HVDC Converter Station Market Trends
Growth Drivers
- Rising Installed Renewable Energy Capacity – The world has seen a significant increase in renewable energy generation capacity in recent years. As of the end of 2020, renewable energy had a total installed capacity of 2,799 GW, which represents an increase of 45% compared to 2015. HVDC converter stations play a crucial role in the transmission of renewable energy, particularly over long distances. HVDC converter stations are used to transmit power from offshore wind farms to onshore grids. Since offshore wind farms are typically located far from shore, HVDC transmission is often more cost-effective and efficient than using traditional AC transmission systems.
- Ongoing Urbanization around the world - Rising income levels and increasing demand for electricity nationwide contribute to increased demand for HVDC transmission. In today's world, 56% of his population live in urban areas, which is driving the demand for electricity across the globe. The urban population is expected to double by 2050, with almost 7 in 10 people living in cities.
- Rise in Research Spending – Growth in the global market during the forecast period can be further attributed to increased investment in research and development activities to continuously find more viable solutions for electricity transmission. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in the year 2019.
- Rapidly Growing Chemical Industry – For instance, chemical demand is expected to increase by 8% each year by 2025. By 2025, India's chemical industry will contribute USD 290 billion to its gross domestic product.
- Spiking Electricity Consumption – The world consumed nearly 23,500 TWh (terawatt-hours) of electricity in the year 2020, according to the International Energy Agency (IEA) and it is anticipated to grow more over the forecast period.
Challenges
- High Cost of Installing HVDC Terminal Stations – The cost of installing HVDC terminal stations can be high owing to several factors, including equipment costs, civil works, and others, which is estimated to hamper the market growth.
- Dearth of Skilled Professionals
- Presence of Product Alternative
HVDC Converter Station Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
8.1% |
|
Base Year Market Size (2024) |
USD 11.72 billion |
|
Forecast Year Market Size (2037) |
USD 32.16 billion |
|
Regional Scope |
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