HVDC Transmission Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Market is Segmented by Transmission Type (Submarine HVDC Transmission System, HVDC Overhead Transmission System, and HVDC Underground Transmission System), Component (Converter Stations and Transmission Medium (Cables)), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Market Snapshot

HVDC Transmission Systems Market - Market Summary
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: South America
Largest Market: Europe
CAGR: 8.68 %

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Market Overview

The HVDC transmission systems market had a market size of around USD 8.85 billion in 2020 and is expected to reach USD 17.23 billion by 2027, registering a CAGR of more than 8.68% during 2022-2027. Due to the COVID-19 pandemic, the HVDC transmission systems market was affected adversely due to postpone and delay of several projects around the world. For instance, in March 2020, the SOO Green HVDC link transmission line project in Iowa, United States, was postponed due to the pandemic. Further, the growth of utility-scale renewable energy plants and shift away from fossil fuels will drive the market. It helps to transmit electricity from remote renewable plants over a long distance without much energy loss than the HVAC system. In addition, rural electrification will play a significant role in increasing the demand for HVDC transmission systems in developing regions such as Asia-Pacific and Africa. However, with the increasing share of distributed and off-grid power generation, the need and, in turn, the demand for HVDC transmission systems is expected to be reduced, which is expected to restrain the market during the forecast period.

  • The submarine HVDC transmission system market is expected to hold the largest share in the market on account of the development of submarine power transmission systems across the world. The submarine transmission of electricity is gaining importance on account of the increasing focus on power trading between countries.
  • The growing energy demand, as well as the growth of the renewable energy sector in the Middle-East and Africa, is expected to create significant opportunities for the HVDC transmission systems market in the near future.
  • The European market is the largest, and it is incredibly competitive and dominated by tier-1 players. The Asia-Pacific region, driven by Chinese and Indian HVDC investments, has gained a huge momentum over the last two years.

Scope of the Report

The scope of the HVDC transmission systems market report includes:

Transmission Type
Submarine HVDC Transmission System
HVDC Overhead Transmission System
HVDC Underground Transmission System
Component
Converter Stations
Transmission Medium (Cables)
Geography
North America
Europe
Asia-Pacific
Middle-East and Africa
South America

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Key Market Trends

Increasing Demand for Submarine HVDC Transmission Systems

  • The submarine HVDC transmission system market is likely to grow significantly on account of the development of submarine power transmission systems across the world. The submarine transmission of electricity is gaining importance on account of the increasing focus on power trading between countries.
  • The HVDC submarine power transmission system is a key technology for the development of future power transmission networks. HVDC transmission is the only solution available for the transfer of high power across long subsea distances. The major purposes served by HVDC submarine transmission are to interconnect countries or islands separated by sea and to connect remote offshore platforms to main transmission grids
  • Moreover, the HVDC submarine power transmission system helps countries separated by water bodies to trade electricity from each other, which is a major driver for the segment as countries are interested in generating revenue from excess electricity generated through renewable energy sources. For instance, as of September 2021, Greece and Egypt are in talks with each other to lay 2 gigawatts of HVDC submarine interconnectors on the bottom of the Mediterranean Sea and link their electricity systems.
  • Furthermore, the development of offshore projects, such as wind power plants and offshore oil and gas upstream projects, offers increasing business opportunities for HVDC technology across the world.
HVDC Transmission Systems Market - Revenue Share (%), by Transmission Type

Europe to Dominate the Market

  • The European power generation mix is expected to change considerably in favor of renewables over the next few years, with countries, such as Germany, Spain, Belgium, and France, increasingly moving toward a low-carbon economy. The region also has several policies in place, such as the EU's renewable energy directive and national renewable energy action plans that support the transition to a low-carbon energy system.
  • The energy transition continues to be an integral part of Germany’s energy landscape with ambitious goals to cut CO2 emissions by 80%, as well as increase the share of renewable energy in the total energy consumption to 60% and 80% of electricity generated from renewable sources by 2050.
  • With the increasing integration of renewable energy sources and the growing need to enhance the security of supply, HVDC grid technology is expected to evolve in the country. Moreover, investments in the offshore wind industry, solar photovoltaic, grid expansion, and energy storage projects require smart energy infrastructure to balance the fluctuating supply of renewable sources.
  • For instance, TenneT started the tender for platform and HVDC system for the offshore Dutch IJmuiden Ver projects and will start the project by the end of 2022 for the offshore IJmuiden Ver wind area. In addition, the project is expected to be commissioned by 2028.
  • Excess of renewable energy generation capacity in France and Spain is expected to be more easily transmitted between the two countries, following the granting of EUR 578 million by the European Union to build an undersea power cable across the Bay of Biscay. This, in turn, is likely to require HVDC transmission lines to transmit with low transmission losses, to improve supply security, and resource diversification, as well as pave the way for power market integration in southwestern Europe.
  • Therefore, the increasing requirement of renewable energy integration is expected to drive the HVDC transmission systems market in the region during the forecast period.
HVDC Transmission Systems Market - Growth Rate by Region

Competitive Landscape

The HVDC Transmission Systems Market is consolidated. The major companies include ABB Ltd, Siemens AG, Toshiba Corporation, General Electric Co., and Mitsubishi Electric Corporation among others.

Recent Development

  • In October 2021, Siemens Energy secured a contract for a high voltage direct current (HVDC) transmission system for New York's utility-scale offshore wind project with a capacity of approximately 924 MW, with collaboration with Aker Solutions.
  • In December 2020, the state government of Maharashtra (India) planned to build 1 gigawatt of underground HVDC transmission network with an investment budget of around USD 1.08 billion. Further, the new HVDC transmission line is likely to connect 220kV Aarey substation and 400kV Kudus substation supported by the Maharashtra State Electricity Transmission Company.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 Recent Trends and Developments

    4. 4.4 Market Dynamics

      1. 4.4.1 Drivers

      2. 4.4.2 Restraints

    5. 4.5 Supply Chain Analysis

    6. 4.6 Porter's Five Forces Analysis

      1. 4.6.1 Bargaining Power of Suppliers

      2. 4.6.2 Bargaining Power of Consumers

      3. 4.6.3 Threat of New Entrants

      4. 4.6.4 Threat of Substitutes Products and Services

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Transmission Type

      1. 5.1.1 Submarine HVDC Transmission System

      2. 5.1.2 HVDC Overhead Transmission System

      3. 5.1.3 HVDC Underground Transmission System

    2. 5.2 Component

      1. 5.2.1 Converter Stations

      2. 5.2.2 Transmission Medium (Cables)

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Middle-East and Africa

      5. 5.3.5 South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 ABB Ltd

      2. 6.3.2 Siemens AG

      3. 6.3.3 C-EPRI Electric Power Engineering Co. Ltd

      4. 6.3.4 General Electric Company

      5. 6.3.5 Toshiba Corporation

      6. 6.3.6 Mitsubishi Electric Corporation

      7. 6.3.7 Prysmian Group

    4. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The HVDC Transmission Systems Market market is studied from 2019 - 2027.

The HVDC Transmission Systems Market is growing at a CAGR of 8.68% over the next 5 years.

South America is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2021.

ABB Ltd, Siemens AG, Toshiba Corporation, General Electric Co., Mitsubishi Electric Corporation are the major companies operating in HVDC Transmission Systems Market.

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