The Global High Voltage Direct Current (HVDC) Transmission Market is estimated to value at USD 11.4 billion in 2023 and is predicted to stand at USD 14.9 billion by 2029. It is projected to expand at a CAGR of 5.4% in the forecast period 2024-2029.
Market Drivers:
The global high voltage direct current (HVDC) transmission market is growing due to the rise in worldwide electricity demand, growing preference for renewable energy, government grid expansion efforts, and T&D advancements. The market is expanding because of the increased demand for voltage source converter technology and the higher transmission efficiency of the hybrid wave energy density approach when compared to HVAC systems. The HVDC-VSC technology enables independent reactive and active power control along with a quick emergency reaction.
The rising popularity of renewable energy sources like solar and wind power is driving growth in the global market for high-voltage direct current (HVDC) transmission. Furthermore, HVDC technology provides grid interconnections, which facilitates the transfer of renewable energy from one area to another.
The rising power grid core business is also accelerating the market growth rate. The companies have made significant investments in capacity expansion and new recruitment across Europe, the Middle East, Africa, North and South America, and the Asia Pacific. The transformer factory in China, the power quality factory, and the global technology and innovation center in India are just a few examples from 2024. Also, it recently made investments in the U.S., Switzerland, and Sweden.
Market Restraints:
There are numerous challenges and barriers that are impeding the progress of the global high voltage direct current (HVDC) transmission market. D.C. terminal equipment is far more expensive than A.C. terminal cables, even when D.C. lines are more affordable than A.C. lines. As a result, the initial cost of an HVDC transmission system is a significant factor affecting the market expansion. The cost is further boosted due to the installation of converter substations at both the sending and receiving ends of the transmission lines.
Another factor limiting the market growth rate is the scattered and off-grid production of electricity. The increasing utilization of distributed and off-grid power generation reduces the need for HVDC transmission networks. Small-scale wind turbines and rooftop solar panels are gaining popularity for local electricity generation, which is leading to reduced demand for long-distance electrical transmission.
Market Opportunities:
Players in the global high voltage direct current (HVDC) transmission market are seeing a lot of opportunities owing to technological improvements. Many technological developments in the areas of converter technologies, grid management systems, efficiency improvements, digitalization, underground HVDC transmission, and circuit breaker technology have occurred recently. Also, HVDC is a significant tool for decarbonizing global energy by connecting continent-scale grids.
Currently, there are 200 GW of HVDC cables operational, which is covering a distance of 58000 kilometers. Plans are underway to extend this network with an additional 180 GW throughout 45000 kilometers. A significant majority of these cables are already operational in China. The maintenance of older and existing networks and the setup of new networks are providing huge opportunities for the market.
Market Challenges:
Poor interoperability and absence of standardization are major hurdles to the adoption and operational effectiveness in the global high voltage direct current (HVDC) transmission market growth. The lack of industry-wide technical standards and protocol specifications is the root cause of this problem, which makes it difficult to smoothly integrate HVDC systems and components from various manufacturers. This makes it more difficult to combine HVDC systems into a coherent whole because they are intricate and comprise many different parts, such as transformers, converters, and control systems.
The institutional and regulatory barriers can cause delays in the planning, financing, and permitting of HVDC projects. Furthermore, the execution of these projects may give rise to various operational and technological hurdles. These challenges encompass control and communication issues, fault detection and isolation problems, insulation coordination, harmonics, switching transients, and coordination.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 – 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 - 2029 |
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CAGR |
5.4% |
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Segments Covered |
By Technology, Project, Location, Application, Component, and Region. |
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Various Analyses Covered |
Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
ABB Ltd., AHV, Excelitas Technologies Corp., General Electric, American Power Design, Nikken Sekkei Ltd., Applied Kilovolts (Exelis), Glassman Europe Ltd., Hamamatsu, Siemens AG, Toshiba Corp., XP Power (EMCO high voltage), and Others. |
Market Segment Analysis:
The line commutated converter (LCC) segment is predicted to possess the greatest market share in the global HVDC transmission systems because of its exceptional cost-effectiveness, dependability, and efficiency. For long-distance bulk power transmission, LCCs are the more favored option. The LCC technology is a dependable choice because it is sophisticated and has been in use for a long time.
The point-to-point segment holds the biggest share in this category. They are used when two converter stations need to send large amounts of power between them. In point-to-point transmission, bipolar designs have experienced a significant increase in popularity in the Asia-Pacific area in recent years, owing to their reliability in transporting huge power loads. Europe's increasing focus on renewable energy and the consequent need for efficient energy transmission is another element propelling this category's market rise.
The overhead segment is the strongest within this category of the global high voltage direct current (HVDC) transmission market. Overhead lines are becoming more popular for long-distance transmission since they are less expensive to install than subterranean cables. Most HVDC lines were built above ground in 2022. Moreover, overhead wires can transfer larger power loads, which makes it easier to carry electricity across longer distances. Furthermore, as compared to underground cables, overhead lines have reduced transmission losses, increasing their effectiveness for long-distance transmission. Moreover, utilities are forced to choose overhead HVDC powerlines due to the increasing utilization of renewable energy sources found in remote areas.
The bulk power transmission segment witnessed the highest growth rate in 2023. The high efficiency of HVDC transmission is one of the main factors driving its acceptance in the bulk power transmission business. Electricity loss in A.C. lines is attributed to several factors, including transmission line resistance, inductance, and capacitance. The longer the transmission lines, the greater the losses, which makes long-distance energy transfer less environmentally favorable. In contrast, HVDC transmission runs at higher voltage levels, which lowers present-day and, subsequently, resistive losses. It is a suitable option for sending power over thousands of kilometers because of its efficiency advantage.
The converter stations segment shall continue to have the maximum share of the global high voltage direct current (HVDC) transmission market. The expanding use of HVDC transmission, owing to its ability to enable transmission with fewer losses at greater distances, has resulted from the world's increasing demand for electricity and the ensuing increase in power transmission requirements. The market for insulated-gate bipolar transistor (IGBT) valves and breaker circuits used in converter stations has grown due to the rise in VSC-based HVDC transmission projects undertaken globally. Furthermore, a boom in demand for HVDC converter stations is anticipated because of the growing necessity for more effective and efficient power transmission as well as the connecting of asynchronous grids.
Market Regional Analysis:
North America is expected to experience a positive growth rate in the global high voltage direct current (HVDC) transmission market and increase investor interest in the forecast period. The integration of renewable energy is the primary factor driving the regional market growth. Also, the expanding presence of wind and solar farms in isolated areas makes it essential to employ long-distance transmission solutions like HVDC for efficient grid integration. In October 2023, the U.S. Department of Energy awarded a 50-million-dollar contract to Minnesota Power to modernize the HVDC transmission system to meet future energy demands and improve the reliability and robustness of the regional grid.
Europe's high voltage direct current (HVDC) transmission market value is increasing with the expansion of HVDC projects by wind energy. To meet the bulk transmission requirements in the future, European grid operators are shifting to using HVDC. The European Union has set a target to increase the share of renewable energy to approximately 42.5 percent by 2030. To achieve this, officials are focusing on projects that harness the consistent and strong winds found further offshore, beyond 75 km. Additionally, the use of subsea and underground HVDC cables is considered the most viable solution to transmit additional wind power across congested national grids and densely populated areas.
Asia Pacific has the biggest market share of 50 percent because of swift industrialization and economic expansion. The impressive growth of the HVDC transmission Systems market can be attributed to the robust framework created by prominent technological and industrial leaders, including China, Taiwan, South Korea, and other countries in the region. China is anticipated to dominate the HVDC Transmission systems market within the Asia Pacific region. This is mainly attributed to factors such as a burgeoning population, robust economic growth, and an expansive manufacturing ecosystem. Consequently, the region has experienced a substantial surge in electricity consumption over the past few decades.
Latin America is expected to grow at a CAGR of more than 25 percent in the coming years. The market share is anticipated by attributes such as lower short circuit current, controllability, and low long-distance transmission costs. Additionally, the rising need for power from hydroelectric generating will likely propel Brazil to the lead of the South and Central American market.
Middle East and Africa are estimated to experience a major surge in demand for HVDC transmission during the forecast period. The main focus of African countries is on enhancing their industrial infrastructure, which presents a promising prospect for the regional growth of the global high voltage direct current (HVDC) transmission market. Additionally, the Middle Eastern market is anticipated to register growth in the future due to factors such as the substantial increase in investment and the development of renewable energy projects and EV-related infrastructure. In December 2023, Abu Dhabi National Energy Company PJSC (TAQA), the Middle East, and Africa entered into a memorandum of understanding (MoU). The project in question involves the development of a 900km HVDC electricity interconnection between Greece and Cyprus.
The global high voltage direct current (HVDC) transmission market share was greatly affected by COVID-19 as a result of reduced electricity demand caused by the closure of commercial and industrial operations along with supply chain disruptions. Post-pandemic, the market was again propelled due to the increased utilization of renewable energy facilities by replacing traditional fossil fuels and the surging demand for electricity. Additionally, the increasing demand for grid stability and the transition towards renewable energy sources will further drive the growth because governments and energy companies are focusing on infrastructure investments to support economic growth and ensure energy security.
Market Key Players:
Market Recent Developments:
Frequently Asked Questions
The Global High Voltage Direct Current (HVDC) Transmission Market is expected to grow with a CAGR of 5.4% between 2023-2028.
The Global High Voltage Direct Current (HVDC) Transmission Market size is expected to reach a revised size of US$ 14.9 billion by 2028.
General Electric, American Power Design, and Nikken Sekkei Ltd. are the three High Voltage Direct Current (HVDC) Transmission Market key players.
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