Vehicle-to-Grid (V2G) Market will Grow to $40 Billion by 2020, says Report

Wednesday, 29 December 2010 12:07

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Vehicle-to-grid (V2G) technology is a smart grid solution that plug-in electric vehicles (BEV’s/PHEV’s) can use for communicating with the power grid and selling demand response services either through supply of electricity to the grid or through reduction in their charging rate.

According to a recent report by GlobalData, the global V2G market will grow be $40,401 million in 2020. The report, entitled “Vehicle-to-Grid (V2G) - Global Market Analysis and Forecasts to 2020,” also projects the US V2G market to be the largest in 2012 with $847 million in revenues. It is further projected to be a $12,424 million market in 2020.

Pioneered at the University of Delaware, the V2G concept is still being tested all over the world; however its gaining ground in the US and Europe.

Smart grid technologies help in realizing V2G’s economic value. The V2G mechanism depends on communication between utility, the consumer, and the recharge points. Vehicle charging behavior is also controlled by the smart grid. The development of a practicable vehicle to grid infrastructure not only depends upon how quickly smart grid is deployed, but also on the cost of technology needed for supporting this kind of distributed generation and mobile storage program. Therefore, V2G vehicles are expected to become more popular with continuing smart grid deployments.

It is expected that vehicle to grid advancement and adoption will be driven by global smart grid implementations; rising costs of energy; renewable energy policy; green stimulus packages; consumer and business environmental awareness; V2G vehicles becoming less expensive, strong demand for hybrid electric vehicles/plug-in hybrid electric vehicles (HEVs/PHEVs); financial viability pressures of auto manufacturers; and a shift towards adoption of a universal standard. These drivers will combine to form the basis of V2G technology’s innovation, reduction in cost, and rapid adoption.

Implementation of smart grid technology around the world has helped the government officials, utilities, investors, Wall Street, smart grid ecosystem integrators, and auto and battery manufacturers to develop an understanding of advantages and capabilities of vehicle to grid. Thus, the development of the smart grid facilitates global rapid developments in V2G innovation, demonstrations, and V2G enabled EVs/PHEVs.

GlobalData’s report examines in detail the opportunities in the global advanced metering infrastructure market. The report provides key drivers and restraints impacting V2G prospects in the potential markets. The report also includes product comparison of the upcoming V2G vehicles that are currently under testing phase. It also provides market share analysis by region for various segments of global V2G market in 2012 and 2020