Search

HVDC Converter Station Market: Global Size, Share, Trends, Growth and Forecast, 2022-2032

HVDC Converter Station Market Overview and Definition

HVDC converter station market revenue will reach approximately USD 6.1 billion in 2022. Further, our HVDC converter station market insights show that the market is expected to grow at a CAGR of approximately 3.8% during the forecast period and reach a value of approximately USD 8.9 billion by 2032.

A high-voltage direct current (HVDC) converter station is a key component in a HVDC transmission system, which is used to transmit large amounts of electrical power over long distances. The converter station is used to convert alternating current (AC) power into direct current (DC) power, and vice versa, for efficient transmission and distribution.

The converter station consists of various components, including converters, transformers, filters, and switchgear, which are used to control the flow of electricity and maintain the stability of the system. The converter station also includes control systems and communication equipment for monitoring and controlling the system.

The global HVDC converter station market is driven by the increasing demand for energy and the growing need for efficient and reliable power transmission and distribution. HVDC transmission systems are preferred for long-distance transmission of electrical power as they are more efficient and have lower losses than traditional AC transmission systems.

In addition, the increasing use of renewable energy sources, such as wind and solar, has led to the need for new and efficient transmission systems, as these sources are often located far from population centers and require long-distance transmission.

The market is also influenced by the development of new technologies and the increasing adoption of digitalization and automation in the power sector. The use of advanced sensors, control systems, and communication equipment is improving the efficiency and reliability of HVDC converter stations, and is expected to drive the growth of the market in the coming years.

However, the high cost of HVDC converter stations and the complexity of implementation may limit the growth of the market in some regions. In addition, concerns about environmental impacts and the need for regulatory approval may also impact the demand for HVDC transmission systems and converter stations.

Overall, the global HVDC converter station market is expected to continue to grow in the coming years, driven by the increasing demand for efficient and reliable power transmission and distribution, and the development of new technologies and digital solutions in the power sector.

Electricity is mainly produced at large power plants and is then transferred at high voltages as high as 110kV or more to the substations that are situated at a long distance by the transmission lines. The high voltage current is later stepped down to the distribution network level around 11 kV or 415 V to distribute it to the consumers. The majority of the power plants generate electricity in AC form and later using the transformer's voltage can be stepped down easily.

For the transmission of power for shorter distances that are usually less than 100 km, AC transmissions are preferred. Sometimes, the use of HVAC transmission system is not possible for transmission of power over long transmission lines that are as long as 500 km and more. HVAC systems are not feasible in such instances due to higher transmission losses and voltage instability. HVAC systems' disadvantages are their current carrying capacity, reactive power loss, limitations on long distance transmission, Ferranti effect, and skin effect. To overcome these disadvantages, HVDC converters are used. HVDC transmission is mainly used to improve power transmission efficiency and to enhance the interconnection of asynchronous grids.

In the HVDC converter station, its converter transformer steps-up the generated AC voltage to the required level. The converter station receives electric power from a three-phase AC network and then rectifies it to DC, which is later transmitted through overhead lines. An inverter converts the DC voltage back to AC at receiving end, which is further stepped down to distribution voltage level at the consumer end. This technology is feasible and suitable for transmitting high power range between100-10,000MW. HVDC reduces overall costs and it also minimizes the losses. Moreover, other advantages of HVDC converter systems include controllability, and stability. HVDC system becomes are cost effective for larger distances.

According to the international atomic energy agency, at the end of 2021, around 443 nuclear power reactors were operational on the global scale, having their total installed power capacity of around 392 GW. In addition to the operational rectors, 54 reactors were under construction with a total capacity of 57 GW. They also observed that in comparison with 2020, overall electricity production from all the energy sources increased by 1.3% in 2021 and for nuclear power reactors, it increased about 4%, reaching 2657 TW. One of the major observation that needs to be underlined here is nuclear power generation accounted for almost 10.5% of overall electricity production in 2021.

The electricity demand is increasing globally continuously with increasing population.  Growing demand for sustainable energy, demand for minimizing the GHG emissions & air pollution, and cost-effective carbon-free power supply is expected to increase HVDC converter stations' popularity. Moreover, the increase in the number of shore wind and government initiatives in the form of funds for renewable power sources drives the growth of the HVDC converter station market. Although the HVDC system minimizes the overall cost of the transmission, high initial cost, prolonged approval process for transmission projects, and transmission congestion, some factors might hinder market growth in coming years.

The market share of the HVDC converter station market is highest for Europe followed by the Asia-Pacific region. In Asia-Pacific, the market is primarily driven by India and China. India and China are the major economies in Asia-pacific that have a huge demand for power transmission systems. Owing to the world's highest populated region, Asia-Pacific has the highest number of installed HVDC converter stations due to the requirement of bulk power transport. In addition to the most number of installed converter stations, China also has a strong presence of local players such as C-EPRI and NR Electric and helping the country meet its requirement of UHVDC projects. Moreover, China is also planning to connect various power grids to a central line in coming years, this development is expected to drive the market for HVDC converter stations during the forecast time period. According to Indian government’s body NCBI’s report in 2019, HVDC transmission can offer lucrative advantages in the grid electricity business. The studies have underlined that national HVDC overlay will be cost-effective towards de-carbonization, enhance resilience & reliability in the grid, and offer interregional stability. All these factors will provide lucrative opportunities in the growth of the HVDC converter station market.

The HVDC converter stations market is segmented on the basis of type, technology, and application, and region. On the basis of type, the market is sub segmented into

 monopolar, BI-polar, back-to-back, and multi-terminal. On the basis of technology, the market is bifurcated into voltage source converters (VSC), line commutated converters (LSC). On the application basis, the market is divided into remote loads and powering islands, connecting wind forms, underground power links, bulk power transmissions, interconnecting networks, long-distance transmission via cables, grid access for offshore applications, and oil gas platforms.

Leading players in the HVDC converter station market include Mitsubishi Electric Corporation, Nissin Electric Co Ltd, ABB Ltd., General Electric Company, Siemens AG, Crompton Greaves Ltd., Toshiba Corporation, C-EPRI Electric Power Engineering Co. Ltd, NE Electric, Alstom, and Hitachi Ltd.

 


Make This Report Your Own

Take Advantage of Intelligence Tailored to your Business Objective

Get a Customized Version
Get 10% discount on any market research report of your choice.
Booklet
  • Publication date: 15th January 2024
  • Base year: 2022
  • Forecast year: 2023-2033
  • Format: PDF, PPT,Word,Excel

- ISO Certified Logo -


Frequently Asked Questions(FAQ)

-: Our Clients :-

Subscribe to Our Company Updates

* We will not share your personal information with anyone
Go Up