HVDC Converter Station Market by Technology (Line Commutated Converter, Voltage Source Converter), Component (Converter Transformers, Converter Unit, Converter Valves), System Configuration, Application - Global Forecast 2024-2030
The HVDC Converter Station Market size was estimated at USD 11.84 billion in 2023 and expected to reach USD 12.81 billion in 2024, at a CAGR 8.25% to reach USD 20.63 billion by 2030.
High voltage direct current (HVDC) converter station refers to a specialized facility that forms the terminal component for an HVDC transmission line. It is designed for the efficient conversion of electrical power from one form to another, typically alternating current (AC) to direct current (DC) or vice versa. The primary application of HVDC converter stations is facilitating power transmission between regions, countries, and continents. The need for efficient long-distance energy transmission with minimal energy loss propels investment in HVDC converter station installations. Growing urbanization and government initiatives to propel the adoption of renewable energy sources have resulted in increased investments in power infrastructure development. However, the substantial initial investment required for HVDC converter station installations may deter private entities from adopting this technology. Furthermore, the absence of standardized components and designs across various HVDC technologies may hinder interoperability between different systems. Moreover, efforts by major providers of HVDC converter stations to harmonize HVDC design can propel standardization of the converter stations and increase the rate of adoption among end users. R&D initiatives and funding to support continued advancements and innovations in converter technologies can expand the applications of the HVDC converter stations. Furthermore, offshore wind installations are gaining traction due to their large-scale generation potential, and HVDC technology is a feasible solution for connecting these offshore installations to onshore grids.
Regional Insights
The Americas region has been an early adopter of HVDC converter station technology for long-distance power transmission from remote generation sites to major load centers. There has been a rising interest in integrating renewable energy sources, including wind and solar, into existing grids using HVDC links. Key industry players in this region are involved in building new converter stations or upgrading existing infrastructure to accommodate higher capacities and improve efficiency. The rapidly expanding economies of Asia have led to an increased demand for reliable power supply systems. As a result, several large-scale HVDC projects have been commissioned or are under development across countries, including China, India, Japan, and South Korea. Asia is projected to continue being the fastest-growing region for HVDC converter stations due to their ongoing efforts to increase renewable energy integration and the presence of an economies-of-scale business environment for companies to expand their production. Europe has a long history of utilizing HVDC technology for cross-border power exchanges between its member countries. The EU's focus on reducing carbon emissions and increasing energy efficiency has promoted the adoption of HVDC converter stations to facilitate the integration of offshore wind farms and solar parks into national grids. Key European players in this domain have been making large-scale investments in renewable energy projects, expanding the demand for HVDC converter stations.
Market Insights
- Market Dynamics
The market dynamics represent an ever-changing landscape of the HVDC Converter Station Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.- Market Drivers
- Need for efficient long-distance power transmission in remote locations
- Government investments in expanding renewable energy projects
- Increasing emphasis on cross-border power trading activities
- Market Restraints
- Complex operation and maintenance of HVDC converter stations
- Market Opportunities
- Advancements in the design and models of HVDC converter stations
- Rising implementation of HVDC converter stations in smart grids
- Market Challenges
- Security issues and synchronization limitations
- Market Segmentation Analysis
- Technology: Growing adoption of voltage source converter (VSC) technology to power renewable energy projects
- Component: Ability of converter values to withstand high current losses during HVDC operation
- Configuration: Adoption of multi-terminal systems to enable greater flexibility in connecting multiple power sources and grids
- Application: Higher efficiency of HVDC converter stations in long-distance interconnecting network transmission
- Market Disruption Analysis
- Porter’s Five Forces Analysis
- Value Chain & Critical Path Analysis
- Pricing Analysis
- Technology Analysis
- Patent Analysis
- Trade Analysis
- Regulatory Framework Analysis
The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the HVDC Converter Station Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the HVDC Converter Station Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Recent Developments- Iraq Signs Contract with Siemens to Build 5 Converter Stations
Iraq's General Company of Electrical Energy Transmission has inked a pivotal agreement with Siemens AG to revamp its aging electrical infrastructure and mitigate the chronic power shortages. Siemens AG is set to construct five cutting-edge high-voltage direct current (HVDC) converter stations, promising a total capacity of 7,500 megavolts across five strategic locations: Baghdad, Basra, Karbala, Najaf, and Diyala, significantly enhancing national grid stability, boost voltage quality, and extend power availability within the country.
National Grid Launches GBP 59 bn Frameworks for HVDC Needs including GBP 12.8 bn Civils Works
National Grid launched comprehensive procurement frameworks collectively valued at GBP 58.67 billion to fulfill its escalating demand for high voltage direct current (HVDC) infrastructure. These frameworks aim to support the integration of 50GW of offshore wind power by 2030 and contribute to the UK's 2050 net-zero target by spanning approximately 15 confirmed and potential HVDC projects in the region.
Hitachi Energy Passes 150 GW in HVDC Links Integrated into the Power System, Expands Capacity to Meet Accelerating Energy Transition Demand
Hitachi Energy Ltd. facilitated the installation of 150 GW of HVDC links worldwide, including the historic power generation from Dogger Bank, the largest offshore wind development in the world. Hitachi Energy recognizes the need and aims to contribute to the global electrification drive to cater to the demand for secure energy transitions.
The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the HVDC Converter Station Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
Key Company Profiles
The report delves into recent significant developments in the HVDC Converter Station Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Adani Energy Solutions Limited, Aker Solutions ASA, Alstom SA, American Superconductor Corporation, Bharat Heavy Electricals Limited, Black & Veatch Holding Company, C-EPRI Electric Power Engineering Co., Ltd., Crompton Greaves Ltd., Cyient Limited, Dragados by ACS Group, Eaton Corporation PLC, General Electric Company, Hitachi Energy Ltd., Hyosung Corporation, LS Electric Co., Ltd., M. A. Mortenson Company, Mersen Group, Mitsubishi Electric Corporation, Nexans SA, NKT A/S, NR Electric Co., Ltd., Prysmian Group S.p.A., Rongxin Power Ltd., Siemens AG, Stantec Inc., Sumitomo Electric Industries, Ltd., Texas Instruments Incorporated, Toshiba Corporation, TransGrid Solutions Inc., and XJ Group Corporation.
Market Segmentation & Coverage
This research report categorizes the HVDC Converter Station Market to forecast the revenues and analyze trends in each of the following sub-markets:- Technology
- Line Commutated Converter
- Voltage Source Converter
- Component
- Converter Transformers
- Converter Unit
- Converter Valves
- Filters
- HVDC System Pole
- Reactive Power Source
- Smoothing Reactor
- System Configuration
- Back-To-Back
- Bipolar
- Homopolar
- Monopolar
- Multi-Terminal
- Application
- Interconnecting Networks
- Oil & Gas
- Power Industry
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
Please Note: PDF & Excel + Online Access - 1 Year
- Americas
- Market Drivers
- 1. Preface
- 1.1. Objectives of the Study
- 1.2. Market Segmentation & Coverage
- 1.3. Years Considered for the Study
- 1.4. Currency & Pricing
- 1.5. Language
- 1.6. Stakeholders
- 2. Research Methodology
- 2.1. Define: Research Objective
- 2.2. Determine: Research Design
- 2.3. Prepare: Research Instrument
- 2.4. Collect: Data Source
- 2.5. Analyze: Data Interpretation
- 2.6. Formulate: Data Verification
- 2.7. Publish: Research Report
- 2.8. Repeat: Report Update
- 3. Executive Summary
- 4. Market Overview
- 5. Market Insights
- 5.1. Market Dynamics
- 5.1.1. Drivers
- 5.1.1.1. Need for efficient long-distance power transmission in remote locations
- 5.1.1.2. Government investments in expanding renewable energy projects
- 5.1.1.3. Increasing emphasis on cross-border power trading activities
- 5.1.2. Restraints
- 5.1.2.1. Complex operation and maintenance of HVDC converter stations
- 5.1.3. Opportunities
- 5.1.3.1. Advancements in the design and models of HVDC converter stations
- 5.1.3.2. Rising implementation of HVDC converter stations in smart grids
- 5.1.4. Challenges
- 5.1.4.1. Security issues and synchronization limitations
- 5.2. Market Segmentation Analysis
- 5.2.1. Technology: Growing adoption of voltage source converter (VSC) technology to power renewable energy projects
- 5.2.2. Component: Ability of converter values to withstand high current losses during HVDC operation
- 5.2.3. Configuration: Adoption of multi-terminal systems to enable greater flexibility in connecting multiple power sources and grids
- 5.2.4. Application: Higher efficiency of HVDC converter stations in long-distance interconnecting network transmission
- 5.3. Market Trend Analysis
- 5.3.1. Pioneering grid modernization activities with the deployment of next-generation HVDC technologies in the Americas region
- 5.3.2. Emphasizing a sustainable future with the transformational innovations for HVDC converter stations in Asia-Pacific
- 5.3.3. Collaborations between HVDC technology companies and energy projects to stimulate EMEA’s regulatory commitment for renewable energy expansion and grid interconnections
- 5.4. Cumulative Impact of High Inflation
- 5.5. Porter’s Five Forces Analysis
- 5.5.1. Threat of New Entrants
- 5.5.2. Threat of Substitutes
- 5.5.3. Bargaining Power of Customers
- 5.5.4. Bargaining Power of Suppliers
- 5.5.5. Industry Rivalry
- 5.6. Value Chain & Critical Path Analysis
- 5.7. Regulatory Framework Analysis
- 6. HVDC Converter Station Market, by Technology
- 6.1. Introduction
- 6.2. Line Commutated Converter
- 6.3. Voltage Source Converter
- 7. HVDC Converter Station Market, by Component
- 7.1. Introduction
- 7.2. Converter Transformers
- 7.3. Converter Unit
- 7.4. Converter Valves
- 7.5. Filters
- 7.6. HVDC System Pole
- 7.7. Reactive Power Source
- 7.8. Smoothing Reactor
- 8. HVDC Converter Station Market, by System Configuration
- 8.1. Introduction
- 8.2. Back-To-Back
- 8.3. Bipolar
- 8.4. Homopolar
- 8.5. Monopolar
- 8.6. Multi-Terminal
- 9. HVDC Converter Station Market, by Application
- 9.1. Introduction
- 9.2. Interconnecting Networks
- 9.3. Oil & Gas
- 9.4. Power Industry
- 10. Americas HVDC Converter Station Market
- 10.1. Introduction
- 10.2. Argentina
- 10.3. Brazil
- 10.4. Canada
- 10.5. Mexico
- 10.6. United States
- 11. Asia-Pacific HVDC Converter Station Market
- 11.1. Introduction
- 11.2. Australia
- 11.3. China
- 11.4. India
- 11.5. Indonesia
- 11.6. Japan
- 11.7. Malaysia
- 11.8. Philippines
- 11.9. Singapore
- 11.10. South Korea
- 11.11. Taiwan
- 11.12. Thailand
- 11.13. Vietnam
- 12. Europe, Middle East & Africa HVDC Converter Station Market
- 12.1. Introduction
- 12.2. Denmark
- 12.3. Egypt
- 12.4. Finland
- 12.5. France
- 12.6. Germany
- 12.7. Israel
- 12.8. Italy
- 12.9. Netherlands
- 12.10. Nigeria
- 12.11. Norway
- 12.12. Poland
- 12.13. Qatar
- 12.14. Russia
- 12.15. Saudi Arabia
- 12.16. South Africa
- 12.17. Spain
- 12.18. Sweden
- 12.19. Switzerland
- 12.20. Turkey
- 12.21. United Arab Emirates
- 12.22. United Kingdom
- 13. Competitive Landscape
- 13.1. Market Share Analysis, 2023
- 13.2. FPNV Positioning Matrix, 2023
- 13.3. Competitive Scenario Analysis
- 13.3.1. Iraq Signs Contract with Siemens to Build 5 Converter Stations
- 13.3.2. National Grid Launches GBP 59 bn Frameworks for HVDC Needs including GBP 12.8 bn Civils Works
- 13.3.3. Hitachi Energy Passes 150 GW in HVDC Links Integrated into the Power System, Expands Capacity to Meet Accelerating Energy Transition Demand
- 13.3.4. Mitsubishi Electric Receives Order for Frequency Converter Station that Stabilizes Power Grid across Different Frequencies
- 13.3.5. GE Consortium to Supply Converter Stations for UK Subsea Cable Project
- 13.3.6. Adani Energy Solutions Secures USD 1 billion Financing for HVDC Link Project in Mumbai
- 13.3.7. Hitachi Lands Contract for 2 HVDC Converter Stations
- 13.3.8. World’s First Unmanned HVDC Offshore Platform Installed at World’s Largest Offshore Wind Farm
- 13.3.9. Saudi Arabia to Upgrade HVDC Converter Station
- 13.3.10. Siemens Energy Secures Converter Stations Contract from Terna
- 13.3.11. Mitsubishi Electric Acquires DC Circuit Breaker Developer Scibreak
- 13.3.12. Grain Belt Express Selects Siemens Energy As HVDC Technology Partner
- 14. Competitive Portfolio
- 14.1. Key Company Profiles
- 14.2. Key Product Portfolio
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