The global market for HVDC transmission systems is expected to grow at a CAGR of approximately 11.18% during the forecast period of 2020-2025.
As the governments of the countries across the world have begun to encourage renewable electricity generation, the ability of HVDC transmission technology to integrate the new generation with the existing infrastructure is driving the market. Overall, with new projects expected to kick in during 2019-2020, the global HVDC systems market is likely to witness a huge growth in the coming years.
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. Off-grid systems are built for on-site power generation and consumption, with a lower voltage requirement, thus, eliminating the use of HVDC system, which is best suited for long distance and high voltage application.
The global HVDC transmission systems market is consolidated with the top 10 companies accounting for almost 70% of the market share. The key players in this market include ABB Ltd, Siemens AG, Toshiba Corporation, and General Electric Co.
Key Highlights
The submarine HVDC transmission system market is expected to hold the largest share in the market on account of development of submarine power transmission systems, across the world. The submarine transmission of electricity is gaining importance on account of 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 HVDC transmission systems market in the near future.
The market in the European region is the largest and is incredibly competitive and dominated by tier-1 players. The Asia-Pacific region, driven by Chinese and Indian HVDC investment, has gained a huge momentum over the last two years.
Market Trends
Increasing Demand for Submarine HVDC Transmission System
The submarine HVDC transmission system market is likely to grow significantly on account of development of submarine power transmission systems, across the world. The submarine transmission of electricity is gaining importance on account of 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
To connect remote offshore platforms to main transmission grids
Further, 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.
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 towards 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%, and increase the share of renewable energy in 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.
The French government is also supporting the share of renewable energy (especially offshore wind) and has set a target to build approximately 6 GW of offshore wind power by 2020.
Excess of renewable energy generation capacity in France and Spain is expected to be more easily transmitted between the two countries, following the granting by the European Union of EUR 578 million 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.
Key Topics Covered
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 billion, till 2025 4.3 Recent Trends and Developments 4.4 Market Dynamics 4.4.1 Drivers 4.4.2 Restraints 4.5 Supply Chain Analysis 4.6 Porter's Five Forces Analysis 4.6.1 Bargaining Power of Suppliers 4.6.2 Bargaining Power of Consumers 4.6.3 Threat of New Entrants 4.6.4 Threat of Substitutes Products and Services 4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION 5.1 Transmission Type 5.1.1 Submarine HVDC Transmission System 5.1.2 HVDC Overhead Transmission System 5.1.3 HVDC Underground Transmission System 5.2 Component 5.2.1 Converter Stations 5.2.2 Transmission Medium (Cables) 5.3 Geography 5.3.1 North America 5.3.2 Europe 5.3.3 Asia-Pacific 5.3.4 Middle-East and Africa 5.3.5 South America
6 COMPETITIVE LANDSCAPE 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements 6.2 Strategies Adopted by Leading Players 6.3 Company Profiles 6.3.1 ABB Ltd. 6.3.2 Siemens AG 6.3.3 C-EPRI Electric Power Engineering Co. Ltd. 6.3.4 General Electric Company 6.3.5 Toshiba Corporation 6.3.6 Mitsubishi Electric Corporation 6.3.7 Prysmian Group
