Vehicle to Grid Market Size, Share, Growth, Trends, and Global Industry Analysis: By Vehicle Type (Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, and Fuel Cell Electric Vehicles), By Technology Type (Bidirectional Charging Systems, Smart Inverters, Battery Management Systems, and Control Software), By Ownership Model (Private Ownership, Fleet Operations, Shared Mobility Services, and Utility-owned Vehicles), By Application (Residential, Commercial, Industrial, and Public Transport), and By Region 2020-2031

Vehicle to Grid Market size was valued at US$ 12.9 million in 2024 and is expected to reach US$ 66.0 million by 2031, growing at a significant CAGR of 26.3% from 2025-2031. The global vehicle-to-grid (V2G) market encompasses technologies, products, services, and business models that enable the bidirectional exchange of electric energy between electric vehicles (EVs) and the electrical grid. V2G systems allow EVs not only to draw power for recharging but also to supply stored energy back to the grid when required.

The global vehicle-to-grid (V2G) market is being driven by the rapid expansion of electric vehicle (EV) adoption and the increasing need for grid flexibility. As EVs become mainstream, their integration into the power grid as mobile storage units offers significant potential to reduce peak load pressures and support decentralized energy strategies. A key trend shaping the market is the emergence of bi-directional charging as a built-in capability in next-generation EVs and infrastructure, signalling a shift toward intelligent energy ecosystems where vehicles actively support grid operations. This trend is further supported by digital energy management platforms and evolving regulatory frameworks.

A major opportunity lies in the integration of V2G systems with renewable energy sources like solar and wind, enabling more stable, flexible grids and reducing renewable energy curtailment. Governments and utilities are already exploring this through pilot programs and policy incentives. However, the market faces notable restraints, particularly the lack of standardized protocols and interoperability across EVs, chargers, and grid systems. These technical barriers, coupled with battery wear concerns and limited end-user incentives, pose challenges to widespread adoption. Despite these hurdles, the market outlook remains strong, with growing alignment between clean mobility, smart grids, and the global energy transition.

Facts & Figures

• Surge in Electric Vehicle (EV) Adoption: As global EV adoption accelerates, the number of mobile battery units available for V2G integration is rising rapidly. With each EV essentially acting as a potential energy storage unit, this creates a vast decentralized network that can support grid stability and energy redistribution. For instance, according to IMARC Group 2024, battery electric vehicles (BEVs) accounted for over 64% of global EV sales in 2024, offering immense V2G potential. Real-world applications include New York City's deployment of electric school buses with bidirectional V2G capability, turning idle buses into power sources during off-hours.
• Government Support and Regulatory Push: Governments globally are creating favorable ecosystems for V2G by offering incentives, updating policies, and funding pilot projects. For instance, China’s National Development and Reform Commission (NDRC) has planned over 50 pilot V2G programs by 2025, pushing public-private partnerships to accelerate rollout. In the U.S., the Infrastructure Investment and Jobs Act includes funding for smart grid infrastructure, supporting projects like the DOE’s EV Grid Assist to enable V2G deployment.
• Fleet Electrification and Pilot Programs: Fleet operators (public buses, delivery vehicles) are ideal early adopters due to their centralized control, predictable schedules, and large energy capacity. V2G lets these fleets earn revenue or provide grid services while parked. For instance, in Oakland, California, 74 electric school buses are being equipped with V2G systems to discharge electricity to the grid during peak hours, supporting local utilities and reducing strain.
• New Revenue Streams and Backup Power for EV Owners: V2G allows EV owners to earn by selling energy during high-demand hours, while also acting as an emergency power source for homes (vehicle-to-home, V2H). This turns EVs into income-generating, multi-functional assets. For instance, Australian homeowners using V2G with solar panels and bidirectional chargers reportedly earned around US$ 1,000/year by supplying stored energy back to the grid.

Recent Developments

• In June 2025, Dutch car?sharing operator MyWheels unveiled a €100?million initiative in Utrecht to equip 500 Renault EVs with bidirectional charging via We Drive Solar chargers, the largest V2G car?share rollout in Europe, enhancing grid stability and tapping fleet battery capacity for peak?demand support.
• In May 2025, Nuvve Holding Corporation announced its acquisition of substantially all assets of Fermata Energy for approximately US$?659,000, uniting two leading V2G innovators to combine IP, experienced teams, software platforms, and customer base to accelerate grid?scale deployments and revenue growth.
• In April 2025, Nissan joined its automaker peers in investing equally into ChargeScape, a V2G-enabled home charging software platform, planning to roll out services to EV customers in North America and reviving CHAdeMO-based bidirectional charging integration.

Vehicle to Grid Market Segmentation

Based on the vehicle type 

• Battery Electric Vehicles (BEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs)
• Fuel Cell Electric Vehicles (FCEVs)

Battery Electric Vehicles (BEVs) hold the largest market share in the global vehicle-to-grid (V2G) market due to their higher battery capacity, zero tailpipe emissions, and better compatibility with bidirectional charging technology. BEVs are increasingly favored by governments and fleet operators for large-scale electrification, making them ideal candidates for V2G integration in grid-balancing and energy storage applications. Their simpler architecture and stronger OEM support for V2G readiness, such as in models from Nissan and Ford, further drive adoption. In contrast, Fuel Cell Electric Vehicles (FCEVs) currently hold the smallest share due to limited infrastructure, lower deployment volume, and technical limitations in implementing V2G functionalities.

Based on the technology type

• Bidirectional Charging Systems
• Smart Inverters
• Battery Management Systems
• Control Software

Bidirectional charging systems hold the largest market share in the global vehicle-to-grid (V2G) market. These systems are the core enablers of V2G functionality, allowing energy to flow both into and out of the vehicle battery. Their critical role in enabling peak shaving, frequency regulation, and backup power services has led to strong demand across residential, commercial, and fleet-based applications. As OEMs and utilities increasingly collaborate to deploy V2G-compatible EVs and chargers, investments in bidirectional charging infrastructure continue to surge. On the other hand, control software holds the smallest market share, as it is still evolving, with adoption limited to pilot projects and early-stage smart grid integrations.

Based on the ownership model

• Private Ownership
• Fleet Operations
• Shared Mobility Services
• Utility-owned Vehicles

Fleet operations hold the largest market share in the global vehicle-to-grid (V2G) market due to their centralized management, predictable usage patterns, and high battery availability during off-peak hours. School buses, delivery vans, and public transport fleets are ideal for V2G applications, as they remain parked for extended periods and operate on fixed schedules, making them valuable assets for grid services like load balancing and demand response. This has led to widespread pilot programs and commercial rollouts in regions like North America and Europe. In contrast, utility-owned vehicles currently account for the smallest share, as utilities are still in the early stages of transitioning their fleets to electric and adopting V2G-compatible infrastructure.

Based on the application

• Residential
• Commercial
• Industrial
• Public Transport

Commercial applications hold the largest market share in the global vehicle-to-grid (V2G) market, primarily driven by high EV fleet concentration, availability of dedicated parking infrastructure, and the financial incentive to monetize idle vehicle batteries. Businesses, logistics companies, and fleet operators benefit from V2G through cost savings on energy bills, participation in demand response programs, and enhanced sustainability credentials. Commercial settings also enable easier deployment of centralized bidirectional charging systems, making integration more efficient. On the other hand, Industrial applications currently hold the smallest share due to limited adoption of EVs in heavy industries and logistical challenges in implementing V2G infrastructure across large, complex industrial operations.