HVDC Transmission Market Size, Share, Industry, Forecast and outlook (2024-2031)

HVDC Transmission Market is Segmented By Technology (Capacitor Commutated Converter (CCC), Voltage Source Converter (VSC), Line Commutated Converter (LCC)), By Configuration (Point-to-Point, Back-to-Back, Multi-terminal), By Voltage (350 kV, 350-640 kV, 640-800 kV, 800 kV),  By Application (Bulk Power Transmission, Interconnection of Grids, Infeed Urban Areas, Offshore Grid, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

HVDC Transmission Market Overview

Report analyses the Global HVDC Transmission Market size, shares, recent trends, competitive intelligence, and future market outlook. Demand from Energy & Power in Asia Pacific is rising. Competitive rivalry intensifies with Hitachi Energy Ltd, Schneider Electric, NR Electric Co., Ltd and others operating in the market.

Alternating voltage and current waves move in a line during AC transmission, changing direction every millisecond, resulting in losses from heat. The voltage and current waves in DC wires don't shift direction like in AC lines. DC is used in high-voltage direct current (HVDC) power systems to transmit large amounts of power across long distances. HVDC lines for long-distance power transmission are less expensive, have lower losses than AC transmission, and connect networks with various frequencies and properties. Power is transported quickly because HVDC lines improve the efficiency of transmission lines. High Voltage Direct Current (HVDC) transmission systems have become increasingly significant in an energy landscape marked by rising digitization, decarbonization, and distributed generation. Three-phase and green grids can be stabilized and connected to the grid with the aid of HVDC.

HVDC transmission market study analysis offers an in-depth outlook on the market containing quantitative and qualitative data. It gives an outlook and forecast of the global market based on market segmentation. It also provides global intraoperative neuromonitoring market size, and growth, along with the latest trends, opportunities, and forecast till 2029 for the global market with esteem to major countries such as the United States, Canada, Brazil, Germany, Italy, Spain, United Kingdom, Russia, European countries, United Arab Emirates, Saudi Arabia, South Africa, Japan, China, India, South Korea, Australia, and rest of the countries over the globe.

Among all regions, the North American HVDC transmission market is expected to hold the largest share of the global market over the forecast period. Whereas the European HVDC transmission market is projected to continue its presence globally during the period of 2023-2030.

HVDC Transmission Market Scope

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HVDC Transmission Market Dynamics

The rising global demand for energy is a major driver for the global HVDC transmission market:

Due to an increase in global energy consumption, there is an apparent trend shift in the power grid, emphasizing decarbonization and digitization. The industry is also driven by the expansion of utility-scale renewable energy facilities and the move away from fossil fuels. It facilitates long-distance energy-efficient electricity transmission from distant renewable power plants. Due to its capacity to resolve some of the most pressing difficulties that the modern grid faces, the trend shift is making the HVDC transmission market witness sustained growth during the forecast period.  

The high installation costs associated with HVDC transmission are expected to restrain the global market:

Over the forecast period, the high installation costs associated with HVDC transmission are expected to prevent the growth of the global market. The system requires a few extra pieces of hardware, including a converter transformer, mechanical & electrical auxiliaries, pole & valve controls, and many others. All of this equipment is quite expensive and of the highest technology. HVDC transmission systems have substantial installing and maintaining costs because of their design.

The rising popularity of VSC technology is expected to generate new opportunities for the global market:

VSC technology converts AC to DC voltage with insulated gate bipolar transistors (IGBTs), pulse width modulation (PWM) or by switching in and out of smaller DC capacitors. Voltage inverters and voltage rectifiers are the two different categories of voltage converters. A VSC-HVDC system's primary purpose is to transfer steady DC power from a rectifier to an inverter. Insulated gate bipolar transistors, employed in VSC technology, address the shortcomings of conventional approaches and are growing in popularity.

Delays and cost overruns in HVDC projects are expected to present challenges for the global market:

HVDC projects require long lead times due to technical complexity and execution. The projects also entail high capital expenditure. It invariably leads to delays and cost overruns which causes trepidation in sanctioning new projects. It is expected to become a key challenge for the growth of the global market during the forecast period.

COVID-19 Impact Analysis on HVDC Transmission Market

COVID-19 pandemic negatively impacted the market and caused the postponement and delays of several projects globally. Lockdowns and restrictions on movement imposed by the government impacted the development and installation of new HVDC transmission systems. However, owing to the concerted efforts of governments and businesses in the post-pandemic period, the supply chain has been rebuilt and labor availability is returning to normal, which is expected to boost the market. Despite the short-term challenges, the pandemic is not expected to majorly impact the long-term outlook of the global HVDC transmission market.

Recent Developments in the Industry:

1. In April 2022, Siemens announced that it would utilize an HVDC transmission line for the Sunrise wind offshore project off the coast of New York. The 924 MW project is expected to be commissioned by early 2025.
2. In July 2022, the UK started developmental work on two HVDC lines connecting the Hornsea 3 offshore wind farm in the North Sea with the UK mainland. The line will transmit 2.8GW of electricity to UK national grid from the offshore wind farm. The HVDC line is slated for completion by 2026.
3. In June 2021, India commissioned its first voltage source converter (VSC)-based HVDC system with the operationalization of a 320KV 2000 MW line between Pugalur in Tamil Nadu and Thrissur in Kerala.

HVDC Transmission Market Segmentation Analysis

The scope of the report covers segmentation based on technology, configuration, voltage, application, and region. The global HVDC transmission market is segmented by technology into capacitor commutated converter (CCC), voltage source converter (VSC) and line commutated converter (LCC). The global HVDC transmission market is segmented by configuration into point-to-point, back-to-back, and multi-terminal. The global HVDC transmission market is segmented by voltage into 350 kV, 350-640 kV, 640-800 kV and 800 kV. The global HVDC transmission market is segmented by application into bulk power transmission, interconnection of grids, infeed urban areas, offshore grid and others. The global HVDC transmission market is segmented by region into North America, South America, Europe, Asia-Pacific, Middle East, and Africa.

1. Point-to-Point: Point-to-point is the most common configuration in most HVDC transmission systems. The point-to-point configuration consists of two converter stations at each end and an HVDC line between them. One station acts as a rectifier and the other station acts as an inverter. The role of the stations can be reversed by suitable converter control, which results in power reversal. In a point-to-point configuration, power is carried unidirectionally in a controlled manner from a generating station to a converter station in an alternate grid.
2. Back-to-Back: A back-to-back configuration is an HVDC system for electrical transmission with both ends of the system terminating in the same switchyard. In a back-to-back configuration system, power from the neighboring system is first converted in DC with a rectifier system and summed up. After summing, the resulted power is again converted into AC with a power inverter and supplied to the grids.
3. Multi Terminal: A multi-terminal HVDC system (MTDC) is a system with two or more converter stations and DC terminal lines. The converter stations in the system act as either rectifiers or inverters. Despite differences in configuration, the total power taken from the rectifier station is always equal to the power supplied by the inverter station.

HVDC Transmission Market Geographical Share

According to the DataM Intelligence market research report, the global HVDC transmission market is divided into North America, South America, Europe, Asia-Pacific, Middle East and Africa.

Despite adequate generation capacity, North America still struggles with power outages and rolling blackouts during peak energy demand hours. However, given the major structural challenges along with an ongoing transition to renewable energy, governments of the region have started making major investments in the development of new electric grid infrastructure. One of the major programs has been the adoption of HVDC transmission lines for maximum efficiency and reliability. Due to the increasing upgradation of the electricity infrastructure, the North American HVDC transmission market will likely witness sustained growth in the coming years.

Europe is currently integrating and unifying its electricity grid to ensure the easy trade of electricity across various national borders. Many European countries are utilizing HVDC transmission technology to achieve the interconnectivity of various grids. Given the ongoing shift to renewable energy along with the unification and integration of the European electricity grid, the European HVDC transmission market is expected to have steady growth over the coming years.

 Asia-Pacific is a rapidly industrializing region that is experiencing high economic growth. It has led to a high concentration of manufacturing industries across various sectors such as manufacturing, chemicals, automotive, aerospace and electronics. Due to increasing economic development and industrialization, the HVDC transmission market in Asia-Pacific is likely to increase significantly in the coming years.

HVDC Transmission Market Companies and Competitive Landscape

The global HVDC transmission market is consolidated and highly competitive, with top players accounting for a significant share of the market. All the respective manufacturers sell highly developed and specialized HVDC transmission systems and parts and a wide range of products, such as transformers, capacitors and cables and provide full turnkey development to preserve market competition.

Major Companies:

Some key companies contributing to the global HVDC transmission market growth include Siemens AG, ABB, General Electric Co., Hitachi Ltd, Mitsubishi Electric Corporation, NKT A/S, Nexans S.A., NR Electric Co., Ltd., and Toshiba Corporation, among others.