HVDC Converter Station Market to be worth 11.57 Billion US$ by 2022
According to a report by MarketsandMarkets, the HVDC converter station market is expected to grow from an estimated value of US$ 7.90 Billion in 2017 to US$ 11.57 Billion by 2022, registering a CAGR of 7.92%, from 2017 to 2022. The major factors driving the growth of the market is the increasing requirement for cost-effective solutions for bulk power transfer and increasing need for connecting asynchronous grids. Due to these, there has been a rapid adoption of HVDC in Europe and Asia Pacific creating a market opportunity for the HVDC converter station market.
Increasing requirement to transfer bulk power over long distances and the connection of the renewable energy resources to the national grid are driving the market for HVDC converter stations.
The LCC technology is expected to hold the largest market share in the HVDC converter station market from 2017 to 2022
The rise in the use of thyristor valves has increased the demand for LCC HVDC systems because of the better reliability of the thyristor technology. In the recent years, technical improvements and compact designs with large-capacity thyristors (up to 8.5 kV, 4 kA) have contributed to the progress of HVDC applications in the Asia Pacific region, because of which there have been large UHVDC projects with the LCC technology in China. The trend is expected to continue in the by 2022 as the major economies in Asia and Europe such as China and the UK, among others are still struggling to meet the energy requirement in the country.
The >2,000 MW segment in the HVDC converter station market is expected to be the largest and is projected to grow at the highest CAGR during the forecast period
The above 2,000 MW segment is projected to grow at the highest CAGR during the forecast period, as the major problem faced by large economies such as India and China is to ensure efficient transfer of bulk electricity over long distances while maintaining the national electricity grid without any disturbance. Thus, a large number of projects in the countries are developed in UHVDC. This trend is expected to continue till 2022, supporting the growth of the >2000 MW segment. For instance, in January 2017 the Power Grid Corporation of India awarded a contract to ABB for its Raigarh-Pugalur UHVDC project which would have the 6000 MW capacity and the transmission line of 1,800 Km. The scope of the project includes design, engineering, supply, installation, and commissioning and major equipment including transformers, converter valves, cooling systems, as well as the control and protection technology.
Europe: The leading market for HVDC converter stations
In this report, the HVDC converter station market has been analysed with respect to four regions, namely, North America, Europe, Asia Pacific, and the rest of the world. The HVDC converter station market is expanding in developing countries owing to the growing requirement to transfer bulk power over long distances and to connect the renewable energy resources to the national grid. The market in Europe is expected to dominate the global HVDC converter station market, with the highest share as the major economies in the region such as the UK, Germany, and France are developing interlinkage links between countries to maintain power efficiency. Thus, the region is expected to maintain its dominance in the HVDC converter station market during the forecast period.
The major players in the HVDC converter station market are ABB (Switzerland), Siemens (Germany), and General Electric (US). The majority of the HVDC converter station market is dominated by these global players due to their wide regional presence and are established brand names. The other benefits with these players are their technologically advanced products and expertise in the industry which is helping them to lead the market.