The “APAC HVDC transmission systems, by System Components (AC & DC Harmonic Filters, Converters, DC lines, Circuit Breakers, and Others), by Technology (LCC, VSC, and Others), by Development (Overhead, Underground, and Subsea), by Power Rating (Below 1,000 MWs, 1,001 to 2,000 MWs, and 2,001 MWs and above), and by Country (China, India, ASEAN, Australia & New Zealand, and Rest of APEC) - Global Forecast to 2027”,
is expected to be valued at US$ 4169.6 Mn by 2027, witnessing a CAGR of 10.1% during the forecast period (2019-2027), as highlighted in a report published by .)
High voltage direct current (HVDC) power system utilizes direct current for transmission of electricity over long-distances. HVDC systems are particularly used for long-range transmission as they are cost-effective and lead less losses as compared to AC transmission. In HVDC substation or converter, substation rectifier and inverters are installed at both ends. In this, the rectifier terminal changes the AC to DC, while inverter terminal converts DC to AC. The system with two converter stations are often referred as ‘two terminal DC system’ or a ‘point-to-point system’. The corona loss is less as compared to HVAC transmission system of similar power. Moreover, there is no generation or absorption of reactive power, so there is no requirement for reactive power compensation.
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).
Growing need to minimize blackouts occurring due to transmission faults is expected to drive growth of the APAC HVDC transmission systems market during the forecast period.
Minor faults in interconnected grids can create a major impact on the entire transmission system. If one link trips due to voltage overload, it can induce strain on neighboring links and can lead to disconnection and blackouts. In such cases, HVDC transmission systems are installed with incorporation of converters that are designed for high tolerance level to prevent communication failure. Furthermore, if there is any fault present during transmission of electricity between two AC grids, HVDC links would not contribute to faults. However, it will minimize them. For instance, ABB Ltd. offers HVDC converters used in HVDC Light that are typically designed to withstand high voltage drops and faults.
Growing energy consumption, development of power infrastructure, and increasing energy demand are expected to offer excellent growth opportunities.
Demand electricity has increased significantly and so has its consumption. Moreover, emerging economies in the region are actively investing in renewable energy and implementation of latest UHVDC technology for power transmission. For instance, two of the longest and most powerful HVDC power transmission highways are being installed in China with nominal rating of 3,000 MW. Therefore, these factors are expected to pose lucrative growth opportunities in the near future.
Growing demand for distributed and remote power plants is expected to restrain growth of the APAC HVDC transmission system market over the forecast period.
The rural areas such as villages where electricity is provided do not require large transmission and distribution infrastructure. Although there is high demand for electricity in remote place, large transmission and distribution infrastructure such as HVDC is not required. This, in turn, is expected to restrain the APAC HVDC transmission system market growth in the near future.
- Rapid adoption of UHVDC technology in emerging economies such as China
Utility companies in China are extensively investing in installation of transmission links with high transmission capacity, in order to meet the increasing demand for the energy. Moreover, transformers and converters based on UHVDC are being extensively used, so as to enhance the efficiency and expand the capacity of the gird.
- Connecting DC lines to AC grids is common trend in Japan
The DC lines market in Japan was valued at US$ 355.9 million in 2018 and is expected to grow at a CAGR of 9.4% during the forecast period (2019-2027)
Installation of DC lines and advanced converters for connecting AC grids is increasing in Japan. Key players such as Toshiba Corporation and Hitachi Ltd. are expected to be major contributors in the region.
- Use of subsea and underground cables has increased, in order to reduce power losses
Utility companies are dependent on transmitting power from offshore wind farms. This is owing to growing demand for power. Thus, subsea cables and underground cables have gained more traction than overhead cables for transmission of power from offshore wind farms. Furthermore, underground and subsea cables offer HVDC transmission over shorter distance with low loss of power.
- Deployment of transmission lines with higher capacity is another major trend in the market
As demand for power is increasing, various companies and government organizations are deploying transmission lines with higher capacity. Transmission lines with high capacity of over 2,000 MWs are perfect for this purpose.
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 players in the market are adopting various strategies, in order gain competitive edge in the market. For instance, in November 2018, Mitsubishi Electric Corporation is planning to build a high-voltage direct current (HVDC) verification facility in Amagasaki, Japan. The new facility new verification facility will support the company's entry into the global market for voltage-source converters systems (VSCs).
- In August 2019, General Electric Co.’s Grid Solutions business received US$ 100 million contract from KAPES to complete Korea Electric Power Corporation’s (KEPCO) second and final phase of the Buk Dangjin-Godeok high-voltage direct current (HVDC) transmission link.
- In 2016, ABB Ltd. received an order worth over US$ 300 million for supplying advanced converter transformers, DC circuit breakers, HVDC converter valves, and other components such as tap chargers and bushings for establishing a link between Xinjiang region in the Northwest, and Anhui province in Eastern China.
- By Country
- Australia & New Zealand
- Rest of Asia Pacific
- By System Components
- AC & DC Harmonic Filters
- DC lines
- Circuit Breakers
- By Technology
- By Development
- By Power Rating
- Below 1,000 MWs
- 1,001 to 2,000 MWs
- 2,001 MWs and above