How will the EU-Automotive Act affect Vehicle-to-X (V2X) market development?

The V2X market is reaching commercial maturity in 2025, with significant growth anticipated in the coming years. The EU automotive action plan, partially focusing on bi-directional charging capabilities essential for Vehicle-to-X (V2X) technologies, dresses regulatory and market challenges, aiming to create a conducive environment for V2X technologies to thrive.

Virta head of PA, Eemil Rauma, shares insights on what is happening with Automotive Industrial Action Plan and V2X-markets.

What’s the Fuzz about EU automotive industrial action plan?

European automotive industry, rapidly shifting to electric mobility, and accounting for 7 % of EU GDP and providing more than 12 million jobs is facing though times. Chinese OEMs are bringing more and more high-quality electric vehicles to European markets and USA is putting hefty 25 % tariffs on non-US made cars. To create fair playing ground, ensuring European automotive industry competitiveness and to support the transition to zero-emissions (well fully electric to be said) mobility, the European commission launched the Automotive action plan.

The EU-Automotive Act, released in early March 2025, is like an electric turbocharger for the European automotive and charging infrastructure sector, focusing on clean mobility and digitalization.

One of its key aspects is the push for a robust charging infrastructure to support the growing fleet of electric vehicles (EVs), that are the key in releasing Europe from the chains of imported fossil fuels, which take about 1 billion euro of European money every day.

The act (regarding charging infra) focuses on 5 key topics:

1. Accelerating Charging Infrastructure Rollout with additional funding – Good to have more funding especially for the emerging heavy duty electric truck charging, but what about the grid connections that are the bottleneck?
2. Smart and Bi-directional Charging Framework - The plan encourages Member States to establish frameworks for smart and bi-directional charging. This is all good, but these have already or are being solved by the charging industry. We need to move faster.
3. Grid Access and Connection Prioritization – The plan addresses grid access issues, which are often bottlenecks for deploying recharging infrastructure. This is a heart-warming action point, especially when connected to BESS, enabling provision of high-quality and guaranteed charging power. Check more on what FAAST is doing.
4. Support for V2G Pilots – “Launching a regulatory sandbox for V2G pilots to address regulatory, technical, and market challenges before large-scale deployment.” This sounds really nice, but market pioneers have already moved further and are deploying market based V2X-chargers. The ambition level needs revamp!
5. Integration with Renewable Energy - The plan highlights the role of V2G in integrating renewable energy sources into the grid. This is important given the current geopolitical situation, as we simply need EVs to support uptake of renewable EUROPEAN energy and also to act as a support element for the grid stability.

What’s happening at the V2X-Market?

The EU is driving rapid progress in the automotive sector – but what’s the current state of the V2X market? In short, it has reached a stage of maturity. We’re now seeing real clients, real transactions, real revenue, and fully operational services.

After years of hype and anticipation, V2X technologies have reached their initial commercial maturity. In the current geopolitical context, this is more important than many might acknowledge. According to recent studies, the V2X-market is poised for significant growth, with projections indicating that V2G-connected vehicles could provide over 10% of Europe’s power needs by 2040. This marks a significant advancement from the past, when V2X services were largely theoretical. While some companies claimed to have the capability, they offered little concrete evidence. At Virta, we've demonstrated tangible proof to both our partners and stakeholders (such as the V2G integration for Nissan together with E.ON), and, the first commercially available, market-based V2G chargers are now on their way to being installed.

2025 is the year when companies like Virta are gearing up to reveal new V2X solutions, turning your car into a mobile power plant. It's like having a Swiss Army knife on wheels, ready to charge your phone, power your home, or even sell energy back to the grid. This is no longer theoretical – it's real and happening already.

What’s around the corner?

The future of V2G services is as bright as a fully charged EV. The benefits are clear: reduced grid congestion, enhanced renewable energy integration, and significant cost savings for consumers and grid operators alike. A study by EY suggests that smart charging, including V2G, could save European grid operators up to €4 billion annually by 2050. However, to unlock these benefits, the market needs to see these advantages in action today. This is where the industry needs to demonstrate the potential of V2G with real-world applications, already today.

The EU-Automotive Act plays a pivotal role in this evolution bringing together two of the world’s largest industries, energy and transport. By setting the stage for a unified charging infrastructure and V2X-framework and by encouraging the adoption of bi-directional charging, the act is effectively laying down the tracks for the V2X train. And the passengers have already gathered at the platform.

Mass adopted V2X-services will make Europe more resilient and energy independent while at the same time supporting European automotive industry, CPOs, utilities and grid operators. Not to forget the consumers, who are able to save up to thousands of euros on their electricity bills.

The EU-Automotive Act is not just a policy; it's a catalyst for change in the V2X market. With the right infrastructure and market conditions, V2X technologies are set to revolutionize how we think about energy and mobility. So, buckle up, because the future of V2X is charging ahead at full speed!

Sources:

1. Automotive action plan
2. EY 2024; Plugging into potential: unleashing the untapped flexibility of EVs
3. Study on the “Potential of a full EV-power-system- integration in Europe & how to realise it” Fraunhofer ISE & Fraunhofer ISI 2024

Author

Eemil Rauma

Head of Government Relations and Public Affairs, Virta
Eemil is a passionate EV mobility and new business model advocate on a crusade against unnecessary regulation.

Eemil Rauma