About Power Generation
Power is generated, transmitted and distributed as AC, and most of the time, power is also consumed as AC. However, when transmitting power over long distances such as from an offshore wind farm, an AC line would be uneconomical due to the high power losses that such transmission involves. In such situations, DC power is used, and the conversion of AC power to DC for transmission is achieved using a converter station.
Technavio’s analysts forecast the global HVDC convertor stations market to grow at a CAGR of 24.10% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global HVDC convertor stations market for 2016-2020. To calculate the market size, the report considers the revenue generated from the demand for the HVDC converter stations market from different end-users in all the regions.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global HVDC Convertor Stations Market 2016-2020
Technavio recognizes the following companies as the key players in the global HVDC convertor stations market: ABB, BHEL, GE-Alstom Grid, and Hitachi.
Other Prominent Vendors in the market are: Areva SA, Hitachi, Toshiba, and Mitsubishi.
Commenting on the report, an analyst from Technavio’s team said: “Increasing demand for power generation will be a key trend for market growth. Power demand has increased exponentially across the globe. Further growth in the population and the global economy is expected to drive this trend in the future as well. According to the UN, world population is projected to increase from 6.7 billion in 2011 to 8.7 billion by 2035. Also, according to the IEA, world electricity demand is expected to increase from 19,004 TWh in 2011 to 34,454 TWh by 2035. The population growth and increasing developmental activities would require substantial amounts of power to sustain the pace of economic growth.”
According to the report, surge in global demand for electricity will be a key driver for market growth. The global HVDC converter stations market is expected to show steady growth shortly with the global demand for electricity expected to rise considerably. Growing electricity demand in countries in APAC and the need to transmit power over long distances with fewer transmission losses has increased. The share of clean and emission-free power from hydro, wind, solar, and other renewable energy sources in the global energy mix is expected to rise. Since the power plants producing these types of clean energy are expected to be situated away from major urban areas, HVDC transmission through the converter stations will transmit this clean electricity generated from renewable power plants to urban areas with minimum transmission losses.
Further, the report states that lack of investment in grid infrastructure by power utilities will be a challenge for the market. Many power utilities across the globe upgrade their power systems only when they are damaged. This is the outcome of the near-term cost evasion strategy that is adopted by utilities, resulting in a reluctance to adopt smart grid technologies such as HVDC converters. This, in turn, will hinder the growth of the global HVDC converter stations market as HVDC converter technology is an integral part of the smart grid solution. For the deployment of HVDC converter technology, it is important for power utilities to upgrade the power grids and substations with advanced grid technologies. But the power utilities are unwilling to upgrade their power grids as the cost involved in such upgrading activities is high.
ABB, BHEL, GE-Alstom Grid, Hitachi, Areva SA, Hitachi, Toshiba, Mitsubishi.