Market Trends of HVDC Capacitor Industry
This section covers the major market trends shaping the HVDC Capacitor Market according to our research experts:
Energy & Power Sector Holds the Major Market Share
- HVDC capacitor suffices the highest electrical and mechanical requirements in the energy and power sector, including the generation, distribution, and transmission of energy that caters to diverse industries. They are used for the most diversified applications and can be operated under the most stringent environmental conditions. High voltage power capacitors enhance the transmission capacity, network stability, and contribute to a significant reduction in carbon dioxide emissions.
- The electricity generation process undergoes various transformations due to the limited presence of primary energy, which is directly convertible into electricity. This requires a high amount of energy that ascends the consumption, thereby increasing the need for HVDC capacitors. Such technological limitations in the energy and power sector have allowed the HVDC capacitors to remain relevant and pushed for the demand.
- The demand for electricity in the non-residential sector has been rising over the last decade, owing to new entrants in the manufacturing industry and increasing production activity from various industries, including chemical, electronics, and automotive, which is expected to fuel the market.
- Also, as more and more countries are planning to ratchet up climate ambitions in 2020, decarbonizing the power sector will play a vital role. According to the survey conducted by Johns Hopkins University and the University of Maryland on 142 countries’ transmission and distribution infrastructures, it was reported that approximately 500 million metric tons of carbon dioxide could be cut by improving global grid efficiencies. Inefficient global power transmission and distribution infrastructure require additional electricity generation to compensate for losses, further increasing the cost.
- Increasing power generation through the renewable source of energy is expected to witness exponential growth, owing to increasing awareness regarding the environmental impact of fossil fuels, thereby, further propelling the growth of the market.
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Americas to Hold Significant Market Share
- The Americas region mainly consists of North America and Latin America. The region is one of the major adopters and investors in the studied market, owing to their high rate of adoption of HVDC transmission systems. For instance, the residential, commercial, and industrial consumers in the United States continue to drive the adoption of HVDC capacitors, to enhance the transmission capacity and network stability.
- Further, the region is investing significantly in the HVDC transmission lines in recent years, which have attracted foreign vendors and has also boosted the local manufacturer's growth. Local companies, like GE, have acquired one of the top three HVDC solutions providers in the past to strengthen its position in the global HVDC systems market
- According to the US-based National Renewable Energy Laboratory (NREL) study, the cost-optimal amount of solar installations by 2038 would change if long-distance HVDC transmission was added across the United States. The Direct Connect Development Company's Midwestern project, in collaboration with Canadian Pacific Railway, is utilizing HVDC converter technology, by siemens, to use the railroad right-of-way
- Also, HVDC is emerging as a preferred transmission technology for long-distance bulk power supply in the Latin America region. Brazil houses three of the world's longest power transmission lines
- Additionally, The rising trend of real-time monitoring of energy consumption, coupled with high automation level in smart factories across the region, have permitted real-time monitoring of energy-consuming equipment, including HVAC, which is anticipated to aid the market growth over the forecast period.
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