HVDC Converter Station Market by Technology, Component, System Configuration, Application

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[183 Pages Report] The HVDC Converter Station Market size was estimated at USD 11.84 billion in 2023 and expected to reach USD 12.81 billion in 2024, at a CAGR 8.25% to reach USD 20.63 billion by 2030.

High voltage direct current (HVDC) converter station refers to a specialized facility that forms the terminal component for an HVDC transmission line. It is designed for the efficient conversion of electrical power from one form to another, typically alternating current (AC) to direct current (DC) or vice versa. The primary application of HVDC converter stations is facilitating power transmission between regions, countries, and continents. The need for efficient long-distance energy transmission with minimal energy loss propels investment in HVDC converter station installations. Growing urbanization and government initiatives to propel the adoption of renewable energy sources have resulted in increased investments in power infrastructure development. However, the substantial initial investment required for HVDC converter station installations may deter private entities from adopting this technology. Furthermore, the absence of standardized components and designs across various HVDC technologies may hinder interoperability between different systems. Moreover, efforts by major providers of HVDC converter stations to harmonize HVDC design can propel standardization of the converter stations and increase the rate of adoption among end users. R&D initiatives and funding to support continued advancements and innovations in converter technologies can expand the applications of the HVDC converter stations. Furthermore, offshore wind installations are gaining traction due to their large-scale generation potential, and HVDC technology is a feasible solution for connecting these offshore installations to onshore grids.

KEY MARKET STATISTICS
Base Year [2023]	USD 11.84 billion
Estimated Year [2024]	USD 12.81 billion
Forecast Year [2030]	USD 20.63 billion
CAGR (%)	8.25%

Technology: Growing adoption of voltage source converter (VSC) technology to power renewable energy projects

A line commutated converter (LCC) uses naturally commutated thyristor devices to convert AC power to DC power for transmission purposes. LCC technology has been the traditional choice for HVDC systems and is preferred in applications where there is a need for long-distance bulk power transfer, such as interconnecting large grids or remote power generation sources. Voltage source converter (VSC) technology is an advanced form of HVDC converter that uses self-commutated semiconductor devices such as insulated-gate bipolar transistors (IGBTs) for conversion. VSC technology offers the ability to operate in weak or isolated grids, reduce harmonic emissions, and lower reactive power consumption.

Component: Ability of converter values to withstand high current losses during HVDC operation

Converter stations and converter units are essential components of HVDC systems responsible for converting high-voltage alternating current (AC) to direct current (DC) and vice versa. The converter transformers are a crucial component of HVDC systems that are designed to withstand DC voltage stresses and increased eddy current losses due to harmonic currents. Converter valves are designed to withstand current and voltage stresses during steady-state operation or during faults. Filters are critical components in HVDC systems to reduce harmonic distortion and ensure stable operation of the power grid. An HVDC system pole represents one of the two conductors in a bipolar configuration, carrying positive or negative voltage. A reactive power source is essential in maintaining voltage stability and supporting AC grid operations in an HVDC converter station. Smoothing reactors are serially connected reactors installed in DC systems and are responsible for reducing harmonic currents, transient over-currents, and current ripples in DC systems.

Configuration: Adoption of multi-terminal systems to enable greater flexibility in connecting multiple power sources and grids

A back-to-back HVDC converter station consists of two converter units directly connected without any overhead lines or cables between them. This configuration is preferred when there is a need to synchronize adjacent AC grids with different frequencies or to control power flow between independent grids without physical interconnection. Bipolar HVDC converter stations utilize two parallel circuits operating at the same voltage with opposite polarity (-/+). The primary advantage of this setup is its increased reliability. In addition, when one pole fails or undergoes maintenance, the other pole can continue transmitting up to half the rated capacity with reduced losses while maintaining ground potential reference. Monopolar HVDC converter stations consist of a single pole, either positive or negative, for power transmission, and a ground return path or metallic return conductor is used to complete the circuit. This configuration offers lower investment costs but may face issues with ground currents, environmental concerns, and lower reliability compared to bipolar systems. Multi-terminal HVDC converter stations comprise three or more terminals connected via an HVDC network. This configuration optimizes electricity transfer between multiple asynchronous grids and supports flexible power distribution from multiple sources, such as offshore wind farms or remote hydroelectric plants.

Application: Higher efficiency of HVDC converter stations in long-distance interconnecting network transmission

HVDC converter stations play a critical role in interconnecting networks, as they enable the efficient transfer of power between grids operating at different frequencies or voltages. These interconnected networks ensure the stability and reliability of the power supply by balancing load fluctuations and allowing access to diverse energy sources. The oil & gas sector requires reliable power systems for their remote offshore platforms to ensure smooth operations. HVDC converter stations cater to this demand by providing efficient power delivery through electrical subsea cables, minimizing environmental impacts related to traditional AC transmission systems. The power industry relies heavily on HVDC converter stations to transmit electricity from power plants to long-distance consumers. Moreover, renewable energy projects, such as wind and solar farms, benefit significantly from these systems due to the efficient integration of generated power into the grid.

Regional Insights

The Americas region has been an early adopter of HVDC converter station technology for long-distance power transmission from remote generation sites to major load centers. There has been a rising interest in integrating renewable energy sources, including wind and solar, into existing grids using HVDC links. Key industry players in this region are involved in building new converter stations or upgrading existing infrastructure to accommodate higher capacities and improve efficiency. The rapidly expanding economies of Asia have led to an increased demand for reliable power supply systems. As a result, several large-scale HVDC projects have been commissioned or are under development across countries, including China, India, Japan, and South Korea. Asia is projected to continue being the fastest-growing region for HVDC converter stations due to their ongoing efforts to increase renewable energy integration and the presence of an economies-of-scale business environment for companies to expand their production. Europe has a long history of utilizing HVDC technology for cross-border power exchanges between its member countries. The EU's focus on reducing carbon emissions and increasing energy efficiency has promoted the adoption of HVDC converter stations to facilitate the integration of offshore wind farms and solar parks into national grids. Key European players in this domain have been making large-scale investments in renewable energy projects, expanding the demand for HVDC converter stations.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the HVDC Converter Station Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the HVDC Converter Station Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the HVDC Converter Station Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Adani Energy Solutions Limited, Aker Solutions ASA, Alstom SA, American Superconductor Corporation, Bharat Heavy Electricals Limited, Black & Veatch Holding Company, C-EPRI Electric Power Engineering Co., Ltd., Crompton Greaves Ltd., Cyient Limited, Dragados by ACS Group, Eaton Corporation PLC, General Electric Company, Hitachi Energy Ltd., Hyosung Corporation, LS Electric Co., Ltd., M. A. Mortenson Company, Mersen Group, Mitsubishi Electric Corporation, Nexans SA, NKT A/S, NR Electric Co., Ltd., Prysmian Group S.p.A., Rongxin Power Ltd., Siemens AG, Stantec Inc., Sumitomo Electric Industries, Ltd., Texas Instruments Incorporated, Toshiba Corporation, TransGrid Solutions Inc., and XJ Group Corporation.

Market Segmentation & Coverage

This research report categorizes the HVDC Converter Station Market to forecast the revenues and analyze trends in each of the following sub-markets:

Technology
- Line Commutated Converter
- Voltage Source Converter

Component
- Converter Transformers
- Converter Unit
- Converter Valves
- Filters
- HVDC System Pole
- Reactive Power Source
- Smoothing Reactor

System Configuration
- Back-To-Back
- Bipolar
- Homopolar
- Monopolar
- Multi-Terminal

Application
- Interconnecting Networks
- Oil & Gas
- Power Industry

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the HVDC Converter Station Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the HVDC Converter Station Market?

3. What are the technology trends and regulatory frameworks in the HVDC Converter Station Market?

4. What is the market share of the leading vendors in the HVDC Converter Station Market?

5. Which modes and strategic moves are suitable for entering the HVDC Converter Station Market?

Product Code: MRR-43127F7278EF

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Need for efficient long-distance power transmission in remote locations
  - 5.1.1.2. Government investments in expanding renewable energy projects
  - 5.1.1.3. Increasing emphasis on cross-border power trading activities
- 5.1.2. Restraints
  - 5.1.2.1. Complex operation and maintenance of HVDC converter stations
- 5.1.3. Opportunities
  - 5.1.3.1. Advancements in the design and models of HVDC converter stations
  - 5.1.3.2. Rising implementation of HVDC converter stations in smart grids
- 5.1.4. Challenges
  - 5.1.4.1. Security issues and synchronization limitations
5.2. Market Segmentation Analysis
- 5.2.1. Technology: Growing adoption of voltage source converter (VSC) technology to power renewable energy projects
- 5.2.2. Component: Ability of converter values to withstand high current losses during HVDC operation
- 5.2.3. Configuration: Adoption of multi-terminal systems to enable greater flexibility in connecting multiple power sources and grids
- 5.2.4. Application: Higher efficiency of HVDC converter stations in long-distance interconnecting network transmission
5.3. Market Trend Analysis
- 5.3.1. Pioneering grid modernization activities with the deployment of next-generation HVDC technologies in the Americas region
- 5.3.2. Emphasizing a sustainable future with the transformational innovations for HVDC converter stations in Asia-Pacific
- 5.3.3. Collaborations between HVDC technology companies and energy projects to stimulate EMEA's regulatory commitment for renewable energy expansion and grid interconnections
5.4. Cumulative Impact of High Inflation
5.5. Porter's Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
5.6. Value Chain & Critical Path Analysis
5.7. Regulatory Framework Analysis

6. HVDC Converter Station Market, by Technology

6.1. Introduction
6.2. Line Commutated Converter
6.3. Voltage Source Converter

7. HVDC Converter Station Market, by Component

7.1. Introduction
7.2. Converter Transformers
7.3. Converter Unit
7.4. Converter Valves
7.5. Filters
7.6. HVDC System Pole
7.7. Reactive Power Source
7.8. Smoothing Reactor

8. HVDC Converter Station Market, by System Configuration

8.1. Introduction
8.2. Back-To-Back
8.3. Bipolar
8.4. Homopolar
8.5. Monopolar
8.6. Multi-Terminal

9. HVDC Converter Station Market, by Application

9.1. Introduction
9.2. Interconnecting Networks
9.3. Oil & Gas
9.4. Power Industry

10. Americas HVDC Converter Station Market

10.1. Introduction
10.2. Argentina
10.3. Brazil
10.4. Canada
10.5. Mexico
10.6. United States

11. Asia-Pacific HVDC Converter Station Market

11.1. Introduction
11.2. Australia
11.3. China
11.4. India
11.5. Indonesia
11.6. Japan
11.7. Malaysia
11.8. Philippines
11.9. Singapore
11.10. South Korea
11.11. Taiwan
11.12. Thailand
11.13. Vietnam

12. Europe, Middle East & Africa HVDC Converter Station Market

12.1. Introduction
12.2. Denmark
12.3. Egypt
12.4. Finland
12.5. France
12.6. Germany
12.7. Israel
12.8. Italy
12.9. Netherlands
12.10. Nigeria
12.11. Norway
12.12. Poland
12.13. Qatar
12.14. Russia
12.15. Saudi Arabia
12.16. South Africa
12.17. Spain
12.18. Sweden
12.19. Switzerland
12.20. Turkey
12.21. United Arab Emirates
12.22. United Kingdom

13. Competitive Landscape

13.1. Market Share Analysis, 2023
13.2. FPNV Positioning Matrix, 2023
13.3. Competitive Scenario Analysis
- 13.3.1. Iraq Signs Contract with Siemens to Build 5 Converter Stations
- 13.3.2. National Grid Launches GBP 59 bn Frameworks for HVDC Needs including GBP 12.8 bn Civils Works
- 13.3.3. Hitachi Energy Passes 150 GW in HVDC Links Integrated into the Power System, Expands Capacity to Meet Accelerating Energy Transition Demand
- 13.3.4. Mitsubishi Electric Receives Order for Frequency Converter Station that Stabilizes Power Grid across Different Frequencies
- 13.3.5. GE Consortium to Supply Converter Stations for UK Subsea Cable Project
- 13.3.6. Adani Energy Solutions Secures USD 1 billion Financing for HVDC Link Project in Mumbai
- 13.3.7. Hitachi Lands Contract for 2 HVDC Converter Stations
- 13.3.8. World's First Unmanned HVDC Offshore Platform Installed at World's Largest Offshore Wind Farm
- 13.3.9. Saudi Arabia to Upgrade HVDC Converter Station
- 13.3.10. Siemens Energy Secures Converter Stations Contract from Terna
- 13.3.11. Mitsubishi Electric Acquires DC Circuit Breaker Developer Scibreak
- 13.3.12. Grain Belt Express Selects Siemens Energy As HVDC Technology Partner

14. Competitive Portfolio

14.1. Key Company Profiles
14.2. Key Product Portfolio