HVDC Transmission Systems Market

HVDC Transmission Systems Market: Voltage Source Converter (VSC) to Remain Dominant Revenue Shareholder: Global Industry Analysis and Opportunity Assessment, 2018–2028

Introduction

The High Voltage Direct Current (HVDC) transmission systems are used for the transmission of power over long distances. These systems use direct current for power transmission. These systems have the ability to interconnect networks that have varying frequencies and features. These systems are termed to be more proficient than AC lines.

HVDC transmission uses two technologies, namely Line Commutated Converter (LCC) and Voltage Source Converter (VSC). The LCC is a very economical technology based on Thyristor power semiconductors. These semiconductors enable the bulk transfer of power with very low losses. This technology also has inherent DC fault protection. The voltage source converter is a new technology in the HVDC transmission system market.

It is based on power transistors. This technology is widely used in integrating renewables, in submarine/land cable interconnection, and urban & offshore applications. The VSC technology is included in several schemes such as point-to-point, back-to-back, and others.

The report covers detailed information about the market size (US$ Mn), trends & projections, market dynamics (drivers, restraints, and opportunities), recent developments, and the competition landscape pertaining to the global HVDC transmission system market for the study period 2018–2028.

The global HVDC transmission systems market is expected to reach US$ 17,203.8 Mn by the end of the forecast period, registering a growth rate of 8.7%. Increasing initiatives and government policies pertaining to HVDC transmission, coupled with the growing demand for the Voltage Source Converters (VSC) technology, are among factors that are estimated to provide a robust foundation for the growth of the global HVDC transmission systems market.

‘Solutions’ to Contribute Maximum Revenue to HVDC Transmission Systems Market

The solutions segment is estimated to hold a significant share in the global HVDC transmission systems market in terms of value during the entire forecast period. On the flip side, the services segment is expected to expand at a significant CAGR of 10.3% over the forecast period. The services segment is estimated to register 1.3X the growth registered by the solutions segment during the study period.

The solution segment is expected to hold a significant value share of the HVDC transmission systems market owing to the fact that the operation and maintenance of HVDC transmission systems requires the procurement of several spare parts to be kept as contingencies. Thus, the increasing demand for the components of HVDC transmission systems is expected to boost the solution segment.

Spike in Offshore Wind Projects to Favor HVDC Transmission Systems Market Growth

HVDC transmission systems are highly preferred over high voltage alternating current transmission systems for long-distance transmission, owing to the fact that AC transmission lines are not capable of delivering a substantial amount of energy when they are stretched over long distances. Moreover, long-distance transmission is required to connect offshore wind farms to the grid. Thus, increasing demand for HVDC transmission systems in offshore wind projects is estimated to drive the market over the forecast period.

VSC to Demonstrate Above-average Demand Growth in HVDC Transmission Systems Market

Among all the technologies, the voltage source converters segment is expected to hold a significant value share over the forecast period. The segment is projected to register 1.52X the growth registered by the line commutated converters segment.

In terms of absolute $ opportunity, the voltage source converters segment is expected to be responsible for more than 60.0% of the total absolute $ opportunity created by the global HVDC transmission systems market.

Asia Pacific & Japan Developing High-potential Markets for HVDC Transmission Systems

Increasing government initiatives pertaining to a shift towards renewable energy, coupled with the rising demand for power in the region, are estimated to drive the demand for HVDC transmission systems. In addition, increasing urbanization in the region is also expected to boost the demand for HVDC transmission systems over the forecast period.

Latin America region is estimated to register substantial growth, and is expected to be followed by the Middle East & Africa, Europe, and North America in terms of value. APEJ and Japan are projected to gain traction over the forecast period in the global HVDC transmission systems market owing to an expected increase in the demand from power transmission industries in various regions.

By the end of the forecast period, North America, Western Europe, and Eastern Europe are estimated to lose their market value share at the end of the forecast period. Collectively, the Asia Pacific excl. Japan (APEJ) and Japan regions are projected to register a CAGR of 19.7% by value, which is 2.3X more than the overall growth of the HVDC transmission systems market by value.

HVDC Transmission System Market - Competitive Landscape

The global HVDC transmission systems market is highly consolidated with the presence of few regional and global players across the globe. Globally, the top 10 vendors in the HVDC transmission systems market collectively hold a share of between 65% to 75% of the overall market in terms of value.

In the recent past, the HVDC transmission market has witnessed substantial developments from the competition perspective. Product launches, acquisitions & mergers, and expansions are some of the strategies chosen by key players to expand and sustain in the global HVDC transmission systems market.

  • In April 2018, ABB Ltd. announced the launching of ABB Ability at Hanover Fair in Germany. ABB Ability is the first combined solution for digitally enabled power transformers

Some of the key competitors covered in this report include ABB Ltd., Siemens AG, Toshiba Corporation, General Electric, Mitsubishi Electric Corporation, Prysmian SpA, TransGrid Solutions Inc., Abengoa S.A., ATCO Ltd., and LS Industrial Systems Co., Ltd.

Key Questions Answered in the Report

  • How is the HVDC transmission systems market expected to grow in terms of value during the study period?
  • How has the HVDC transmission systems market evolved over the past four years?
  • What are the competition developments and trends in the HVDC transmission systems market?
  • What are the prevailing market dynamics in the HVDC transmission systems market?
  • What are the key challenges, opportunities, and improvements faced by market players in the global HVDC transmission systems market?
  • What are the underlying macro-economic and industry factors impacting the growth of the HVDC transmission systems market?
  • How has the competition evolved in the HVDC transmission systems market over the past few years?
  • What is the market positioning and what are the key strategies adopted by major manufacturers as per the market taxonomy in the global HVDC transmission systems market?

HVDC Transmission Systems Market: Segmentation

On the basis of system component, the global HVDC Transmission Systems market has been segmented into:

  • Solution
    • AC & DC Harmonic Filters
    • Converters
    • DC Lines
    • Circuit Breakers
    • Others
  • Services

On the basis of technology, the global HVDC Transmission Systems market has been segmented into:

  • LCC (Line Commutated Converters)
  • VSC (Voltage Source Converters)
  • Others

On the basis of deployment, the global HVDC Transmission Systems market has been segmented into:

  • Overhead
  • Underground
  • Subsea
  • Combination

On the basis of power rating, the global HVDC Transmission Systems market has been segmented into:

  • Below 1000 MW
  • 1000 - 2000 MW
  • 2000 MW & above

On the basis of region, the global HVDC Transmission Systems market has been segmented into:

  • North America
  • Latin America
  • APEJ (Asia Pacific Excluding Japan)
  • Japan
  • Eastern Europe
  • Western Europe
  • MEA (Middle East & Africa)

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