High Voltage Direct Current (HVDC) Cables Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 12.76 Billion |
| Market Size (2029) | USD 15.84 Billion |
| CAGR (2024 - 2029) | 5.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
High Voltage Direct Current Cables Market Analysis
The High Voltage Direct Current Cables Market size is estimated at USD 12.76 billion in 2024, and is expected to reach USD 15.84 billion by 2029, growing at a CAGR of 5% during the forecast period (2024-2029).
- Over the medium term, the increasing integration of renewable energy generation and aging power grids and investments in transmission and distribution infrastructure are expected to drive the high voltage direct current (HVDC) cables market during the forecast period.
- On the other hand, the increasing raw material prices and investment in distributed renewable energy generation are expected to hinder the growth of the high voltage direct current (HVDC) cables market during the forecast period.
- However, the development of super grids in emerging markets is expected to create huge opportunities for the high voltage direct current (HVDC) cables market.
- Europe is expected to dominate the high voltage direct current (HVDC) cables market due to the increasing number of offshore wind energy installations in the region.
High Voltage Direct Current (HVDC) Cables Market Trends
Overhead HVDC Cables to Dominate the Market
- High voltage direct current (HVDC) cables with overhead transmission lines are usually preferred for high-power and long-distance transmissions, usually above 600 km from remote power generating stations.
- Overhead lines utilize an air gap between the conductors and the ground through electrical insulation to cool the conductors. Conductors are suspended from towers by insulators made of either ceramics or polymers. However, polymer insulators are generally used for HVDC applications because of their improved pollution performance, as HVDC systems tend to attract pollution/particulates.
- High voltage overhead transmission lines are a popular means of power transmission in most of the world. Moreover, direct current decreases the total cost of long-distance power transmission with overhead lines or cables. A direct current (DC) line needs only two main conductors to lower DC electrical losses, while an alternate current (AC) line needs three. Moreover, the high-voltage overhead transmission is much less expensive to build and much quicker to repair than the underground transmission. However, it has decreased application in densely populated urban and commercial areas.
- A major factor driving the current overhead HVDC market is that the HVDC system can control power flows precisely. In HVAC systems, power flows along the path of least resistance, sometimes resulting in unequal power distribution across the transmission system. HVDC systems allow the operator to precisely control the flow across the circuit, alleviating issues on the wider power system.
- In 2023, global investments in electricity networks exceeded USD 331 billion, according to the International Energy Agency (IEA) statistics. The United States led the way, accounting for nearly 30% of investments in the sector, followed by China, with investments totaling USD 79 billion. Meanwhile, investments in Europe stood at about USD 60 billion.
- To improve business efficiency, state-owned electricity utilities across various countries, including India, Australia, China, the United Kingdom, the United Arab Emirates, and Ukraine, are gradually restructuring to fall in line with the industry’s worldwide transformation with the unbundling of services and the creation of energy markets. Therefore, there is a need for bulk energy transmission, often over long distances, that must be routed through rough terrain and environmentally sensitive areas. Utilities invest in several major projects to enhance existing transmission systems' security, capacity, and flexibility.
- In addition, with upcoming and ongoing projects related to substations in developing and underdeveloped countries, high-voltage overhead cables are also expected to grow during the forecast period. For instance, in May 2024, Portland General Electric (PGE) signed a non-binding memorandum of understanding with Grid United and Allete Inc. to develop an approximately 415-mile HVDC transmission line in the United States. The North Plains Connector project will be constructed with endpoints near Bismarck, North Dakota, and Colstrip, Montana. The project represents a total investment of USD 3.2 billion in Montana and North Dakota and is expected to create over 600 jobs during construction. Upon completion, the infrastructure will also enable additional energy production in Montana and North Dakota.
- In May 2023, Larsen and Turbo (L&T) announced securing two EPC orders in Saudi Arabia and India. The cumulative value of these projects is under USD 60 million. In Saudi Arabia, the company will establish 380 kV overhead power transmission lines connecting prominent cities on the Red Sea coast. The company will also design, supply, and build a 380 kV substation in Saudi Arabia. In India, the company will work to modernize and develop distribution infrastructure in three districts of Gujarat.
- As the overhead cable is visible, it is easy to find the location of the fault. Also, the overhead cable system is more flexible as the expansion is easily possible, thus creating a huge demand for overhead cables, further creating ample market opportunities in the coming years.
Europe to Dominate the Market
- The energy industry in Europe is transitioning from generating most of the electricity through conventional sources to generating most of the electricity from renewable sources. The region is increasing the installation of renewable sources to achieve its net zero emissions target by 2050. The region has even adopted several policies, such as the Europe Green Deal and REPowerPlan, to achieve the zero-emission targets.
- The transmission and distribution network is expanding significantly in Europe due to increasing electricity demand and the installation of renewable energy sources within the region. The countries in the region are phasing out coal and gas power plants and adopting renewable technologies. This will create transmission and distribution network expansion requirements in the upcoming years.
- According to the report published by the European Network for Transmission System Operators' Electricity, Ten-Year Network Development Plans (TYNDP) 2022 assessed 141 transmission projects, of which 85 were cross-border projects and 23 were storage projects. Overall, the TYNDP 2022 portfolio represented 43,000 km of lines or cables.
- Germany is a global leader in renewable energy integration, strongly emphasizing wind and solar power. HVDC cables transmit electricity from offshore wind farms in the North and Baltic Seas to significant population centers.
- The United Kingdom is one of the largest energy consumers in Europe, and the country is rapidly upgrading its electricity generation capacity to fulfill domestic demand and achieve climate targets. According to the United Kingdom’s Department for Business, Energy, and Industrial Strategy, the electricity generation capacity of major power producers in the country is projected to reach 185 GW in 2040.
- Moreover, in April 2023, Dogger Bank installed one of the world's first autonomous high-voltage direct current (HVDC) offshore substations. The substation is the first of three Aibel platforms to be erected at Dogger Bank, which is being built in three 1.2 GW phases named A, B, and C. The Dogger Bank A platform is 65 x 36 meters across and 39 meters high, and it sits on a four-legged steel jacket foundation structure attached to the seabed at a depth of about 28 meters. Also, in October 2023, Dogger Bank was connected to the British national grid and began exporting electricity to British homes and businesses for the first time.
- In March 2023, Terna SPA, Italy’s transmission system operator, announced plans to invest more than EUR 21 billion (USD 22.2 billion) in Italy's energy grid over 10 years as part of its 2023 development plan for the national grid. The allocated amount is 17% more than Terna's previous 10-year plan and will focus on promoting decarbonization across the country and reducing Italy's dependence on foreign supply sources. Such a scenario will strengthen the need for HVDC transmission corridors during the forecast period.
- As a result, the quest for energy security and facilitation of growing renewable energy generation with an efficient transmission infrastructure is likely to increase the demand for high-voltage direct current (HVDC) cables in Europe during the forecast period.
High Voltage Direct Current Cables Industry Overview
The high voltage direct current (HVDC) cables market is semi-fragmented. Some of the key players in this market include General Electric Company, Sumitomo Electric Industries Ltd, NKT AS, Prysmian SpA, and Nexans SA.
High Voltage Direct Current (HVDC) Cables Market Leaders
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General Electric Company
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Sumitomo Electric Industries Ltd
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NKT AS
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Prysmian SpA
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Nexans SA
*Disclaimer: Major Players sorted in no particular order
High Voltage Direct Current (HVDC) Cables Market News
- June 2024: LS Cable & System began the mass production of 525 kV High Voltage Direct Current (HVDC) cables, which are to be used for TenneT’s 2 GW grid connection systems BalWin4 & LanWin1.
- June 2024: The German transmission system operator selected Sumitomo Electric to produce high-voltage direct current (HVDC) cables for two projects, collectively valued at over USD 3.2 billion. Sumitomo Electric is expected to manufacture the cables in Germany by acquiring a 90% interest in local cable producer Südkabel from the Wilms Group. The acquisition will conclude in October 2024.
High Voltage Direct Current Cables Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Increasing Integration Of Renewable Energy Generation
4.5.1.2 Aging Power Grids And Investments In Transmission And Distribution Infrastructure
4.5.2 Restraints
4.5.2.1 Increasing Raw Material Prices And Investment In Distributed Renewable Energy Generation
4.6 Supply Chain Analysis
4.7 Porter's Five Force Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGEMENTATION
5.1 Location of Deployment
5.1.1 Underground
5.1.2 Submarine
5.1.3 Overhead
5.2 Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.1.3 Rest of North America
5.2.2 Europe
5.2.2.1 Germany
5.2.2.2 France
5.2.2.3 United Kingdom
5.2.2.4 Spain
5.2.2.5 Nordic
5.2.2.6 Turkey
5.2.2.7 Russia
5.2.2.8 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 India
5.2.3.2 China
5.2.3.3 South Korea
5.2.3.4 Japan
5.2.3.5 Malaysia
5.2.3.6 Thailand
5.2.3.7 Indonesia
5.2.3.8 Vietnam
5.2.3.9 Rest of Asia-Pacific
5.2.4 South America
5.2.4.1 Brazil
5.2.4.2 Argentina
5.2.4.3 Colombia
5.2.4.4 Rest of South America
5.2.5 Middle East and Africa
5.2.5.1 United Arab Emirates
5.2.5.2 Saudi Arabia
5.2.5.3 Nigeria
5.2.5.4 Oman
5.2.5.5 South Africa
5.2.5.6 Egypt
5.2.5.7 Algeria
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Collaboration, and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Key Companies Profile
6.3.1 General Electric Company
6.3.2 Sumitomo Electric Industries Ltd
6.3.3 Taihan Cable & Solution Co. Ltd
6.3.4 Prysmian SpA
6.3.5 NKT AS
6.3.6 Brugg Kabel AG
6.3.7 LS Cable & System Limited
6.3.8 Nexans SA
6.4 List of Other Prominent Companies (Company Name, Headquarters, Revenue, Relevant Products and Services, Operating Sector, Recent Trends, Technology or Projects, Contact Details, etc.) (In Brief Tabular Format)
6.5 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
High Voltage Direct Current Cables Industry Segmentation
High voltage direct current (HVDC) cables are designed to transmit electrical power at high voltage levels. These cables are typically used to transport electricity over long distances, such as from a power plant to a substation or a substation to a distribution network. High voltage direct current (HVDC) cables are typically insulated with materials such as oil-impregnated paper, cross-linked polyethylene (XLPE), or ethylene propylene rubber (EPR) to prevent electrical breakdown and to ensure that electricity is transmitted efficiently. These can also be shielded to protect against interference from external sources, such as electromagnetic fields.
The high voltage direct current (HVDC) cable market is segmented by location of deployment and geography. By location of deployment, the market is segmented into underground, submarine, and overhead. The report also covers the market size and forecasts for the high voltage direct current (HVDC) cables market across major regions. The report offers the market size and forecasts for the high voltage direct current (HVDC) cables market in revenue (USD) for all the above segments.
High Voltage Direct Current Cables Market Research FAQs
How big is the High Voltage Direct Current Cables Market?
The High Voltage Direct Current Cables Market size is expected to reach USD 12.76 billion in 2024 and grow at a CAGR of 5% to reach USD 15.84 billion by 2029.
What is the current High Voltage Direct Current Cables Market size?
In 2024, the High Voltage Direct Current Cables Market size is expected to reach USD 12.76 billion.
Who are the key players in High Voltage Direct Current Cables Market?
General Electric Company, Sumitomo Electric Industries Ltd, NKT AS, Prysmian SpA and Nexans SA are the major companies operating in the High Voltage Direct Current Cables Market.
Which is the fastest growing region in High Voltage Direct Current Cables Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in High Voltage Direct Current Cables Market?
In 2024, the Europe accounts for the largest market share in High Voltage Direct Current Cables Market.
What years does this High Voltage Direct Current Cables Market cover, and what was the market size in 2023?
In 2023, the High Voltage Direct Current Cables Market size was estimated at USD 12.12 billion. The report covers the High Voltage Direct Current Cables Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the High Voltage Direct Current Cables Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
HVDC Cables Industry Report
Statistics for the 2024 HVDC Cables market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. HVDC Cables analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
