Chicago, June 02, 2024 – The HVDC Transmission Market is expected to reach USD 14.9 billion by 2028 from USD 11.4 billion in 2023, at a CAGR of 5.4% during the 2023–2028 period.
The increasing number of VSC-based HVDC projects, growing adoption of renewable energy globally, surging demand for reliable power supplies, and favorable government policies and initiatives for HVDC transmission are the major factors driving the market growth. Furthermore, constantly increasing technological advancements related to converter station components such as valves, circuit breakers, and reactors, among others, are also fueling the market growth for HVDC transmission. Moreover, the growing need for integration of power grids globally for seamless electricity exchange is expected to provide growth opportunities for market players.
To know about the assumptions considered for the study
Major HVDC Transmission Companies include:
- Hitachi (Japan),
- Siemens Energy (Germany),
- Mitsubishi Electric Corporation (Japan),
- General Electric (US),
- Prysmian Group (Italy),
- Toshiba Corporation (Japan),
- NKT A/S (Denmark),
- Nexans (France),
- LS Electric Co., Ltd. (South Korea), and
- NR Electric Co., Ltd. (China).
HVDC Transmission Market Segmentation:
Bulk power transmission to lead the HVDC transmission market during the forecast period.
HVDC systems are preferred over conventional AC lines for transmitting bulk power across long distances due to advantages such as lower power loss and the ability to control transmission accurately with respect to power level as well as direction. Moreover, the growing global population and increasing residential and commercial developments are expected to create a surge in demand for electricity, thereby driving the market growth for HVDC systems in urban areas.
LCC-based transmission to account for the largest share of the HVDC transmission market from 2023 to 2028.
In LCC, power transmission is done through thyristor valves. Commutation can be defined as the transfer of direct current (DC) from one thyristor valve to another valve in the same row. Commutation is carried out by a synchronous voltage source (AC system voltage) in LCC. An LCC station is ideal for high-power, long-distance transmissions as it reduces power losses in an HVDC transmission system. The growing need to transmit electricity over longer distances with lower losses is a major factor driving the market growth for LCC technology.
HVDC Transmission Market Regional Analysis:
Asia Pacific is expected to register the highest CAGR during the forecast period.
In Asia Pacific, China is the major market for HVDC transmission market due to the constantly growing demand for power in the country. Some other factors driving the growth of the market in this region include an increase in power consumption patterns and initiatives for low carbon emission. High power quality reliability and stability of power transmission are the major requirements of the power industry in the region, which are driving the growth of the HVDC transmission market in this region. Asia Pacific is expected to register the highest CAGR during the forecast period. Growing developments in power transmission networks and various initiatives taken by countries to integrate wind energy in power grids to ensure clean energy generation are some of the major factors contributing to the market growth.
HVDC Transmission Market Trends:
Several key trends are shaping the HVDC transmission market. One major trend is the increasing deployment of multi-terminal HVDC systems, which offer greater flexibility and efficiency in power distribution across multiple locations. Additionally, there is a growing focus on the development of ultra-high voltage HVDC (UHVDC) systems to support the transmission of electricity over even greater distances with enhanced efficiency. The market is also witnessing significant advancements in HVDC converter technology, including the use of modular multi-level converters (MMCs) that improve performance and reliability. Furthermore, strategic partnerships and collaborations are becoming more common as companies seek to leverage shared expertise and resources to advance HVDC technology.
HVDC Transmission Market Analysis:
Market analysis of the HVDC transmission sector highlights a strong growth trajectory, supported by technological advancements and increasing investments in infrastructure. The analysis points to the rising adoption of HVDC systems for their superior efficiency in transmitting electricity over long distances and integrating renewable energy sources. Key drivers include government initiatives aimed at reducing carbon emissions and enhancing grid stability. Additionally, the market is characterized by significant R&D activities focused on improving HVDC technology, such as the development of more efficient converters and cables. Strategic collaborations among industry players are also fostering innovation and driving market expansion, positioning HVDC transmission as a critical component of future power grids.
