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The HVDC converter stations market share is expected to increase by USD 3.94 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 10.66%.
This HVDC converter stations market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers HVDC converter stations' market segmentation by technology (LCC and VSC) and geography (APAC, Europe, North America, South America, and MEA). The HVDC converter stations market report also offers information on several market vendors, including ABB Ltd., Alstom Holdings SA, Bharat Heavy Electricals Ltd., General Electric Co., Hitachi Ltd., LS ELECTRIC Co. Ltd., Mitsubishi Electric Corp., NR Electric Co. Ltd., Siemens AG, and Toshiba Energy Systems & Solutions Corp. among others.
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Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The increase in global power demand is notably driving the HVDC converter stations market growth, although factors such as the high capital investments in HVDC converter stations may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the HVDC converter stations industry. The holistic analysis of the drivers will help deduce end goals and refine marketing strategies to gain a competitive edge.
Key HVDC Converter Stations Market Driver
An increase in global power demand is one of the major drivers fueling the HVDC converter stations' market growth. The main factors contributing to the rise in power demand are the increase in global population and urbanization, which, in turn, lead to rapid growth in industrialization. These factors result in an exponential increase in electricity demand. To provide access to all the people, some countries have already started taking measures by planning to increase power generation and electrification grids. India, for example, has set the target of 2019 to achieve complete electrification under its Power for All scheme. However, the rate of electrification in developing countries will be comparatively lower, as it takes an extensive period for planning and actual implementation, but they will still account for a significant share of connectivity growth. The global HVDC converter stations market is expected to show steady growth with the global demand for electricity expected to rise considerably. Electricity demand in countries in APAC and the need to transmit power over long distances with fewer transmission losses have increased.
Key HVDC Converter Stations Market Trend
The development of super grids is one of the major trends influencing the HVDC converter stations' market growth. Globally, power consumption is expected to increase with the increase in population. Moreover, as the energy sector moves away from fossil fuels to renewable energy sources, to ensure the decarbonization of the economy, newer technologies are being developed. One such technology is the super grid, which is a large-scale power network that can transport high volumes of power over long distances. Fossil fuel-based power plants are located relatively closer to human habitations when compared with renewable plants, which, thus, makes it necessary for the power to be transported over long distances. Transporting renewable power, especially offshore wind power, over long distances using an AC transmission system can be difficult as well as lead to significant transmission line losses. Thus, HVDC technology has become a key enabler in super grids, as it helps reduce line losses significantly during power transmission. Some of the super grids that are being developed or planned are in Europe, China, and North America. The development of such super grids is expected to have a positive impact on the global HVDC converter stations market during the forecast period.
Key HVDC Converter Stations Market Challenge
High capital investments in HVDC converter stations are one of the major challenges impeding the HVDC converter stations' market growth. The setting up of HVDC converter stations requires significant capital investments due to the high cost of HVDC components that are used in converter stations. When compared with an AC system, the cost of a DC converter station is considerably higher. This is because an AC system requires only transformer stations, whereas the DC system requires converter stations at both ends of the lines involved in the conversion, which increases the cost of the system. The total cost of an HVDC transmission system depends on various factors, such as the environmental conditions and terrain, the power capacity to be transmitted, and the safety and regulatory requirements involved. These requirements, in turn, increase the cost of components, such as converter transformers, harmonic filters, switchgear, and reactors used in the HVDC converter station. Since each HVDC project is based on different needs and specifications, it is difficult to provide the exact cost estimate of a complete system. Although an HVDC converter station improves grid resiliency and efficiency, it requires huge initial investments to handle power transmission and conversion with a minimum maintenance cost, which is a challenge for the growth of the market.
This HVDC converter stations market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global HVDC converter stations market as a part of the global electrical components and equipment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the HVDC converter stations market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the HVDC converter stations market encompasses successful business strategies deployed by the key vendors. The HVDC converter stations market is fragmented and the vendors are deploying various organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The HVDC converter stations market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the leading companies' production, sustainability, and prospects.
Our report provides extensive information on the value chain analysis for the HVDC converter stations market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the electrical components and equipment market includes the following core components:
The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Technology
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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