HVDC Transmission Market

Global HVDC Transmission Market Size (2024 to 2029)

The Global HVDC Transmission market size is expected to reach USD 4.68 billion by 2029 from USD 3.17 billion in 2024, registering a CAGR of 8.1 % from 2024 to 2029.

The High Voltage Direct Current (HVDC) system is used for bulk transmission over long distances. The system uses direct current for the transmission of power. They are connected through power grids and use a voltage between 100kv-800kv. The components of the HVDC transmission system are the converter station, converter unit, converter valves, transformers, and filters. It is less expensive, has minimum losses, and interconnects networks that have different frequencies and characteristics.

Global HVDC Transmission Market Size Drivers:

Recently international power trading has been receiving more attention, and undersea electricity transmission is becoming more significant. HVDC submarine transmission helps in transferring high power across long subsea distances. The transmission system interconnects countries separated by the sea with main transmission grids. Further development of offshore projects, such as offshore wind power projects and gas and offshore oil projects, drives the HDVC transmission market.

Factors such as rising urbanization, rapid industrialization, and an increase in the number of factory units in developing economies are propelling market growth. Moreover, the increase in demand for power supply for smart cities is contributing to the HDVC transmission market growth.

The HVDC transmission market has numerous opportunities during the forecast period. There is a high shift from traditional energy sources to utility-scale renewable energies. The HVDC transmission helps in transferring electricity from remote renewable energy plants to specified destinations. This demand is aggravating the market value. Further, the rise in electrification among developing economies such as India and African countries provides a lucrative opportunity for the HVDC transmission market. In addition, the growing number of factories and demand for power supply are providing growth opportunities for the market.

Global HVDC Transmission Market Size Restraints:

The growing demand for distributed and off-grid power generation deeply hampers the HDVC transmission market. Distributed power generation refers to power generation by modular units like solar panels, wind turbines, etc., near the end of use. This doesn't require any power transmission, hence impeding the HDVC transmission market growth. Similarly, off-grid power generation refers to generating electricity on-site, which also doesn't require any transmission. Several other factors, such as short circuits in AC power systems and magnetic fields near transmission lines, affect the HVDC transmission market.

Impact of COVID-19 on the HVDC Transmission Market:

Public and private organizations are shut down, and logistics have been halted globally. Virus containment and treatment become the top priorities during a pandemic. In several sectors, supply and demand mismatch was observed owing to trade restrictions, border closure, and shortage of workforce. This outbreak has an economic impact and implications on markets globally. However, power is crucial for residential and commercial activities. Thus, considering its necessity, power transmission is classified as an essential service by almost every country. Although the market has witnessed a slight impact due to supply disruptions, the market is anticipated to rise post covid. The construction of HVDC stations post covid is further propelling the HVDC transmission market.

REPORT COVERAGE:

This research report on the global HVDC transmission market has been segmented and sub-segmented based on type, source, application, and region.

Global HVDC Transmission Market Size - By Technology:

• Line Commutated Converter (LCC)
• Voltage Source Converter (VSC)

The Line Commutated Converter segment is expected to record the largest market share during the forecast period. There are Mercury-arc valves-based LCCs and Thyristors-based LCCs. The Thyristors-based LCCs are widely used for bulk point-to-point and back-to-back linkages between different synchronous networks and within a synchronous network. Further, LCC is superior in terms of reliability, cost, and efficiency. It also allows higher power conversion capacities with lower losses. These factors are driving the HVDC Transmission market growth.

Global HVDC Transmission Market Size - By Application:

• Underground
• Overhead
• Offshore

The Offshore HVDC transmission segment is likely to grow significantly during the forecast period. Several factors, such as increased power trading between countries and the ability of transmission lines to interconnect offshore platforms to main transmission grids. This new trend of power transmission using offshore HVDC transmission systems is propelling the market growth. Further offshore projects, such as wind turbine projects and offshore oil and gas projects, are aggravating the HVDC transmission market value.

Global HVDC Transmission Market Size - By Configuration:

• Monopolar
• Bipolar
• Multi Terminal
• Back-to-Back

The Bipolar HVDC transmission segment contributes a healthy CAGR growth during the forecast period. It has a pair of conductors with opposite polarity. The power can be transmitted continuously, and any fault or error can be prevented as one link does not affect the operation of another link. Further, the direction of power flow can be changed pertaining to the need. These factors are driving the HVDC transmission market.

Global HVDC Transmission Market Size - By Voltage Rating:

• 640KV
• 500KV
• 200KV

The 640KV segment is leading by voltage rating in the HVDC transmission market during the forecast period. The commercialization of the 640KV extruded underground system has aggravated the HVDC transmission market growth. It enables maximum power transmission over long subsea distances and integrates energy-seeking countries. Using these cables, an effective power supply can also be performed through heavily populated or environmentally delicate locations. For instance, three million houses might be powered by a single pair of 640 kV extruded HVDC cables.

Global HVDC Transmission Market Size - By Region:

• North America
• Europe
• Asia Pacific
• Latin America 
• Middle East and Africa

The Asia Pacific region dominates the HVDC transmission market during the forecast period owing to increased urbanization, rapid industrialization, and construction of smart cities in emerging economies. Further expansion of electricity infrastructure in countries such as China and India and increasing investments in offshore power projects in Japan, China, and India are driving the HVDC transmission market. Moreover, favorable government regulations for renewable energy sources are contributing to the market. Following, we can also witness the North American region registering healthy CAGR growth during the forecast period. Countries such as the U.S. are actively adopting offshore wind installations and renewable power generation. Particularly demand for cost-effective long-distance power transmission, lower short circuits during transmission, and regions' advanced electrical transmission systems are resulting in market expansion.

KEY MARKET PLAYERS:

Major Key Players in the Global HVDC Transmission Market are Siemens, Toshiba Corporation, ABB Group, Schneider Electric, Adani, Hitachi Energy, General Electric Co., Mitsubishi Electric Corporation, Alstom, NKT A/S, Nexans, and others.

 RECENT HAPPENINGS IN THE MARKET:

• In 2022, Hitachi Energy bagged a major HVDC link order from Adani Mumbai Electric Infrastructure. This 1000 MW HVDC link will help increase in power supply to Mumbai with minimal transmission losses.
• In 2021, Hitachi ABB Power Grids in India successfully commissioned India's longest ultra-high voltage Direct current Transmission link for the Power Grid Corporation of India Limited. This meets the electricity needs of more than 80 million people.