The global HVDC power supply market is expected to reach USD 3.56 billion by 2022. High energy efficiency, long distance transmission, and low price are a few benefits expected to contribute substantially towards industry growth over the forecast period. The improved design flexibility and decrease in the installation cost are also anticipated to spur demand.
The surge in demand for grid expansion results in an increase in the complexity of electric systems owing to a rise in the number of feed-in nodes. This further magnifies the probability of partial and total blackouts, which occurs when supply flow exceeds the design criteria. HVDC has the ability to automatically reverse the output polarity with the flip of a remote or switch control signal, avoiding blackouts in these systems, which are also anticipated to fuel product demand.
China HVDC power supply market by application, 2012 - 2022 (USD Million)
The complexity of designing and operating multi-terminal HVDC system may pose a challenge to growth. In addition, the growing need for the installation of expensive filter-compensation units to overcome the issues that arise from reactive power consumption may further hamper growth over the next seven years.
The voltage segment comprises less than 1,000 V, 1,000-4,000 V and more than 4,000 V categories. The more than 4,000 V category accounted for over 45% of the overall revenue in 2014, which is estimated to increase over the next seven years. This may be largely attributed to the increasing demand for offshore installations such as oil & gas platforms coupled with growing telecommunication infrastructure, which makes use of this voltage range to efficiently deliver adequate supply to desired locations.
The 1,000-4,000V category accounted for over 30% of the revenue share in 2014. This can be ascribed to benefits such as lower cost in comparison with the more than 4,000V products along with the ability to transmit power over medium-to-long distances. The less than 1,000V category is estimated to witness a growth exceeding a CAGR of 7.0% over the next seven years.
The market is segmented into telecommunication, medical, industrial, and oil & gas industry. The industrial sector accounted for more than 40% of the overall share in 2014, which may be attributed to increasing demand for HVDC supply for equipment manufacturing and other related processes. Rapid industrialization, particularly in emerging countries including India and China coupled with government initiatives to establish high voltage DC converters stations may spur demand across the industrial segment.
The telecommunication segment is expected to grow at CAGR over 5.0% from 2015 to 2022, owing to the benefits offered by HVDC supply, including reliable and long-distance transmission with minimum loss. The rapid infrastructure development due to widespread usage of the internet paired with increasing demand for high-speed and large-scale broadband services may escalate the segment growth.
Europe was the largest market and accounted for over 30% of global revenue in 2014. The region is expected to witness healthy growth owing to the increasing government regulations emphasizing the use of renewable energy resources and energy savings. North America is anticipated to experience a considerable growth over the next seven years, which may be ascribed to new policies in the U.S. to achieve efficient energy supply in the light of growing electricity demand.
Asia Pacific accounted for over 20% of the overall revenue in 2014. The region is expected to witness healthy growth owing to the need to transmit bulk energy with minimum conversion points. The rise in number of manufacturing facilities along with expanding telecommunication infrastructure development may catapult regional growth.
Manufacturers emphasize on vertical integration to minimize lead times, facilitate prompt product delivery, control costs, and ensure quality standards. Companies operating in this industry adopt geographic expansion and product development strategies to expand and strengthen their business.
Notable companies in the market include ABB, Alstom, Excelitas Technologies, General Electric, Glassman Europe Ltd., Hi-Tek, Matsusada, Siemens, Spellman UltraVolt, Inc., Toshiba Corporation, and XP Power (EMCO). Key manufacturers emphasize on developing application-specific configurations that are not supported by the standard product line offered by other players in the market. Companies also emphasize on deploying a customer service department that assists on a modified standard, which can be trimmed, re-ranged, and equipped with auxiliary outputs or certified for extended temperature operation.
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