The Global HVDC Transmission Market size is expected to reach $16.5 billion by 2030, rising at a market growth of 5.8% CAGR during the forecast period.
Monopolar transmission systems are a HVDC transmission system used for efficient long-distance electricity transmission. In monopolar systems, one conductor, often a high-voltage DC cable or overhead line, transmits electric power. Therefore, the monopolar transmission systems segment will capture 3/4th share in the market by 2030. These systems are simpler in design and construction, making them suitable for certain applications without complexity. Monopolar transmission systems have a single conductor for transmitting and returning the electric current. Some of the factors impacting the market are shift towards renewable energy, technological advancements related to HVDC transmission and availability of distributed and off-grid power generation.
The shift towards renewable energy has played a significant role in driving the growth of the market. This trend has been fueled by several factors highlighting the importance of HVDC technology in integrating renewable energy sources into the electrical grid. Many renewable energy sources, such as wind and solar farms, are located in remote or offshore areas where the energy is generated most efficiently. It allows for the efficient and long-distance transport of electricity from these remote locations to urban centers and regions with high energy demand. Additionally, Innovations in HVDC technology have made it more efficient, flexible, and reliable, leading to its increased adoption in various applications. One of the most significant technological advancements is the development and widespread adoption of VSC-based HVDC systems. VSCs offer enhanced controllability and flexibility, allowing for rapid power flow and grid stability adjustments. As a result, the market has experienced significant growth.
However, distributed power generation can reduce the need for long-distance electricity transmission since it generates electricity closer to where it is consumed. As a result, there may be less demand for large-scale projects designed to transmit power over extensive distances. Integrating distributed and off-grid power sources into the existing electrical grid can be complex. Managing variable renewable energy sources like rooftop solar panels and small wind turbines may require advanced grid management solutions, which can affect the necessity for large-scale HVDC projects.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Under point-to-point, the market is further divided into monopolar transmission systems and bipolar transmission systems. The bipolar transmission systems segment covered a considerable revenue share in the market in 2022. Bipolar transmission systems are a type of HVDC transmission system used for efficient and controlled long-distance electricity transmission. In bipolar systems, two conductors transmit electric power, one for transmitting current and the other for returning it. Bipolar HVDC systems offer various advantages and applications compared to monopolar systems, which use a single conductor for transmission.
Based on technology, the market is categorized into capacitor commutated converter (CCC), voltage source converter (VSC), and line commutated converter (LCC). In 2022, the line commutated converter (LCC) segment witnessed the largest revenue share in the market. A LCC is a power electronic device in these systems. LCC-based HVDC systems are known for their robustness and high voltage capacity, making them suitable for long-distance power transmission. They are commonly used in applications requiring large power transmission, such as transmitting electricity from remote power generation sources, interconnecting grids, or supporting bulk power transmission over extended distances.
By project type, the market is fragmented into point-to-point, back-to-back, and multi-terminal. The back-to-back segment garnered a significant revenue share in the market in 2022. Back-to-back HVDC transmission is a specialized form of HVDC technology used to spatially connect two electrical grids or systems very close to each other. Unlike traditional point-to-point HVDC transmission, which connects two physically distant locations, back-to-back HVDC transmission links two areas nearby. Back-to-back HVDC transmission is typically employed when two electrical grids, power systems, or substations are located near each other, often within the same geographical area or city.
On the basis of application, the market is classified into bulk power transmission, interconnecting grids, and infeed urban areas. The interconnecting grids segment recorded a remarkable revenue share in the market in 2022. Interconnecting grids, also known as grid interconnection or grid integration, refers to connecting multiple electrical grids or power systems to enable the exchange of electricity between them. This practice has several benefits, including improving grid reliability, increasing energy security, facilitating the integration of renewable energy sources, and enabling efficient use of resources. Grid interconnection can occur across international borders, allowing neighboring countries to share electricity resources.
On the basis of component, the market is segmented into converter stations, transmission cables, and others. In 2022, the converter stations segment dominated the market with the maximum revenue share. Converter stations are critical to these systems. They are pivotal in converting electrical power between AC and DC, enabling electricity-efficient and long-distance transmission. Converter stations contain semiconductor devices called thyristors or insulated gate bipolar transistors (IGBTs) that act as switches to convert AC power to DC or vice versa. These converter valves are the heart of the converter station, and their performance affects the efficiency and reliability of the HVDC system.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 10.5 Billion |
| Market size forecast in 2030 | USD 16.5 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 5.8% from 2023 to 2030 |
| Number of Pages | 335 |
| Number of Table | 520 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Project Type, Technology, Application, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region generated the highest revenue share in the market. A growing number of transmission projects in emerging nations, a favourable regulatory framework for developing and selling HVDC components, and a rising number of rural electrification projects are among the essential aspects driving market growth in the Asia Pacific. In addition, the region's rapidly growing population, urbanization, and a resulting rise in electricity demand are significant factors driving market expansion.
Free Valuable Insights: Global HVDC Transmission Market size to reach USD 16.5 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Hitachi, Ltd., Mitsubishi Electric Corporation, Siemens Energy AG, General Electric Company, Prysmian Group, Toshiba Corporation, NKT Photonics A/S (NKT A/S), Nexans S.A., LS ELECTRIC CO., Ltd, and NR Electric Co., Ltd. (NARI Technology Development Limited Co.)
By Project Type
By Technology
By Application
By Component
By Geography
This Market size is expected to reach $16.5 billion by 2030.
Shift towards renewable energy are driving the Market in coming years, however, Availability of distributed and off-grid power generation restraints the growth of the Market.
Hitachi, Ltd., Mitsubishi Electric Corporation, Siemens Energy AG, General Electric Company, Prysmian Group, Toshiba Corporation, NKT Photonics A/S (NKT A/S), Nexans S.A., LS ELECTRIC CO., Ltd, and NR Electric Co., Ltd. (NARI Technology Development Limited Co.)
The expected CAGR of this Market is 5.8% from 2023 to 2030.
The Bulk Power Transmission segment is generating the highest revenue in the Market by Application in 2022; thereby, achieving a market value of $8.5 billion by 2030.
The Asia Pacific region is capturing maximum revenue in the Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $6.8 billion by 2030.
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