HVDC Transmission Market Trends

Global HVDC Transmission Market Overview

HVDC Transmission Market Size was valued at USD  9,194.8 Million in 2023. The HVDC Transmission Market industry is projected to grow from USD  9,813.5 Million in 2024 to USD  20,990.5 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 8.95% during the forecast period (2024 - 2032). 

HVDC systems are a valuable tool for transmitting electricity over long distances. They offer several advantages over traditional AC systems, including lower power losses, increased efficiency, improved control, and reduced environmental impact. As the demand for electricity continues to grow, HVDC systems are likely to become even more important in the future. Overall, HVDC transmission is a valuable tool for transmitting electricity over long distances. It offers several advantages over traditional AC systems, but it is also more expensive to build and maintain. High voltage direct current (HVDC) is utilized in long-distance transmission and direct flow for power transmission (also called electrical superhighway). Due to the direct current (DC), HVDC transmission asynchronously connects power grids in long-distance areas, eliminating different outage-causing issues.  

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

HVDC Transmission Market Trends

INCREASING DEMAND FOR ELECTRICITY TRANSMISSION

Electricity is essential for developing an economy and is increasing in demand as nations develop globally. Factors leading to higher demand for electricity include increasing household incomes, electrification of transportation, and growing digitalization globally. According to the International Energy Agency (IEA), the demand for electricity will increase by an average of 2.1% globally per year till 2040. As per IEA, there was more than 2.4% increase in electricity demand in 2022 itself compared to 2021. This increasing electricity demand has led to a significant increase in applications of HVDC transmission technologies as it is the optimal mode for long-distance electricity transmission. For instance, the International Energy Agency (IEA) predicts that global electricity demand will grow by 3% per year on average over the next three years.

This growth will be driven by a number of factors, including the increasing electrification of transportation and industry, the growth of renewable energy sources, and the need to improve grid reliability. Moreover, to compensate for the rising electricity demands, there is a demand for conversion of existing HVAC corridors with HVDC transmission systems, leading to the drastic expansion of HVDC transmission globally in recent years. This conversion is expected to be the least-cost option in comparison to upgrading the existing HVAC systems. An estimated 50-150% increase in power capacity can be achieved by the converted lines for distances of about 350 kms. All these factors are expected to reflect positively on the global HVDC transmission market. To meet this growing demand, governments and utilities are investing in new transmission infrastructure. This includes building new power lines, upgrading existing lines, and expanding substations.

GROWING DEMAND FOR VSC TECHNOLOGY

Voltage Source Converter-based High Voltage Direct Current (VSC-HVDC) is a novel technology for HVDC transmission which provides complete flow control in both directions, prevents fault propagation, improves voltage stability, and reduces network losses. HVDC Light (ABB), HVDC Plus (Siemens), and MonSin (GE/Alstom) are some of the common VSC-HVDC systems commonly used in the industry today. Additionally, VSC technology has several advantages over the line-commutated conversion (LCC) technology that has been used predominantly. The advantages include higher power and voltage at the same cost, smaller physical size making VSC-HVDC conversion stations 20-30% smaller than LCC-based stations, and black start capabilities. Hence, these factors are responsible to increase demand for VSC-HVDC transmission capabilities.

VSC technology is well-suited for transmitting power from renewable energy sources, such as solar and wind farms, because it can be used to control the flow of power in both directions. Furthermore, it is more efficient than traditional AC transmission technology for long-distance transmission, which can help to reduce transmission losses. For instance, GE and KAPES awarded contract to power South Korea's electric grid using latest HVDC technology where- GE and KAPES have been awarded a contract to build a new HVDC system in South Korea. The system will use VSC technology and will be used to transmit power from renewable energy sources to the country's electric grid.

HVDC Transmission Market Insights

HVDC Transmission Market by Voltage Rating Insights

The HVDC Transmission Market segmentation, based on voltage rating, has been categorized into three segments: Up to 220 kV, 220 kV to 600 kV, and Above 600 kV. Among these, the "Above 600 kV" segment is the dominating segment with a market share of 47.80% in 2023. HVDC transmission systems rated above 600 kV are used predominantly in applications where ultra-high-voltage power must be transmitted over ultra-long distances. For example, in transcontinental power transmission projects linking sources of power generation several thousand kilometers away from the main load centers to hold down transmission losses and bring about greater efficiency in the grid.

Benefits of a higher voltage rating, say above 600 kV, include significantly reduced transmission losses and increased power transfer capacity to very high levels. HVDC projects of this category are generally used to connect power grids between two countries or continents with the most efficient cross-border energy exchange and improved grid stability over large regions. The dominance of this segment is driven by the need for reliable and efficient long-distance power transmission solutions, particularly in large-scale infrastructure projects, like those aiming at integrating renewable energy resources into national and international power grids.

HVDC Transmission Market by Transmission Capacity

The HVDC Transmission Market segmentation, based on transmission capacity, has been categorized into two segments: Up to 12 GW and Above 12 GW. In 2023, the "Up to 12 GW" segment emerged as the dominating category, accounting for a market revenue share of 57.41% and is expected to experience a robust CAGR of 9.35% in the coming years. HVDC transmission systems of up to 12 GW capacity play a huge role in solving power transmission over long distances and help integrate renewable energy sources into the grid. These systems are extensively applied in the interconnection of different countries or regions, facilitating energy exchange and enhancing energy security, as countries can import or export electricity depending on demand and availability.

In addition, HVDC transmission plays a critical role in supporting the supply of electricity generated by remote hydroelectric plants into big cities, particularly in mountainous areas where the best sites for hydroelectric plants are located at quite a distance from the cities. The reliability and performance of HVDC transmission systems at levels of up to 12 GW make them preferred choices in many large-scale power transmission projects aimed at supporting the growing global demand for sustainable energy solution

HVDC Transmission Market by Technology Insights

The HVDC Transmission Market has been segmented based on technology into Line Commuted Converter (LCC), Voltage Sourced Converter (VSC), and Capacitor Commuted Converter (CCC). In 2023, the Line Commuted Converter (LCC) segment led the market with a revenue share of 42.9% and is projected to experience a CAGR of 8.82% in the coming years. Line-commutated converters are one of the most important technologies in HVDC transmission systems, especially when very high capacity and efficiency are needed.

Today, most HVDC transmissions rely on LCC technology. The term 'line-commutated' denotes the commutation from one switching device to another, simplified by relying on the line voltage of the AC system to which the converter is connected. LCCs use switching devices that are either uncontrolled, such as diodes, or can only be turned on by control action, such as thyristors. The reason why LCC technology prevails in the HVDC market is due to its proven reliability and efficiency, particularly in large transmission projects that require stable and high-capacity delivery of electricity over long distances.

HVDC Transmission Market by Configuration Insights

The HVDC Transmission Market has been segmented based on configuration into Monopolar, Bipolar, Multi-Terminal, and Back-To-Back systems. In 2023, the Bipolar segment emerged as the dominant segment, holding a market revenue share of 33.5% and is expected to grow at a robust CAGR of 9.45% in the forecast period. Bipolar HVDC transmission systems are a robust solution characterized by the use of two conductors, each at a high potential with respect to the ground but with opposite polarity.

While the initial investment for a transmission line in a bipolar system may be higher compared to a monopolar system due to the need for full voltage insulation, the advantages these systems offer are significant. They provide superior control over power flow and voltage regulation, ensuring stable and reliable operation even under varying load conditions. One of the most advantage of bipolar HVDC systems is their efficiency in space utilization. These systems require less space for transmission lines compared to equivalent AC systems, making them particularly advantageous for long-distance projects, especially when dealing with challenging terrain or areas with limited rights of way.

HVDC Transmission Market by Application Insights

The HVDC Transmission Market has been segmented based on application into Bulk Head Transmission, Interconnecting Grids, and Infeed Urban Areas. In 2023, the Bulk Head Transmission segment dominated the market, holding a market revenue share of 42.9% and is expected to grow at a robust CAGR of 9.20% in the following years. Bulkhead transmission segment involves dividing a long-distance HVDC transmission line into multiple independent sections, each separated by converter stations. This method offers a significant advantage in fault isolation. In the event of a fault in one section, the other sections can continue to operate independently, greatly limiting the impact of the fault and preventing a complete system shutdown. This capability substantially enhances the overall reliability and availability of the transmission system. Furthermore, bulkhead transmission is crucial in improving network resiliency by preventing cascading failures, which could otherwise lead to widespread power outages.

HVDC Transmission Market Regional Insights

The HVDC Transmission Market based on region segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2023, the Asia Pacific region held the largest market revenue share of 39.40%, which is expected to grow at a CAGR of 9.67% in the forecast period 2024-2032. The Asia Pacific region, with its vast electricity generation capacity and diverse energy infrastructure, represents a highly promising market for HVDC transmission systems. As this region continues to lead in global electricity production, the demand for efficient, reliable, and sustainable power transmission solutions, including HVDC technology, is on the rise. In 2021, the Asia Pacific region contributed significantly to the world's electricity production, totaling 14,030,721 GWh. This dominance is largely driven by key players such as China, India, Japan, and Korea, which are among the top electricity producers in the world, making this region a critical focus for HVDC transmission development.

HVDC Transmission Market Key Market Players & Competitive Insights

The HVDC Transmission Market is a fragmented market, with a different key player dominating the market share. These key players have adopted various strategies to maintain their market position and expand their market reach. Leading companies are focusing on developing innovative HVDC transmission with enhanced performance characteristics. The need for integrating renewable energy generation such as solar and wind into the electricity grid is increasing and thus there is need for efficient solution for long-distance power transmission with minimal losses and this factor will positively impact the market of HVDC transmission in the estimated timeframe. The vendors compete in terms of cost, product quality, reliability, and aftermarket services. It is crucial for vendors to provide cost-effective and efficient products to survive and succeed in a competitive market environment.

ABB: ABB Group (ABB) has various segments, including electrification products, robotics & motion, Stationary automation, and power grid segments. The company’s product offering includes control room solutions, drives, PLC automation, robotics, semiconductors, motors & generators, metallurgy products, PAFC & DMFC voltage products, robotics, transformers, and mechanical power transmission. The company used Voltage Source Converter (VSC), High-Voltage Direct Current Transmission (HVDC) power transmission technology, enabling interconnection between systems, with different frequencies implemented by converting alternating current into direct current. HVDC enables a secure and stable interconnection of power networks that operate on different voltages and frequencies.

HVDC Transmission Market Industry Developments

May 2021: Schneider Electric launched Edge Software & Digital Services Program to enable its partners to start new revenue streams with remote monitoring and management of their customers’ physical infrastructure. This initiative is anticipated to simplify and boost the speed of the time required for the establishment of managed power service practice.

February 2023: Mitsubishi Electric Corporation announced the acquisition of Swedish-based company named Scibreak AB, which is engaged in the business of direct current circuit breakers (DCCB). This acquisition will help the company to strengthen its business by developing DCCB technologies for HVDC systems.

Key Companies in the HVDC Transmission Market include.

• ABB


• Siemens


• Hitachi


• Mitsubishi Electric Corporation


• Nexans


• NKT A/S


• Schneider Electric


• Toshiba Corporation


• NR Electric Co., Ltd


• AECOM


• Prysmian Group


• PSC Specialists Group, Inc.


• ALSTOM

HVDC Transmission Market Segmentation:

HVDC Transmission Market Voltage Rating Outlook

• Up to 220 kV


• 220 kV to 600 kV


• Above 600 kV

HVDC Transmission Market Transmission Capacity Outlook

• Up to 12 GW


• Above 12 GW

HVDC Transmission Market Technology Outlook

• Line Commuted Converter (LCC)


• Voltage Sourced Converter (VSC)


• Capacitor Commuted Converter (CCC)

HVDC Transmission Market Configuration Outlook

• Monopolar


• Bipolar


• Multi Terminal


• Back-To-Back

HVDC Transmission Market Application Outlook

• Bulk Head Transmission
  
  
  
  • Overhead
  
  
  • Submarine & Underground
  
  
  
  


• Interconnecting Grids


• Infeed Urban Areas

HVDC Transmission Market Regional Outlook

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  North America

  
  


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  US

  
  


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  Canada

  
  
  
  
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    Europe

    
    
  
  
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    Germany

    
    
  
  
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    UK

    
    
  
  
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    France

    
    
  
  
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    Spain

    
    
  
  
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    Italy

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • India
  
  
  • Japan
  
  
  • South Korea
  
  
  • Rest of the Asia-Pacific
  
  
  
  

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  South America

  
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  
  


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  Middle East & Africa

  
  
  
  
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    Saudi Arabia

    
    
  
  
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    UAE

    
    
  
  
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    South Africa

    
    
  
  
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    Rest of Middle East & Africa