High Voltage Direct Current (HVDC) Transmission Market Expected to Reach $23.7 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “High Voltage Direct Current (HVDC) Transmission Market," The high voltage direct current transmission market was valued at $10.6 billion in 2022, and is estimated to reach $23.7 billion by 2032, growing at a CAGR of 8.4% from 2023 to 2032.

High voltage direct current (HVDC) transmission is a technique of transmitting electrical power over long distances or between systems with different voltage levels using direct current (DC) instead of alternating current (AC). It gives numerous advantages such as reduced transmission losses, accelerated efficiency, and the capacity to join remote renewable energy sources to the grid.

High voltage direct current transmission market analysis has gorgeous efficiency, specifically over extended distances. Unlike AC transmission, which experiences tremendous resistive losses, HVDC structures incur fewer losses, resulting in more efficient electricity delivery. This makes HVDC in particular well-suited for transmitting electricity from remote power generation sources, such as offshore wind farms or photo voltaic installations, to population centers, where electricity demand is high, but the geographical separation is substantial.

HVDC links can bridge gaps by enabling the transfer of power between grids with various frequencies. This interconnection not only enhances grid balance but also lets in for the sharing of surplus power between regions, contributing to a more reliable and resilient power supply.
Renewable energy sources like wind and solar farms are placed in remote areas with ample natural resources. HVDC transmission lines can correctly transport the strength generated in these areas to urban centers and industrial regions. This not only reduces strength wastage however additionally encourages the improvement of smooth power sources in areas with top-quality conditions for renewable electricity generation.

In addition to long-distance transmission, high voltage direct current transmission market analysis undersea cable connections. When electricity needs to be transmitted across bodies of water, such as oceans or large lakes, HVDC cables are the preferred choice. The constant voltage levels in HVDC transmission are much less affected via cable length and electrical characteristics of the water, making them a dependable solution for undersea energy transmission. This technology has enabled worldwide strength trade through undersea cables, advertising world strength cooperation.

HVDC transmission industry is employed in high-voltage, long-distance submarine electricity cables. These cables are used to join offshore wind farms to the onshore grid. HVDC technology is crucial in this context due to its ability to transmit electricity over long distances barring immoderate losses. By integrating wind energy from offshore farms into the onshore grid, HVDC structures promote the use of renewable power sources and minimize reliance on fossil fuels, thereby assisting in mitigating climate change.

The high voltage direct current transmission market share is segmented on the basis of component, technology, transmission type, application, and region. By component, the market is categorized into converter stations, transmission medium (cables), and others. By technology, the market is divided into voltage source converters (VSC), line commutated converters (LCC), and capacitor commutated converters (CCC). By transmission type, the market is classified into submarine, overhead, and underground. By application, the market is segregated into bulk power transmission, interconnecting grids, and infeed urban areas. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

By technology, voltage source converters (VSC) are the fastest-growing segment in high voltage direct current transmission market forecast in upcoming years. High voltage direct current (HVDC) transmission systems using Voltage Source Converters (VSC) have emerged as a considerable technological advancement in the area of electrical power transmission. These systems offer a number of benefits over normal AC transmission, making them increasingly popular for a number of applications. One of the key benefits of HVDC transmission using VSCs is their controllability. VSCs enable unique control of the voltage and current, allowing for seamless strength flow rules and grid stabilization. This makes them highly appropriate for connecting asynchronous grids, such as those located in specific areas or countries, where maintaining stable and dependable power transfer is essential.

The high voltage direct current transmission market opportunities is to focus on grid modernization and infrastructure development offers a lucrative opportunity in the high voltage direct current transmission market growth. HVDC plays a role in reducing greenhouse gas emissions by enabling the environment-friendly transmission of electricity from renewable sources. By reducing losses during transmission and improving grid stability, HVDC contributes to a more environmentally friendly grid.

HVDC is instrumental in connecting regional grids that operate at different frequencies or phases. It facilitates electricity exchange between neighboring areas or international locations with distinct grid configurations, enhancing grid reliability and enabling the seamless integration of renewable energy sources. HVDC can be transmitted via underground or submarine cables. This makes it a viable option for undersea connections, such as those between islands or across bodies of water, where regular AC transmission is no longer as environment-friendly or practical.

In addition, the high voltage direct current transmission market scope covers profiles of key industry participants such as ABB Ltd, General Electric Company, Hitachi Ltd, Mitsubishi Electric Corporation, Nexans S.A., NR Electric Co., Ltd., Prysmian Group, Schneider Electric SE, Siemens, and Toshiba Corporation.

Key Market Insights

• The report outlines the current high voltage direct current transmission market trends and future scenario of the market from 2022 to 2031 to understand the prevailing opportunities and potential investment pockets.
• The high voltage direct current transmission market size are provided in terms of revenue.
• By component, the converter stations segment was the highest revenue contributor to the market accounting for more than half of the market revenue representing the growth of 8.3% CAGR.
• By technology, the line commutated converters (LCC) segment was the highest revenue contributor to the market accounting for almost half of the market revenue in 2022.
• By application, the infeed urban areas segment is the fastest growing segment representing about 9.0% of CAGR in the market during the forecast period.
• By region, Asia-Pacific collectively was the highest revenue contributor and fastest growing region, in 2022 representing 8.7% CAGR.