With the burgeoning demand from few segments, the market is expected to register a CAGR of 7.1% during the forecast period and attain a value of USD 15.29 billion by 2026.
An HVDC Converter is a type of substation, which uses direct current for the transmission of power. It is widely used to transmit long-distance bulk power and connect two separate AC systems. These converters are installed at every voltage point that connects the systems between asynchronous grids. HVDC stations reduce electrical losses and costs, and sometimes it is the only ideal solution for enabling the use of renewable energy sources. Factors such as increasing adoption of efficient power transmission systems and the rising number of offshore wind farms are anticipated to boost the HVDC converter station market growth during the forecast period, 2019–2026.
The HVDC converter station market is expected to remain resilient amid vagaries in market conditions.
The HVDC converters station market is segmented by type, voltage, converter type, and application are the segments studied in the report.
The bipolar segment, among other type segments, is expected to hold the largest in the market during the forecast period. The bipolar type is used for capacity that exceeds beyond single-pole type. Besides, it is used if a requirement of higher energy availability or lower load rejection power makes it necessary to split the capacity into two poles.
800-1,000 kV voltage converter station has been found to be economically attractive for power blocks. Several emerging countries such as China, india and Brazil use 800 kV as transmission voltage.
The voltage source converters segment, among other converters segment, is expected to flourish due to the increasing demand for offshore and underground transmission networks. It helps to convert direct current into the alternating current in the HVDC and technology in the power transmission system. Voltage source converters handle sustained charge/discharge current that accompanies the switching sequence of the converters. VSC type provides an opportunity to transfer bulk power over 1500MW.
HVDC converters station finds a multitude of application, which can broadly be classified into power industry, powering island and remote loads, interconnecting networks, oil & gas and other. Powering island and the remote load's segment is likely to gain a major share in the market owing to wide usage for transmissions of power over a long distance. The supply of power for a long distance can be made by radial transmission from meshed network or local generation using diesel gensets.
We have explored the market across five regions, namely North America, Europe, Asia-Pacific, Latin America and the Middle East and Africa.
Europe region is expected to witness substantial growth in the HVDC converter station market during the forecast period due to the increasing power demand. The presence of significant players in the region is expanding the number of renewable sources like solar energy, wind energy, others for the generation of power for the residential and industrial sectors thereby aiding the market growth during the forecast period.
North America is witnessing considerable growth in the HVDC converter station market, owing to the increasing energy demand and the growing number of offshore wind farms. Moreover, the increasing number of renewable energy generation plants such as solar farms in the emerging countries — Canada and the U.S. are anticipated to have a positive impact on the HVDC converter station market growth.
The dominance of Asia-Pacific in the global HVDC converter station market can be attributed to the presence of technologically rich countries such as China and Japan. Moreover, several government investments into power transmission are also expected to provide an impetus to the regional market growth. The power sectors are broadening their presence in the region with substantial investments and originating new markets using mergers and acquisition strategy. Recently, China has invested USD 250 billion to link regional grids via 20 HVDC power corridors by 2020.
The Latin America and Middle East & Africa region is one of the prominent regions to adopt new technologies such as ultrahigh-voltage direct current (UHVDC) transmission enabling grids to transport greater levels of power over a longer distance. Most of the countries in the Latin America region imports bulk amount of energy from other countries, making the role of transmission and distribution of power a necessity. Brazil, one of the fastest-growing economy with increasing population rate, hosted 2014 FIFA world cup and 2016 Olympic games adding 47,000 km of transmission lines, meaning USD 27 billion worth of investment between 2012 and 2021 is needed.
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