High Voltage Direct Current (HVDC) Capacitor Market Outlook 2031
The global high voltage direct current (HVDC) capacitor market size was USD 5.52 Bn in 2022 and is likely to reach USD 17.67 Billion by 2031, expanding at a CAGR of 13.8% during 2023–2031. Increasing demand for sustainable energy resources and expanding power grid networks are expected to drive the market.
Rising demand for renewable energy sources and compact electronic systems for miniature gadgets is expected to drive the high voltage direct current (HVDC) capacitors market in the coming years. Power plants need to generate and transmit electricity for long distances without any interruption.
This directly affects the market growth, as HVDC capacitors help maintain a smooth electric supply for distant power transmissions, irrespective of voltage fluctuations. Furthermore, increasing global power consumption is expected to drive the market in the forecast period. For instance,
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According to data published on September 19, 2023, the global power consumption was recorded to be 25,500 terawatt-hours in 2022 and is continuously growing with the increasing population.
High-voltage DC capacitors are suitable for high-voltage applications. They act as reservoirs for electrical charge to ensure continuous power output in the DC stream. Energy and power industries use HVDC capacitors in building power grid infrastructures and installing transformers, power plants, transmission lines, and electricity distribution centers.
The increasing global demand for electricity is mainly influenced by rapid industrialization and growth in population. These factors are mainly expected to propel the market during the assessment period.
The COVID-19 pandemic hampered the market, as players in the market suffered a major loss in revenue share, due to the global cease of industrial operations. Several governments around the world banned local and national travel, due to the nature of the virus. This led to disruptions in the supply chains, thereby causing a shortage of raw materials.
The market gradually recovered from loss when the COVID-19 restrictions were lifted in the second half of the pandemic. The rapid surge in demand for renewable energy helped the market stabilize in the post-pandemic period.
Impact of Artificial Intelligence (AI) in High Voltage Direct Current (HVDC) Capacitor Market
The use of artificial intelligence is likely to provide substantial propulsion to the high-voltage direct current (HVDC) capacitor market. AI and machine learning combined with the manufacturing systems of the capacitors are expected to provide the manufacturers with a streamlined routine.
The manufacturing equipment is automated to track the availability of raw materials, predict the system downtime, and simplify predictive maintenance management. AI helps improve efficiency, reduce production costs, and improve output quality for the manufacturers, which is expected to boost the market.
High Voltage Direct Current (HVDC) Capacitor Market Dynamics
Major Drivers
Rising demand for long-distance power transmissions is driving the market. HVDC capacitors help power plants generate and distribute electricity across regions. This extends the lifespan of the power grid, which saves maintenance costs for manufacturers. High-voltage circuit systems rely on HVDC capacitors for everyday heavy-duty operations.
Furthermore, the increasing electricity costs, due to the global energy crisis, have encouraged governments across the globe to invest in renewable energy plants and grids, which is expected to drive the market.
Existing Restraints
High cost of HVDC system installation is likely to hamper the market during the forecast period. HV capacitors are costly and are difficult to ground. They are subject to pool the residual electric charge when the device or a system is turned off, which is expected to lead to the potential damage of the device. If the voltage of a circuit surpasses the limit of a capacitor, it melts and damages the circuit, which is likely to hamper the market.
Emerging Opportunities
Increasing number of renewable energy projects is expected to create lucrative opportunities in the market. Projects such as offshore wind farms and large-scale solar installations require HVDC transmission systems for efficient delivery over long distances.
HVDC capacitors help ensure reliable power transmission. Growing demand for renewable energy in developed and developing economies, due to the rapid industrial expansion, is likely to boost the market in the coming years.
Scope of the High Voltage Direct Current (HVDC) Capacitor Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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High Voltage Direct Current (HVDC) Capacitor Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Ceramic Capacitor, Aluminum Electrolytic Capacitor, Plastic Film Capacitor, Reconstituted Mica Paper Capacitor, Tantalum Wet Capacitor, Glass Capacitor, and Others), Installation Type (Enclosed Rack Capacitor Banks, Open Rack Capacitor Banks, and Pole-mounted Capacitor Banks), and Application (Commercial, Industrial, Energy & Power, Defense, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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General Atomics; Hitachi, Ltd.; Siemens; TDK Corporation; Vishay Intertechnology, Inc.; samwha Capacitor Group.; Murata Manufacturing Co., Ltd.; UCAP POWER.; General Electric; and Eaton
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High Voltage Direct Current (HVDC) Capacitor Market Segment Insights
Type Segment Analysis
Based on type, the high voltage direct current (HVDC) capacitor market is divided into ceramic capacitors, aluminum electrolytic capacitors, plastic film capacitors, reconstituted mica paper capacitors, tantalum wet capacitors, glass capacitors, and others. The ceramic capacitors segment is projected to hold a major share of the market during the projection period, due to their compact size and high capacitance density.
Ceramic capacitors are required in circuits where space efficiency is crucial, such as smartphones, wearable devices, and military circuits. Additionally, these capacitors offer a wide temperature range, which provides stability in various environmental conditions. Furthermore, the ceramic capacitors accommodate high voltage ratings, making them suitable for HVDC systems. As a result, this segment is likely to grow significantly during the projection period.
Installation Type Segment Analysis
Based on installation type, the high voltage direct current (HVDC) capacitor market is segmented into enclosed rack capacitor banks, open rack capacitor banks, and pole-mounted capacitor banks. The open rack capacitor banks segment is anticipated to register robust growth during the forecast period, owing to the ease of maintenance and accessibility for manufacturers.
The open design allows convenient access to each capacitor, which simplifies replacements of the capacitors when repairing or maintaining them. This reduces downtime and ensures operational efficiency, which is expected to drive the segment in the coming years.
Application Segment Analysis
Based on application, the market is divided into commercial, industrial, energy & power, defense, and others. The energy & power segment is expected to generate a major revenue share of the market, as the capacitors enhance the efficiency output of the HVDC systems.
They provide reliable and stable power transfer over long distances, without much loss of energy. This helps maintain the power grid stability, thereby improving the overall performance of the energy and power unit.
The industrial segment is projected to expand at a substantial CAGR, due to factors such as high efficiency and low energy loss caused by distant power transmission. This benefits industries with consistent and reliable electrical operations.
Furthermore, HDVC capacitors enable the integration of renewable energy sources into industrial power systems, which helps industries meet the environmental regulation metrics issued by the governments. This factor is expected to boost the segment.
Regional Outlook
In terms of region, the global high voltage direct current (HVDC) capacitor market is classified as Asia Pacific, North America, Latin America, Europe, and the Middle East & and Africa. North America is expected to dominate the market during the projection period, due to the increasing investments in renewable energy projects.
Furthermore, various government policies are being formed that support the development of advanced energy infrastructure. This is projected to fuel the market in this region in the coming years.
The market in Asia Pacific is anticipated to register substantial expansion, owing to the rapid rate of urbanization and industrialization in this region. The expansion of various industries consequently increases the demand for power consumption. Use of HVDC capacitors allows for long-distance transmissions without much energy loss. Additionally, strong manufacturing capabilities in the region is expected to propel the market in the forecast period. For instance,
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According to data published on August 29, 2023, China accounts for the maximum number of renewable energy installations worldwide, generating about 1,161 gigawatts of energy output.
Segments
The High Voltage Direct Current (HVDC) capacitor market has been segmented based on
Type
- Ceramic Capacitor
- Aluminum Electrolytic Capacitor
- Plastic Film Capacitor
- Reconstituted Mica Paper Capacitor
- Tantalum Wet Capacitor
- Glass Capacitor
- Others
Installation Type
- Enclosed Rack Capacitor Banks
- Open Rack Capacitor Banks
- Pole-mounted Capacitor Banks
Application
- Commercial
- Industrial
- Energy & Power
- Defense
- Others
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- General Atomics
- Hitachi, Ltd.
- Siemens
- TDK Corporation
- Vishay Intertechnology, Inc.
- samwha Capacitor Group.
- Murata Manufacturing Co., Ltd.
- UCAP POWER.
- General Electric
- Eaton
Competitive Landscape
Key players competing in the global High Voltage Direct Current (HVDC) capacitor market are General Atomics; Hitachi, Ltd.; Siemens; TDK Corporation; Vishay Intertechnology, Inc.; samwha Capacitor Group.; Murata Manufacturing Co., Ltd.; UCAP POWER.; General Electric; and Eaton.
These companies adopted development strategies, including acquisitions, partnerships, collaborations, product launches, and production expansion, to cater to consumers worldwide. For instance,
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On April 19, 2023, KYOCERA Corporation developed an EIA 0201 sized Multilayer Ceramic Capacitor (MLCC) that is capable of providing 10 microfarads of capacitance. The company stated that the capacitor is suitable for compact and sophisticated circuits of smartphones, gadgets, and other miniaturized products.
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