The global Vehicle-to-Grid (V2G) market is experiencing rapid growth, driven by increasing EV adoption, rising grid demand for energy management, and bidirectional charging infrastructure. Key drivers include renewable energy integration, government incentives, and partnerships between automakers and utilities to balance energy supply, with North America leading in adoption.
Chicago, Feb. 03, 2026 (GLOBE NEWSWIRE) — According to recent data from Astute Analytica, the global vehicle-to-grid market was valued at US$ 6.27 billion in 2025 and is projected to hit the market valuation of US$ 65.84 billion by 2035 at a CAGR of 26.50% during the forecast period 2026–2035.
By late 2025, the Vehicle-to-Grid (V2G) market will have undergone a fundamental transformation, moving decisively from the realm of pilot programs and experimental trials into a mature, fully commercialized operational phase. Early in the market’s development, questions around the technical feasibility and reliability of bidirectional charging dominated discussions. Today, these debates have largely been settled by successful demonstrations and increasing real-world deployments. Market stakeholders have shifted their focus toward scaling up V2G infrastructure and maximizing the economic returns generated per kilowatt-hour of energy exchanged between vehicles and the grid.
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This new chapter in the V2G market is characterized by electric vehicles acting not just as passive consumers of electricity but as active distributed energy resources (DERs). Instead of merely drawing power during charging, EVs now dynamically supply energy back to the grid when needed, helping to balance supply and demand, stabilize frequency, and support grid resilience. This paradigm shift represents a significant evolution in how energy systems are managed, turning millions of EV batteries into a collectively powerful and flexible asset that can respond to grid conditions in real time.
Commercial Fleet Depots Lead the Charge in Bidirectional Vehicle Technology
Commercial fleet depots are emerging as the fastest adopters of bidirectional Vehicle-to-Grid (V2G) technology, driven by a compelling and immediate economic incentive. Unlike individual consumers, commercial fleets operate on predictable schedules with well-defined downtime, presenting ideal opportunities to leverage their electric vehicles (EVs) for grid services without disrupting operational needs. By using these predictable idle periods strategically, fleet operators can engage in peak shaving—reducing demand during costly high-demand periods—and avoid hefty demand charges imposed by utilities.
While demand charge avoidance is a powerful motivator, the Vehicle-to-Grid market is witnessing growing interest in ancillary services, particularly frequency regulation. Commercial fleets are uniquely positioned to provide these services because their aggregated EV pools can respond swiftly and reliably to grid operator signals. Frequency regulation requires rapid adjustments to power output to maintain the grid’s alternating current frequency within tight tolerances, a task at which EVs excel due to their fast response capabilities.
The contract opportunities for commercial fleets participating in ancillary services represent a lucrative revenue stream beyond traditional energy cost savings. High-value compensation for frequency regulation services reflects the premium placed on quick response times and reliability. This financial upside, combined with the operational feasibility of integrating bidirectional technology into fleet management, is accelerating adoption rates.
Frequency Regulation: The Most Lucrative Application in the Vehicle-to-Grid Market
Frequency regulation holds a commanding position within the Vehicle-to-Grid (V2G) market, capturing over 21.40% of the market share and standing out as its most financially rewarding application. This prominence is largely attributed to the high value grid operators place on maintaining stable alternating current (AC) frequency, a critical parameter for reliable electricity supply.
Leading grid operators such as National Grid Electricity System Operator (ESO) have embraced the potential of aggregated EV fleets, leveraging their rapid response capabilities to enhance frequency stability. Utilizing platforms like Kaluza, these vehicles can autonomously interpret grid signals and adjust their charging or discharging behavior almost instantaneously. This real-time balancing of supply and demand not only supports grid resilience but also optimizes the use of renewable energy by smoothing out fluctuations inherent to wind and solar power sources.
Regional transmission organizations are paving the way for EV participation in ancillary service markets, with PJM Interconnection serving as a prime example. PJM allows electric vehicles to bid directly into its frequency regulation market, thereby creating a transparent and accessible revenue stream for EV owners. This market inclusion incentivizes EV owners to contribute to grid stability, turning their vehicles into valuable grid assets beyond mere transportation.
North America’s Commanding Lead in the Vehicle-to-Grid Market
North America currently dominates the global Vehicle-to-Grid (V2G) market, commanding a substantial 38.22% share that reflects both technological advancement and strategic policy implementation. This leadership position is underpinned by the operational maturity of key initiatives such as the U.S. Environmental Protection Agency’s (EPA) Clean School Bus Program. By late 2025, this program will have facilitated the deployment of over 10,000 electric school buses actively feeding approximately 1.2 gigawatts of flexible energy capacity back into regional grids, including major markets like PJM in the Mid-Atlantic and CAISO in California.
The North American V2G market’s growth has been further accelerated by regulatory breakthroughs, most notably the full implementation of the Federal Energy Regulatory Commission’s (FERC) Order 2222. This landmark ruling has dismantled long-standing barriers that previously limited the participation of distributed energy resources in wholesale electricity markets.
California stands out as a regional leader within North America, reinforcing the market’s momentum through pioneering interconnection reforms. These reforms simplify and expedite the process for commercial fleet operators to connect their V2G assets to the grid, effectively unlocking new revenue streams. It is estimated that these changes have generated approximately USD 450 million in annual revenue opportunities for fleet operators participating in emergency load reduction programs.
Vehicle to Grid Market Major Players:
- Nissan Motor Corporation
- Mitsubishi Motors Corporation
- NUVVE Corporation
- Fermata Energy
- ENGIE Group
- OVO Energy Ltd.
- Renault Group
- Honda Motor Co., Ltd.
- Hyundai Motor Company
- AC Propulsion
- Edison International.
- DENSO Co.
- Hitachi
- Next Energy
- NRG Energy
- OVO Energy Ltd.
- ChargeScape
- Other Prominent Players
Key Market Segmentation:
By Vehicle Type
- Battery Electric Vehicles (BEVs)
- Plug-In Hybrid Electric Vehicles (PHEVs)
- Fuel Cell Vehicles (FCVs)
- Others
By Solution Type
- Hardware
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- Electric Vehicle Supply Equipment (EVSE)
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- Smart Meters
-
- V2G Chargers
-
- Others
- Software
-
- V2G Program Administration
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- Dynamic Load Management System
-
- Energy Management Systems (EMS)
-
- Telematics & Cybersecurity
-
- Others
- Services
-
- Professional
-
- Managed Services
By Application
- Peak Power Sales
- Spinning Reserves
- Base Load Power
- Frequency Regulation
- Voltage Regulation / Reactive Power Support
- Load Balancing & Demand Response
- Renewable Energy Integration
- Others
By End Users
- Commercial
-
- Office Buildings
-
- Retail
-
- Malls
-
- Others
- Public Charging Stations / Charging Hubs
- Fleet Depots & Shared Mobility
- Utilities / Grid-Scale Aggregation
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: sales@astuteanalytica.com Website: https://www.astuteanalytica.com/