Market Overview
| Study Period | 2021 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2021 - 2023 |
| Growth Rate | 17.79% CAGR |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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North America High-Voltage Direct Current (HVDC) Transmission Systems Market Analysis by Mordor Intelligence
The North America High-Voltage Direct Current (HVDC) Transmission Systems Market is expected to register a CAGR of 17.79% during the forecast period.
The market was severely impacted by the Covid-19 pandemic, as global energy demand plummeted. However, the market has since rebounded strongly and is expected to grow steadily during the forecast period.
- Over the long term, growing investments in renewable energy transmission systems, primarily offshore wind, is expected to drive the market during the forecast period.
- On the other hand, high installation costs and losses for smaller transmission distances are likely to hinder the market growth.
- The growth of offshore wind power technology and the offshore oil and gas sector will likely create immense opportunities for the market studied.
North America High-Voltage Direct Current (HVDC) Transmission Systems Market Trends and Insights
Submarine HVDC Transmission Systems to be the fastest-growing segment
- Submarine electricity transmission is gaining importance because of the increasing focus on power trading between countries. The HVDC submarine power transmission system is crucial for developing future power transmission networks.
- It is the only solution for transferring high power across long subsea distances. For these reasons, HVDC lines are preferred for interconnecting offshore wind plants worldwide. In the HVDC transmission system, the submarine power cables can be less costly, especially on a long link where the cable's capacitance requires too much additional charging current. Due to this, submarine HVDC systems are especially preferred for transmitting power from utility-scale offshore wind projects.
- The Offshore wind sector is beginning to take off in North America, and the segment is expected to grow massively during the forecast period. Several large-scale wind farms are under development in the region, which is expected to significantly boost the demand for submarine HVDC services during the forecast period.
- According to the United States Department of Energy, By May 2022, the U.S. offshore wind energy project development and operational pipeline grew to a potential generating capacity of 40,083 megawatts (MW). The 40,083 MW in the U.S. offshore wind energy pipeline has witnessed a 13.5% growth since 2021.
- The U.S. offshore wind energy market continues to be driven by state-level offshore wind energy procurement activities and policies. Collectively, offshore wind energy policies in eight states call for deploying at least 39,322 MW of offshore wind energy capacity by 2040.
- Hence, the increasing offshore activities are expected to drive the submarine HVDC transmission systems market during the forecast period.
The United States to Dominate the Market
- The market for HVDC in the United States is likely to grow at a significant rate during the forecast period. The transmission and distribution (T&D) loss in the United States was estimated to be around 5% (averaged over the period 2017-2021, lower than global T&D loss, and is among the lowest in the world.
- In 2021, offshore oil and natural gas production in the Federal Gulf of Mexico accounted for about 15% of total U.S. crude oil production and about 2% of total U.S. dry natural gas production.
- In order to maintain offshore production, the exploration and development activity is moving toward deeper waters, where oil and gas reserves have not been exploited. As deep-sea oil exploration and production requires the construction of temporary or permanent offshore installations, which need massive electricity supply to operate, which is usually done through HVDC connections for long distance transmission, typical in the case of deep-sea exploration. This trend is expected to drive the demand for HVDC transmission services in the country to power offshore installations.
- Additionally, the growth of the offshore wind sector is another factor driving the market during the forecast period. The United States government has been promoting the deployment of the HVDC lines to transfer large amounts of power over long distances. They are now being proposed to move electricity generated from wind in high-quality wind resource regions to other parts of the country.
- As of May 31, 2022, 24 power purchase agreements for offshore wind energy procurement were signed in the United States, adding up to 17,597 MW in offshore wind energy contracts.
- Therefore, the rising offshore oil and gas development and an increasing number of offshore wind farms in the country is expected to require additional HVDC transmission lines to facilitate large GW-scale electricity transmission lines to transmit power from massive offshore wind farms, which is expected to drive the demand for HVDC transmission systems in the country.
- Therefore, with the development of renewable, and especially the offshore wind in the United States, the market is likely to witness growth over the forecast period.
Competitive Landscape
The market for high voltage direct current (HVDC) transmission systems in North America is fragmented, with the presence of numerous players, including ABB Ltd., Siemens AG, Toshiba Corporation, General Electric Company, and Alstom SA,among others
North America High-Voltage Direct Current (HVDC) Transmission Systems Industry Leaders
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ABB Ltd.
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Siemens AG
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General Electric Company
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Toshiba Corporation
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Alstom SA
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2022: TransWest Express LLC selected Siemens Energy Inc. to supply the high-voltage direct current transmission technology for the TransWest Express Transmission Project. Under the contract, Siemens Energy will engineer, procure, and construct the HVDC converter stations, ancillary equipment, and systems. The project is a 732-mile high-voltage interregional transmission system with HVDC and HVAC segments that will connect to the existing grid in Wyoming and Utah and directly to the ISO Controlled Grid in southern Nevada.
North America High-Voltage Direct Current (HVDC) Transmission Systems Market Report Scope
A direct high-voltage current (HVDC) electric power transmission system (also called a power superhighway or an electrical superhighway) uses direct current (DC) for electric power transmission. The North America High Voltage Direct Current (HVDC) Transmission Systems Market is segmented by Transmission Type, Component, and Geography. The market is segmented by Transmission type: Submarine HVDC Transmission Systems, HVDC Overhead Transmission Systems, and HVDC Underground Transmission Systems. Component segments the market into Converter Stations and Transmission Mediums (Cables). The report offers the market size and forecasts for non-stick coatings in revenue (USD Million) for all the above segments.
Transmission Type
| Submarine HVDC Transmission System |
| HVDC Overhead Transmission System |
| HVDC Underground Transmission System |
Component
| Converter Stations |
| Transmission Medium (Cables) |
Geography
| United States |
| Canada |
| Mexico |
| Transmission Type | Submarine HVDC Transmission System |
| HVDC Overhead Transmission System | |
| HVDC Underground Transmission System | |
| Component | Converter Stations |
| Transmission Medium (Cables) | |
| Geography | United States |
| Canada | |
| Mexico |
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Key Questions Answered in the Report
What is the current North America High-Voltage Direct Current (HVDC) Transmission Systems Market size?
The North America High-Voltage Direct Current (HVDC) Transmission Systems Market is projected to register a CAGR of 17.79% during the forecast period (2025-2030)
Who are the key players in North America High-Voltage Direct Current (HVDC) Transmission Systems Market?
ABB Ltd., Siemens AG, General Electric Company, Toshiba Corporation and Alstom SA are the major companies operating in the North America High-Voltage Direct Current (HVDC) Transmission Systems Market.
What years does this North America High-Voltage Direct Current (HVDC) Transmission Systems Market cover?
The report covers the North America High-Voltage Direct Current (HVDC) Transmission Systems Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the North America High-Voltage Direct Current (HVDC) Transmission Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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