Global HVDC Converter Stations Market Size, Share, Opportunities, And Trends By Technology (Voltage Source Converter (VSC), Line Commutated Converter (LCC)), By Configuration (Bi-Polar, Monopolar, Back-To-Back, Multi Terminal), By Power Rating (Below 500, >500-1000, >1000-1500, >1500-2000, >2000), By End-User (Healthcare, Military And Defense, Automotive, Manufacturing, Others), And By Geography - Forecasts From 2024 To 2029

Global HVDC Converter Stations Market is projected to grow at a CAGR of 13.60% during the forecast period to reach US$15,741.133 million by 2029, from US$64,46.781 million in 2022.

An HVDC converter station is a special sort of substation that serves as transmission line equipment. HVDC converter stations convert alternating current to direct current or vice versa and are used to transmit large amounts of power across great distances. It is commonly used to convert AC to DC with minimal energy losses to move electricity from renewable energy sources located in rural locations to urban regions. Furthermore, the most desirable features acquired from HVDC transmission lines include no negative influence on the skin, fewer transmission losses, a cost-effective manufacturing technique for DC cable fabrication, and a higher proportion of active power regulation.

Market Drivers:

• Increased cross-border power transmission activities are predicted to increase the construction of HVDC systems-

The HVDC converter station market will be bolstered by rising demand for power, cross-border power transmission, different worldwide programs to support the installation of renewable smart grids, and the need to reduce carbon emissions internationally. The national HVDC overlay can be a cost-effective path to decarbonization, provide inter-regional stability, and improve grid resilience and reliability while providing sustenance against changing climatic conditions.

• The market is likely to be driven by expansion in the renewable energy sector

With a significant rise in renewable energy generation capacity, both onshore and offshore, this growth is supported by favorable government policies, expansive renewable energy programs, and advantageous financial measures. As such, India has secured the 4th position globally in Renewable Energy Installed Capacity, Wind Power Capacity, and Solar Power Capacity, as outlined in the REN21 Renewables 2022 Global Status Report. Specifically, Solar PV contributes 405.5 GW, and wind power accounts for 123.1 GW of renewable electricity capacity additions by technology and segment projected for 2023 globally.

The expanding presence of offshore wind farms and the imperative need to connect asynchronous grids will act as key drivers propelling the HVDC converter station market in the coming years. Additionally, the emergence and growth of green energy trends are set to widen the market's scope shortly. These developments underscore a shift towards more sustainable and environmentally friendly energy solutions, signaling a transformative era in the global energy landscape.

Market Restraint:

• High cost-

The high installation cost and lengthy permitting process for the installation of the HVDC converter station are projected to limit the global HVDC converter station market's growth. The use of distributed and off-grid power sources, on the other hand, is reducing the demand for HVDC transmission lines.

By end-user, the global HVDC converter stations market is segmented into military and defense, healthcare, automotive, manufacturing, and others.

The global HVDC converter station market is divided into five segments based on application: power industry, oil & and gas, powering island and distant loads, interconnecting networks, and others. In the above segmentation, the Powering Island and remote Loads Interconnecting Networks are predicted to dominate the market. HVDC converter stations are commonly utilized for long-distance power transmission. Because of its little power loss during power transfer.

Europe is anticipated to hold a significant share of the global HDVC converter stations market.

Europe is expected to maintain a significant share of the global HDV converter stations market, largely due to its proactive embrace of advanced technologies and the increasing presence of offshore wind farms. Countries like Germany and Norway are leading this trend with their strong commitments to renewable energy initiatives. Recently, during a crucial UN energy summit aimed at improving access to electricity and clean cooking technologies while advancing towards net-zero emissions by 2050, substantial multi-billion-dollar investments were announced. This event, the first leader-level meeting on energy by the UN General Assembly in four decades, saw governments and the private sector pledging over US$400 billion in new finance and investment. The robust adoption of advanced technologies and the expansion of offshore wind projects not only highlight Europe's leadership in sustainable energy solutions but also drive the demand for HDV converter stations. Consequently, the European market is expected to play a pivotal role in shaping the global trajectory of the HDV converter stations industry.

Market Developments:

• December 2023- A consortium led by GE Vernova successfully supplied and constructed two High-Voltage Direct Current (HVDC) converter stations for EGL1, a joint venture between National Grid and SP Energy Networks. The HVDC system was based on Voltage-Sourced technology, representing the most advanced HVDC technology available. The completed EGL1 HVDC link facilitated the transmission of renewable green energy, powering over two million homes across the UK.
• March 2023-  Siemens Energy facilitated the connection of Italy's largest islands to the mainland by establishing a high-voltage direct current (HVDC) link between mainland Italy, Sicily, and Sardinia. This HVDC link enabled the exchange of up to one gigawatt for each interconnection, covering a distance of 970 km. Siemens Energy played a crucial role in making this achievement possible by supplying the necessary HVDC transmission technology for the extensive power link.
• March 2023- Petrofac and Hitachi Energy successfully secured a landmark offshore wind framework valued at approximately 13 billion euros. This Framework Agreement, marking the largest in Petrofac's history, encompassed six projects. Each project involved the engineering, procurement, construction, and installation (EPCI) of an offshore high voltage direct current (HVDC) transmission station, an onshore converter station, and the associated infrastructure. The multi-year Framework Agreement was awarded to them as part of TenneT's ambitious 2 gigawatt (2GW) HVDC offshore wind program.

HVDC Converter Stations Market Scope:

Market Segmentation:

• By Technology
  • Voltage Source Converter (VSC)
  • Line Commutated Converter (LCC)
• By Configuration
  • Bi-Polar
  • Monopolar
  • Back-to-back
  • Multi Terminal
• By Power Rating
  • Below 500
  • >500-1000
  • >1000-1500
  • >1500-2000
  • >2000
• By End-User
  • Healthcare
  • Military and Defense
  • Automotive
  • Manufacturing
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Others