HVDC Converter Station Market Size & Share, by Configuration (Monopolar, Bi-Polar, Back-to-Back, Multi-Terminal); Technology (Voltage Source Converter, Line Commutated Converter); Power Rating (Below 500 MW, >500-1000 MW, >1000-1500 MW, >1500-2000 MW, >2000 MW); Component (Converter, DC Equipment, Converter Transformer) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3723
  • Published Date: Mar 31, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

HVDC Converter Station Market size is projected to cross USD 25 billion by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of HVDC converter station was over USD 10 billion. Increasing adoption of transmission systems that can improve utilization of grid assets is estimated to be a key factor to drive market growth in the coming years. Moreover, the growing number of offshore wind farms coupled with favorable government policies for the construction of HVDC converter stations is projected to bring ample growth opportunities to the market in the near future. The market growth can also be attributed to the increasing demand for renewable energy across the world. Renewable energy has become increasingly popular in recent years owing to the urgent need to reduce carbon emissions and mitigate climate change. In the year 2020, renewable energy accounted for nearly 73% of global net additions to power capacity, with solar and wind power leading the way.

The purpose of the HVDC converter station is to facilitate the transmission of large amounts of power over long distances, which is often more efficient and economical than using traditional AC transmission systems. HVDC transmission systems are used to transmit power from remote renewable energy sources such as offshore wind farms or hydropower plants to urban centers, or to interconnect power grids that operate at different frequencies or in different regions. HVDC converter station refers to a specialized facility used in high-voltage direct current (HVDC) transmission systems to convert alternating current (AC) power to direct current (DC) power or vice versa. The converter station typically consists of multiple components, including transformers, converters, filters, switchgear, and control systems.

The HVDC converter station market includes the various companies involved in the design, manufacturing, and installation of these specialized facilities, as well as the maintenance and service providers that support them throughout their operational life. The market is driven by the increasing demand for renewable energy, the need to upgrade aging power transmission infrastructure, and the growing interest in interconnecting regional power grids to enhance energy security and resilience. In addition to this, the power capacity is becoming more dependent on renewable energy day by day. The International Renewable Energy Agency (IRENA) estimates that renewable energy could account for 90% of the world's power capacity by the year 2050. In addition to environmental benefits, renewable energy can also bring economic benefits. The renewable energy sector has created millions of jobs globally and has the potential to create many more in the coming years. Furthermore, renewable energy can reduce dependence on imported fossil fuels, improve energy security, and provide access to electricity in remote and underdeveloped areas. Hence, it is estimated to fuel the growth of the global HVDC converter station market over the projected period.


HVDC Converter Station Market Overview
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HVDC Converter Station Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Installed Renewable Energy Capacity – The world has seen a significant increase in renewable energy generation capacity in recent years. As of the end of 2020, renewable energy had a total installed capacity of 2,799 GW, which represents an increase of 45% compared to 2015. HVDC converter stations play a crucial role in the transmission of renewable energy, particularly over long distances. HVDC converter stations are used to transmit power from offshore wind farms to onshore grids. Since offshore wind farms are typically located far from shore, HVDC transmission is often more cost-effective and efficient than using traditional AC transmission systems.
  • Ongoing Urbanization around the world - Rising income levels and increasing demand for electricity nationwide contribute to increased demand for HVDC transmission. In today's world, 56% of his population live in urban areas, which is driving the demand for electricity across the globe. The urban population is expected to double by 2050, with almost 7 in 10 people living in cities.
  • Rise in Research Spending – Growth in the global market during the forecast period can be further attributed to increased investment in research and development activities to continuously find more viable solutions for electricity transmission. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in the year 2019.
  • Rapidly Growing Chemical Industry – For instance, chemical demand is expected to increase by 8% each year by 2025. By 2025, India's chemical industry will contribute USD 290 billion to its gross domestic product.
  • Spiking Electricity Consumption – The world consumed nearly 23,500 TWh (terawatt-hours) of electricity in the year 2020, according to the International Energy Agency (IEA) and it is anticipated to grow more over the forecast period.

Challenges

  • High Cost of Installing HVDC Terminal Stations – The cost of installing HVDC terminal stations can be high owing to several factors, including equipment costs, civil works, and others, which is estimated to hamper the market growth.
  • Dearth of Skilled Professionals
  • Presence of Product Alternative

HVDC Converter Station Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~8%

Base Year Market Size (2022)

~ USD 10 Billion

Forecast Year Market Size (2035)

~ USD 25 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)
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HVDC Converter Station Segmentation

Power Rating (Below 500 MW, >500-1000 MW, >1000-1500 MW, >1500-2000 MW, >2000 MW)

The global HVDC converter station market is segmented and analyzed for demand and supply by power rating into below 500 MW, >500-1000 MW, >1000-1500 MW, >1500-2000 MW, and >2000 MW. Out of the five types of power rating, the >2000 MW segment is estimated to gain the largest market share of about ~35% in the year 2035. The growth of the segment can be accredited to the recent improvements in the power transmission capacity of valves. Apart from that, the need for high performance to connect renewable energy sources to the grid is also expected to drive the growth of the market segment in the future. Moreover, the line rectifier converter segment is estimated based on the technology to capture the largest share during the forecast period. This is owing to the low cost and high reliability of this technology compared to voltage source converters. The >2000 MW segment refers to large-scale power transmission projects that have a capacity of 2000 megawatts or more. The majority of >2000 MW projects are located in Asia, with China, India, and Pakistan leading the way. The most common technology used for >2000 MW projects is high-voltage direct current (HVDC) transmission, which is more efficient than traditional alternating current (AC) transmission over long distances.

Component (Converter, DC Equipment, Converter Transformer)

The global HVDC converter station market is also segmented and analyzed for demand and supply by component into converter, DC equipment, converter transformer, and others. Amongst these four segments, the DC equipment segment is expected to garner a significant share of around ~30% in the year 2035. DC is an abbreviation for direct current, which is a current that flows in one direction. In DC circuits, current flows in one direction, as opposed to alternating current (AC), where the current reverses 50 or 60 times per second, depending on the frequency of the power source. The growth of the segment can be accredited to the fact that production of DC equipment is growing rapidly as demand for renewable energy, energy storage, and electric vehicles continues to increase. According to a report by the International Energy Agency (IEA), global EV charger installations grew by 40% in the year 2020, reaching a total of 1.4 million chargers. While the COVID-19 pandemic may have temporarily slowed production and installation rates, the long-term trend is towards continued growth in the DC equipment segment.

Our in-depth analysis of the global market includes the following segments:

            By Component

  • Converter
  • DC Equipment
  • Converter Transformer
  • Others

 

   

           By Power Rating

  • Below 500 MW
  • >500-1000 MW
  • >1000-1500 MW
  • >1500-2000 MW
  • >2000 MW

          By Technology

  • Voltage Source Converter
  • Line Commutated Converter

 

          By Configuration

 

  • Monopolar
  • Bi-Polar
  • Back-to-Back
  • Multi-Terminal

 


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HVDC Converter Station Industry - Regional Synopsis

APAC Market Statistics

The HVDC converter station market in Asia Pacific, amongst the market in all the other regions, is projected to hold the largest market share of about ~35% by the end of 2035. The regional growth can majorly be attributed to the fact that there is a huge demand for transmission systems in China and India and a growing need for electricity to transport bulk goods in the region. Moreover, growing installations of electric vehicles throughout the region is also expected to fuel the regional market growth. According to a report by the International Energy Agency (IEA), China continues to lead the industry for EV chargers, accounting for nearly 80% of global installations in the year 2020. The demand for electricity in Asia Pacific is expected to grow significantly over the next few decades owing to population growth, urbanization, and economic development. This is driving the need for more efficient and reliable power transmission infrastructure, including HVDC converter stations. Many countries in Asia Pacific are investing in renewable energy sources such as solar and wind power to reduce their reliance on fossil fuels and address climate change. HVDC transmission technology is essential for integrating these variable renewable energy sources into the grid and ensuring stable and reliable power supply.

North American Market Forecast

The HVDC converter station market in the North America region market, amongst the market in all the other regions, is projected to hold the second largest share of about ~24% during the forecast period. The growth of the market in this region can primarily be attributed to the rapid expansion of the automotive industry in the region. Approximately 923,000 Americans are engaged in manufacturing automobiles and their parts, and 1,251,600 work in dealerships. As of the year 2021, the U.S. auto and parts industry will generate approximately USD 1.5 trillion in revenue. The automobile industry contributes 3% of GDP to America. In addition, increased per capita income for local residents is estimated to enable them to switch to individual, environmentally friendly vehicles. Nearly 75% of the Americans say they owned a car by the year 2022, and another 20% say they would own a business or family car. Hence, this is expected to drive the market growth in the North America region.

Europe Market Forecast

Further, the HVDC converter station market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the early and rapid adoption of advanced technologies and the increasing number of offshore wind farms in the region. According to the WindEurope organization, Europe's offshore wind capacity increased by 2.9 GW in the year 2020. This year, 365 new offshore wind turbines were connected to the continent's grid. Moreover, increasing demand for electricity is expected to boost the market growth in the region in the coming years.

Research Nester
HVDC Converter Station Market Region
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Companies Dominating the HVDC Converter Station Landscape

top-features-companies
    • ABB, Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Siemens AG
    • General Electric Company
    • XJ Group Corporation
    • Bharat Heavy Electricals Limited
    • Alstom SA
    • Nissin Electric Co Ltd.
    • Toshiba Corporation
    • Hitachi Ltd.
    • C-EPRI Electric Power Engineering Co. Ltd

In-the-news

In The News

  • IBSRELA, the first and only NHE3 inhibitor for the treatment of irritable bowel syndrome with constipation (IBS-C) in adults, is now available from the biopharmaceutical company Ardelyx. The first of its Ardelyx products approved by the US Food and Drug Administration is IBSRELA.

  • Indegene, a provider of technology-driven healthcare solutions, and meta Me Health, the manufacturer of Regulora and a prescription digital therapy (PDT) company, have announced that Regulora is a drug for the treatment of stomach pain (IBS) associated with irritable bowel syndrome.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 3723
  • Published Date: Mar 31, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing number of cross border power transmission activities, and rising renewable energy generation capacity globally are the major factors driving the growth of the HVDC converter station market.

The market is anticipated to attain a CAGR of 8% over the forecast period, i.e., 2023-2035.

High cost of HVDC terminal stations is estimated to hamper the market growth.

The market in Asia Pacific is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

The major players in the market are ABB, Ltd., Siemens AG, General Electric Company, XJ Group Corporation, Bharat Heavy Electricals Limited, and others.

The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by configuration, technology, power rating, component, and by region.

The >2000 MW segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
HVDC Converter Station Market Report Scope
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