South and Central America High Voltage Direct Current (HVDC) Transmission Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The market is segmented by Transmission Type (Submarine HVDC Transmission System, HVDC Overhead Transmission System, and HVDC Underground Transmission System), Component (Converter Stations, and Transmission Medium (Cables)), and Geography (Brazil, Argentina, Chile, and Rest of South and Central America). The report offers the market size and demand forecasts for the South and Central America High Voltage Direct Current (HVDC) Transmission Systems Market in USD billion for all the above segments.

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South Central America HVDC Transmission Systems Market Size

South and Central America High-Voltage Direct Current (HVDC) Transmission Systems Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR > 25.00 %
Market Concentration Medium

Major Players

South and Central America High-Voltage Direct Current (HVDC) Transmission Systems Market Major Players

*Disclaimer: Major Players sorted in no particular order
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South Central America HVDC Transmission Systems Market Analysis

The South and Central America High-Voltage Direct Current (HVDC) transmission systems market is expected to grow at a CAGR of over 25% during the forecast period.

COVID-19 negatively impacted the market in 2020. Presently the market is likely to reach pre-pandemic levels.

  • Over the long term, factors such as low cost for long-distance transmission, controllability, and lower short circuit current are expected to drive the HVDC transmission systems in the South and Central America region.
  • On the other hand, with the increasing share of distributed and off-grid power generation, the need and, in turn, the demand for HVDC transmission systems is expected to be reduced, which is expected to restrain the market during the forecast period.
  • Nevertheless, the growing energy demand, as well as the growth of the renewable energy sector in the South America region, is expected to create significant opportunities for the HVDC transmission systems market soon.
  • Brazil is expected to dominate the South and Central America market, owing to the increased electricity demand in hydroelectric generation.

South Central America HVDC Transmission Systems Market Trends

This section covers the major market trends shaping the South Central America HVDC Transmission Systems Market according to our research experts:

HVDC Overhead Transmission System Segment to Dominate the Market

  • High-voltage overhead transmission is a popular means of power transmission in most of the world. DC decreases the cost of long-distance power transmission with overhead lines and cables.
  • The high-voltage overhead transmission is much less expensive to build and much quicker to repair than the underground transmission. However, it has seen decreasing application in densely-populated urban and commercial areas. Though the cost of an overhead HVDC transmission line is significantly less than its HVAC counterpart, the converter stations at each end of the transmission line are higher, increasing the total cost of the HVDC transmission systems.
  • HVDC overhead transmission systems have a simpler requirement for line tower construction. The overhead HVDC transmission infrastructure can transport more power than the HVAC system. The number of conductors required for a bipolar overhead line for a direct current system needs two insulated conductors instead of three, as in the case of the alternating current system.
  • In 2021, Brazil was the leading South American country in electricity generation, producing 656 terawatt-hours. The growing electricity generation will support the growth of the HVDC overhead transmission system across the region.
  • In December 2022, the government of Colombia announced that it plans to connect up to 3,000 MW of renewable energy capacity to the national grid via an overhead high-voltage direct current (HVDC) transmission line in the country's north. The government will provide USD 1 million to finance a studdefiningne the project's technical specifications.
  • Owing to the above points, HVDC overhead transmission system is expected to dominate the market during the forecast period.
South and Central America High-Voltage Direct Current (HVDC) Transmission Systems Market - Electricity Generation, in Terrawatt-hours, By countries, 2021

Brazil to Dominate the Market

  • The market for HVDC in Brazil is likely to grow at a significant rate during the forecast period. Brazil has the largest electricity market in South America. Hydroelectricity provides more than 70% of Brazil's generation. Its total power generation installed capacity is comparable to that of Italy and the United Kingdom, with a much more extensive transmission network.
  • Electricity generation in Brazil amounted to over 656 terawatt-hours in 2021, an increase of some 5.6 percent compared to the previous year. Brazil generates the third-highest amount of electricity in the Americas. Chile and the rest of the central and Southern American regions follow the region. Hydroelectricity is the major form of electricity, and the remaining electricity gets generated by fossil fuel and biomass.
  • According to the Brazilian Ministry of Mines and Energy, Brazil's energy sector received almost USD 85 billion in investments between 2019 and 2021, including electricity generation, power transmission, and new energy sources. Considering the previous year's investments, renewable energy generation is going to gain even more attention in the coming years and attract investments because of Brazil's powerful environmental agenda. To transmit the output of these upcoming power plants, there is a need to develop a new public HVDC electric power transmission system, which includes the construction, operation, and maintenance of facilities.
  • Going forward, according to the electricity clearing house (CCEE), Brazil's energy consumption in 2021 increased by 4.1% from the previous year to an average of 64,736 MW. A growth of 14% in 2021, at an average of 22,244 MW, was recorded in Brazil's free energy market, which is made up of the country's industry and large companies. In the regulated sector, composed of smaller consumers during the year, demand increased by 0.8%.
  • Due to the spatial mismatch between the additional consumption and generation potential and the expected future electricity demand, long-distance transmission capacity investments are required. Since HVDC technology incurs little loss, it is particularly suitable for different expansion scenarios in the coming years based mainly on hydropower or alternative renewable energy sources (mostly wind and solar).
  • In May 2022, GE Renewable Energy's Hydro and Grid Solutions jointly signed a contract for the technological upgrade of the 14GW Itaipu hydropower plant on the Paraná River between Brazil and Paraguay. Under this contract, GE supplies the medium voltage cubicles, energy management systems, and automation technology, as well as the delivery of protection, control, and supervision systems for the generating units, GIS substation, and the existing 500 kV transmission lines.
  • Therefore, based on the above-mentioned factors, Brazil is expected to positively impact the HVDC transmission systems market in the South & Central America region during the forecast period.
South and Central America HVDC Transmission Systems Market - Electricity Generation in TWh, Brazil, 2015-2021

South Central America HVDC Transmission Systems Industry Overview

The South and Central America HVDC transmission systems market needs to be more cohesive. Some major players (in particular order) include Siemens AG, Toshiba Corporation, General Electric Company, ABB Ltd, and Prysmian Group.

South Central America HVDC Transmission Systems Market Leaders

  1. Siemens AG

  2. Toshiba Corporation

  3. General Electric Company

  4. ABB Ltd

  5. Prysmian Group

*Disclaimer: Major Players sorted in no particular order

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South Central America HVDC Transmission Systems Market News

  • July 2022: Sterlite Power won two transmission projects in Brazil. The projects would be located in the states of Bahia and Sergipe. The transmission line is expected to be about 113 km long with a transmission capacity of 300 MVA, and the total investment is more than USD 4 million.
  •  December 2021: Iberdrola, through its subsidiary Neoenergia, was selected by the Agência Nacional de Energia Elétrica (ANEEL) to build a 500 kV substation in the state of Minas Gerais. The project comprises the 500,000-volt Estreito substation with three -300/+300 Mvar synchronous compensators.

South Central America HVDC Transmission Systems Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Transmission Type

      1. 5.1.1 Submarine HVDC Transmission System

      2. 5.1.2 HVDC Overhead Transmission System

      3. 5.1.3 HVDC Underground Transmission System

    2. 5.2 Component

      1. 5.2.1 Converter Stations

      2. 5.2.2 Transmission Medium (Cables)

    3. 5.3 Geography

      1. 5.3.1 Brazil

      2. 5.3.2 Argentina

      3. 5.3.3 Chile

      4. 5.3.4 Rest of South and Central America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 ABB Ltd

      2. 6.3.2 Siemens AG

      3. 6.3.3 General Electric Company

      4. 6.3.4 Toshiba Corporation

      5. 6.3.5 Mitsubishi Electric Corporation

      6. 6.3.6 Prysmian Group

      7. 6.3.7 Schneider Electric SE

      8. 6.3.8 Alstom SA

    4. *List Not Exhaustive

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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South Central America HVDC Transmission Systems Industry Segmentation

High Voltage Direct Current transmission, generally referred to as HVDC, is a bulk power transfer technology using direct current to transmit electricity.

The South and Central America High Voltage Direct Current (HVDC) Transmission Systems Market is segmented by transmission type, component, and geography. By transmission type, the market is segmented by submarine HVDC Transmission System, HVDC overhead transmission system, and HVDC underground Transmission System. By component type, the market is segmented by converter stations and transmission mediums. The report also covers the market size and forecasts for the South and Central America High Voltage Direct Current (HVDC) transmission systems market across the major countries. The market size and forecasts for each segment are based on USD billion.

Transmission Type
Submarine HVDC Transmission System
HVDC Overhead Transmission System
HVDC Underground Transmission System
Component
Converter Stations
Transmission Medium (Cables)
Geography
Brazil
Argentina
Chile
Rest of South and Central America
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South Central America HVDC Transmission Systems Market Research FAQs

The South and Central America High-Voltage Direct Current (HVDC) Transmission Systems Market is projected to register a CAGR of greater than 25% during the forecast period (2024-2029)

Siemens AG, Toshiba Corporation , General Electric Company , ABB Ltd and Prysmian Group are the major companies operating in the South and Central America High-Voltage Direct Current (HVDC) Transmission Systems Market.

The report covers the South and Central America High-Voltage Direct Current (HVDC) Transmission Systems Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the South and Central America High-Voltage Direct Current (HVDC) Transmission Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

South and Central America High-Voltage Direct Current (HVDC) Transmission Systems Industry Report

Statistics for the 2024 South and Central America High-Voltage Direct Current (HVDC) Transmission Systems market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South and Central America High-Voltage Direct Current (HVDC) Transmission Systems analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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South and Central America High Voltage Direct Current (HVDC) Transmission Systems Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)