APAC HVDC Transmission System Market to expand at a CAGR of 10.1% through 2016-2026

20/apr/2017 12.48.38 Pradnya Kulkarni Contatta l'autore

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The Overhead segment by deployment is projected to remain dominant in the APAC HVDC transmission system market over the forecast period

The Overhead segment by deployment type is forecast to create incremental $ opportunity of more than US$ 800 Mn between 2016 and 2026. By the end of 2026, the Overhead segment is expected to reach a market value of more than US$ 1,000 Mn, increasing at a CAGR of 9.5% during the period of assessment (2016 – 2026). In terms of value, the Overhead segment is projected to be the most attractive segment in the APAC HVDC transmission system market during the forecast period. However, the Subsea segment by deployment type is anticipated to register high Y-o-Y growth rates throughout the forecast period. In terms of value, the Subsea segment is expected to expand at a CAGR of 11.8% during the forecast period. In 2017, the Subsea segment is estimated to reach more than US$ 300 Mn in terms of value. The Underground segment by deployment type is forecast to create incremental $ opportunity of more than US$ 500 Mn between 2016 and 2026. By the end of 2026, the Combination segment by deployment type is expected to reach a value of more than US$ 500 Mn, increasing at a CAGR of 8.9% during the estimated period. This segment is expected to witness steady growth in the APAC HVDC transmission system market over the predicted period.

Increasing power supply in remote areas likely to boost the deployment of HVDC transmission systems in the APAC region

Deployment of HVDC transmission systems is beneficial for supplying power in remote areas. The deployment of HVDC transmission systems is increasingly becoming popular owing to the fact that undersea HVDC transmission lines can be deployed for connecting remote areas that do not have a power plant. As governments of more countries make efforts to connect underdeveloped areas such as villages to the grid, demand for the deployment of HVDC transmission systems is expected to increase during the predicted period.

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For transmission of electricity over longer distances, HVDC transmission systems are preferred over HVAC transmission systems, owing to the fact that underground AC transmission lines – that stretch over long distances – are not capable of delivering a significant amount of electricity as the electricity gets absorbed by cables. As connecting offshore wind farms to the grid requires transmission over long distances, HVDC transmission systems are ideal. The deployment of HVDC transmission systems is more cost-effective as these systems require fewer transmission lines than HVAC systems, which reduces spending as well as land required for installing transmission systems. Therefore, many utility companies in the APAC region are switching to HVDC transmission systems, thereby contributing to the growth of the Deployment segment of the APAC HVDC transmission system market. Further, with the governments of several countries across the APAC region increasing their spending to build similar connections, the deployment of HVDC transmission systems is expected to witness significant growth over the next few years.

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apac hvdc transmission systems market

The Subsea segment by deployment type is expected to exhibit relatively high CAGR in the Japan HVDC transmission system market over the forecast period

In terms of value, the Subsea segment by deployment type is projected to be the most attractive segment in the Japan HVDC transmission system market during the forecast period. This segment is anticipated to exhibit a relatively high CAGR in the Japan HVDC transmission system market during the period 2016 – 2026. In terms of value, the Overhead segment by deployment type is forecast to be the most attractive segment in the APEJ HVDC transmission system market during the period of assessment.

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