Vehicle-To-Grid (V2G) Market Outlook – 2027
Vehicle-to-grid is a system that is used by electric vehicles such as battery electric vehicles (BEV), plug-in hybrids (PHEV) or hydrogen fuel cell electric vehicles (FCEV). With vehicle-to-grid technology, a car battery can be charged and discharged based on different signals such as energy production or consumption nearby. The work of a vehicle-to-grid system is similar to regular smart charging, which enables the user to control the charging of electric cars in a way that allows the charging power to be increased and decreased when needed. Vehicle-to-grid enables the charged power to also be momentarily pushed back to the grid from car batteries to balance variations in energy production and consumption. The increase in demand for charging stations across the globe fuels the growth of the vehicle-to-grid (V2G) market over the forecast period.
COVID-19 scenario analysis:
Automobiles makers, consumer electronics, and pharmaceuticals in various countries, especially rely on China and other developed countries near them for the supply of several raw materials and parts such as compressors, electronic components, and various sensors.
The global automobile sector has faced the most challenges during the COVID-19 pandemic. For instance, its production houses are shutting down, inventories are overflowing, and the demand is decreasing.
The coronavirus outbreak has heavily impacted the manufacturing industry’s original equipment manufacturer (OEM). However, parts suppliers have yet to return to full production capacity.
Due to nationwide lockdown, companies have faced consequent delays in delivery that might impact the market at multiple levels from postponed new car model launches, shattered supply chains, financially drained SMEs, and dampened vehicle sales.
Top impacting factors: Market scenario analysis, trends, drivers, and impact analysis
Increase in demand for electric vehicles and the government’s encouragement to shift toward e-vehicle are expected to surge the demand for vehicle-to-grid technology over the forecast period. Moreover, the high cost associated with electric vehicle charging equipment is a major factor that hampers the market growth. Furthermore, deployment of vehicle-to-grid (V2G) technology is observed as an opportunity in the electric vehicle supply equipment market, which is expected to offer lucrative opportunities for the market growth over the forecast period.
The vehicle-to-grid (V2G) market trends are as follows:
Increase in demand for electric vehicles
Awareness about the damage caused to the environment with the increasing usage of combustion engines has effectively increased the demand for electric vehicles. Hence, the electric vehicle market is considered to be the future of the automobile as many customers are shifting to electric vehicles, owing to their economical and eco-friendly nature. This is expected to further drive the electric vehicle equipment
market over the forecast period.
Government encouragement to shift toward e-vehicle
To ensure that more people buy electric vehicles, governments across the globe have introduced various subsidies in the form of exemption from paying taxes related to vehicles. Governments play a major role as they mandate policies to adopt electric vehicles, rapidly develop charging infrastructure, and spread awareness among people about the advantages of using these vehicles. Therefore, this has tremendously fueled the vehicle-to-grid market and it is expected to perform well over the forecast period.
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