Vehicle-Grid Integration Services Revenue is Expected to Reach Nearly $21 Million by 2024

A new report from Navigant Research analyzes the market opportunity for vehicle-grid integration (VGI) technologies to be used to support grid reliability and stability, including global market forecasts for vehicle-to-grid-enabled PEVs and VGI capacity and revenue, segmented by region, through 2024.

Today’s plug-in electric vehicles (PEVs) represent a significant increase in electricity demand that, if unmanaged, could cause problems with distribution-level transformers and could drastically increase demand during peak hours when PEV owners return from work and plug in their vehicles. At the same time, PEVs also represent an increase in load that could be used to capture renewable electricity generation and help balance generation with demand, theoretically making electricity marginally cheaper and cleaner.

According to a new report from Navigant Research, worldwide revenue from VGI services is expected to grow from $335,000 annually in 2015 to $20.7 million by 2024.

“In development since before the Volt and LEAF were first sold in the Unites States, VGI technologies are designed to help make the grid more flexible and resilient, while also lowering electricity rates for owners of PEVs,” says Scott Shepard, research analyst with Navigant Research. “With global sales of PEVs surpassing 320,000 in 2014, pilot programs testing VGI technologies are proliferating, and this market has the opportunity to expand rapidly in the coming years.”

The VGI market can be separated into two categories, according to the report: PEVs can provide services to the grid by changing the rate at which they consume power, which is known as vehicle-to-grid communications for charge management, or V1G. Or they can provide power back to the grid, a bidirectional system known as vehicle-to-grid power transfer, orV2G. While V2G pilots have taken center stage, to date, V1G pilots have fewer barriers in regards to automaker adoption and accessible markets.

The report, “Vehicle Grid Integration Technologies,” analyzes the market opportunity for VGI technologies to be used to support grid reliability and stability. It considers various policy factors associated with the growth of VGI, as well as significant market drivers and barriers. Global market forecasts for V2X-enabled PEVs and VGI capacity and revenue, segmented by region, extend through 2024. The report also examines the major V2G technologies and case studies and profiles key market participants. An Executive Summary of the report is available for free download on the Navigant Research website.