HVDC Transmission Market Research Reportā€”Global Forecast till 2030

HVDC Transmission Market Research Report Information By Technology Type (LCC, VSC) Application Type (Underground, Asynchronous, Offshore) Configuration Type (Monopolar, Bipolar, Multi Terminal, Back-To-Back) Voltage Rating Type (640 kV, 500 kV, 200 kV) Forecast 2030

ID: MRFR/E&P/4569-CR | August 2022 | Region: Global | 100 Pages         

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HVDC Transmission Market

HVDC Transmission Market share is expected to surpass USD 17,448,0 million by 2030, with a 8.6% CAGR during the forecast period, 2022-2030.

Segmentation
By Technology LCC VSC
By Application Underground Offshore Asynchronous Grid
By Configuration Monopolar Bipolar Back-to-back Multi Terminal
By Voltage Rating 640 KV 500 KV 200 KV
Key Players
Companies Profiled   Seimens AG (Germany)    Hitachi (Japan)    ABB (Switzerland)    Schneider Electric (France)    Toshiba (Japan)    Alstom (France)    General Electric (U.S.)    DATC (U.S)    Mitsubishi (Japan)    NKT Holdings (Denmark)    Adani (India)    Nexans (France)    Prysmian Group (Italy)    C-EPRI Electric Power Engineering Co. Ltd (China)
Drivers
Market Driving Forces   New product launches and R&D Amongst major key Players    Increase in the installation of HVDC transmission systems
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The Global HVDC Transmission Market size is projected to be worth USD 17,448.0Ā million by 2030, registering a CAGR of 8.6% during the forecast period (2022ā€“2030).


HVDC Transmission Market Overview


High voltage direct current (HVDC) is utilized in long-distance transmission and direct flow for power transmission (also called electrical superhighway). Due to the direct current (DC), HVDC transmission asynchronously connects power grids in long-distance areas, eliminating different outage-causing issues. Further, HVDC transmission is more affordable for significant distance power transmission and produces lower electrical misfortunes responsible for the growth of the HVDC transmission market in near future.


COVID-19 Impact on the Global HVDC Transmission Market Growth:


COVID-19 had significantly impacted several markets globally. The same could be observed for the HVDC transmission market in the initial phase of the pandemic due to factors such as lack of adequate workforce, closure of borders, trade bans, and disruption of supply chains. However, power transmission is an integral part of the power business, and since electricity is an essential commodity, power transmission was soon placed under the ā€˜essential servicesā€™ category by the respective nations.


Although the functioning of the market has not been significantly impacted, there was a severe decline in the demand for electrification during the pandemic. This had adversely impacted the HVDC market. However, there were several HVDC stations incorporated during 2020 which are expected to drive growth in the coming years.


HVDC Transmission Market Dynamics


Drivers

  • Increasing demand for electricity transmission

  • Growing demand for VSC technology


Voltage Source Converter-based High Voltage Direct Current (VSC-HVDC) is a novel technology for HVDC transmission market which provides complete flow control in both directions, prevents fault propagation, improves voltage stability, and reduces network losses. HVDC Light (ABB), HVDC Plus (Siemens), and MonSin (GE/Alstom) are some of the common VSC-HVDC systems commonly used in the industry today. Additionally, VSC technology has several advantages over the line-commutated conversion (LCC) technology that has been used predominantly. The advantages include higher power and voltage at the same cost, smaller physical size making VSC-HVDC conversion stations 20-30% smaller than LCC-based stations, and black start capabilities. Hence, these factors increase demand for VSC-HVDC transmission capabilities.


Restraints

  • Increasing share of distributed and off-grid power generation


Distribution power generation refers to the power generation by small modular units near the end use. These modular units include solar photovoltaic panels, small wind turbines, natural-gas-fired fuel cells, emergency backup generators, and municipal solid waste incineration. Additionally, some governments have laws that mandate the use of distributed power generation. For instance, the Colorado government mandates that by 2020, at least 3% of total electric sales from investor-owned utilities must come from distributed power generation through renewable sources. This obviates the requirement for power from a grid, thus negatively impacting HVDC market growth.


Off-grid power generation refers to the generation of electricity on-site, without the need for transmission from power grids. Although off-grid power generation is not significantly recorded, it is expected to be rapidly rising. Off-grid power generation is employed for several purposes. Therefore, the increasing share of distribution and off-grid power generation may impact the growth of the HVDC transmission market.


Opportunities

  • Rising demand for renewable energy sources globally


There is a global transition towards renewable energy sources from traditional energy sources for reasons such as depletion of fossil fuels and increasing greenhouse gas emissions leading to global warming. According to the International Energy Agency (IEA), renewable energy use increased by 3% in 2020 while all other fuels declined. Additionally, electricity generation from renewable sources grew by 7% In 2020, and the share of renewable energy market increased to 29% in 2020 from 27% in 2019. The US Energy Information Administration (EIA) predicts this share to reach 42% by 2050 in the US. This transition provides a tremendous growth opportunity for HVDC transmission applications due to its integration capabilities with renewable energy generation. Additionally, new projects are being sanctioned globally for HVDC transmission of renewable energy. For instance, in February 2022, TenneT (Netherlands) gave the largest-ever renewable energy contract to McDermott International (US) to build a 980-MW HVDC for wind energy. Therefore, the increase in the adoption of renewable energy is a viable growth opportunity for the HVDC transmission market.


HVDC Transmission Market Scope - Supply Chain Analysis


The designing and developing processes of the HVDC transmission system depend on three elements, including the converter station at the transmission and receiving ends, the transmission medium, and the electrodes. The main task of HVDC system planning is to develop and select an HVDC scheme based on the conclusions of power network development planning where the network requirements are defined. Once the design is finalized, the HVDC transmission manufacturers obtain raw materials and components, including insulation jacket, wires, aluminum water barrier, copper, and conductors, from the suppliers based on the design requirements. HVDC transmissions involve high design complexity, which involves certain characteristics and the understanding of the dynamic motion of the vessel. The primary raw materials used for manufacturing HVDC transmission include copper and aluminum.


Manufacturers play an important role in the supply chain of the HVDC transmission market as they add maximum value to the product. Once the raw materials are procured, they are used to manufacture HVDC transmission as per the finalized design. The manufacturing of HVDC transmission is carried out in the in-house facilities of the manufacturers. Distribution channels form a vital link between the manufacturers of HVDC transmission companies such as Nexans (France), Prysmian (Italy), Hitachi (Japan), ABB (Switzerland), and Siemens AG (Germany) and the oil & gas companies in the supply chain.


The end-users of HVDC transmission are primarily offshore wind power generation companies. Such companies use HVDC transmissions for various applications, such as offshore oil & gas facilities, wave and tidal power generation, and island connections. Additionally, HVDC transmission has applications including include water crossings, asynchronous interconnections (back-to-back), transmission in areas with severely restricted right of ways (ROWs), bulk power transfers, including access to remote renewables (point-to-point), and HVDC networked grids (multi-terminal).


HVDC Transmission System Market Segmentation


HVDC Transmission System Market Outlook Based on technology type:


LCC AND VSC are the segments based on the technology type of the Global HVDC Transmission Market.Ā  The LCC segment is expected to have the highest CAGR and dominate the market share during the forecast period. Line-commutated converters (LCC) use mercury-arc valves. These converters are used mainly where very high capacity and efficiency are needed. Most of the HVDC transmissions are based online-commutated converters (LCC).


HVDC system Market Based on application type:


Underground, Asynchronous, and Offshore are the segments based on the application type of the Global HVDC Transmission Market. The underground segments lead the market during the forecast period. Underground cables are utilized for power applications where overhead lines are impracticable, difficult, or dangerous. They're common in highly populated urban areas, factories, and even to deliver power from overhead posts to consumer premises


HVDC system Market Based on configuration type:


Monopolar, Bipolar, Multi Terminal, and Back-To-Back are the segments based on the configuration type of the Global HVDC Transmission Market. The market is expected to be dominated by the biploar segment. In bipolar transmission, a pair of conductors is used, each at a high potential with respect to ground, in opposite polarity. The cost of a transmission line is higher than a monopole with a return conductor because these conductors must be insulated for the full voltage.


HVDC system Market Based on voltage rating type:


640 kV, 500 kV, and 200 kV are the segments based on the voltage rating type of the Global HVDC Transmission Market. The 640 kV segments lead the market during the forecast period. With modern material technology, a 640 kV extruded DC underground system will raise the maximum power transfer of cable systems by 20%, allowing for better integration of distant renewable energy sources into global energy systems.


HVDC Transmission Market Regional Analysis


The regions are classified as North America, Europe, Asia-Pacific, Rest of the World. The Asia-Pacific is expected to be the leading region in the market. The expansion of power infrastructure in this region presents numerous opportunities for market participants. China is putting a lot of money into renewable energy and using the most up-to-date UHVDC technology for power transmission. For example, China is currently building two of the world's most powerful and longest HVDC power transmission highways, each with a nominal capacity of 3,000 MW. In the next years, these factors are expected to propel the HVDC market in Asia-Pacific.


The HVDC transmission systems market in North America is predicted to grow during the forecast period, owing to plans to develop the offshore wind farm sector, cheap long-distance transmission costs, controllability, and low short circuit current. Due to the expansion of renewable power generation and offshore wind installations, the United States held the greatest market share in North America over the projection period. The research also includes a country-by-country analysis of North America, including the United States, Canada, and Mexico.


HVDC Transmission Market Insights - Competitive Landscape


The global HVDC transmission market is characterized by the presence of many regional and local vendors. The regional market is highly competitive, with all the players continually competing to gain a larger market share. The vendors compete based on cost, product quality, reliability, and aftermarket services. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.


List of Key Companies covered in the report:



  • Siemens (Germany)

  • Toshiba Corporation (Japan)

  • ABB Group (Switzerland)

  • Schneider Electric (France)

  • Adani (India)

  • Hitachi Energy (Japan)

  • General Electric Co. (US)

  • Mitsubishi Electric Corporation (Tokyo)

  • Alstom (France)

  • NKT A/S (Copenhagen)

  • Nexans (France)


Recent Developments:



  • In February 2022, Hitachi launched its new TRO600 series wireless routers with 5G capability. These routers help industrial and utility customers to achieve high reliability and resiliency in mission-critical operations. It enables a scalable, flexible, and secure, hybrid wireless communication architecture.

  • In February 2022, Alstom to supply a new signalling system and additional trains for line 1 of Turin metro.

  • In February 2022, Nexans launched Nexans ULTRACKER, a suite of innovative supply chain solutions that streamline the order, delivery, and inventory management processes.

  • In February 2022, Adani Group announced to sign a non-binding Memorandum of Understanding (ā€œMoUā€) with Ballard Power Systems to evaluate a joint investment case for the commercialization of hydrogen fuel cells in various mobility and industrial applications in India.

  • In January 2022, NKT has acquired Ventcroft Ltd. It will increase its strong position in the power cable market by adding Ventcrofts, a leading fire-resistant cable technology, to the portfolio.


HVDC Transmission Market Report Overview:


The Global HVDC Transmission Market is segmented based on technology type, application type, configuration type, voltage rating type in this report. The report is focused on various analytical aspects such as market dynamics, Supply chain analysis, Porterā€™s five forces, competitive landscape, recent developments, and company profiles. The insights in this report, comprise, discuss views and predict the emerging and fast-growing segments, regions, and countries with potential of development in the Global HVDC Transmission Market.


HVDC Transmission System Market Outlook - Segmentation Overview:


By technology type:



  • LCC

  • VSC


By application type:



  • Underground

  • Asynchronous

  • Offshore


By configuration type:



  • Monopolar

  • Bipolar

  • Multi Terminal

  • Back-To-Back


By voltage rating type:



  • 640 kV

  • 500 kV

  • 200 kV


By Regions:



  • North America

  • Europe

  • Asia-Pacific

  • Rest of the World


Objectives of the Study



  • To get a comprehensive overview of the Global HVDC Transmission Market.

  • To get wide-ranging information about the key factors driving the market and market opportunities

  • To gain information regarding the key players in the industry, technology advancements and key developments

  • To gain insights about the key country/region in which the HVDC Transmission market is growing


Intended Audience



  • Power Companies

  • Manufacturing Companies

  • Research Institutes

  • Academic Institutes

  • Government Organizations



Report Scope:

Report Attribute/Metric Details
  Market Size    2030: USD 17,448.0 Million
  CAGR    ~8.6%
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Geographies Covered   North America, Europe, Asia-Pacific, Rest of the World
  Key Vendors   Siemens (Germany), Toshiba Corporation (Japan), ABB Group (Switzerland), Schneider Electric (France), Adani (India), Hitachi Energy (Japan), General Electric Co. (US), Mitsubishi Electric Corporation (Tokyo), Alstom (France), NKT A/S (Copenhagen), Nexans (France)
  Key Market Opportunities   Rising demand for renewable energy sources globally
  Key Market Drivers   Increasing demand for electricity transmission Growing demand for VSC technology


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Frequently Asked Questions (FAQ) :

The Global HVDC Transmission Market would register a growth of ~8.6% during the forecast period.

Increasing share of distributed and off-grid power generation are a key restraining factor for the Global HVDC Transmission Market

Asia-Pacific would enjoy the upper hand in the Global HVDC Transmission Market

In APAC, the need to for reduction of electricity loss during transmission can impel the regional market growth.