The Global HVDC Converter Station Market is estimated to be USD 5.03 Bn in 2023 and is expected to reach USD 8.06 Bn by 2028 growing at a CAGR of 9.9%.HVDC interconnections enable power systems to use for generating plants more efficiently by substituting thermal generation with available hydropower resources
- An HVDC (High Voltage Direct Current) converter station is a specialized electrical substation that converts electricity between alternating current (AC) and direct current (DC) in a high-voltage transmission system. HVDC converter stations are used for long-distance transmission of electricity over high-voltage power lines, where AC transmission may not be practical due to high losses and other technical constraints. HVDC technology is also used to interconnect different power grids that operate at different frequencies or have different operating characteristics. One of the advantages of HVDC transmission is that it allows for efficient power transmission over long distances, with lower losses compared to AC transmission. It also enables the integration of renewable energy sources into the grid, by allowing for the transmission of power from remote locations with high renewable energy potential to urban centers.
- The increasing demand for cost-effective solutions for long-distance power transmission is driven by the need to meet the growing demand for electricity while reducing transmission losses and improving grid stability. HVDC converter stations are becoming increasingly popular for long-distance power transmission as they offer several advantages over traditional AC transmission systems. HVDC transmission systems are more efficient than AC transmission systems over long distances, as they experience fewer electrical losses during transmission. They are also able to transmit power over long distances without the need for intermediate substations, reducing overall infrastructure costs. In addition, HVDC systems can help improve grid stability by allowing power to be transmitted between unsynchronized AC systems. These drive the market growth in the upcoming year.
- Moreover, the growth of the offshore wind sector is expected to be driven largely by favorable government policies implemented by the Global Wind Energy Council (GWEC), and PGCIL. There is an increasing demand from grid operators for a new transmission corridor in India, especially in the context of renewable energy sources. Therefore, in this context, the government has put emphasis on regeneration and has nominated PGCIL to develop an environmentally friendly source for generating electricity from solar and wind power projects High investments by market leaders, including ABB and Siemens, have led to the set-up of offshore HVDC power transmission systems in countries such as Norway Italy, and the Netherlands.
- However, transmission from several neighboring grids sometimes requires the approval of the government or local authority to check the converter station's standards. Sometimes this reviewing and approval process takes time, which eventually affects the transmission of electricity and working of the converter station. As a result, it affects power generation in some places with the consequence being the lack of electricity. Thus, this standard procedure sometimes creates unnecessary problems for the HVDC market as well as for end-users. For instance, the US Plains and Eastern Clean Line project took almost seven years of reviews, community meetings, and regulatory approvals from multiple agencies, including DOE and the Tennessee Regulatory Authority.
Market Segmentations
- The Global HVDC Converter Station Market is segmented based on Technology, Configuration, Power Rating, applications, and Geography.
- By Components, the market is segmented into Converters, Converter Transformers, DC Equipment, and Others. Others include Reactive Power, Harmonic Filters, and AC Switchgear.
- Converter holds the largest market share in upcoming years. The converter is the heart of the HVDC system, converting AC power to DC power and vice versa. The demand for converters is high as they are critical components of the HVDC system. The demand for converters in HVDC converter stations is increasing due to their benefits in terms of renewable energy integration, improved grid stability, increased efficiency, and technological advancements.
- By Technology, the market is segmented into Line Commutated Converters, Voltage Source Converters.
- Line Commutated Converters is predicted to grow with the highest CAGR in upcoming years. There can be multiple reasons why the demand for Line Commutated Converters (LCCs) has increased. LCCs are a power electronic device used to convert electrical power from one form to another. They are commonly used in high-voltage direct current (HVDC) transmission systems to convert AC power into DC power for transmission over long distances.
- By Configuration, the market is segmented into Monopolar, Bi-Polar, Back-To-Back, and Multi-Terminal.
- The Bi-Polar segment is expected to grow with the highest CAGR in the forecasting period. The demand for bi-polar high-voltage direct current (HVDC) converter stations has increased for several reasons, such as enhanced power transmission, improved reliability, and reduced environmental impact; also, they are cost-effective. Additionally, Advances in HVDC technology have made bipolar HVDC transmission more efficient, reliable, and cost-effective, leading to increased demand for this technology.
- By power rating the market can be classified into Below 500 MW, >500-1000 MW, >1000-1500 MW, >1500-2000 MW, and >2000 MW.
- During the forecast period, the >2000 MW power rating segment is expected to experience the highest compound annual growth rate (CAGR). This growth is attributed to valves' increased power transmission capacity, which has resulted in a surge in demand for HVDC converter stations in major economies such as India and China. Additionally, the European Union's focus on generating power from renewable sources has further fueled the demand for connecting renewable energy sources to the grid, driving the need for HVDC converter stations on a global scale.
- By applications, the market is segmented into Interconnecting Networks, Power Industry, and Oil & gas industry.
- The Interconnecting Network segment is predicted to grow with the highest CAGR during the forecasting period due to the demand for interconnecting networks in HVDC converter stations has increased due to the benefits they offer in terms of renewable energy integration, improved grid stability, energy trading, increased efficiency, and technological advancements.
- By Geography, the market is classified into the Americas, Europe, Middle-East & Africa and Asia-Pacific.
- America is expected to dominate the global HVDC converter station market during the forecast period due to various factors. North America is the second-largest electrical market in the world, and there have been significant changes in the generation, transmission, distribution, and use of electricity in the region. These changes, particularly in the transmission and distribution networks, have increased the demand for HVDC technology. The US Energy Information Administration has predicted that power production in the United States will increase in the forecasting year. The need to transmit bulk energy with minimal conversion points is expected to drive robust growth in the region. Additionally, the growth of telecommunications infrastructure and manufacturing facilities is expected to further accelerate regional growth.
Recent Development
- Siemens Energy, together with its consortium partner Sumitomo Electric, has signed a contract with Greenlink Interconnector Limited to supply HVDC technology for a power link between Ireland and Great Britain. - September 2021
- ABB has clinched a major order from South Korea’s largest electric utility to build two new HVDC converter stations linking the mainland with Jeju, the country’s largest island. - June 2019
Company Profiles
The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are ABB, General Electric, Hitachi, Mitsubishi Electric,- Siemens, etc.
Countries Studied
- America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
- Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxemburg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
- Middle-East and Africa (Egypt, Israel, Nigeria, Qatar, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
- Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)
Competitive Quadrant
The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.Ansoff Analysis
- The report presents a detailed Ansoff matrix analysis for the Global HVDC Converter Station Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
- The publisher analyses the Global HVDC Converter Station Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
- Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.
Why buy this report?
- The report offers a comprehensive evaluation of the Global HVDC Converter Station Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
- The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
- Excel data sheet for the market size will also be provided with the report.
- The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
- The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
- The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
- The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors.
- The report offers customized research - tailored uniquely to our customers with a quick turnaround time. We offer a 15% customization option at no extra charge to all our clients for any of our syndicated reports.
Report Highlights:
- A complete analysis of the market, including the parent industry
- Important market dynamics and trends
- Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
- Market segmentation
- Competitive Analysis: Comparative analysis of competitor
- Historical, current, and projected size of the market based on value and volume
- Market size of the US states
- Market shares and strategies of key players
- Recommendations to companies for strengthening their foothold in the market
Table of Contents
1 Report Description
2 Research Methodology
3 Executive Summary
4 Market Dynamics
5 Market Analysis
6 Global HVDC Converter Station Market, By Component
7 Global HVDC Converter Station Market, By Technology
8 Global HVDC Converter Station Market, By Configuration
9 Global HVDC Converter Station Market, By Power Rating
10 Global HVDC Converter Station Market, By applications
11 Americas' HVDC Converter Station Market
12 Europe's HVDC Converter Station Market
13 Middle East and Africa's HVDC Converter Station Market
14 APAC's HVDC Converter Station Market
15 Competitive Landscape
16 Company Profiles
17 Appendix
Companies Mentioned
- ABB Ltd
- Alstom Grid
- Apar Industries
- Bharat Heavy Electricals Ltd.
- C-EPRI Electric Power Engineering
- CG Power and Industrial Solutions
- Excelitas Technologies
- General Electric Company
- Hengtong Group Co., Ltd.
- Hitachi Ltd.
- HYOSUNG Corp.
- LS Electric
- Mitsubishi Electric Corp.
- Nexans SA
- Nissin Electric Co Ltd
- NKT A/S
- NR Electric
- Power Grid Corporation of India Limited (PGCIL)
- Prysmian Group
- Siemens Ag
- Sumitomo Electric
- Toshiba Corp.