Western Europe is poised to witness a surge in demand for HVDC transmission systems, particularly in the United Kingdom and Germany. The region is expected to experience compound annual growth rate of 8.1% through 2033 for HVDC transmission system. By 2033, the industry valuation is anticipated to reach USD 4,824 million, up from the 2023 value of USD 2,464 million.
| Attributes | Details |
|---|---|
| Industry Size of Western Europe in 2023 | USD 2,464 million |
| Expected Industry Size of Western Europe by 2033 | USD 4,824 million |
| Forecasted CAGR between 2023 to 2033 | 8.1% |
HVDC transmission systems are increasingly employed for bulk power transmission, grid interconnection, and supplying power to urban areas. Environmental impact can be minimized through the use of biodegradable insulating fluids and energy conservation.
Research and development efforts remain centered on innovative HVDC technology, with a focus on cost reduction, voltage increase, and capacity enhancement.
Renewable energy sources and the growing demand for enhanced supply security are propelling the adoption of HVDC grid technology in the country. Offshore wind, solar photovoltaics, and grid expansion necessitate a smart energy infrastructure to balance their fluctuating supply.
Key Insights that Boost the Sales of HVDC Transmission System in Western Europe
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Technology such as VSC plays a crucial role in enhancing the performance and capabilities of HVDC systems. Voltage and frequency can be precisely controlled with VSC-based HVDC systems, providing greater flexibility and grid stability.
Given the inherent variability of renewable energy sources, this capability is essential for their seamless integration. Hence, the segment is expected to hold an industry share of 61.6% in 2023.
| Western Europe HVDC Transmission Systems by Technology | Voltage Source Converters (VSC) Technology |
|---|---|
| Expected Revenue Share in 2023 | 61.6% |
Grid stability is significantly fortified by VSCs, especially when disturbances or fluctuations in power supply occur. Maintaining grid stability is facilitated by VSCs, which offer rapid reactive power response. In comparison to AC transmission, HVDC transmission generally experiences fewer electrical interferences. This efficiency is further augmented by VSC technology.
Wind and solar energy can be seamlessly integrated into the grid with VSC-HVDC systems. Given the intermittent and variable nature of these energy sources, transitioning them into the grid becomes smoother. In cases involving underground and underwater cables, VSC-HVDC is often preferred over traditional AC transmission for both practical and environmental considerations.
High Voltage Direct Current (HVDC) transmission systems, capable of transmitting over 2000 MW of power, typically incorporate advanced technology and devices. As a result, demand for this system is growing across Western Europe
| Western Europe HVDC Transmission Systems by Power Rating | Above 2000 MW |
|---|---|
| Expected Revenue Share in 2023 | 38.2% |
Power can be transmitted through densely populated areas and across bodies of water using submarine or underground cable systems. Additionally, apart from facilitating efficient power transmission, these cables are designed to withstand high voltages.
| Western Europe HVDC Transmission Systems | CAGR from 2023 to 2033 |
|---|---|
| United Kingdom | 6.6% |
| Germany | 8.0% |
| France | 6.1% |
According to the forecast, the HVDC transmission systems industry in Western Europe could experience significant growth, particularly in the United Kingdom, over the next few years. The industry in the United Kingdom is expected to achieve a CAGR of 6.6% during the forecast period.
A low-carbon economy is becoming increasingly important for the United Kingdom as the country's power generation mix undergoes changes. Additionally, the country has enacted several policies to propel it towards a low-carbon energy future.
Germany holds the prime share of HVDC transmission in the European region and boasts one of the fastest-growing industries. Government support could expedite industrialization, while economic growth could spur demand.
The number of transmission infrastructure projects and investments is increasing in an effort to bolster economic growth. The industry is expected to experience a CAGR of 8.0% during the forecast period in this country.
Siemens Energy, for example, teamed up with Italy's FATA to supply four converter stations to Terna in support of the "Tyrrhenian Link" project, which connects mainland Italy, Sicily and Sardinia via a 970 km HVDC link.
This project is going to result in a more stable island power grid, enabling the utilization of renewable energy and the closure of coal-fired power plants, leading to reduced CO2 emissions.
The development of smart cities and the requirement for submarine power transmission systems are driving an increase in demand. Investing in smart technologies and asset management is likely to further enhance demand in the future.
As renewable energy facilities continue to be constructed and fossil fuels are phased out, the industry is expected to experience considerable growth.
With HVDC transmission, electricity can be conveyed more efficiently from remote renewable power plants, bypassing the HVAC system. This makes it an ideal choice for long-distance transmission. The integration of renewable energy and the necessity to bolster supply security are anticipated to drive advancements in HVDC grid technology.
Companies are looking to strengthen their industry position by focusing on new projects related to transmission and distribution.
Leading players in the HVDC transmission industry are making significant investments in research and development. Industry participants are undertaking multiple strategic initiatives to broaden their footprint, including the launch of new products, mergers and acquisitions, and increased investments.
Recent Developments Observed in Western Europe HVDC Transmission System Business
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| Attributes | Details |
|---|---|
| Estimated Industry Size in 2023 | USD 2,464 million |
| Projected Industry Valuation by 2033 | USD 4,824 million |
| Value-based CAGR 2023 to 2033 | 8.1% |
| Historical Analysis of the HVDC Transmission System in Western Europe | 2018 to 2022 |
| Demand Forecast for HVDC Transmission System in Western Europe | 2023 to 2033 |
| Report Coverage | Industry Size, Industry Trends, Analysis of key factors influencing HVDC Transmission System in Western Europe Insights on Global Players and their Industry Strategy in Western Europe, Ecosystem Analysis of Local and Regional Western Europe Providers |
| Key Countries Analyzed While Studying Opportunites in HVDC Transmission System in Western Europe | Germany, Italy, France, United Kingdom, Spain, BENELUX, Nordic, Rest of Western Europe |
| Key Companies Profiled | ADM (Archer Daniels Midland Company); Cargill; DuPont; Kerry Group; Soyuzprodimport; Roquette Freres; Emsland Group; Kerry Ingredients; The Scoular Company; Aviom Foods |
The HVDC transmission system industry in Western Europe is valued at USD 2,464 million.
The total value of the HVDC transmission system in Western Europe is likely to reach USD 4,824 million by 2033.
The HVDC transmission system in Western Europe is projected to increase at an 8.1% CAGR from 2023 to 2033.
The VSC technology is widely used for HVDC transmission in Western Europe.
| Estimated Size, 2025 | USD 22,963.7 million |
|---|---|
| Projected Size, 2035 | USD 64,478.9 million |
| Value-based CAGR (2025 to 2035) | 10.9% |
| Market Value (2022) | USD 3,371.0 Million |
|---|---|
| Market Value (2029) | USD 12,102.0 Million |
| CAGR% (2022 to 2029) | 20.0% |
| Market Value (2022) | USD 10.3 Billion |
|---|---|
| Market Value (2028) | USD 17.2 Billion |
| CAGR (2022 to 2028) | 8.9% |
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HVDC Transmission System Industry Analysis in Western Europe
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