Saudi Arabia HVDC Transmission Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia HVDC Transmission System Market Trends & Drivers

Preference for HVDC over HVAC Transmission Is Key Trend in Market

• Saudi Arabia's government is promoting the use of HVDC systems for new commercial and residential development projects.
• HVDC systems offer more potential for long-distance transmission with a lower power loss compared to high-voltage alternative current (HVAV), as power loss is related to line length.
• Moreover, HVDC transmission lines are more cost-effective than HVAC lines. HVDC transmission is also more suitable for smart grids, including those sourcing solar, wind, and nuclear power plants, for controlling the power flow.
• Additionally, Saudi Arabia's focus on reducing fossil fuel dependence and establishing renewable energy projects is expected to drive the shift from AC to DC transmission over long distances.

Upcoming Commercial, Residential and Industrial Projects Propel Market

• The upcoming urbanization initiatives are fueling market growth. As the country seeks to develop its commercial and residential projects, the demand for power generation systems is expected to rise.
• The market is driven by large-scale building projects that promote economic growth and tourism. Smart city development, specifically the Line, with 170 kilometers of coverage area, which is meant to offer residences, schools, and offices, will become the driving factor for this market as the demand for power transmission stations grows.
• Furthermore, Al-Riyadh will witness the fastest growth in construction, aimed at improving the inhabitants' quality of life. Key projects in and around Riyadh include New Murabba, Qiddiya, and King Salman Park, which will all drive the demand for electricity both during construction and once completed.

Rooftop Solar Systems Can Be a Challenge for Market Growth

• As consumers become more conscious of renewable and sustainable energy, rooftop solar systemsre becoming increasingly popular as a one-time investment to reduce electricity bills.
• With this increasing eco-consciousness, consumers prefer to install this system at home because of its zero emissions and extremely low environmental impact.
• Due to these reasons, the high-voltage direct current transmission system market could witness anemic growth since rooftop solar systems reduce reliance on long-distance HVDC transmission lines.

Saudi Arabia HVDC Transmission System Market Analysis

Component Insights

• Converter stations are the largest category in the Saudi Arabian HVDC transmission system market, with a share of 30% in 2024. This is because the converter station serves as the terminal equipment for a high-voltage direct current transmission line, converting direct current to alternating current. Conversely, at conventional power stations that run on fossil fuels, these stations change the AC to DC for long-distance transportation at high voltages.
• The converter station connects the AC input and DC output, converting HVAC to HVDC and vice versa. As Saudi Arabia's urbanization projects progress, the demand for transferring current from power grid stations to urban areas will grow.
• Cables also hold a significant share in this market as they are used for the transmission of electricity from power stations to commercial, industrial, and residential sectors. With the ongoing setup of more power plants and the construction of infrastructure in Saudi Arabia, there is a huge scope for this category.

The components included in this report are:

• Converter Station (Largest and Fastest-Growing Category)
• Converter Unit
• Converter Valve
• Converter Transformer
• Filter
  • AC
  • DC
• Reactive Power Source
• Smoothing Reactor
• HVDC System Pole
• Cable
• Cable Tower
• Others

Technology Insights

• Voltage source converters (VSC) will hold the larger market share of 65%, in 2024, and they will be the faster-growing category in this market at a CAGR of 5.4% in the forecast years. This technology is extensively used in HVDC systems as it provides resilience to commutation failure and reactive power control.
• Moreover, the VSC system provides faster power flow control and an independent power control system over the other HVDC systems.
• To generate renewable energy, Saudi Arabia is moving toward solar power plants, including the Sakaka solar power plant. The VSC system plays an important role in environmental sustainability as it can be integrated with renewable energy sources.
• Larsen & Toubro plans to build a 525-kV HVDC line using VSC technology to connect NEOM industrial city with Yanbu city in western Saudi Arabia.

The technologies included in this report are:

• Capacitor Commutated Converter (CCC)
• Voltage Source Converter (VSC) (Larger and Faster-Growing Category)

Transmission Insights

• Overhead transmission lines are the largest category, generating about around 50% revenue in 2024. It is easier to use and install power lines overhead than underground and under the seabed; therefore, it requires less work to install, detect faults, and maintain.
• Overhead lines are suspended across transmission towers, and there is no need for insulation on them, which is much more cost-effective.
• Furthermore, the Saudi Electricity Company has mentioned that the country has ultra-high-voltage lines of 1,408.31 km (230–380 kV) and 575.67 km (110–132 kV) in 2021.
• Underground transmission lines are the fastest-growing category in this sector. As with major development projects in Saudi Arabia, overhead transmission lines may have an ill impact on the visual landscape.

The transmissions included in this report are:

• Overhead (Largest Category)
• Underground (Fastest-Growing Category)
• Submarine

Architecture Insights

• During the forecast period, the point-to-point architecture is expected to dominate this market.
• Energy producers employ the point-to-point architecture to connect HVDC systems over long distances for electricity transmission.
• This is due to the need to transmit the electricity over the transmission line, which needs an AC filter and a DC filter to prevent the HVDC converter from injecting all its harmonic output into the AC and DC systems.
• Moreover, the dependence on transmitting heavy power loads on the HVDC transmission system further drives the market in this category.

The architectures included in this report are:

• Back-to-Back
• Point-to-Point (Largest and Fastest-Growing Category)
• Multiterminal

Regional Analysis

Riyadh Is Largest Province

• Riyadh dominates the market with a share of 45% in 2024. The province aims to improve the lives of citizens through transformative projects under Vision 2030. With the substantial forthcoming development and urbanization plans, the region is likely to witness a massive increase in electricity demand, thus driving the market.
• According to real estate experts, increasing Riyadh’s population to 15 million by 2030 will benefit the city's economy and sustainability. Furthermore, the Ministry of Housing will provide approximately 300,000 housing units, which could be a market driver in this sector.
• The 1.5-million-square-meter Rua Al Madinah project in Makkah, which aims to construct over 47,000 hotel rooms, presents a significant opportunity for the market due to the increasing transmission supply requirement.
• Jazan, province has 5,000 projects, including 100 major ones, such as Zazan Mall, cinema, entertainment facilities, seashore business tower, and multi-purpose park. This will hold great significance in this market, as there will be a huge requirement for a new HVDC transmission system.
• The Red Sea, which will offer 8000 rooms at 50 hotels and 1,000 residential complexes, would increase tourism and provide growth prospects to the market through infrastructure development.

Below are the provinces included in this report:

• Al-Riyadh (Largest and Fastest-Growing Province)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Region
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia HVDC Transmission System Market Share

Market Nature - Consolidated

The Saudi Arabian HVDC transmission system market is consolidated, owing to the presence of numerous well-known brands in the market, including Siemens AG, Hitachi Energy Ltd., ABB Ltd., General Electric Company, and Prysmian Group. These companies are even making advancements in their technologies, which is making it tough for smaller firms to enter this market.

Saudi Arabia HVDC Transmission System Market News

• In August 2023, Hyundai E&C won a USD 145-million project to install a 525-kV, 605-km-long HVDC transmission line in Saudi Arabia, which will connect the Yanbu region and the new city of NEOM.
• In May 2023, Hitachi Energy was contracted to design and develop the first phase of the HVDC transmission system of the NEOM region, which connects Oxagon, NEOM’s region development, and the Yanbu area.
• In May 2023, L&T announced its two orders to install 380-kV overhead power transmission lines connecting prominent cities situated on the Red Sea coast.
• In April 2023, General Electric Company began a partnership with Alfanar and won a contract for the installation of a hybrid STATCOM for the Saudi Electricity Company. This HVDC system will interconnect substations between Saudi Arabia and Egypt, to enhance the exchange of electricity between the two countries.
• In November 2022, encouraged by Vision 2030, Hyosung Heavy Industries partnered with Alfanar, a local Saudi Arabian manufacturer of power equipment.
• In June 2021, Siemens AG won a deal for the Saudi residential scheme at the Roshn residential community in Riyadh, which covers 20 million square meters. The power transmission system will boost energy in shops, mosques, cafes, schools, parks, along with other residential properties.