According to a new study issued by Technavio, the global HVDC converter stations market will increase by 21% between 2018 and 2022. Revenue generation is expected to reach $8.4 billion.
A key market driver is the increase in offshore wind installations.
Energy generated from offshore wind farms, which are located far from the grid, need to be converted from high voltage to direct current to enable connection into the grid.
According to a senior analyst at Technavio for research on smart grid, “Between years 1991-2001 and 2002-1026, the average distance of a wind tower to be installed from the shore was 0.80 miles.
"At present, the average distance to the shore has increased to 11.22 miles. This means that power needs to be transmitted over long distances, which result in high technical losses. However, HVDC can carry power over long distances without significant power losses.”
An increase in focus on energy efficiency throughout the energy chain, from production to consumption, is one of the major trends within the HVDC converter stations market.
Utilities are investing in improving their energy efficiency and HVDC converter systems to reduce thermal losses due to electrical resistivity and conductivity of the transmitting material.
In 2014, the global energy transmission and distribution losses amounted to 8.2%, hence distribution system operators have been investing in technologies including Volt/VAr optimisation.
The LCC segment, which accounted for 95% of the market in 2017, is expected to continue dominating during the forecasted period.
Despite witnessing an anticipated 18% decrease, the market in the APAC region is expected to dominate through to 2022. In 2017, the region accounted for 87% of revenue generated.
However, the growth momentum of the market is expected to decelerate due to a decline in the year-over-year growth.