HVDC Capacitors Market Size, Share, Opportunities, And Trends By Type (Plastic Film Capacitors, Ceramic Capacitors, Glass Capacitors, Tantalum Wet Capacitors, Mica Paper Capacitors, Aluminium Electrolytic, Others), By Installation (Open Rack Capacitor Banks, Enclosed Rack Capacitor Banks, Pole-mounted Capacitor Banks), And By Geography - Forecasts From 2023 To 2028

The HVDC capacitors market is projected to show steady growth during the forecast period.

High Voltage Direct Current (HVDC) capacitator is an electrical component employed in energy transmission systems. The main factors driving the adoption of HVDC capacitors are the rising demand for lowering energy losses in power transmission and distribution, the increasing use of renewable energy, and the rising demand for solar inverters. HVDC capacitors are being employed in order to provide consumers access to renewable energy sources, such as offshore wind turbines and distant solar plants. The rising consumption of electricity across the world and the increasing awareness of sustainable energy sources are anticipated to significantly expand the HVDC capacitors market over the forecast period.

Market Drivers

• Increase in the demand for sustainable energy source

The significant rise in pollution levels and global warming is resulting in an increased demand for sustainable energy sources such as solar energy and wind energy. For instance, the International Energy Agency reported that the solar energy generated by photovoltaic systems increased by 22% from 2020 to reach more than 1?000?TWh in 2021. In addition, the Global Wind Report of 2022 produced by the Global Wind Energy Council revealed that in 2021 approximately 94 GW of wind energy capacity was installed worldwide. The sustainable energy sector contributes vastly to the consumption of HVDC capacitors because they are an integral part of energy storage systems. The adoption of HVDC capacitors facilitates the transmission of energy from its production point to consumption areas by lowering the risk of energy loss.

• Rise in consumption of electric vehicles

The rapid advancements in the automotive sector technology are promoting the consumption of electric vehicles. For instance, the Ministry of Road Transport and Highways of India revealed in its Vahan Dashboard that the total number of electric vehicle sales in India amounted to 1 million in 2022, an increase of more than 300% from its value in 2021. In addition, the International Energy Agency announced that the worldwide sale of electric vehicles was estimated to be around 6.6 million in 2021. The rising demand for electric vehicles offers an opportunity for the expansion of the HVDC capacitors market since they are employed in the battery storage units of electric vehicles. The capacitors installed in hybrid and other electric vehicles should be of high voltage and have the ability to withstand rising temperatures. Therefore, the growing demand for sustainable energy sources and electric vehicles is anticipated to drive the demand for the HVDC capacitors market.

The stability issues of HVDC systems could restrain the growth of the market.

The HVDC converter systems containing HVDC capacitors have the tendency to face the challenge of maintaining stability in voltage. The instabilities caused while transmitting energy to distant geographical locations have the potential to cause several issues such as harming the energy distribution grids, the power generation equipment and infrastructure, and disrupting the functioning of the whole system in some extreme cases. Hence, the stability issues of HVDC transmission systems could restrict the growth of the HVDC capacitors market.

Key Developments

• In July 2022, Ørsted signed contracts with two European energy companies, Aibel, and Hitachi Energy to facilitate the connection for the UK power grid from its offshore wind energy production site through the use of three HVDC converter systems which comprise HVDC capacitors as their component.
• In April 2020, the State Grid Corporation of China officially confirmed its HVDC converter systems consisting of HVDC capacitors and other high-voltage electric equipment order placed with ABB Company, a Switzerland-based company involved in the power grids business. The order was placed by the Chinese government department to lower its carbon dioxide emissions by promoting renewable energy production. 

North America holds potential in the HVDC capacitor market and is expected to grow in the forecast period as North American countries are constantly consuming and demanding vast amounts of electricity and power and the simultaneous rise in the demand for sustainable energy sources. For instance, the Independent Statistics and Analysis Department of the US Energy Information Administration estimated that the consumption of electricity in the US amounted to approximately 3.93 trillion kWh during 2021, which indicated an increase of 2% of its previous year's value. In addition to this, the Annual Energy Outlook survey submitted by it projects that the electricity demand in the US will gradually expand at the rate of 1% till 2050. Simultaneously, the use of sustainable energy in the US is rising driven by the negative environmental impact of the conventional energy source. For instance, wind electricity generation in the US increased from 296 billion kWh in 2019 to 380 billion kWh in 2021. HVDC capacitors are employed in wind energy systems to transport wind energy generated across long geographical distances. Therefore, the increase in wind energy production and some other eco-friendly energy systems to meet the energy demand of the US is expected to promote the market size of HVDC capacitors in North America over the forecast period.

 Key Market Segments:

• By Type

• Plastic Film Capacitors
• Ceramic Capacitors
• Glass Capacitors
• Tantalum Wet capacitors
• Mica Paper Capacitors
• Aluminium Electrolytic
• Others

• By Installation

• Open rack capacitor banks
• Enclosed rack capacitor banks
• Pole-mounted capacitor banks

• By Geography

• North America

• USA
• Canada
• Mexico

• South America

• Brazil
• Argentina
• Others

• Europe

• United Kingdom
• Germany
• France
• Italy
• Spain
• Others

• Middle East and Africa

• Saudi Arabia
• UAE
• Others

• Asia Pacific

• China
• Japan
• India
• South Korea
• Taiwan
• Others