The global HVDC converter station market is estimated to garner a large amount of revenue and grow at a CAGR of ~8% over the forecast period, i.e., 2022 – 2030. Growing adoption of power transmission systems that provide improved grid asset utilization is a crucial factor expected to drive market growth in the upcoming years. Furthermore, favorable government policies for establishing HVDC converter stations, coupled with escalating number of offshore wind farms are projected to offer ample growth opportunities to the market in the near future.
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Along with these, the growth of the market can also be attributed to the increasing number of cross border power transmission activities, and rise in renewable energy generation capacity across the globe. According to the International Renewable Energy Agency (IRENA), the global renewable energy generation capacity at the end of 2020 was 2,799 GW, attaining a growth of 10.3 percent from the previous year. In addition, hydropower accounted for the largest share (43 percent) of this global energy total, valued at a capacity of 1,211 GW.
The market is segmented by power rating into below 500 MW, >500-1000 MW, >1000-1500 MW, >1500-2000 MW, and >2000 MW, out of which, the >2000 MW segment is anticipated to hold the largest share in the global HVDC converter station market. This can be accounted to the development of the power transmission capacity of valves in the last few years. Apart from these, requirement of high power for connecting renewable energy sources to the grid is also predicted to fuel the growth of the market segment in the future. Additionally, on the basis of technology, the line commutated converter segment is assessed to acquire the most significant share during the forecast period, which can be credited to the low cost and high reliability of this technology as compared to voltage source converter.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
On the basis of geographical analysis, the global HVDC converter station market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in Asia Pacific is estimated to witness noteworthy growth over the forecast period on the back of the huge demand for power transmission systems in China and India, and increasing requirement for bulk transport power in the region. Moreover, the market in Europe is projected to acquire the largest share during the forecast period owing to the early and rapid adoption of advanced technologies, and growing number of offshore wind farms in the region. As per the data provided by the WindEurope Organization, the offshore wind capacity of Europe increased by 2.9 GW in 2020, i.e., 365 new offshore wind turbines were connected to the grid in the continent that year. In addition, rising demand for power is also anticipated to boost the market growth in the region in the coming years.
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The global HVDC converter station market is further classified on the basis of region as follows:
Our in-depth analysis of the global HVDC converter station market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major factors driving market growth are increasing number of cross border power transmission activities, and rising renewable energy generation capacity globally.
The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2022 – 2030.
High cost of HVDC terminal stations is estimated to hamper the market growth.
Asia Pacific will provide more business opportunities for market growth owing to the huge demand for power transmission systems in China and India, and increasing requirement for bulk transport power in the region.
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 line commutated converter segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.
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