption, particularly in provinces like British Columbia and Quebec.
• Mexico: Growing interest in EV integration and grid modernization, supported by green energy trends, propels the market in the country.
  

Asia Pacific: The Fastest-Growing Region

Asia Pacific is expected to witness the fastest growth in the coming years. This is mainly due to an expansion of the EV fleet and a strong emphasis on renewable energy integration. There is a strong emphasis on reducing carbon emissions. Thus, governments of countries like India, China, and Japan have imposed stringent regulations on vehicle emissions.

Major Factors Contributing to Market Growth in the Region

• Government Incentives and Policies: Subsidies, tax credits, and zero-emission mandates are encouraging both consumers and companies to invest in V2G-enabled EVs.
• Rising EV Adoption: As electric vehicle ownership increases, the availability of mobile energy storage systems grows, creating new value streams for grid services.
• Smart Grid Development: The evolution of intelligent grid infrastructure allows for real-time communication and energy exchange between EVs and the grid.
• Technological Advancements: Innovations in bi-directional charging, battery durability, and energy management software enable seamless V2G operations.
• Decentralized Energy: Increasing reliance on distributed energy resources, especially in urban areas, highlights the need for flexible, responsive energy systems in areas where V2G excels.
  

Segment Outlook

Vehicle Type Insights

The battery electric vehicles (BEVs) segment dominated the vehicle-to-grid market in 2024. The growth of this segment is driven by their widespread adoption, longer battery cycles, and compatibility with bidirectional charging. Their increasing presence in both private and commercial fleets enhances the grid interactivity and energy storage capabilities.

On the other hand, the plug-in electric vehicles (PEVs) segment is expected to grow at a significant rate during the forecasting period due to their flexibility, which offers both fuel-based and electric operation. While historically less preferred for V2G applications due to smaller battery capacities, advancements in hybrid battery systems and the rise of smart charging infrastructure are accelerating their role in grid participation.

Component Insights

The electric vehicle supply equipment (EVSE) segment led the market in 2024 and is projected to grow at a significant rate in the coming years. The growth of this segment is attributed to growing investments in smart, scalable, and bidirectional charging stations. Utility providers and automakers are prioritizing EVES development to facilitate seamless grid integration.

Technology Insights

The power management segment dominated the vehicle-to-grid market in 2024. The growth of this segment is driven by its essential role in balancing energy flow, preventing overloads, and maintaining grid stability. It ensures optimal utilization of stored energy in vehicles, making it a core technology in V2G operations.

Meanwhile, the software segment is projected to grow rapidly during the forecast period due to the rising demand for ingenious software solutions, including energy trading platforms, predictive analytics, and fleet management systems. With the rising demand for automation, real-time data analytics, and user interfaces, software is becoming an indispensable enabler of smart V2G systems.

Charging Type Insights

The bidirectional charging segment held the largest share of the market in 2024. This is mainly due to two-way energy flow, allowing EVs to both consume and supply power. Technological progress and supportive policies are accelerating its adoption, especially in regions with advanced grid infrastructure.

On the other hand, the unidirectional charging segment is expected to expand at a significant rate in the upcoming period. The growth of this segment can be attributed to its primary use for standard EV charging. Though it does not support energy feedback to the grid, its widespread infrastructure and simplicity keep it dominant in the market.

Recent Breakthrough in the Market:

• In April 2025, the Automotive Research Association of India, the Ministry of Heavy Industries’ research body, has certified an electric vehicle (EV) charger developed by a start-up incubated at the Indian Institute of Technology-Madras. The start-up, Pugmark, has developed a fast EV charger for heavy vehicles and is the first start-up in India to receive the certification from the association.
  

Browse More Insights Towards Automotive:

• Electric Vehicle Taxi Market: https://www.towardsautomotive.com/insights/electric-vehicle-taxi-market-sizing
• India Electric Vehicle Adhesive Market: https://www.towardsautomotive.com/insights/india-electric-vehicle-adhesive-market-sizing
• Micro Electric Vehicles Market: https://www.towardsautomotive.com/insights/micro-electric-vehicle-market-sizing
• United Kingdom Electric Vehicle Adhesive Market: https://www.towardsautomotive.com/insights/united-kingdom-electric-vehicle-adhesive-market-sizing
• Heavy-Duty Autonomous Vehicle Market: https://www.towardsautomotive.com/insights/heavy-duty-autonomous-vehicle-market-sizing
• HD Maps for Autonomous Vehicles Market: https://www.towardsautomotive.com/insights/hd-maps-for-autonomous-vehicles-market-sizing
• Unmanned Aerial Vehicles Market: https://www.towardsautomotive.com/insights/unmanned-aerial-vehicles-market-sizing
• Electric Vehicle Battery Thermal Management System Market: https://www.towardsautomotive.com/insights/electric-vehicle-battery-thermal-management-system-market-sizing
• Electric Commercial Vehicle Market : https://www.towardsautomotive.com/insights/electric-commercial-vehicle-market-sizing
• Commercial Vehicle Urea Tank Market: https://www.towardsautomotive.com/insights/commercial-vehicle-urea-tank-market-sizing

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
  

For pricing details and customized market report options, click here: https://www.towardsautomotive.com/price/1331

You can place an order or ask any questions, please feel free to contact us at sales@towardsautomotive.com 

Subscribe to our Annual Membership and gain access to the latest insights and statistics in the automotive industry. Stay updated on automotive industry segmentation with detailed reports, market trends, and expert analysis tailored to your needs. Stay ahead of the competition with valuable resources and strategic recommendations. Join today to unlock a wealth of knowledge and opportunities in the dynamic world of automotive: Get a Subscription 

About Us 

Towards Automotive is a premier research firm specializing in the automotive industry. Our experienced team provides comprehensive reports on market trends, technology, and consumer behavior. We offer tailored research services for global corporations and start-ups, helping them navigate the complex automotive landscape. With a focus on accuracy and integrity, we empower clients with data-driven insights to make informed decisions and stay competitive. Join us on this revolutionary journey as we work together as a strategic partner to reinvent your success in this ever-changing automotive world. 

Our Trusted Data Partners

Precedence Research | Statifacts | Towards Packaging | Towards Healthcare | Towards Food and Beverages | Towards Chemical and Materials | Towards Consumer Goods | Towards Dental | Towards EV Solutions | Nova One Advisor | Healthcare Webwire | Packaging Webwire | Automotive Webwire

For Latest Update Follow Us: https://www.linkedin.com/company/towards-automotive