APAC HVDC Transmission Systems Market
Definition
High voltage direct current (HVDC) transmission of electricity is a form of DC current over long distance through overhead transmission line or submarine cables. HVDC transmission is preferred over HVAC transmission, as it is more cost-effective considering very long distance, losses, and other factors. HVDC is often referred as Power superhighway or Electrical superhighway. Moreover, HVDC has the ability to interconnect networks with fluctuating frequencies and features. HVDC system uses line commutated converter (LCC) and voltage source converter (VSC), in which LCC is a very economical technology based on Thyristor power semiconductors. On the contrary, VSC is relatively new technology in the market and is based on power transistors.
The APAC HVDC transmission systems market is estimated to account for US$ 1,767.8 Mn in 2018 and is projected to exhibit a CAGR of 10.1% during the forecast period (2019–2027).
Market Drivers
High voltage direct current transmission system leads to lesser transmission losses and are capable of transmitting more amount of energy through the system. Furthermore, HVDC is cost-efficient as it needs fewer transmission lines than HVAC systems, eventually reducing expenditure and land required for installing the system. Therefore, numerous utility companies are shifting to HVDC transmission systems, which in turn, is expected to propel the market growth in the near future.
Many companies around the world are focused on environment-friendly products, in order to enhance their market presence. This has led to shift towards HVDC technology, enabling efficient transmission and optimum usage of electricity. Moreover, it can be used an alternative when additional power plants are required and is beneficial in reducing carbon footprint. For instance, in April 2011, China Southern Power Grid Company entered into contract with Siemens AG for transmitting eco-friendly, hydro-electric power to major cities of Guangdong, China.
China dominated the APAC HVDC transmission systems market in 2019, accounting for 36.7% share in terms of value, followed by Japan and India, respectively
Source: Coherent Market Insights Analysis, 2019
Market Restraints
HVDC transmission system requires installation of various components including smoothing reactors, converters, harmonic filter, etc. This is done in order to absorb or reduce harmonics that are produced during transmission process. For instance, the pie-chart below represents the costs involved in designing, engineering and installation for HVDC transmission systems in 2015, out of which valves, converters and AC filters account fort 19%, 15% and 11% respectively.
HVDC is designed for different regions wherein it should comply specific region’s regulations and requirement. Such regions require specially designed HVDC transmission system where lack of skilled engineers is a major restraining factor. Moreover, its maintenance and monitoring requires skilled personnel. Appointing skilled and qualified engineers require hefty investment, which in turn, is expected to hinder the market growth over the forecast period.
Market Opportunities (originally not mentioned in qualitative analysis document)
Electrification in rural parts of various emerging economies has increased in the recent past. Moreover, there is increasing demand for reliable power supply with due to rapid urbanization and proactive initiative taken by governments. For instance, in 2015, the Government of India launched ‘Deen Dayal Upadhyaya Gram Jyoti Yojana’ to provide continuous power supply to rural parts of India.
Smart grid is an electrical grid that facilitates reliable and efficient end-to-end intelligent two-way delivery system though incorporation of renewable energy source and smart transmission and distribution. Smart grid has emerged as cost-effective solution for long-distance power transmission due to its cutting-edge features. This, in turn, is expected offer conducive growth opportunities for market players.
Source: Coherent Market Insights Analysis, 2019
Market Trends
Insulated gate bipolar transistors (IGBT) are rampantly replacing Thyristor valves. This is owing to faster work rate and relatively less consumption of energy by IGBT as compared to conventional valves. Moreover, HVDC transmission with IGBT can be used to work on VSC technology with pulse width modulation technique.
Growing adoption of active harmonic filters is one of the emerging trends in the market, which aids in decreasing high levels of harmonics without the use of additional circuits as compared to traditional filters.
Based on the technology, LLC segment of Asia Pacific HVDC transmission system market was valued at US$ 484.29 million market in 2018 and it is expected to grow at a CAGR of 8.4% between 2019 and 2027
APAC HVDC Transmission Market, By Technology, Market Share (2018)
Source: Coherent Market Insights Analysis, 2019
Competitive Section
Key players operating in the APAC HVDC transmission system market are ABB Ltd., Siemens AG, Toshiba Corporation, General Electric Co., Prysmian SpA, Hitachi Ltd., TransGrid Solutions Inc., and ATCO Electric Ltd.
Key Developments
High voltage direct current (HVDC) transmission system transfers DC current over long distance through overhead transmission line or submarine cables. Moreover, HVDC transmission is preferred over HVAC transmission, as it is more cost-effective considering very long distance, losses, and other factors. HVDC is often referred as Power superhighway or Electrical superhighway. Moreover, HVDC has the ability to interconnect networks utilising HVDC transmission lines. HVDC system uses line commutated converter (LCC) and voltage source converter (VSC), in which LCC is a very economical technology and is based on Thyristor power semiconductors. On the contrary, VSC is relatively new technology in the market and is based on power transistors. Furthermore, HVDC transmission typically has a power rating of several hundreds of megawatts (MW) and many are in the 1,000 – 3,000 MW range. They use overhead lines, or underground/ undersea cables, or a combination of cables and lines.
Market Dynamics
One of the most significant advantages of the High voltage direct current (HVDC) is the efficiency of power transmission over long distances. Furthermore, High-voltage direct current (HVDC) transmission systems can able to low the electric losses and allows more efficient bulk power transfer over long distances which will be another driving factor for market growth. HVDC transmission is also very stable and easily controlled. For instance, in January 2017, ABB, a Swiss-Swedish multinational corporation collaborated with the Power Grid Corporation of India Limited (POWERGRID) to build longest 800 kilovolts (kV) ultra-high-voltage direct current (UHVDC) transmission system. The new transmission line will connect Raigarh city, Chhattisgarh to Pugalur in the southern state of Tamil Nadu.
However, HVDC transmission systems require high cost of components such as Transformer, Switchgears, and protection which will hamper the growth of the market.
Market Taxonomy
This report segments the APAC HVDC transmission systems market on the basis of system components, technology, development, and power rating. On the basis of system components, the APAC HVDC transmission systems market is segmented into o AC & DC harmonic filters, converters, DC lines, circuit breakers, and others. On the basis of technology, the market is segmented into LCC, VSC and others. On the basis of deployment, the market is segmented into overhead, underground, subsea, and combination. On the basis of power rating, the market is segmented into Below 1,000 MWs, 1,001 to 2,000 MWs, and 2,001 MWs and above.
Key features of the study:
Detailed Segmentation:
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