Global HVDC Capacitor Market - 2022-2029

Market Overview

The global HVDC capacitor market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).

To transmit via standard high-voltage alternating current (HVAC) technologies that are well established for long-distance, point-to-point power transfers, a direct high-voltage current (HVDC) capacitor is employed. These capacitors are used in dc supply and other general-purpose applications, such as electronic equipment. They're also handy in situations where high current pulses are generated.

HVDC enables power transmission between non-synchronized AC transmission networks. Because the power flow across an HVDC link can be adjusted regardless of the phase angle between source and load, it can help stabilize a network against power fluctuations. Using HVDC, power can also be transferred across grid systems that operate at different frequencies, such as 50 Hz and 60 Hz. It enhances the grid's stability and efficiency by allowing power to be exchanged between incompatible networks.

Market Dynamics

The market is driven by increased government initiatives for HDVC systems and demand for HVDC capacitors in power transmission. HVDC and low voltage expenses are likely to impede market growth.

Rising demand for HVDC capacitors in power transmission

HVDC capacitors are widely employed in power transmission systems because they can rapidly and precisely control power flow. Furthermore, HVDC systems have a lesser environmental impact than HVAC systems since the number of transmission lines utilized in HVDC systems is lower. They require less space to transport the same amount of energy. Furthermore, because HVDC systems only require a few lines, the cost of installing HVDC towers and transmission lines is lower.

As a result, HVDC capacitors are becoming more widely employed in power transmission systems worldwide. HVDC capacitors have been utilized in power distribution systems to reduce the risk of short-circuit current by swiftly managing the power flow. The demand for HVDC capacitors for power transmission is growing due to these benefits.

Increasing government initiatives for HVDC systems

Governments in wealthy countries such as U.S., UK and Germany are upgrading and replacing existing electricity infrastructure. Furthermore, some countries in Europe and Asia-Pacific are focused on adopting renewable energy sources like solar & wind power, which have emerged as attractive investment sectors for businesses worldwide.

ABB Company, based in Switzerland, won a contract worth US$ 640 million in 2017 to offer a long-distance power transmission link to India, which will provide electricity to over 80 million people. It is expected to drive the HVDC capacitor market in India during the forecast period. As a result, the increased number of good government efforts for HVDC systems will likely provide profitable opportunities for the HVDC capacitor industry.

High costs and low voltage

In comparison to AC, the converters used at both ends of the line in HVDC are very expensive. Because the converters have limited overload capability, they require reactive power, which must be provided locally. Filters are also needed on the AC side of each converter, which adds to the cost. Electricity is often only used at low voltage. In the case of DC, voltage transformation is more difficult.

COVID-19 Impact Analysis

During the pandemic years, all electrical and electronics businesses were seriously damaged. The spread of the COVID-19 has had and continues to impact the passive electronic components industry. It results in lower operation levels among the supply chain's top component and raw material production facility suppliers and a drop in global market sales in various regions and countries. As a result, numerous market vendors have changed their global revenue and volume shipment predictions.

Power losses are caused by various factors, including fluctuating demand and poor transmission and distribution equipment. Power losses are substantially higher in developing countries. As a result, manufacturers of HVDC capacitors have more prospects in these areas. For example, India's power providers have lost a huge amount of money due to the current COVID-19-led lockdown.

Segment Analysis

By application, the HVDC capacitor market is segmented into industrial, energy & power and others.

Energy & power to hold the lion's share

HVDC capacitors meet the most stringent electrical and mechanical requirements in the energy and power business, including energy generation, distribution and transmission to various industries. They may be used in various applications and withstand the worst weather conditions. High-voltage power capacitors increase transmission capacity, network reliability and significantly reduce carbon dioxide emissions.

Due to the scarcity of raw energy that can be directly converted into electricity. It necessitates a large quantity of energy, which raises the consumption and thus the demand for HVDC capacitors. Due to technological restrictions in the energy and power sector, HVDC capacitors have remained important and pushed into demand.

The need for electricity in the non-residential sector has increased over the previous decade due to new entrants into the manufacturing industry and increased production activity from various industries, such as chemical, electronics and automotive, which is predicted to fuel the market.

Decarbonizing the power industry will also be critical as more countries intend to increase their climate objectives in 2020. According to an assessment undertaken by Johns Hopkins University and the University of Maryland on 142 nations' transmission and distribution infrastructures, boosting global grid efficiencies may save around 500 million metric tonnes of CO2. To compensate for losses, inefficient global power transmission and distribution infrastructure necessitate different electricity generation, which raises the cost.

Due to growing awareness of the environmental impact of fossil fuels, increased power generation through renewable energy sources is predicted to grow exponentially, thereby boosting the market's growth.

Geographical Analysis

Increasing adoption of HVDC transmission systems in North America

Because of the high rate of adoption of HVDC transmission systems, the area is one of the leading users and investors in the examined market. For example, in U.S., residential, commercial and industrial consumers are driving the adoption of HVDC capacitors to improve transmission capacity and network reliability.

Furthermore, in recent years, the region has made major investments in HVDC transmission lines, which has attracted global vendors and helped the growth of local manufacturers. Local firms, like GE, have already purchased one of the top three HVDC solution providers to improve their position in the worldwide HVDC systems market.

According to research conducted by the National Renewable Energy Laboratory (NREL) in U.S., if long-distance HVDC transmission were provided, the cost-optimal amount of solar installations by 2038 would vary. In conjunction with Canadian Pacific Railway, the Direct Connect Development Company's Midwestern project is leveraging Siemens' HVDC converter technology to leverage the railroad right-of-way.

In addition, in Latin America, HVDC is becoming a favored transmission technology for long-distance bulk power supply. Three of the world's longest power transmission lines are located in Brazil. Furthermore, the rising trend of real-time energy consumption monitoring and high automation levels in smart factories across the region has enabled real-time monitoring of energy-consuming equipment, such as HVDC, which is expected to boost market expansion over the projection period.

Competitive Landscape

Because the top competitors are in such fierce competition, market concentration is expected to stay moderate. In April 2020, ABB inked a five-year framework deal for roughly USD 100 million with Interconexion Electrica SA E.S.P., South America's largest utility business (ISA). Over 62,000 kilometers of power transmission infrastructure are currently operated by ISA, with over 7,000 kilometers more under construction.

Major global HVDC capacitor market companies include ABB Ltd., Eaton Company, RTDS Technologies, Siemens SE, Transgrid Solutions, Maxwell Technologies Inc., General Atomics, Inc., Vishay Intertechnology Inc., Sieyuan Electric and Samwha Capacitor Co Ltd.

Eaton Company:

Overview: Eaton Company is a power management company with around 85,000 employees and operations in 175 countries. Eaton is based in Beachwood, Ohio, with a secondary administrative base in Dublin, Ireland. Electrical, hydraulic and mechanical power management is more reliable, efficient, safe and long-term with energy-efficient goods.

Eaton is a leading manufacturer of power capacitors in North America. The Cooper Power series capacitor team has more than 20 years of experience designing transmission banks for High-Voltage Direct Current (HVDC) and Flexible Alternating Current Transmission Systems (FACTS) that have been widely deployed worldwide.

Product Portfolio: Eaton's Cooper Power series power capacitor product line helps to meet the most demanding applications and special needs. Harmonic and filtering support and the creation of Flexible Alternating Current Transmission Systems (FACTS) and High-Voltage Direct Current (HVDC) transmission bank solutions are part of the specialty application offering. Eaton provides a broad range of services, including onsite, analytical and consultant support, to fully comprehend the system's requirements and design a cost-effective solution.

Key Development: Eaton is assisting China in completing a large clean energy infrastructure project for ultra-high-voltage electricity transmission, which is accelerating the energy transition. By 2035, renewable energy will make up for half of the worldwide power output and Eaton is assisting the State Infrastructure Corporation of China (SGCC) in adding additional renewables to its grid. Eaton processed the Qinghai-Henan ultra-high-voltage direct current (UHV) project forward with the speedy supply and commissioning of capacitors when the COVID-19 situation in China improved.

The energy project will be the world's first UHV transmission system built for clean energy outbound transmission. The project will allow SGCC to send 40 terawatt-hours (TWh) of clean solar, wind and hydro energy over vast distances, reducing CO2 emissions by 29.6 million tonnes per year and improving the energy supply in central China.

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Target Audience 2022

HVDC CapacitorService Providers/ Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Emerging Companies

HVDC CapacitorManufacturers