China HVDC Transmission Market
China's HVDC transmission market is the largest and most advanced in the world, reflecting the country's massive scale of power generation and consumption. As the world's leading producer and consumer of electricity, China has invested heavily in HVDC technology to efficiently transmit power across its vast territory. The country's ambitious renewable energy targets, coupled with the need to connect remote power generation sites to urban centers, have made HVDC transmission a cornerstone of its energy infrastructure.
China's energy landscape is characterized by a significant geographical mismatch between energy production and consumption centers. The western regions of China, rich in renewable resources like wind, solar, and hydroelectric power, are far from the densely populated eastern and southern regions where energy demand is highest. HVDC transmission lines enable the efficient transfer of electricity over these long distances with minimal losses, making them essential for China's energy strategy.
The Chinese government has been proactive in promoting the development of HVDC technology, with state-owned enterprises such as State Grid Corporation of China (SGCC) leading the charge. Numerous HVDC projects have been completed or are under construction, including ultra-high-voltage (UHV) HVDC lines that set new global benchmarks for capacity and efficiency. These projects not only enhance domestic power transmission but also facilitate cross-border electricity trade with neighboring countries.
China's dominance in the HVDC transmission market is also evident in its technological advancements and manufacturing capabilities. Chinese companies are at the forefront of HVDC research and development, exporting technology and expertise to other countries. As China continues to expand its renewable energy capacity and modernize its grid, the HVDC transmission market is expected to grow further, solidifying China's position as a global leader in this field.
The global HVDC transmission market will touch USD 22 billion at a 7.45% CAGR by 2032, states the latest Market Research Future (MRFR) report.
Drivers
Delivery of Bulk Power to Boost Market Growth
The capability of delivering bulk power in long-distance transmission sans much transmission losses will boost market growth over the forecast period.
Opportunities
Strict Government Regulations to offer Robust Opportunities
The stringent government regulations about electricity transmission will offer robust opportunities for the market over the forecast period.
Restraints
Short Circuits to act as Market Restraint
Short circuits in AC power system will act as market restraint over the forecast period. Besides, the complexity related to multi-terminal systems may also impede market growth.
Challenges
High Installation and Implementation Costs to act as Market Challenge
The high installation and implementation costs, standardization of HVDC systems, and low rate of adoption of HVDC technology may act as market challenge over the forecast period.
Market Segmentation
The global HVDC transmission market is bifurcated based on voltage rating, configuration, application, and technology.
By technology, the VSC segment will lead the market over the forecast period.
By application, the offshore segment will dominate the market in the forecast period.
By configuration, the HVDC transmission market is segmented into monopolar, bipolar, back-to-back, and multi terminal.
By voltage rating, the 640-800 kV will spearhead the market over the forecast period.
COVID-19 Analysis
Supply chain disruptions, economic situations, fluctuations in demand share, as well as long-term & immediate effect of the COVID-19 pandemic possessed a negative effect on the HVDC transmission market growth. The pandemic has slowed down economic activity and pushed the economy into a steep recession. With the roots being in China, the supply chains in the world are facing shutdown and unprecedented disruption. Besides, the initial setback, the industry is likely to return to normalcy during the forecast period and continue growing much beyond also.
Regional Analysis
APAC to Domineer HVDC Transmission Market
The APAC region will domineer the HVDC transmission market over the forecast period. The development of power infrastructure, China making huge investments in renewable energy, implementation of latest UHVDC technology for power transmission, growing population, increasing power consumption, aging infrastructure, increased urbanization, construction of smart cities in emerging economies, growing industrialization, and increasing establishment of power plants are fuelling the global HVDC transmission market growth in this region.
Key Players
Eminent industry players profiled in the global HVDC transmission market report include Seimens AG (Germany), Hitachi (Japan), ABB (Switzerland), Schneider Electric (France), Toshiba (Japan), Alstom (France), General Electric (U.S.), and DATC (U.S). Mitsubishi (Japan), NKT Holdings (Denmark), Adani (India), Nexans (France), Prysmian Group (Italy), and C-EPRI Electric Power Engineering Co., Ltd (China) are among others.
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