UK High Voltage Direct Current Transmission Systems Market Size 2024-2028

The UK High Voltage Direct Current Transmission Systems Market size is forecast to increase by USD 393.4 million and is estimated to grow at a CAGR of 8.09% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. One of the primary factors is the optimal solution HVDC provides for long-distance power transmission by these appliances, reducing power losses and improving efficiency. Additionally, there is a growing focus on energy efficiency and sustainability in the power and lightning sector, making HVDC an attractive option. However, challenges remain, including limited power ratings for IGBTs and issues with circuit breakers. These challenges are being addressed through technological advancements and innovations in materials science. The market is expected to continue growing as the demand for reliable, efficient, and long-distance power transmission solutions increases.

What will be the Size of the Market During the Forecast Period?

Market Forecast 2024-2028

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Market Dynamics

The market is witnessing significant growth due to the increasing demand for carbon neutral energy and the integration of renewable energy sources into power transmission grids. HVDC transmission systems enable the efficient transfer of electrical energy over long distances with minimal power losses. The market is segmented into Submarine Transmission, Overhead Transmission, and Underground Transmission. HVDC systems play a crucial role in energy security and grid stability by facilitating the interconnection of asynchronous AC grids and enabling electricity exchange between regions. The market is driven by the growing adoption of wind energy and other intermittent energy sources, which require bulk power transmission through converter stations. The integration of energy storage systems and distributed generation further enhances the flexibility and reliability of HVDC transmission systems. The HVDC Transmission Systems Market is expected to witness substantial infrastructure investment due to the growing need for interconnecting grids and regulating energy flow from various intermittent energy sources. The market is also driven by the increasing demand for clean energy solutions and the need to reduce carbon emissions. The market is characterized by the use of various converter technologies, including Voltage Source Converters, Line Commutated Converters, and Capacitor Commutated Converters. In conclusion, the HVDC Transmission Systems Market is poised for strong growth due to the increasing demand for carbon neutral energy, the integration of renewable energy sources, and the need for energy security and grid stability. The market is expected to witness significant investment in infrastructure development, particularly in submarine transmission and converter stations, to meet the growing demand for efficient and reliable power transmission systems.

Key Market Driver- Increased demand for power

One of the main factors which fuel the demand for HVDC transmission systems in UK is the increasing demand for power leading to demand for T&D networks. Factors such as the increasing population and rapid urbanization and industrialization are fuelling the increasing consumption of power.

Moreover, power is mainly used for cooling, lighting, and running appliances and equipment in the residential sector. Furthermore, the transportation industry is significantly contributing to global power consumption as it has grown tremendously in both developed and developing nations. Hence, such factors are positively impacting the UK - high voltage direct current transmission systems market growth. Thus, it is expected to drive the UK high voltage direct current (HVDC) transmission systems market growth during the forecast period.

Significant Market Trends - Evolution of smart grids

The emergence of smart grids has offered a tremendous opportunity for utility sectors that provide a reliable and steady power supply to their end-users. There is an increase in the implementation of smart grids due to the increasing need for the detection and reaction to local changes in power consumption.

Moreover, the main advantage of these smart grids is that it allows the efficient delivery of sustainable, secure, and economical electricity supply with the help of transmission lines. Additionally, it also offers real-time price information to consumers when connected to wireless sensor networks. Thus, such benefits are positively impacting the UK - HVDC transmission systems market. Hence, such factors are expected to drive the UK high voltage direct current (HVDC) transmission systems market growth during the forecast period.

Major Market Challenge - Limited power ratings for IGBTs and issues with circuit breakers

There has been a continuous improvement in HVDC technology and improvements are made to minimize the number of components required for HVDC substation deployment and operational issues. For instance, semiconductors or hybrid semiconductors are crucial elements in HVDC technology for switching operations.

Moreover, one of the main issues regarding the HVDC technology is switching operations in the HVDC circuit breaker. The circuit breakers require high switching capabilities or the circuit breaker gets damaged, resulting in an electricity supply breakdown. However, the maximum voltage generated must be low in the breaker to adapt to the insulation system's coordinates. Thus, the limited power of the insulated-gate bipolar transistor (IGBT) is restricting the switching capabilities of circuit breakers, which is negatively impacting the UK - high voltage direct current (HVDC) transmission systems market. Hence, such factors are expected to hinder UK high voltage direct current (HVDC) transmission systems market growth during the forecast period.

Market Segmentation by Component and Type

Component Segment Analysis: 

The converter stations segment is estimated to witness significant growth during the forecast period.  Several factors, such as an increase in power consumption, growing renewable energy production, growing regional and cross-border grid integration, and connection of asynchronous grids, are significantly fuelling the growth of the converter stations segment in the global UK high voltage direct current (HVDC) transmission systems market. The main functionality of this segment is that convert electricity from alternative current (AC) to direct current (DC) and vice versa, but it increases the overall cost.

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The converter stations segment was the largest segment and was valued at USD 415.60 million in 2018.  However, it s a better option than an AC system in terms of overall cost such as the line cost and the line losses, and the higher efficiency of HVDC converter stations. Thus the numerous advantages offered by the HVDC converter station over an AC system have made it the best technology for the transportation of power over long distances in the UK, which, in turn, has increased the investments in HVDC converter stations. Hence, such benefits are expected to fuel the growth of this segment which in turn will drive the UK high voltage direct current (HVDC) transmission systems market growth during the forecast period.

Type Segment Analysis:

Based on type, the segment is classified into subsea transmission, underground transmission, and overhead transmission. The main purpose of the subsea transmission segment is to interconnect offshore wind farms and the onshore power grid. One of the main factors which is significantly fuelling the growth of this segment is the increasing demand for r renewable energy in the UK, which in turn is driving the subsea transmission systems. For instance, in the UK, a 450-mile subsea cable that connects the UK and Norway has been enabled in October 2021 to share renewable energy. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the UK high voltage direct current (HVDC) transmission systems market growth during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

ABB Ltd: The company offers high voltage direct current transmission system solutions namely HVDC Light technology

We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:

Aker Solutions ASA, ALSTOM SA, Aquind Ltd., Balfour Beatty Plc, EirGrid Plc, General Electric Co., Hitachi Ltd., Mitsubishi Electric Corp., National Grid Plc, Nexans SA, NR Electric Co. Ltd., Prysmian Spa, Rochling SE and Co. KG, Rongxin Power Ltd., Roxtec International AB, Siemens AG, Sumitomo Electric Industries Ltd., Tele Fonika Kable SA, and Toshiba Corp. 

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Component Outlook
  • Converter stations
  • Transmission medium
• Type Outlook
  • Subsea transmission
  • Underground transmission
  • Overhead transmission

Market Analyst Overview

High Voltage Direct Current (HVDC) Transmission Systems play a crucial role in the shift towards Carbon neutral energy by facilitating Power transmission from Renewable energy sources such as Wind energy and Solar energy to the electrical grid. HVDC systems enable the transfer of Electrical energy over long distances with minimal Transmission losses, ensuring Energy security and Grid stability. HVDC Transmission Systems use Converter stations to convert AC power to DC power for transmission and back to AC power for grid connectivity. Two common types of converter stations are Line Commutated Converters and Voltage Source Converters. Self-commutation and Reactive power control are essential features of HVDC systems.

Additionally, submarine power cables and Underwater HVDC transmission are crucial for Grid interconnections and electricity trading between countries. HVDC systems also offer advantages in terms of Power rating projects, Infrastructure investment, and Interconnection in rural areas. Bipolar configurations, IGBT, Circuit breakers, and Standardization are essential components of HVDC Transmission Systems. Energy storage systems and Distributed generation are also integrated with HVDC systems to improve Grid stability and reduce Carbon emissions. The HVDC Transmission Systems market is witnessing significant growth due to the increasing demand for Clean energy solutions, Infrastructure investment, and Interoperability between different power grids. The market is expected to continue its growth trajectory in the coming years.

Further, the market in the UK is witnessing significant growth due to the increasing integration of renewable energy sources, such as wind turbines and rooftop solar panels, into the power grid. HVDC systems use advanced technologies like line commutated converters and voltage source converters for self-commutation, enabling long-distance transmission of clean hydropower and renewable energy with minimal energy loss.

Moreover, HVDC systems offer several advantages, including improved power grid connectivity, fault detection, and energy flow regulation. They are particularly useful for transmitting power over long distances, making them ideal for rural electrification and supplying urban centers with clean energy. The UK's HVDC Transmission Systems market is also witnessing the adoption of submarine cables for underwater transmission and underground cables for urban areas, ensuring environmental sustainability and reducing the visual impact on landscapes. Semiconductor technology is playing a crucial role in the clean energy transition by enabling efficient power flow control and enabling the integration of distributed electricity systems.

Also, HVDC systems offer voltage balance, ensuring stable power delivery to the grid, and are essential for the integration of large-scale renewable energy sources into the power grid. The market is expected to continue growing as the UK moves towards a more sustainable energy future.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across the UK
• A thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of the market companies.

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