Download Sample, Increasing Industrialisation Presents Lucrative Growth Potential for HVDC Transmission Systems Market
Power system networks are one of the most prevalent methods for transferring massive volumes of electrical energy from one location to another. The use of High Voltage Direct Current (HVDC) Transmission is currently preferred over long distances of hundreds of miles due to the minimum power loss and transmission costs. The HVDC transmission system market is anticipated to experience significant growth owing to the rise in industrialization and urbanization. This rise can be attributed to the increasing demand for electricity. According to the U.S Energy Information Administration, the US consumed roughly 4 trillion kilowatt-hours (kWh) of electricity in 2022. The power sector has faced significant challenges across the entire value chain.
These include rising energy prices, switching to renewable energy sources, and protecting assets from severe weather. Additionally, the power industry's ability to efficiently transmit power over long distances, the affordability of transmission cables, the drop in maintenance and operating costs, and all help to maintain the industry's status as a center of innovation. Furthermore, the Internet of Things (IoT), which is regarded as a fundamental component of Industry 4.0, has the potential to significantly change the power industry by simplifying operations, controlling asset performance, and engaging customers in efforts to reduce energy prices.
These include rising energy prices, switching to renewable energy sources, and protecting assets from severe weather. Additionally, the power industry's ability to efficiently transmit power over long distances, the affordability of transmission cables, the drop in maintenance and operating costs, and all help to maintain the industry's status as a center of innovation. Furthermore, the Internet of Things (IoT), which is regarded as a fundamental component of Industry 4.0, has the potential to significantly change the power industry by simplifying operations, controlling asset performance, and engaging customers in efforts to reduce energy prices.
Rising Consumption of Electricity & Increasing Focus on Renewable Energy is Driving the Market Growth
The major drivers of the HVDC Transmission System market expansion include rising electricity consumption, rising long-distance power transmission costs, rising demand for circuit breakers and valves, and rising demand for VSC technology. The sector is being propelled by the potential of HVDC transmission systems to link new generation technology with existing infrastructure as governments all over the world are emphasizing on the production of renewable electricity. With new projects planned, it is anticipated that the market for HVDC systems will grow significantly in the forecast period.
As additional offshore wind power generation projects are installed, it is anticipated that the market for HVDC transmission systems will expand. Offshore wind energy has the capacity to generate large volumes of electricity that can subsequently be transferred to areas with significant electricity demand. Furthermore, the HVDC transmission system has lower operating and maintenance expenses as well as lower costs for transmission cables. These factors are driving the market need for high voltage direct current (HVDC) transmission systems, which in turn is fuelling the use of HVDC systems.
As additional offshore wind power generation projects are installed, it is anticipated that the market for HVDC transmission systems will expand. Offshore wind energy has the capacity to generate large volumes of electricity that can subsequently be transferred to areas with significant electricity demand. Furthermore, the HVDC transmission system has lower operating and maintenance expenses as well as lower costs for transmission cables. These factors are driving the market need for high voltage direct current (HVDC) transmission systems, which in turn is fuelling the use of HVDC systems.
Recent Trends in the HVDC Transmission System Industry
- HVDC with advanced converter technologies, such as voltage source converters (VSC) and line commutated converters (LCC).
- Integration of renewable energy sources to connect offshore wind farms and solar power plants.
- Use of subsea HVDC cables for long-distance power transmission.
- HVDC with enhanced power density.
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High Costs & Lack of Standardisation Likely to Pose Threat to Market Development
In addition to its many advantages, DC transmission systems also have certain drawbacks. For instance, the complexity of electricity conversion and running HVDC stations is one of the factors responsible for restraining the market growth. Additionally, the main factor that could limit the use of HVDC is the cost of converter stations, which could account for more than half of the overall fixed cost of an HVDC project. This makes the HVDC uneconomical for some uses, such as when the line length is below a threshold value or when several offtake or delivery sites are needed.
Besides this, back-to-back converter stations must be used at both the source and the delivery locations for bi-directional transfers, which could increase the cost even further. The difficulty in the deployment of multi-terminal HVDC networks is another constraint as deploying AC systems to get similar results is much simpler. Furthermore, the lack of standardization of HVDC transmission systems also affects the market expansion as each DC system is unique and requires modification.
Besides this, back-to-back converter stations must be used at both the source and the delivery locations for bi-directional transfers, which could increase the cost even further. The difficulty in the deployment of multi-terminal HVDC networks is another constraint as deploying AC systems to get similar results is much simpler. Furthermore, the lack of standardization of HVDC transmission systems also affects the market expansion as each DC system is unique and requires modification.
Novel Industry Developments are Providing Traction to the HVDC Transmission Systems Market
The HVDC transmission system solution providers also concentrate on introducing cutting-edge solutions and growing their HVDC transmission system solution offerings to deliver improved technology as well as provide new and upgraded solutions in new sectors. The company's business alliance approach aids in product development, technology management, and client acquisition. For instance, clean energy can now be transported from West to East China using 1,000-kilovolt gas-insulated lines due to the world's first transmission line that ABB Power Grids put into service in April 2020 under the Yangtze River.
Again, General Electric and the Iraqi Ministry of Electricity signed contracts worth more than US$ 1.2 billion in August 2020 to carry out power sector projects that would provide a consistent supply of electricity throughout the nation. In a historic agreement, Grid Solutions received a contract worth US$ 727 million to strengthen Iraq's transmission network and connect it to Jordan's energy grid. Later in March 2021, Siemens Limited declared that it had successfully installed India's first voltage-sourced converter (VSC) technology-based high-voltage direct current (HVDC) link.
Again, General Electric and the Iraqi Ministry of Electricity signed contracts worth more than US$ 1.2 billion in August 2020 to carry out power sector projects that would provide a consistent supply of electricity throughout the nation. In a historic agreement, Grid Solutions received a contract worth US$ 727 million to strengthen Iraq's transmission network and connect it to Jordan's energy grid. Later in March 2021, Siemens Limited declared that it had successfully installed India's first voltage-sourced converter (VSC) technology-based high-voltage direct current (HVDC) link.
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Expanding Need for Smart Energy Infrastructure is Impacting the Market Expansion of HVDC Transmission Systems
The Asia Pacific region is anticipated to witness substantial growth in the HVDC transmission system market. This growth can be attributed to the increasing installation of power grid infrastructure and increasing electricity demand. Moreover, the growing power activities in the region are also anticipated to contribute to the market expansion over the forecast period. Additionally, the United States is expected to account for the majority of activity in the market for HVDC transmission systems in North America. Furthermore, over the forecast period, the proportion of renewable energy in Europe's power generation is anticipated to increase significantly as nations like Germany, Spain, Belgium, and France shift more and more towards a low-carbon economy.
The transition to a low-carbon energy system is supported by a number of other measures in the region. It is anticipated that HVDC grid technology will advance in the Europe region with the rising integration of renewable energy sources and the growing need to improve supply security. Furthermore, investments in the offshore wind sector, solar photovoltaic, grid expansion, and energy storage projects require smart energy infrastructure to balance the inconsistent supply of renewable sources.
The transition to a low-carbon energy system is supported by a number of other measures in the region. It is anticipated that HVDC grid technology will advance in the Europe region with the rising integration of renewable energy sources and the growing need to improve supply security. Furthermore, investments in the offshore wind sector, solar photovoltaic, grid expansion, and energy storage projects require smart energy infrastructure to balance the inconsistent supply of renewable sources.
The report provides a detailed overview of the HVDC transmission system market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the HVDC transmission system market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the HVDC transmission system market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the HVDC transmission system market. Some key countries and regions included in the HVDC transmission system market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Poland, Belgium, Sweden, Austria, Norway, Denmark, Finland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Thailand, Vietnam, Philippines, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Kenya, Rest of MEA |
HVDC Transmission System Market Research Report Covers In-depth Analysis on:
- HVDC transmission system market detailed segments and segment-wise market breakdown
- HVDC transmission system market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in HVDC transmission system industry)
- Current, historical, and forthcoming 10 years market valuation in terms of HVDC transmission system market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
- HVDC transmission system market demand analysis
- HVDC transmission system market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in HVDC transmission system market
- Regulatory landscape by key regions and key countries
- HVDC transmission system market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on the HVDC transmission system market forecast by countries
- Mergers and acquisitions in the HVDC transmission system market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key factors driving the growth of the HVDC Transmission System market?
Increasing demand for renewable energy integration, intercontinental power trade, and advancements in energy-efficient transmission technologies are major drivers for the HVDC market.
What challenges are faced by manufacturers in the HVDC Transmission System market?
Challenges include high installation costs, technical complexities, maintenance requirements, and the need for skilled expertise in system design and implementation.
How do regional dynamics impact the HVDC Transmission System market?
Regional dynamics vary based on government policies, renewable energy goals, infrastructure development, and demand for interregional and cross-border electricity trade.
