High Voltage Direct Current (HVDC) Transmission System Market Growth Rate through 2031

Information may not be reliable

High Voltage Direct Current (HVDC) Transmission System: Introduction

• High Voltage Direct Current (HVDC) transmission system market, also known as electrical superhighway or power superhighway, is an electric transmission system used for bulk direct-current transmission of electric power
• HVDC transmission systems have the capability to interconnect networks with different features and frequencies and are more competent than alternating current lines
• HVDC transmission systems are ideal for long distance transmission and also carry less electrical losses. However, these transmission systems are costlier for short distances, as conversion units are required.

Key Drivers and Restraints of Global High Voltage Direct Current (HVDC) Transmission System Market

• Increase in installation of offshore wind power generation projects is anticipated to drive the HVDC transmission systems market. Large amount of power generation is feasible through offshore wind energy; therefore, the generated energy can be distributed to locations with high demand for electricity.

Global High Voltage Direct Current (HVDC) Transmission System Market: Segmentation

• The global HVDC transmission system market can be segmented in terms of technology, type, deployment, application, and capacity
• Based on technology, the market can be divided into line commutated converter (LCC) and voltage source converter (VSC). Voltage source converter is a new technology. Thus, demand for VSC is anticipated to increase during the forecast period.
• In terms of type, the market can be divided into monopole system, bipolar system, back-to-back, and multi-terminal system. Monopole system and bipolar system segments accounted for significant share of the global HVDC transmission system market in 2020, due to higher demand for these among end-users.
• In terms of deployment, the global HVDC transmission system market can be classified into overhead, underground, subsea, and combination. Underground and subsea are key segments, led by rise in investment in these segments across the globe.  
• Based on application. The market can be segregated into interconnecting grids, infeed urban areas, connecting offshore wind, and others. The connecting offshore wind segment is likely to expand significantly due to rise in offshore wind energy projects across the world.
• In terms of capacity, the HVDC transmission system market can be split into up to 400 kV, 401-800 kV, and above 800 kV. 401-800 kV and above 800 kV segments are expected to expand at high CAGR during the forecast period.

Global High Voltage Direct Current (HVDC) Transmission System Market: Regional Segmentation

• Based on region, the HVDC transmission systems market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
• Asia Pacific dominated the global HVDC transmission systems market in 2020. It is anticipated to be a highly attractive region during the forecast period. The trend is estimated to continue during the forecast period owing to the significant investment in renewable energy sources, especially in countries such as China, Japan, and India.
• Europe is estimated to hold vital share of the global HVDC transmission systems market during the forecast period. The region is investing in renewable energy sources due to the increase in pollution and rise in government policies to meet the 2031 climate and energy framework.
• North America is projected to hold moderate share of the global HVDC transmission systems market during the forecast period, as the region possesses advanced electrical transmission systems. The market in the region is likely to expand at a healthy pace in the near future.

COVID-19 Impact on the Global High Voltage Direct Current (HVDC) Transmission System Market

• The power industry falls under ‘essential services,’ as power supply to grid systems depends on transmission lines. Initially, the COVID-19 pandemic marginally affected the HVDC transmission system market by disrupting the supply chain as well as availability of manpower due to the lockdown in various countries. However, the supply chain has been restored and the availability of manpower is getting back to normal, with governments and companies’ efforts. This is expected to drive the market in the near future.