Global HVDC Converter Stations Market Size, Share, Opportunities, COVID-19 Impact, 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), Voltage Source Converters (VSCs)), By End-User (Healthcare, Military And Defense, Automotive, Manufacturing, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Mar 2022 Report Code: KSI061611353 Pages: 114

The global HVDC converter stations market is projected to grow at a CAGR of 6.49% during the forecast period to reach US$12.936 billion by 2027, from US$8.328 billion in 2020. 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.

Increased cross-border power transmission activities are predicted to increase the construction of HVDC systems, which will likely drive the market for HVDC converter stations. 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. According to NCBI 2019, HVDC transmission can provide financial benefits as part of topological improvements in the grid electricity sector. 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.

Furthermore, the market is likely to be driven by expansion in the renewable energy sector throughout the projected period. As there is a considerable increase in renewable energy generation capacity (onshore and offshore), it is aided by supportive government policies, big renewable energy programs, and advantageous financial measures. According to the International Renewable Energy Agency, the global renewable energy generation capacity reached 2,799 GW by the end of 2020, up 10.3% from 2019. Furthermore, with a capacity of 1,211 GW, hydropower accounted for the biggest part, around 43% of the world energy total. In addition, the growing number of offshore wind farms and the necessity to connect asynchronous grids will propel the HVDC converter station market forward in the next years. Furthermore, developing green energy trends will broaden the market's scope in the approaching years.

The use of distributed and off-grid power sources, on the other hand, is reducing the demand for HVDC transmission lines. 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.

Key Developments

Siemens was awarded a contract for two converter stations for Viking Link, the first high-voltage direct-current (HVDC) link between the United Kingdom and Denmark, in August 2019. ABB was awarded a contract by Korea Electric Power Corporation in June 2019 to construct two new HVDC converter stations to connect the mainland with Jeju and one of the island's nine provinces. In October 2019, the United Kingdom's first HVDC system, i.e. Norwegian offshore contractor Aibel, was awarded a contract worth over NKR 2.5 billion to build two high voltage direct current (HVDC) converter stations for SSE Renewables and Equinor's massive Dogger Bank offshore wind power mega-project in the United Kingdom North Sea.

By technology, the global HVDC converter stations market is segmented into voltage source converters (VSC) and line commutated converters (LCC). Owing to its cheaper cost and superior reliability than VCS and increasing application in thyristor valves, the LCC segment is expected to dominate the HVDC converter station market.

By configuration, the global HVDC converter station market can be segmented into monopolar, bipolar, back-to-back, and multi-terminal. The bipolar HVDC converter station is predicted to be the market leader.

By power rating, the global HVDC converter station market can be segmented into below 500 MW, >500-1000 MW, >1000-1500 MW, >1500-2000 MW, and >2000 MW. The >2000 MW segment is expected to grow the fastest as the increase in power transmission capacity of valves is driving the >2000 MW segment, which has resulted in a large demand for HVDC converter stations in major economies such as India and China.

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 & gas, powering island & distant loads, interconnecting networks, and others. In the above segmentation, the Powering Island & 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.

By geography, the global HVDC converter stations market is segmented into North America, Europe, South America, the Middle East and Africa, and Asia Pacific regions. The European market is expected to hold a major share due to the early and rapid adoption of sophisticated technologies and the expanding number of offshore wind farms in the region, particularly in Germany and Norway. According to the WindEurope Organization, Europe's offshore wind capacity expanded by 2.9 GW in 2020, implying that 365 new offshore wind turbines were linked to the grid across the continent. Due to rising power transmission systems in China and India, as well as the increasing need for bulk transport power in the region, the Asia Pacific market is expected to rise significantly over the forecast period.

Covid-19 Insights

Due to the COVID-19 pandemic, the HVDC converter stations market was impacted negatively. In 2020, the power demand declined by 2.5 percent in the first quarter of 2020, resulting in government-imposed shutdowns to prevent the spread of the virus, which was followed by the shutdown of various corporate operations, affecting their growth. This also resulted in a 5.8% reduction in global CO2 emissions, which was five times greater than the figure reported during the global financial crisis in 2009. However, it is expected that demand for oil, gas, and coal would increase, resulting in more potential for market recovery.

Global HVDC Converter Stations Market Scope:

Report Metric Details
 Market size value in 2020  US$8.328 billion
 Market size value in 2027  US$12.936 billion
 Growth Rate  CAGR of 6.49% from 2020 to 2027
 Base year  2020
 Forecast period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments covered  Technology, Configuration, Power Rating, End-User, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered  ABB (Hitachi Energy), Siemens, GE Grid Solutions, HYOSUNG, LSIS, Mitsubishi,   Toshiba, BHEL, NR Electric
 Customization scope  Free report customization with purchase

 

Key Market Segments

  • 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
      • United Kingdom
      • Germany
      • France
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the HVDC converter stations market size by 2027?
A1. The global HVDC converter stations market is projected to reach a market size of US$12.936 billion by 2027. 


Q2. What is the size of the global HVDC converter stations market?
A2. HVDC Converter Stations Market was valued at US$8.328 billion in 2020. 


Q3. What are the growth prospects for the HVDC converter stations market?
A3. The HVDC converter stations market is projected to grow at a CAGR of 6.49% over the forecast period. 


Q4. Which region holds the maximum market share of the HVDC converter stations market?
A4. The European region is expected to hold a major share of the HVDC converter stations market due to the early and rapid adoption of sophisticated technologies and the expanding number of offshore wind farms.


Q5. What factors are anticipated to drive the HVDC converter stations market growth?
A5. Increased cross-border power transmission activities are predicted to increase the construction of HVDC systems, which will likely drive the market for HVDC converter stations.

1. INTRODUCTION
1.1. Market Definition
1.2. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis

5. GLOBAL HVDC CONVERTER STATIONS MARKET, BY TECHNOLOGY 
5.1. Introduction
5.2. Voltage Source Converter (VSC)
5.3. Line Commutated Converter (LCC)

6. GLOBAL HVDC CONVERTER STATIONS MARKET, BY CONFIGURATION 
6.1. Introduction
6.2. Bi-Polar
6.3. Monopolar
6.4. Back-to-back
6.5. Multi Terminal

7. GLOBAL HVDC CONVERTER STATIONS MARKET, BY POWER RATING 
7.1. Introduction
7.2. Below 500
7.3. >500-1000
7.4. >1000-1500
7.5. >1500-2000
7.6. >2000

8. GLOBAL HVDC CONVERTER STATIONS MARKET, BY END-USER
8.1. Introduction
8.2. Healthcare
8.3. Military and Defense
8.4. Automotive
8.5. Manufacturing
8.6. Others

9. GLOBAL HVDC CONVERTER STATIONS MARKET, BY GEOGRAPHY
9.1. Introduction
9.2. North America
9.2.1. United States
9.2.2. Canada
9.2.3. Mexico
9.3. South America
9.3.1. Brazil
9.3.2. Argentina
9.3.3. Others
9.4. Europe
9.4.1. United Kingdom 
9.4.2. Germany
9.4.3. France
9.4.4. Others
9.5. Middle East and Africa
9.5.1. Saudi Arabia
9.5.2. Israel
9.5.3. Others
9.6. Asia Pacific
9.6.1. China
9.6.2. Japan
9.6.3. India
9.6.4. South Korea
9.6.5. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrative
10.3. Mergers, Acquisition, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES 
11.1. ABB (Hitachi Energy)
11.2. Siemens
11.3. GE Grid Solutions
11.4. HYOSUNG
11.5. LSIS
11.6. Mitsubishi
11.7. Toshiba
11.8. BHEL
11.9. NR Electric
 

ABB (Hitachi Energy)

Siemens

GE Grid Solutions

HYOSUNG

LSIS

Mitsubishi

Toshiba

BHEL

NR Electric

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