The global market for HVDC converter stations is expected to grow at a CAGR of more than 24% between 2016 and 2020, spurred on by the recent rise in offshore wind installations, according to a report issued by market analysts at Technavio.
Power generated from offshore wind power plants needs to be transmitted over long distances, which results in substantial technical losses, Technavio says. As a result, the demand for HVDCs is increasing as it can carry power over long distances without significant transmission losses.
In 2015, the global HVDC converter stations market was dominated by EMEA with a market share of more than 36%. Also, Europe is the leading region in offshore wind power generation in the world, and since it requires power transmissions over long distances, the need for HDVC systems will increase. This market study estimates that EMEA will account for more than 40% of the total market shares and will dominate the market throughout the forecast period.
“Massive investments are being made in HVDC systems across the globe, with China leading the way. Several of these projects have been finalized or are in the process of finalization. Currently, a number of HVDC lines are present in South America, Australia, Russia, and Africa. According to our analysts, the majority of new construction will be carried out in Europe, North America, India, and especially China,” said Vishu Rai, Lead Analyst, Energy, Technavio Research.
During 2015, the bipolar configuration segment accounted for more than 40% of the total market shares and dominated this market. The segment will continue to dominate the market by accounting for more than 41% of the overall market revenue throughout the period.
The report predicts that there will be a significant increase in the number of converter stations shifting from monopolar configuration to bipolar configuration during the forecast period.
Technavio has identified ABB, BHEL, GE-Alstom Grid, and Siemens as the key vendors in the global HVDC converter stations market which have an extensive portfolio of HVDC system products, including transformers, capacitors, and cables and provide complete turnkey development.