High Voltage Direct Current Hvdc Transmission Systems Market

High Voltage Direct Current (HVDC) Transmission System Market: VSC Technology Segment Anticipated to Register High Y-o-Y Growth over the Forecast Period: Global Industry Analysis and Opportunity Assessment 2016-2026

High Voltage Direct Current (HVDC) transmission system is likely to witness a boom owing to the latest VSC technology

High Voltage Direct Current (HVDC) transmission system is fast gaining popularity and increased adoption ever since the first test line was developed in Sweden more than seventy years ago. Since then, major technological changes and cutting-edge research has taken place the world over to refine the HVDC VSC technology. As it is rightly said, necessity is the mother of invention, and this new technology was long overdue because of the inherent drawbacks of the conventional AC grid. The status quo in power transmission has been challenged by major developments in the market such as increased generation of power by renewable energy, new requirements from the power market and the deteriorating environmental impact. However, the new HVDC technology based on the Voltage Source Converter (VSC) is an attractive way of transmitting electricity that can overcome all the challenges listed above. The HVDC VSC technology for transmission gives independent control of active and reactive power and the reaction time for response in cases where it is needed is also fast. In addition, future technological developments have ensured that power transmission companies capitalise on the advantages this technology offers and eliminate the drawbacks such as high losses.

Revenue generated by the global HVDC transmission system market is estimated to reach more than US$ 6,000 Mn by 2016, witnessing an increase of 7.7% over 2015. VSC technology is estimated to hold the largest value share among the different technologies used in HVDC transmission systems. Future Market Insights forecasts the global HVDC transmission system market to register an 8.8% CAGR during the projected period 2016-2026, and reach nearly US$ 14,400 Mn in revenues by 2026 end.

Increasing global demand for power set to drive the global HVDC transmission system market

Need to eliminate blackouts caused due to transmission of faults and increasing demand for power are some of the major factors expected to drive the growth of the global HVDC transmission system market. Solutions sub-segment dominates the system components segment, however services sub-segment is expected to register the highest CAGR over the forecast period. This is owing to the fact that many of the previously established systems need to be upgraded.

VSC sub segment is estimated to increase at the highest growth rate during the assessment period

In the technology segment, VSC sub segment is estimated to increase at highest growth rate over the assessment period, followed by others sub segment. VSC technology uses insulated gate bipolar transistors which cover the drawbacks caused by conventional methods, and are thus gaining popularity. Capacitor commutated converters are gaining popularity and are expected to significantly contribute to the growth of the others sub segment.

global hvdc transmission system market

Some pertinent market figures of the VSC segment

  • In 2015, the VSC segment was valued at more than US$ 3,000 Mn and is estimated to reach nearly US$ 3,500 Mn by the end of 2016, reflecting a Y-o-Y growth rate of 9.1%

  • By 2026, the VSC segment is expected to reach a value of nearly US$ 9,000 Mn, exhibiting a CAGR of 10.2% during the projected period

  • The VSC segment is forecast to create incremental $ opportunity of nearly US$ 5,500 Mn between 2016 and 2026

Moreover, the VSC segment is expected to register high Y-o-Y growth rates throughout the forecast period.

Applications of VSC technology

HVDC transmission systems based on VSC technology are gaining popularity as they prove to be beneficial in applications such as connecting wind farms to power grids and linking asynchronous grids for underground power transmission among others.

ABB Ltd. and Siemens AG are introducing HVDC transmission systems based on VSC technology owing to its increasing popularity among utility companies. Another recent trend in the technology segment for HVDC transmission systems is the introduction of capacitor commutated converters (CCC), which provides benefits such as eliminating the need for using large shunts and utilising low reactive power.

Future Market Insights presents a one-of-its-kind analysis of the global HVDC Transmission System Market in its new publication titled ‘HVDC Transmission System Market: Global Industry Analysis and Opportunity Assessment, 2016–2026’. In this report, Future Market Insights has focussed on offering detailed insights and in-depth research on the global HVDC transmission system market over a 10-year forecast period 2016 – 2026. In this report, we have covered the important factors driving the growth and development of the global HVDC transmission system market, untapped opportunities for power transmission companies, trends and developments shaping the dynamics of the global HVDC transmission system market and other insights across various key segments. In addition, we have identified the key drivers and restraints affecting the global HVDC transmission system market growth. Changing trends are also analysed and incorporated in the report to equip clients with exhaustive information about the market resulting in better decision making. Macroeconomic factors that directly and indirectly impact the performance of the global HVDC transmission system market are also incorporated in the report.

Report description

Through this research report, Future Market Insights provides a detailed analysis of the HVDC transmission system market and offers insights on the various factors driving market growth. The report includes an extensive analysis of key industry drivers, restraints, market trends and market structure. The market study provides comprehensive assessment of key stakeholder strategies and imperatives for succeeding in the business. The report segregates the market based on system components, technologies, deployment mode, and power rating across different regions globally. 

The report starts with an overview of the HVDC transmission system market in terms of value. In addition, this section includes an analysis of key trends, drivers and restraints from the supply, demand and economy side, which are likely to influence the global HVDC transmission system market. Impact analysis of key growth drivers and restraints on the basis of the weighted average model is included in this report to facilitate clients with crystal clear decision-making insights. 

Key Segments Covered 

By System Component

 

By Technology

 

By Deployment

By Power Rating

By Region

  • Solutions

    • AC and DC harmonic filters

    • Converters

    • DC lines

    • Circuit breakers

    • Others

  • Services

 

  • LCC

  •  VSC

  • Others

 

  • Overhead

  • Underground

  • Subsea

  • Combination

  • Below 1000 MWs

  • 1001 to 2000 MWs

  •  2001 MWs and above

  • North America

  • Latin America

  • Western Europe

  • Eastern Europe

  • APEJ

  • Japan

  • MEA

A detailed analysis has been provided for every segment in terms of market size analysis for HVDC transmission systems across the different assessed regions. The section provides a detailed analysis covering key trends, absolute dollar opportunity and BPS analysis. The next section provides a detailed analysis of HVDC transmission systems across various countries and provides a market outlook for 2016–2026, while setting the forecast within the context of HVDC transmission systems, including latest technological developments as well as offerings in the market. This study discusses key trends within countries contributing to the market growth trajectory and analyses the degree to which drivers are influencing this market in each region. 

In the final section of the report, Future Market Insights has included a competitive landscape to provide clients with a dashboard view based on categories of providers in the value chain, presence in the HVDC transmission systems portfolio and key differentiators. This section is primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to a market segment in the HVDC transmission system value chain and potential players for the same. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on an in-depth assessment of capabilities and success in the marketplace. Detailed profiles of providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent evolutions in the global HVDC transmission system market. 

Our research methodology

Forecasting the market numbers

While estimating the market for HVDC transmission systems, we have tracked the contracts available online awarded to the players in this market. Contracts include those awarded for installation of new systems, upgrading and refurbishment of old systems, and supplying system components such as solutions and services. Forecasting models are developed to quantify the impact of each of these factors on industry spending. A forecast scenario for each causative factor is then created and the contribution of each factor on a prospective basis is identified. 

The forecast presented here assesses the total revenue by value across the global HVDC transmission system market. To offer an accurate forecast, we have started by sizing the current market, which forms the basis of how the global HVDC transmission system market will develop in the future. Given the characteristics of the market, we have triangulated the outcome of different types of analyses basis future technology trends. 

Key metrics included

In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse the market on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the global HVDC transmission system market. As previously highlighted, the global HVDC transmission system market is split into a number of segments. All segments in terms of system components, technology, deployment and power rating, and across different regions are analysed in terms of basis point share to understand individual segments’ relative contribution to market growth. This detailed level of information is important for identification of various key trends governing the global HVDC transmission system market. Also, another key feature of our report on the global HVDC transmission system market is the analysis of all key segments in terms of absolute dollar opportunity. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the global HVDC transmission system market. 

Finally, to understand the key market segments in terms of growth and performance in the global HVDC transmission system market, we have developed a unique market attractiveness index to help clients identify real market opportunities.