Germany High-Voltage Direct Current (HVDC) Transmission Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Germany High-Voltage Direct Current (HVDC) Transmission Systems Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for Germany High-Voltage Direct Current (HVDC) Transmission Systems is expected to grow at a CAGR of approximately 10.05% during the forecast period of 2020 – 2025. The increasing demand for cost-effective solutions for long-distance power transmission, ease in controlling the active power link, the possibility of bulk power transmission, and low loss in transfer of power (over HVAC) are some of the significant factors that drive the Germany HVDC transmission systems market. However, the growing demand for distributed and remote power plants that provide electricity in rural areas without the need for significant transmission & distribution infrastructure is expected to hinder the growth of the HVDC transmission systems market in the coming years.

Key Highlights

• Submarine HVDC transmission system is expected to account for the largest share in the Germany HVDC transmission systems market by transmission type on account of upcoming development projects driven by the increasing focus on power trading between countries.
• Technological advancement in HVDC transmission systems is expected to help in mitigating operational issues with wind and solar-based electricity transmission system, as the phase difference does not matter in the HVDC transmission line. While conventional HVAC does not work on this principle, it requires transformers to match the phase generated from a different source. Hence, this is expected to provide a better opportunity for the growth of the HVDC transmission system market in the country.
• Increased penetration of renewable energy has been driving HVDV Transmission System in the country.

Key Market TrendsSubmarine HVDC Transmission System to Dominate the Market

• The submarine transmission of electricity is gaining importance on account of increasing focus on power trading between countries. The HVDC submarine power transmission system is considered as a critical technology for the development of future power transmission networks.
• It is also the only solution available for the transfer of high power across long subsea distances. For these reasons, HVDC lines are preferred for interconnecting offshore wind plants worldwide.
• In the HVDC transmission system, the submarine power cables can be less costly, especially on a long link where the capacitance of the wire requires too much additional charging current.
• Factors such as the increasing number of offshore wind farms along with inter-connections between countries through submarine cables are expected to increase the demand for submarine transmission systems over the forecast period. This, in turn, likely to propel the market studied.

Increased Penetration of Renewable Energy to Drive the Market

• Given the increase in renewable generation in recent years, it has become increasingly important to deploy direct high-voltage current (HVDC) transmission lines. The HVDC transmission lines have a significant role to play when additional renewable generation sources become integrated into electrical grids.
• The Germany government has been promoting the deployment of the HVDC lines to transfer large amounts of power over long distances. They are now being proposed as a way to move electricity generated from wind in high-quality wind resource regions to other parts of the country.
• Moreover, the offshore wind installation is likely to create an opportunity for the increase in demand for the HVDC transmission lines during the forecast period.
• However, Germany imports its power from the neighboring countries, owing to the increasing power demand, which is likely to grow by 30% until 2050, given the economically less attractive renewable sites and nuclear phase-out. Thus, the grid connecting Germany to other countries is expected to increase fivefold.
• In July 2019, Dutch-German grid operator TenneT, awarded Prysmian a contract valued at EUR 140 million, to connect multiple offshore wind farms to the German grid through the 900-MW DolWin5 project.
• Furthermore, the refurbishment of the aging infrastructure of transmission lines in the country, and increasing renewable power generation, which requires a new installation of the HVDC transmission system is expected to drive the demand for the HVDC transmission system in the country, during the forecast period.

Competitive Landscape

The Germany high-voltage direct current (HVDC) transmission systems market report is consolidated. The key players in this market include ABB Ltd, Siemens AG, Mitsubishi Electric Corporation, Toshiba Corporation, and General Electric Company and others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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