Global Hvdc Grid Market Overview
As per MRFR analysis, the Hvdc Grid Market Size was estimated at 21.06 (USD Billion) in 2022. The Hvdc Grid Market Industry is expected to grow from 21.42(USD Billion) in 2023 to 25.0 (USD Billion) by 2032. The Hvdc Grid Market CAGR (growth rate) is expected to be around 1.73% during the forecast period (2023 - 2032).
Key Hvdc Grid Market Trends Highlighted
HVDC grid networks are poised for significant growth, driven by the increasing adoption of renewable energy sources, particularly offshore wind farms. These grids facilitate the efficient transmission of electricity over long distances, reducing line losses and enabling the cost-effective integration of remote renewable resources into the power grid. Key drivers shaping the HVDC grid market include the global push towards decarbonization, the rising demand for reliable and resilient electricity supply, and advancements in HVDC technology.
Opportunities lie in the development of multi-terminal HVDC systems, which allow for power exchange between multiple interconnected regions, and the integration of HVDC grids with energy storage technologies. Recent trends in the HVDC grid market include the deployment of ultra-high-voltage (UHVDC) systems, which transmit electricity over distances exceeding 2,000 kilometers with minimal losses. Furthermore, the adoption of modular multilevel converters (MMCs) is enhancing the flexibility and efficiency of HVDC grids, making them suitable for integrating intermittent renewable energy sources.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hvdc Grid Market Drivers
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Increasing Demand for Renewable Energy Integration
The adoption of renewable energy sources, including solar and wind power, tends to grow, which induces the demand for the mentioned technology. HVDC grids allow for transferring renewable energy to long distances, which implies minimized power transmission losses. Moreover, grid stability also improves due to HVDC technology. Consequently, integrating renewable energy sources into the grid, the mentioned solution brings about a lower effect on the environment. Since green power projects are becoming more and more popular across the planet, the present trend is likely to continue in the next years, with the market for HVDC grids expanding further.
Growing Need for Interconnections and Grid Modernization
The increasing interest in electric power as one of the most demanded resources and ongoing efforts to improve the overall reliability and resilience of a power grid serve as primary drivers of both the need for interconnections and grid modernization in general and the usage of HVDC grids in particular. Notably, HVDC grids are an essential means of connecting different areas and countries, thus promoting power and electricity resource sharing and increasing the overall stability of a power grid.As a result, if HVDC results are combined with modernizing the current outdated grid systems, utility companies will enhance their operational efficiency twofold as the incidence of outages will reduce, therefore improving power quality for target customers.
Government Support and Policy Initiatives
There are several governmental factors that stimulate the global HVDC market. It has been noticed that due to the benefits and opportunities given by the HVDC technology, governments all over the world become more actively involved in its promotion. Therefore, a number of policies, finance, regulations and initiatives are being employed in order to stimulate the development of the given technology. This fact is going to influence the market growth in the future as well because such government support will considerably increase investment in the HVDC grid infrastructure and assist it in getting over the market limitations.
Hvdc Grid Market Segment Insights
Hvdc Grid Market Voltage Level Insights
Interesting results are identified in the Global Hvdc Grid Market segmented by Voltage Level. The options are HVDC Light, HVDC Plus, UHVDC, and EHVDC. The HVDC Light segment has a market share of more than 35% of the Global HVDC grid Market in 2023, making it the largest. The HVDC Plus segment, which is in the process of increasing its market share, is expected to grow extremely rapidly as the demand for long-distance power transmission is increasing.
The UHVDC one, which is also expected to rise rapidly thanks to the necessity for ultra-high-voltage power transmission systems, has better results.Finally, the EHVDC segment, which is currently the newest one and in the phase of being developed, has to tap its potential, which seems to be significant due to the potential to change the power transmission industry completely.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hvdc Grid Market Transmission Capacity Insights
Transmission capacity is a significant segmentation factor in the Global HVDC Grid Market. The market is segmented into four transmission capacity ranges: Less than 500 MW, 500 MW to 1,000 MW, 1,000 MW to 2,000 MW, and More than 2,000 MW. In 2023, the "Less than 500 MW" segment held the largest market share, accounting for around 35% of the Global HVDC Grid Market revenue.
This segment is expected to maintain its dominance over the forecast period, owing to the increasing demand for HVDC systems for short-distance power transmission and distribution.The "500 MW to 1,000 MW" segment is projected to witness significant growth during the forecast period, driven by the growing adoption of HVDC systems for medium-distance power transmission.
This segment is expected to account for a market share of around 28% by 2032. The "1,000 MW to 2,000 MW" segment is anticipated to grow steadily over the forecast period, supported by the increasing demand for HVDC systems for long-distance power transmission. This segment is expected to account for a market share of around 22% by 2032. The "More than 2,000 MW" segment is expected to witness moderate growth during the forecast period, primarily driven by the increasing demand for HVDC systems for ultra-high-voltage power transmission. This segment is expected to account for a market share of around 15% by 2032.
Hvdc Grid Market Application Insights
Bulk Power Transmission holds the largest market share in the Global Hvdc Grid Market and is expected to continue its dominance over the forecast period. The segment held a revenue share of around 25.34% in 2023 and is estimated to grow at a CAGR of 1.66% over the next ten years.
The growth of this segment is attributed to the increasing demand for long-distance power transmission to meet rising electricity consumption. Point-to-Point Interconnection is another significant segment, with a revenue share of about 22.79% in 2023. It is primarily driven by the expansion of interconnected power grids and the need for reliable transmission lines for cross-border energy trading.
Grid Stabilization segment is expected to witness substantial growth over the forecast period, owing to the rising need for enhancing grid stability amid the integration of intermittent renewable energy sources. The Renewable Energy Integration segment is gaining traction, driven by the increasing adoption of clean energy sources and government initiatives promoting their utilization. The integration of HVDC grids into renewable energy systems enables the efficient transmission of power from remote generation sites to load centers.
Hvdc Grid Market Technology Insights
The Global Hvdc Grid Market is segmented by Technology into Line Commutated Converters (LCC), Voltage Sourced Converters (VSC), and Hybrid HVDC. The VSC segment is expected to grow at the highest CAGR during the forecast period due to its advantages, such as black start capability, power flow controllability, and reduced harmonic distortion. The LCC segment is expected to hold the largest share of the Global Hvdc Grid Market in 2023 due to its maturity and lower cost. Hybrid HVDC systems combine the advantages of both LCC and VSC technologies, offering a more flexible and efficient solution for HVDC transmission.
Hvdc Grid Market Project Status Insights
The Global Hvdc Grid Market is segmented based on project status into announced, planned, under construction, and operational. The operational segment held the largest share of the market in 2023, and it is expected to continue to dominate the market during the forecast period. The growth of this segment can be attributed to the increasing number of Hvdc grid projects that are becoming operational. For instance, in 2023, the Xiangjiaba-Shanghai 800 kV UHVDC transmission project in China was completed and put into operation.
The project has a transmission capacity of 12,000 MW and is expected to improve the power supply in eastern China. The planned segment is expected to witness significant growth during the forecast period due to the increasing number of Hvdc grid projects that are being planned. For instance, in 2023, the Indian government announced plans to develop an 800 kV UHVDC transmission line between Raigarh and Pugalur. The project is expected to be completed by 2028 and will have a transmission capacity of 6,000 MW.
Hvdc Grid Market Regional Insights
The Global Hvdc Grid Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in the coming years. The region's high adoption of advanced technologies and increasing demand for reliable and efficient electricity transmission are key factors driving the growth of the Hvdc grid market in North America. Europe is another major market for Hvdc grids, owing to the region's focus on renewable energy integration and the need to upgrade aging infrastructure.
The APAC region is also expected to experience significant growth in the Hvdc grid market, driven by increasing demand for electricity in developing countries and the need to improve grid stability. South America and MEA are expected to witness steady growth in the Hvdc grid market due to ongoing infrastructure development and the growing focus on renewable energy.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hvdc Grid Market Key Players And Competitive Insights
The present day’s Hvdc Grid Market companies are seemingly working diligently, and they are all focused on coming up with a new generation of gadgets. As a result, major and small companies seem to be creating research organizations that will focus on how this technology can be beneficial to customers. On the other hand, the growth of the Hvdc Grid Market is critical because it enhances not only the reliability of electricity but also avails it in an efficient manner.
Even though Siemens commands a huge market share in the Hvdc Grid Market by providing state-of-the-art gadgets, which are advanced solutions and reliable services, it is similarly beneficial to focus on gaining more education in the new generation of Hvdc technology. In any market, organizations or utilities that provide perfect services and products will automatically attract a huge customer base. It might be a rollercoaster for the Hvdc companies when it comes to attracting customers.SiemensSiemens appears to be one of the biggest players in this industry.
It is understood that the company is the best in offering excellent solutions to utilities. For over 40 years, Siemens has been assisting utilities to achieve their desired results. As a result, Siemens is committed to protecting nature as well as saving time for its potential and existing customers. In fact, the corporation can deliver the best gadgets and solutions because it has the requisite experience in all aspects linked to these solutions. Additionally, Siemens is equipped with technology and Hvdc knowledge, so in many instances, a number of utilities prefer to conduct business with it.
ABB Just like Siemens, ABB is also a giant player in this industry. It has been several years since the company was formed to provide sophisticated solutions that allow electricity to flow smoothly. In order to avert any form of collision, both the north and south poles of each ABB’s transformers have been provided with accurate locking systems. In addition, to avert vibration, the components of the transformers are tightened together by the use of nuts. The details describe the current status of Hvdc Grid Market and the role of Siemens and ABB in it.
Key Companies in the Hvdc Grid Market Include
- NARI Group
- Jinlong Machinery
- GE Grid Solutions
- ZTT
- Dalian High Voltage Electric Power Transmission Technology
- Hyosung Heavy Industries
- NR Electric
- Toshiba Energy Systems Solutions
- ABB
- LS Electric
- Iljin Electric
- Siemens
- Mitsubishi Electric
- Hitachi Energy
Hvdc Grid Market Industry Developments
The global HVDC grid market is anticipated to reach USD 25.0 billion by 2032, expanding at a CAGR of 1.73% from 2024 to 2032. This growth is attributed to increasing demand for electricity transmission over long distances, rising investments in renewable energy sources, and growing adoption of HVDC technology.
The market growth is also supported by government initiatives to reduce carbon emissions and promote the use of clean energy. Recent developments in the market include the commissioning of the world's longest HVDC link, the China-Pakistan Economic Corridor (CPEC) HVDC transmission line, and the development of new HVDC technologies such as voltage-sourced converters (VSCs).
Hvdc Grid Market Segmentation Insights
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Hvdc Grid Market Voltage Level Outlook
- HVDC Light (LCC/VSC +/- 100 kV to 150 kV)
- HVDC Plus (+/- 150 kV to 500 kV)
- UHVDC (+/- 500 kV to 1,200 kV)
- EHVDC (+/- 1,200 kV to +/- 1,500 kV)
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Hvdc Grid Market Transmission Capacity Outlook
- Less than 500 MW
- 500 MW to 1,000 MW
- 1,000 MW to 2,000 MW
- More than 2,000 MW
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Hvdc Grid Market Application Outlook
- Bulk Power Transmission
- Point-to-Point Interconnection
- Grid Stabilization
- Renewable Energy Integration
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Hvdc Grid Market Technology Outlook
- Line Commutated Converters (LCC)
- Voltage Sourced Converters (VSC)
- Hybrid HVDC
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Hvdc Grid Market Project Status Outlook
- Announced
- Planned
- Under Construction
- Operational
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Hvdc Grid Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
21.06 (USD Billion) |
| Market Size 2023 |
21.42 (USD Billion) |
| Market Size 2032 |
25.0 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
1.73% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
NARI Group, Jinlong Machinery, GE Grid Solutions, ZTT, Dalian High Voltage Electric Power Transmission Technology, Hyosung Heavy Industries, NR Electric, Toshiba Energy Systems Solutions, ABB, LS Electric, Iljin Electric, Siemens, Mitsubishi Electric, Hitachi Energy |
| Segments Covered |
Voltage Level, Transmission Capacity, Application, Technology, Project Status, Regional |
| Key Market Opportunities |
Offshore Wind Integration Growing Demand for Renewable Energy Expansion of Interconnections Technological Advancements Infrastructure Modernization |
| Key Market Dynamics |
Growing demand for renewable energy integration Increasing need for efficient and reliable power transmission Government initiatives to support decarbonization Technological advancements in HVDC systems Increased focus on grid modernization |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The global HVDC grid market is expected to reach USD 25.0 billion by 2032, growing at a CAGR of 1.73% from 2023 to 2032.
The key regions in the global HVDC grid market are Asia-Pacific, Europe, North America, South America, and the Middle East Africa. Asia-Pacific is the largest market, accounting for over 40% of the global market share.
HVDC grids are used for transmitting electricity over long distances with minimal power loss. They are also used for connecting different power grids, integrating renewable energy sources, and providing backup power.
The key competitors in the global HVDC grid market include Siemens, ABB, GE, Hitachi, and NR Electric.
The global HVDC grid market is expected to grow at a CAGR of 1.73% from 2023 to 2032.
The key trends in the global HVDC grid market include the increasing demand for electricity, the growing adoption of renewable energy sources, and the need for more efficient and reliable power transmission.
The key challenges facing the global HVDC grid market include the high cost of HVDC systems, the need for specialized expertise to operate and maintain HVDC systems, and the environmental impact of HVDC lines.
The key opportunities for the global HVDC grid market include the growing demand for electricity, the increasing adoption of renewable energy sources, and the need for more efficient and reliable power transmission.
The future outlook for the global HVDC grid market is positive. The market is expected to grow at a steady pace over the next decade, driven by the increasing demand for electricity, the growing adoption of renewable energy sources, and the need for more efficient and reliable power transmission.
The key factors driving the growth of the global HVDC grid market include the increasing demand for electricity, the growing adoption of renewable energy sources, and the need for more efficient and reliable power transmission.
