HVDC Capacitor Market Size, Share & Analysis

HVDC Capacitor Market Size & Growth

[244 Pages Report] The HVDC capacitor market is projected to grow from USD 6.4 billion in 2023 to USD 17.8 billion by 2031; it is expected to grow at a CAGR of 13.8% from 2023 to 2031. The factors driving the growth of the HVDC capacitor market include the increasing use of capacitors in commercial, industrial, aerospace and defense, and energy and power applications and ongoing government initiatives to improve energy infrastructure. Also, the cost effectiveness, high level of stability, and low loss levels of ceramic capacitors are amplifying their growth in future.

HVDC Capacitor Market Forecast to 2031

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HVDC Capacitor Market Dynamics

Driver: Rising demand for HVDC transmission systems

HVDC transmission systems are preferentially used as a better solution than HVAC systems for direct transmission of power over long distances. HVDC transmission systems involve the use of fewer transmission lines as compared to HVAC systems and thus has less effects on the environment. Also, they require less space for transmitting the same amount of energy. HVDC transmission systems help reduce transmission loss by 30-50% compared to AC overhead lines. Additionally. Compared to other forms of transmission HVDC has fewer conductors and/or insulators, thus lowering the total and installation costs. An HVDC capacitor industry  is one of the fundamental subsystems of the HVDC transmission system and is vital in the conversion of the AC to DC as well as power transportation between HVDC converter stations followed by the inversion of DC to AC to feed electricity into the utility network.

Restraint: Hazardous effects of HV capacitors on humans and the environment

HV capacitors may catastrophically fail when subjected to voltages or currents beyond their rating or reaching their normal end of life. They may store hazardous energy even after the equipment has been de-energized and build a dangerous residual charge without an external source. The liquid dielectric in several capacitors, or its combustion products, may be toxic. An arc fault is generated when dielectric or metal interconnection failures occur in HV capacitors. The dielectric fluid vaporizes within oil-filled units and results in case bulging and rupture. In some instances, an explosion can occur, dispersing the flammable oil and causing fire and damage to the neighboring equipment. In such cases, rigid-cased cylindrical glass and plastic cases are more prone to explosive rupture than rectangular cases due to an inability to expand under pressure easily. In high-current applications, HV capacitors may face overheating, which may cause rapid interior heating and destruction. Capacitors used within high- energy capacitor banks can violently explode when a fault in one capacitor causes the sudden dumping of energy stored in the rest of the bank into the failing unit. Furthermore, HV vacuum capacitors can produce soft X-rays even while operating normally. These factors are hazardous for human beings and the environment.

Opportunity:  Escalating demand for electric vehicles

Electric vehicles (EVs) are gaining traction globally as they are eco-friendly and an alternative to fuel- powered vehicles due to soaring oil prices. EVs comprise numerous electrical subsystems, including AC- DC conversion, DC-DC conversion, power management, and battery monitoring with a specific voltage, power, and size requirements, necessitating careful capacitor selection by designers. The electronic systems and components that have enabled the realization of various EVs have experienced a significant evolution, including the DC link power capacitor. Different HVDC capacitors, including aluminum electrolytic capacitors, film capacitors, tantalum capacitors, and ceramic capacitors, fulfill the high quality and reliability requirements of AEC-Q200 and VW AUDI 80808 standards are offered by various market players in the HVDC capacitor market. According to International Energy Agency (IEA), the global sales of EVs, including passenger vehicles, light trucks, and light commercial vehicles, was ~14 million in 2023. According to the International Energy Agency (IEA), electric car sales have more than tripled in three years, from roughly 4% in 2020 to 18% in 2023. EV sales are predicted to remain strong through 2024. In 2023, China accounted for approximately 37% of all new electric vehicle registrations worldwide.

Challenge: Catastrophic explosion of capacitor banks

An HVDC transmission system requires several capacitor banks connected in series and parallelly. These capacitor banks may explode catastrophically while functioning, and it is challenging to find out the exact cause of the failure of capacitor banks. Some major reasons for the explosion of the capacitor banks are mentioned below:

• The capacitor units are connected in series with inductors in the capacitor bank. When the voltage across the capacitor units exceeds the design values, the capacitor bank fails catastrophically due to inadequate voltage rating.
• A short-circuit in the capacitor unit due to over current and voltage may result in fuse blowing. the failure of the fuse is conditioned by improper protection of branches, application of improper capacitive units or fatigue.
• It transmits, stores, and interacts with the source or transformer inductance thus giving rise to ferro resonance. This can result in unconstrained oscillations in either the current or voltage pending on kind of resonance. Some of these challenges can be overcome by timely monitoring of capacitor banks. For instance, a short- circuited capacitor unit can be determined by inspecting the capacitor for bulging or case rupture. Thus, the catastrophic explosion of a capacitor bank may hinder the growth.

HVDC Capacitor Market Ecosystem

The prominent players in the HVDC capacitor market are Hitachi, Ltd. (Japan), General Electric (US), TDK Corporation (Japan), Eaton (US), KYOCERA Corporation (Japan), YAGEO Corporation (Taiwan), Vishay Intertechnology, Inc. (US). These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks.

Plastic film capacitors accounted for the largest market share during the forecast period.

HVDC plastic film capacitors are expected to capture the largest market share during the forecast period owing to the increased adoption of these capacitors in commercial, industrial, aerospace & defense, and energy & power applications. They are highly reliable due to their self-healing capability and long service life and can continue operating effectively even in high temperatures. This comes with the benefits such as high reliability, low failure rate, longer life expectancy and enhanced efficiency under high temperatures. There are various types of the film capacitors used in the industries including SMD style capacitors, heavy duty snubber capacitors using screw terminals, axial style capacitors, radial style capacitors, and the hard duty solder terminal looks radial style capacitors. Plastic film capacitors with high power ratings are called film power capacitors. They are widely used in power generation and distribution facilities, as well as in high-power electronics, including pulsed lasers, phase shifters, and X-ray flashes, whereas decoupling capacitors find application in low-power electronics, such as A/D converters and filters, safety capacitors, snubber capacitors, and fluorescent light ballasts. They are also used to suppress electromagnetic interference.

Energy and Power applications accounted for the largest market share during the forecast period.

The HVDC capacitor market for energy and power applications is expected to hold the highest market share during the forecast period. The growth can be attributed to the increased demand for these capacitor banks owing to several benefits, including easy installation and maintenance, less assembly, simple design, and cost-effectiveness. They are widely used in energy and power applications for transmitting power over long distances. The ongoing projects undertaken by governments to enhance energy generation and distribution infrastructure will likely result in high demand for pole-mounted capacitor banks in the future. They are applied in energy and power sector for the transmission of power over long distances. Due to the constant investment by governments towards development of energy generation and distribution systems, it is expected that requirement of pole mounted capacitor banks will remain high in the future. Sustained government support and commitment towards the development of renewable energy sources to attain the net-zero emission pathway is also helping the growth. For instance, in July 2023, the US Department of Energy (DOE) announced that Puerto Rico Energy Resilience Fund (PR-ERF) would financially support with up to USD 453.5 million to extend rooftop solar PV and battery storage in residential in the area as well as support Puerto Rican households in need. A future with renewable energy means energy security and reliability for the Puerto Ricans as well as lower bills for the households.

The Asia Pacific region is projected to grow at the highest CAGR during the forecast period.

Asia Pacific holds tremendous potential for the HVDC capacitor market due to the rising demand for these capacitors from the automotive and transportation, consumer electronics, industrial, aerospace & defense, mining, healthcare, energy & power, and telecommunications sectors. Moreover, the governments of different Asia Pacific countries have taken various initiatives such as funding energy expansion projects, renovating existing aging energy infrastructures, and formulating regulations and standards for less carbon emissions, mainly emphasizing the use of sustainable energy, especially solar and offshore wind farms, are expected to fuel the demand for HVDC capacitors in the region in the coming years.

In July 2023, Hitachi Energy (Japan), a worldwide technology leader driving a sustainable energy future for all its customers, was selected by SSEN Transmission (Scotland), a subsidiary of the UK energy giant SSE plc, to provide several onshore high-voltage direct current (HVDC) converter stations to promote the UK power grid's transition to large-scale renewable energy sources.

HVDC Capacitor Market by Region

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Key Market Players

The major players in the HVDC capacitor companies include Hitachi, Ltd. (Japan), General Electric (US), TDK Corporation (Japan), Eaton (US), KYOCERA Corporation (Japan), YAGEO Corporation (Taiwan), Vishay Intertechnology, Inc. (US), General Atomics (US), LIFASA, International Capacitors, S.A. (Spain), ELECTRONICON Kondensatoren GmbH (Germany), API Capacitors (UK), Shanghai Yongming Electronic Co., Ltd (China), WUXI CRE NEW ENERGY TECHNOLOGY CO., LTD. (China), Isofarad Kft. (Hungary), HVP High Voltage Products GmbH. (Germany). These companies have used organic and inorganic growth strategies, such as product launches, acquisitions, and partnerships, to strengthen their position in the market.

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Scope of the Report

HVDC Capacitor Market Highlights

This research report categorizes the HVDC Capacitor Market based on product type, technology,  installation type, application, and region.

Recent Developments

• In June 2023, Hitachi Energy has received a contract by Inelfe, a joint venture between the operators of the French (RTE) and Spanish (Red Eléctrica) electricity transmission networks, to supply four high-voltage direct current (HVDC) converter stations for a subsea cable that will link France and Spain across the Biscay Gulf. Inelfe holds the responsibility for constructing and commissioning all cross-border connections among the two countries.
• In April 2023, Kyocera Corporation declared the development of a new capacitor (MLCC) with EIA 0201 dimensions (0.6 mm x 0.3 mm). As smartphones and wearable gadgets become more complex, electronic circuits require more MLCC devices with larger capacitance values.
• In March 2023, GE Renewable Energy’s Grid Solutions business announced that it had been awarded three High-Voltage Direct Current (HVDC) contracts totaling roughly 6 billion euros as part of a specially formed consortium with Sembcorp Marine for TenneT’s innovative 2GW Program in the Netherlands.
• In February 2023, Vishay Intertechnology, Inc. released a new series of low-impedance, Automotive Grade micro aluminum electrolytic capacitors that perform better in smaller case sizes than previous-generation alternatives.
• In February 2023, TDK Corporation introduced its new EPCOS B43652 series of snap-in aluminum electrolytic capacitors with particularly small dimensions and strong ripple current carrying capacity. The DC link circuitry of onboard chargers in xEVs is a common application for these capacitors with high CV products.

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