Global HVDC Transmission Market - 2022-2029

Market Overview

The global HVDC transmission 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).

The high voltage direct current, abbreviated as HVDC, is a transmission system that uses direct current to transmit power over long distances. The HVDC transmission technology ensures efficient and cost-effective power transmission across vast distances, meeting rising load demands. The HVDC transmission system primarily comprises converter stations, which convert AC to DC at the sending end, and inverter stations, which invert DC electricity into AC power at the receiving end. As a result, converter stations are an important part of the HVDC transmission system. HVDC transmission has lower losses than other means of distribution and is very economical for bulk power transmission over long distances. Major countries with large areas utilize HVDC transmission for grid connectivity.

Market Dynamics

The increasing global energy consumption mainly drives the demand for HVDC transmission. It is the most important driver for the market. The operational drawbacks of HVDC transmissions are a key factor in limiting the growth of this market.

Increasing global energy consumption

Rapid industrialization and strong economic growth have occurred in the last two decades. Many countries in the developing world have undergone a radical economic transformation. Modern life has become more energy-dense due to the increasing use of electronics and home appliances. These factors have contributed to a significant rise in global energy consumption.

Developed countries do not have power generation problems but transmission and distribution problems. Advanced countries of Europe and North America have neglected to make significant investments in electrical infrastructure and as a result, the grid comes under increased strain during peak demand. Developing countries such as India and China are increasing power generation and upgrading transmission infrastructure to cater to rapidly growing energy demand due to ongoing industrialization. HVDC transmissions have very low losses of rated power and provide an economical way of transmitting power over long distances. The increasing global energy consumption is a key driver of the global HVDC transmission market.

High cost of installation and maintenance

Due to the nature of the design of HVDC transmission systems, it entails high costs during installation and maintenance. Modern appliances run on AC power, so converter stations have to be established at endpoints to convert DC power into AC power, increasing costs. Furthermore, due to reactive power consumption at converter stations, expensive filter-compensation units must be installed.

Multi-terminal HVDC transmission systems are complex in construction and require a sophisticated communication and control system to ensure stable operation, which adds to costs. Grounding HVDC transmission is a complex and challenging installation because a stable and permanent connection to the Earth is required for proper functioning and to avoid the production of a dangerous step voltage. Highly skilled personnel with specific skill sets must maintain HVDC transmission systems. The high costs of installing and maintaining an HVDC transmission system are a key challenge to the market's growth.

COVID-19 impact analysis

The global HVDC transmission market experienced several challenges in 2020 due to the COVID-19 pandemic. Government-imposed lockdowns and movement restrictions impacted the construction and installation of new HVDC transmission systems. It also affected major overhauls of existing HVDC transmission lines. Only minor maintenance was possible during the initial months of strict lockdowns.

The COVID-19 pandemic caused massive disruptions to global supply chains, which led to shipping delays and other logistical problems. Companies experienced a shortage of components required for HVDC transmission systems. Sourcing the required components also led to inordinate delays and many projects remain stalled, even as the pandemic receded. Stalled projects and supply chain difficulties have impacted the revenue of various companies operating in this sector. Despite the short-term challenges, ever-increasing energy demand globally will generate strong demand for HVDC transmission systems. The global HVDC transmissions market will continue to grow strongly in the coming years.

Segment Analysis

The global HVDC transmission market is segmented into technology, configuration, voltage, application and region. The HVDC transmission market is further segmented into capacitor commutated converter (CCC), voltage source converter (VSC) and line commutated converter (LCC) based on technology. Line commutated converter (LCC) is leading in this segmentation since it is the most widely used technology in HVDC transmission. It is the oldest technology of HVDC transmission in use and hence most HVDC transmissions in operation utilize this technology. Capacitor commutated converter (CCC) and voltage source converter (VSC) are relatively new and have a major share.

Geographical Analysis

Asia-Pacific is leading in the global HVDC transmission market. The region accounts for the largest regional market share, primarily due to the large-scale industrialization and urbanization currently occurring in various countries. It has significantly increased energy demand in the region.

China is a leading manufacturing powerhouse undergoing rapid urbanization. In 2018, it operationalized the world's first fully HVDC grid at Zhangbei in the Beijing-Tianjin-Hebei area. China is rapidly increasing its generation capacity with the addition of new solar, wind and nuclear power plants. It utilizes HVDC for reliable power transmission to remote interior parts of the country. In late 2019, China inaugurated a 1.1-million-volt HVDC line from Xinjiang in northwestern China to Anhui in the east, over more than 3300 km.

India is another country that is undertaking massive investments in electric grid infrastructure. It achieved the milestone of 100% electrification in 2020 and is now undertaking upgradation of electrical infrastructure to improve energy access. In 2021, India commissioned an 1800km HVDC transmission line between Raigarh in central India to the southern state of Tamil Nadu. In 2022, Singapore and Australia signed a deal to construct Australia-Asia Power Link (AAPL), an HVDC transmission line between the two countries. The Asia-Pacific region is expected to retain the largest share in the global HVDC transmission market.

Competitive Landscape

The global HVDC transmission market is competitive due to a wide range of HVDC transmission solutions and technologies that cater to different requirements. Some of the major players contributing to the growth in the segment are Siemens, ABB, General Electric, Hitachi Energy Ltd., Mitsubishi Electric Corporation, Schneider Electric, NKT A/S, Nexans, NR Electric Co., Ltd. and Toshiba Energy Systems & Solutions Corporation. The major players in the HVDC transmission market adopt several growth strategies such as new product launches, upgradation of existing products, joint ventures, and collaborations, contributing to global growth in the industry.

Siemens

Overview: Siemens is an engineering conglomerate that designs and implements power and energy solutions. The company develops and builds fossil fuel power plants and power-generating components and offers gas turbines, steam turbines, generators, gas turbines, steam turbines, compressors, fans, instrumentation and controls, electrical systems, wind turbines, fuel cells, fuel gasifiers, turbochargers and environmental systems.

The company serves power, oil and gas, air separation, building complexes, ceramics, chemicals, food and beverage, manufacturing, marine, metals, pulp and paper, textiles and sugar industries. The company operates in various locations globally, such as Canada, Mexico, the United States, Brazil, Saudi Arabia, China and other countries. Siemens was founded by German engineer Werner von Siemens in 1847 and is headquartered in Munich, Germany.

Product Portfolio

HVDC Classic is Siemen's offering for line commuted converter (LCC) based HVDC transmission. HVDC Classic is used for bulk power transmission applications. The system is efficient with a loss of 0.7% of rated power with a transmission distance of over 2000kms. Dynamic load control enables it to respond proactively to changes in the transmission network.

Key Developments:

In 2022, Siemens entered into an agreement with Guangdong Energy Group Co., Ltd. to provide its HVDC transmission technology for the combined cycle 675MW power plant in China's greater bay area. The agreement is expected to expand Siemen's footprint in the Chinese market.

Why Purchase the Report?

• Visualize the composition of the HVDC transmission market segmentation by the technology, configuration, voltage, application and region, highlighting the critical commercial assets and players.

• Identify commercial opportunities in the HVDC transmission market by analyzing trends and co-development deals.

• Excel data sheet with thousands of global HVDC transmission market-level 4/5 segmentation data points.

• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.

• Product mapping in excel for the critical product of all major market players

The global HVDC transmission market report would provide access to an approx. 65 market data tables, 70 figures, and 244 pages.

Target Audience 2022

• HVDC transmission manufacturers
• Power equipment manufacturers
• Energy companies
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals