High Voltage Direct Current (HVDC) Transmission Market

High Voltage Direct Current (HVDC) Transmission Market overview

The global high voltage direct current transmission market size was valued at $11.9 billion in 2023, and is projected to reach $25 billion by 2032, growing at a CAGR of 8% from 2024 to 2032.

High voltage direct current (HVDC) transmission is a technology utilized in the electrical energy industry to efficiently transmit large amounts of electricity over long distances. Unlike traditional alternating current (AC) transmission, which periodically changes the direction of electric current, HVDC systems maintain a constant flow of electric charge in one direction. The HVDC transmission process involves two converter stations, one at the sending end and another at the receiving end. At the sending end, AC power is converted into high-voltage DC power, which is then transmitted through dedicated cables or overhead lines across vast distances. At the receiving end, the DC electricity is converted back into AC power for distribution to consumers. HVDC transmission offers numerous advantages in the field of electrical power transmission, including improved efficiency, long-distance capability, grid stability, and support for integrating renewable energy sources. HVDC systems are known for their lower power losses during transmission, as they do not experience the skin effect and reduced reactive power losses associated with AC transmission. Furthermore, HVDC allows for the transmission of electricity over much longer distances with minimal power loss, making it ideal for connecting remote power generation sources with urban centers.

High Voltage Direct Current (HVDC) Transmission Market Definition

In high voltage direct current (HVDC) transmission systems, the electricity undergoes conversion from AC to DC at the sending end, travels across extensive distances with minimal losses, and is then converted back to AC at the receiving end. This innovative technology serves the purpose of transmitting substantial power quantities across vast distances, linking power grids, and incorporating renewable energy sources into current power systems. The HVDC transmission market covers a wide range of components, equipment, and services essential for the planning, construction, and operation of HVDC transmission systems. This encompasses converter stations, transformers, circuit breakers, cables, control systems, and related infrastructure.

High Voltage Direct Current (HVDC) Transmission Market

Size, by Product, - (USD Billion)

Less than 400 KV

400-800 KV

Above 800 KV

Other Products

The Market will Grow

At the CAGR of:

8%

The Forecast Market

Size for in USD:

$25 Billion

High Voltage Direct Current (HVDC) Transmission Market Dynamics

Drivers

Advancements in technology

The high-voltage direct current (HVDC) transmission market is being propelled forward by advancements in technology, which are enhancing efficiency, reliability, and cost-effectiveness. The performance of HVDC systems has been significantly improved by innovations such as voltage source converters (VSC) and advancements in converter technology. Moreover, developments in materials science have resulted in more durable and robust components, reducing maintenance requirements and increasing the lifespan of the system. Additionally, digitalization and control technologies enable better monitoring and control of HVDC systems, thereby enhancing grid stability and flexibility. These technological advancements are fueling the market growth of HVDC transmission, particularly for long-distance power transmission, renewable energy integration, and grid interconnection.

Restraint

Limited supply of HVDC equipment

The HVDC transmission market faces a major challenge due to the scarcity of HVDC equipment. Specialized components like converters, transformers, and control systems are produced by a small number of companies worldwide, resulting in bottlenecks for HVDC projects. This limited supply chain leads to project delays and higher costs, compounded by the intricate engineering and substantial capital investment needed for HVDC infrastructure. Overcoming this supply constraint is essential for the sustainable growth of the market and the advancement of clean energy solutions.

Opportunity

Increase in the demand for renewable energy

The growing need for sustainable energy sources such as wind and solar power provides a significant opportunity for the high-voltage direct current (HVDC) transmission market. HVDC technology is ideal for transmitting renewable energy over long distances with minimal power loss, playing a crucial role in linking remote renewable energy production sites to urban areas. As nations work towards achieving ambitious renewable energy goals, HVDC transmission systems offer effective and dependable solutions for integrating renewable energy into current grids. The rise in demand for HVDC transmission is fueled by the necessity for grid modernization and the shift towards cleaner energy sources, establishing a positive market environment for HVDC technology providers and investors.

Threat

Instability in politics and regulations

The high-voltage direct current (HVDC) transmission market faces a significant risk due to political and regulatory instability. The ever-changing policies of governments can create a sense of uncertainty for HVDC projects, discouraging potential investors and hindering the development of infrastructure. Moreover, inconsistent regulations may impede the standardization of HVDC technologies and hinder market growth. Furthermore, political instability can disrupt project timelines, resulting in delays and increased costs. These challenges not only undermine investor confidence but also restrict the expansion of HVDC transmission networks, ultimately affecting the efficiency and reliability of electricity supply. Therefore, it is imperative to address the uncertainties in politics and regulations in order to create a favorable environment for the growth of the HVDC market.

High Voltage Direct Current (HVDC) Transmission Market

Report Scope

The report "Global High Voltage Direct Current (HVDC) Transmission Market" provides a comprehensive analysis of various economic factors, pricing assessment, and market attractiveness. It also focuses on qualitative and quantitative factors in different geographical regions and market segments of the global high voltage direct current (HVDC) transmission market. Additionally, the report aims to give a detailed overview of the parent market, analyzing the competitive landscape of the high voltage direct current (HVDC) transmission market in the electrical and electronics industry. It is dedicated to providing strategic information on key players in the high voltage direct current (HVDC) transmission market and presents numerous growth opportunities for this industry.

High Voltage Direct Current (HVDC) Transmission Market Competitive Landscape

• Hitachi ABB Power Grids
• Siemens Energy
• Prysmian Group
• China XD Group
• GE Grid Solution
• TBEA Co., Ltd.
• LS Electric Co., Ltd
• Xuji Group Co., Ltd.
• Nexans
• NKT A/S
• Toshiba Energy Systems & Solutions
• Mitsubishi Electric Corporation
• General Electric
• NR Electric Co., Ltd.

High Voltage Direct Current (HVDC) Transmission Market Trends

The transition to Renewable Energy

The worldwide move towards renewable energy sources, like wind and solar power, plays a crucial role in propelling the HVDC transmission market forward. With nations and regions increasingly adopting clean energy solutions to lower carbon emissions and address climate change, there is a rising demand to effectively integrate renewable energy into current power grids.

Technological Progress

The HVDC transmission market is witnessing ample opportunities due to technological advancements. Recent years have seen notable progress in converter technologies, grid management systems, efficiency improvements, digitalization, as well as innovations in underwater HVDC transmission and circuit breaker technology.

Government Support

Market growth in the HVDC transmission sector is also being fueled by favorable government policies and initiatives. Governments are making investments in HVDC infrastructure to bolster grid stability and decrease carbon emissions.

High Voltage Direct Current (HVDC) Transmission Market

Share, by end user, (USD Billion)

11.9 Billion%

Overhead Transmission

Underground Transmission

Subsea Transmission

Interconnecting Grids

Other End-Users

25 Billion

Total Market Size

USD (Billion),

8%

CAGR

-

High Voltage Direct Current (HVDC) Transmission Market Segments

HVDC Transmission System Market Segmentation Analysis

By Type Analysis

Growing Number of Large Capacity Renewable Projects to Stimulate the Growth of the Low-power Rating Projects

Based on type, the global market is segmented into high-power rating projects and low-power rating projects. The Low-power rating projects consist of projects capable of transmitting a capacity of above 1000MW facility. The low-power rating projects type HVDC transmission system market is growing due to increasing demand for efficient power transmission in remote areas, limiting the short circuit, which conventional AC transmission lines cannot serve.

By Application Analysis

Rising Number of Overhead HVDC Projects to Dominate Global Market

The global market is segmented on subsea, underground, overhead, and mixed. The overhead application in the HVDC transmission system is growing. Overhead application refers to the use of overhead transmission lines for transmitting electricity over long. This method of transmission is gaining popularity due to its lower cost of installation compared to underground cables, making them a more cost-effective option for transmission over long distances. Also overhead lines have a higher power-carrying capacity, allowing for the transmission of larger amounts of electricity over greater distances. Overhead lines have a lower transmission loss compared to underground cables, making them more efficient for long-distance transmission. Moreover, the shift towards renewable energy sources, such as wind and solar, which are typically located in remote areas, is also driving the growth of overhead application in the market.

By Technology Analysis

Immense Advancement in Voltage Source Converter Technology to Stimulate HVDC Transmission System Demand

On the basis of technology, the global market is segmented into Voltage Source Converter (VSC) and Line Commutated Converter (LCC). The LCC segment is estimated to hold the largest global HVDC transmission systems market share due to its high efficiency, reliability, and cost-effectiveness. LCCs are preferred for transmitting bulk power over larger distances. The LCC technology is advanced and has been used for many years, making it a reliable option.

Type

• Less than 400 KV
• 400-800 KV
• Above 800 KV

Application

• Overhead Transmission
• Underground Transmission
• Subsea Transmission
• Interconnecting Grids
• Infeed Urban Areas
• Energy Transmission & Distribution
• Distributed Energy Resources (DER)
• Bulk Power Transmission
• Telecommunication
• Renewable Energy
• Oil & Gas
• Medical
• Industrial

Project Types

• Point-to-Point
• Back-to-Back
• Multi-terminal
• Other Project Types

Transmission Types

• HVDC Overhead Transmission System
• Submarine HVDC Transmission System
• HVDC Underground Transmission System
• Other Transmission Types

Technologies

• Voltage Source Converter (VSC)
• Line Commutated Converter (LCC)
• Capacitor Commutated Converter (CCC)
• Other Technologies

Power Ratings

• Below 1000 MW
• 1001 - 2000 MW
• Above 2000 MW

Components

• Transmission Cables
• Converter Stations
• Other Components

HVDC Transmission Industry Developments

In March 2023, Hitachi (Japan) secured a contract to upgrade the Al Fadhili converter station in Saudi Arabia. The station, established in 2009, plays a crucial role in connecting the power grids of multiple Middle Eastern countries. 

In March 2023, Siemens Energy (Germany), in partnership with Italy's FATA (Danieli group) (Italy), secured a contract from Terna (Italy) to supply four converter stations for the "Tyrrhenian Link" project, a 970 km long HVDC power link connecting mainland Italy, Sicily, and Sardinia. This project facilitates flexible electricity exchange between these regions, enhances renewable energy utilization grid stability, and supports the phasing out of coal-fired power plants on the islands to reduce CO2 emissions.

In February 2023, Mitsubishi Electric Corporation (Japan) acquired Scibreak AB (Sweden), a Swedish company specializing in direct current circuit breakers (DCCBs). This move aims to enhance their joint efforts in developing DCCB technologies for high-voltage direct current (HVDC) systems, aligning with the global expansion of renewable energy sources.

January 2023 - Nexans and SuperGrid Institute successfully transient overvoltage test 525kV DC cable system in compliance with the latest high voltage direct current recommendations.

High Voltage Direct Current (HVDC) Transmission Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

8%

The Forecast Market

Size for in USD:

$25 Billion

FAQs

• What is the current size of the global HVDC transmission market?

Ans: The HVDC transmission market is projected to reach USD 25 billion by 2032 from USD 11.9 billion in 2023, at a CAGR of 8% from 2024 to 2032. The growing number of VSC-based HVDC projects and the shift towards renewable energy adoption globally are the major factors driving the market growth.

The global high voltage direct current transmission market size was valued at $11.9 billion in 2023, and is projected to reach $25 billion by 2032, growing at a CAGR of 8% from 2024 to 2032.

• At what CAGR is the HVDC transmission system market projected to grow during the forecast period of 2024-2032?

Ans: The market will likely record a CAGR of 8% over the forecast period of 2024-2032.

• Who are players in the global HVDC transmission market?

Ans: Hitachi ABB Power Grids, Siemens Energy, Prysmian Group, China XD Group, GE Grid Solution, TBEA Co., Ltd., LS Electric Co., Ltd, Xuji Group Co., Ltd., Nexans, NKT A/S, Toshiba Energy Systems & Solutions, Mitsubishi Electric Corporation, General Electric, NR Electric Co., Ltd.

• Which region is expected to hold the highest market share?

Ans: Asia Pacific region is anticipated to hold a significant share in the HVDC transmission market. The dominance can be attributed to several key factors such as the rising number of HVDC transmission projects in China and India, a regulatory environment that supports the development and sales of HVDC components, and the increasing number of rural electrification initiatives in the region. These factors collectively contribute to the growth of the market in the Asia Pacific region.

• How big is the Asia Pacific market size?

Ans: The market size of Asia Pacific stood at USD 6.82 billion in 2023.

• What are the major drivers and opportunities related to the HVDC transmission market?

Ans: Advancement of Technology and Increase in the demand for renewable energy.

• What are the major strategies adopted by market players?

Ans: The key players have adopted agreements, collaborations, partnerships, acquisitions, and joint ventures to strengthen their position in the HVDC transmission market.

High Voltage Direct Current (HVDC) Transmission Market TO (USD BN)

CAGR OF

8%

High Voltage Direct Current (HVDC) Transmission Market

25 Billion%