Europe High-Voltage Direct Current (HVDC) Transmission Systems Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 8.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe High-Voltage Direct Current (HVDC) Transmission Systems Market Analysis
The Europe high-voltage direct current (HVDC) transmission systems market is likely to register a CAGR of more than 8% during the forecast period, 2022-2027. The COVID-19 pandemic disrupted the market temporarily by causing a shortage of equipment due to the closure of manufacturing facilities. The market saw a decline in investments due to lesser discretionary spending. Factors such as the growth of utility-scale renewable energy plants and the shift away from fossil fuels are likely to drive the market as the HVDC transmission system helps to transmit electricity from remote renewable power plants over a long distance without much energy loss than the HVAC system. However, 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, thus restraining the market growth during the forecast period.
- The submarine HVDC transmission system type is expected to hold the largest share in the market, owing to the increasing development of submarine power transmission systems across the region.
- The offshore region of Europe has significant wind potential, which is evident from the already installed capacity. More offshore wind farms are expected to come up in the future to lower emissions, which is expected to provide immense opportunities to the market players involved in the HVDC transmission systems market.
- The United Kingdom is expected to grow significantly in the European HVDC transmission systems market during the forecast period.
Europe High-Voltage Direct Current (HVDC) Transmission Systems Market Trends
This section covers the major market trends shaping the Europe HVDC Transmission Systems Market according to our research experts:
Submarine HVDC Transmission System Type to Dominate the Market
- The submarine transmission of electricity is gaining importance on account of the increasing focus on renewable energy such as wind and power trading between the countries in the European region.
- The submarine direct current transmission requires a converter station at each end to make the DC interact with the AC grid network. In an HVDC transmission system, the submarine power cables have a much more complicated structure compared to the overhead transmission lines, which are only composed of conductors.
- These submarine HVDC cables can be used to connect offshore installations, such as production platforms in the oil and gas sector or substation platforms in the offshore wind sector, to the region's mainland grids.
- Moreover, in November 2021, Nexans and Terna announced a major contract of more than EUR 650 million for the first submarine HVDC transmission system between Sardinia and Sicily. Nexans will provide 500 km of 500kV HVDC mass impregnated subsea cable link for the project manufactured at its Halden plant in Norway.
- Also, as of September 2021, Greece and Egypt were in talks about the possibility of laying a 2 GW submarine HVDC transmission system on the bottom of the Mediterranean Sea and linking their respective electricity grids. Greece is also working with Italy on a 1 GW submarine cable link below the Ionian Sea.
- Thus, taking account of the above-mentioned points, the submarine HVDC transmission system type is expected to dominate the HVDC transmission systems market in Europe during the forecast period.
United Kingdom to Witness Significant Growth
- The United Kingdom's power generation mix is expected to change considerably in favor of renewables over the next few years, with the country increasingly moving toward a low-carbon economy. The country also has several policies in place, such as the national renewable energy action plans that support the transition to a low-carbon energy system.
- With the increasing integration of renewable energy sources and the growing need to enhance the security of supply, HVDC grid technology is expected to be evolved in the country. Moreover, investments in the offshore wind industry, solar photovoltaic (PV), grid expansion, and energy storage projects require smart energy infrastructure to balance the fluctuating supply of renewable sources.
- In March 2022, Prysmian was awarded a contract worth GBP 990 million for the turnkey design, manufacturing, installation, testing, and commissioning of the 725km, 1400MW submarine HVDC transmission system, which will directly link the German and UK electricity grids.
- Also, in May 2021, Hecate Independent Power announced to build a GBP 200 million submarine HVDC cable factory in the United Kingdom to support its GBP 21 billion offshore wind power project. The HIP project comes in offshore Iceland but will be connected to the United Kingdom by long, high-capacity, HVDC submarine cable systems.
- Thus, owing to the above-mentioned points, the United Kingdom is likely to experience significant growth during the forecast period.
Europe High-Voltage Direct Current (HVDC) Transmission Systems Industry Overview
The European high-voltage direct current (HVDC) transmission systems market is partially fragmented. Some of the major players involved in the market include General Electric Company, Hitachi Energy Ltd, Eaton Corporation PLC, Siemens Energy AG, and Toshiba Corporation.
Europe High-Voltage Direct Current (HVDC) Transmission Systems Market Leaders
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General Electric Company
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Hitachi Energy Ltd.
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Siemens Energy AG
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Toshiba Corporation
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Eaton Corporation PLC
*Disclaimer: Major Players sorted in no particular order
Europe High-Voltage Direct Current (HVDC) Transmission Systems Market News
- In February 2022, McDermott International was awarded its largest-ever renewable energy contract from TenneT for the BorWin6 980 MW high-voltage direct current project. The project is for the design, manufacture, installation, and commissioning of an HVDC offshore converter platform located 118 miles offshore Germany on the North Sea Cluster 7 platform.
- In June 2021, PSE SA and Litgrid approved investments in a 700-MW interconnector project between Poland and Lithuania. The Harmony Link is a 330-km undersea cabling system. The next step in the project is to initiate tender procedures and find contractors for the HVDC cable and converter stations.
Europe High-Voltage Direct Current (HVDC) Transmission Systems Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2027
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Transmission Type
- 5.1.1 Submarine HVDC Transmission System
- 5.1.2 HVDC Ovehead Transmission System
- 5.1.3 HVDC Underground Transmission System
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5.2 Component
- 5.2.1 Converter Stations
- 5.2.2 Transmission Medium (Cables)
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5.3 Geography
- 5.3.1 United Kingdom
- 5.3.2 Germany
- 5.3.3 Italy
- 5.3.4 France
- 5.3.5 Netherlands
- 5.3.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 Hitachi Energy Ltd
- 6.3.2 Siemens Energy AG
- 6.3.3 General Electric Company
- 6.3.4 Toshiba Corporation
- 6.3.5 Mitsubishi Electric Corporation
- 6.3.6 Eaton Corporation PLC
- 6.3.7 Honeywell International Inc.
- 6.3.8 Endress+Hauser AG
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityEurope High-Voltage Direct Current (HVDC) Transmission Systems Industry Segmentation
The European high-voltage direct current (HVDC) transmission systems market report includes:
| Transmission Type | Submarine HVDC Transmission System |
| HVDC Ovehead Transmission System | |
| HVDC Underground Transmission System | |
| Component | Converter Stations |
| Transmission Medium (Cables) | |
| Geography | United Kingdom |
| Germany | |
| Italy | |
| France | |
| Netherlands | |
| Rest of Europe |
Europe High-Voltage Direct Current (HVDC) Transmission Systems Market Research FAQs
What is the current Europe High-Voltage Direct Current (HVDC) Transmission Systems Market size?
The Europe High-Voltage Direct Current (HVDC) Transmission Systems Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)
Who are the key players in Europe High-Voltage Direct Current (HVDC) Transmission Systems Market?
General Electric Company, Hitachi Energy Ltd., Siemens Energy AG, Toshiba Corporation and Eaton Corporation PLC are the major companies operating in the Europe High-Voltage Direct Current (HVDC) Transmission Systems Market.
What years does this Europe High-Voltage Direct Current (HVDC) Transmission Systems Market cover?
The report covers the Europe High-Voltage Direct Current (HVDC) Transmission Systems Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe High-Voltage Direct Current (HVDC) Transmission Systems Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe HVDC Industry Report
Statistics for the 2024 Europe HVDC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe HVDC analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
