HVDC Converter Stations Market by Technology and Geography - Forecast and Analysis 2021-2025

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.

What will the HVDC Converter Stations Market Size be During the Forecast Period?

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HVDC Converter Stations Market: Key Drivers, Trends, and Challenges

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.

Parent Market Analysis

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.

Who are the Major HVDC Converter Stations Market Vendors?

The report analyzes the market’s competitive landscape and 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
• Toshiba Energy Systems & Solutions Corp.

 

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.

HVDC Converter Stations Market Value Chain Analysis

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:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

 

Which are the Key Regions for HVDC Converter Stations Market?

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75% of the market’s growth will originate from APAC during the forecast period. China and India are the key markets for HVDC converter stations in the region. Market growth in this region will be faster than the growth of the market in regions.

The extensive network of AC and HVDC lines in the region will facilitate the HVDC converter stations' market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 severely disrupted industrial operations, which resulted in economic distress in the region due to the implementation of lockdown measures. The governments of various nations imposed the first lockdown in March 2020 to reduce the spread of COVID-19. Thus, energy consumption in the region declined dramatically. The COVID-19 pandemic also affected the power sector. For instance, in India, the power demand reduced by 25%-30% in 2020 as compared to 2019 due to the suspension of industrial and commercial activities. Due to reduced demand levels, inefficient & expensive power plants were either asked to cease generation and remain on standby or to reduce output. All these factors negatively impacted the regional market in focus in 2020. However, economic activity is likely to pick up due to the gradual decline in daily COVID-19 cases and with increased mobility in 2021. Such factors will increase commercial and industrial demand for electricity, which will positively impact the market.

What are the Revenue-generating Technology Segments in the HVDC Converter Stations Market?

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The HVDC converter stations' market share growth by the LCC segment will be significant during the forecast period. An HVDC converter station is a specialized substation that forms the terminal equipment for an HVDC transmission line. An HVDC converter station converts the DC to AC and vice versa.

This report provides an accurate prediction of the contribution of all the segments to the growth of the HVDC converter stations market size and actionable market insights on post COVID-19 impact on each segment.

 

HVDC Converter Stations Market Scope
Report Coverage	Details
Page number	120
Base year	2020
Forecast period	2021-2025
Growth momentum & CAGR	Accelerate at a CAGR of 10.66%
Market growth 2021-2025	$ 3.94 billion
Market structure	Fragmented
YoY growth (%)	10.38
Regional analysis	APAC, Europe, North America, South America, and MEA
Performing market contribution	APAC at 75%
Key consumer countries	China, India, US, UK, and Germany
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	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.
Market dynamics aren't	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this HVDC Converter Stations Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive HVDC converter stations market growth during the next five years
• Precise estimation of the HVDC converter stations market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the HVDC converter stations industry across APAC, Europe, North America, South America, and MEA
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of HVDC converter stations market vendors

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