HVDC Converter Station Market Size, Share & Trends Analysis Report By Technology (Line Commutated Converter (LCC), Voltage Source Converter (VSC)), By Type (Bi-Polar, Monopolar), By Region, And Segment Forecasts, 2024 - 2030

HVDC Converter Station Market Trends

The global HVDC converter station market size was estimated at USD 11.85 billion in 2023 and is expected to grow at a CAGR of 4.5% from 2024 to 2030. An increasing demand for efficient long-distance power transmission is significantly driving the growth of HVDC converter station market. HVDC technology offers lower power losses over long distances compared to traditional AC transmission, making it ideal for connecting remote renewable energy sources to population centers. For example, the Rio Madeira HVDC system in Brazil transmits hydroelectric power over 2,375 km, demonstrating the technology's capability in long-distance transmission.

In addition, growing focus on renewable energy integration and grid interconnection is anticipated to positively influence the market over the forecast period. As countries aim to increase their renewable energy capacity, HVDC converter stations play a vital role in connecting offshore wind farms and solar parks to the main grid. For example, the DolWin alpha converter station in the North Sea, connects multiple offshore wind farms to the German grid, showcasing how HVDC technology facilitates the integration of renewable sources.

Moreover, the need for grid stability and power flow control is also propelling the growth of HVDC converter station market. HVDC systems offer better control over power flow, which is especially important in interconnecting asynchronous grids or stabilizing weak AC systems. For example, the Pacific DC Intertie in the U.S., connecting the Pacific Northwest and Southern California, not only transmits power but also enhances grid stability during peak demand periods. In addition, the increasing adoption of smart grid technologies and the modernization of aging power infrastructure in many countries are creating opportunities for HVDC converter station deployments.

Technology Insights

Based on the technology, the HVDC converter station market is segmented into line commutated converter (LCC) and voltage source converter (VSC). Voltage source converter (VSC) technology segment registered largest revenue market share of over 53.0% in 2023. VSC technology uses insulated-gate bipolar transistors (IGBTs) for power conversion, allowing for independent control of active and reactive power. VSC systems offer greater flexibility and faster response times, making them ideal for weak AC grids, offshore wind farm connections, and multi-terminal HVDC networks. Besides, VSC systems have a smaller footprint and can provide black start capability to AC grids.

On the other hand, LCC technology is the traditional and more established type of HVDC converter. LCC systems are capable of handling high power ratings, typically up to several gigawatts, making them suitable for long-distance bulk power transmission. They are known for their high efficiency and reliability but require strong AC systems at both ends and have limited control capabilities compared to newer technologies.

Type Insights

Based on the type, the HVDC converter station market is segmented into bi-polar, monopolar, back-to-back, and multi terminal. Multi Terminal segment accounted for the highest revenue market share of over 48.0% in 2023. Multi-terminal HVDC converter stations involve three or more converter stations connected to a common DC grid. This configuration allows for power exchange between multiple points and is particularly useful for integrating offshore wind farms or creating interconnected regional grids. This system offers increased flexibility and efficiency in power distribution but are more complex to control and protect.

Back-to-back HVDC converter stations are used to connect two asynchronous AC systems. These stations are typically located at the same site, with no DC transmission line between them. They allow for power exchange between grids with different frequencies or those that are not synchronized, providing grid stability and control.

Monopolar HVDC converter stations use a single high-voltage conductor for power transmission, with the return path typically being the ground or sea. This configuration is simpler and less expensive than bi-polar systems but has lower transmission capacity and reliability. Monopolar systems are often used for submarine cable transmissions or as the first stage of a bi-polar system.

Bi-polar HVDC converter stations use two conductors, one with positive polarity and the other with negative polarity. This configuration allows for higher power transmission capacity and improved reliability. In case of failure of one pole, the system can continue operating at reduced capacity using the remaining pole and ground return.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of over 53.0% in 2023. Rapid industrialization and urbanization in countries such as China, India, and Southeast Asian nations are driving massive demand for electricity transmission over long distances. HVDC technology is particularly well-suited for this, as it allows for efficient power transfer with lower losses compared to traditional AC systems. For example, China has been aggressively expanding its HVDC network, with projects such as the Changji-Guquan UHVDC link spanning over 3,000 km and capable of transmitting 12 GW of power.

China HVDC Converter Station Market Trends

China developed strong domestic capabilities in HVDC technology through a combination of technology transfers, research and development, and practical experience. Chinese companies such as State Grid Corporation of China (SGCC) and China Southern Power Grid have become global leaders in HVDC technology. They have not only implemented numerous projects within China but have also started exporting their expertise and equipment to other countries. For instance, SGCC was involved in Brazil's Belo Monte HVDC transmission project, demonstrating China's growing influence in the global HVDC market.

North America HVDC Converter Station Market Trends

The region has been experiencing a significant push towards renewable energy integration and grid modernization. Many North American countries, particularly the U.S. and Canada, are investing heavily in developing offshore wind farms and large-scale solar projects. These renewable energy sources are often located far from population centers, necessitating efficient long-distance power transmission. HVDC technology excels in this area, offering lower losses over long distances compared to traditional AC transmission. For example, the Atlantic Wind Connection project aims to create an offshore transmission backbone to support multiple offshore wind farms along the U.S. East Coast, utilizing HVDC technology.

Europe HVDC Converter Station Market Trends

The European Union's efforts towards a more integrated energy market have driven the need for improved interconnections between national grids. Projects such as the North Sea Link between Norway and the UK, and the Viking Link connecting Denmark and the UK, are prime examples of HVDC converter stations being used to facilitate cross-border energy trading and enhance grid stability. These interconnectors allow for the efficient exchange of power between countries with different energy profiles, balancing supply and demand across the continent.

Key HVDC Converter Station Company Insights

The HVDC converter station market is characterized by intense competition among multiple major global players and several regional manufacturers. Prominent players operating in the market are leveraging their technological expertise to strengthen their market positioning. Besides, companies are striving to differentiate themselves through advanced features such as improved control systems, higher power ratings, and reduced footprint designs. Moreover, the global push for clean energy has led companies to heavily invest in R&D to develop next-generation HVDC technologies, further fueling the competitive landscape.

• In May 2024, Hitachi Energy Ltd was selected by Marinus Link Pty Ltd (MLPL) to develop and supply a HVDC project to enable renewable energy power supply between Tasmania and mainland Australia power grid. This project will allow Tasmanian state to import supply of wind and solar energy generated power.

• In March 2024, Bam-Hitachi Energy joint venture appointed by National Grid Energy Transmission (NGET) and SSEN Transmission to build the converter stations for the USD 2,700.0 million Eastern Green Link 2 (EGL2) offshore interconnector between Scotland and England. The 436 km long, 2GW high voltage direct current (HVDC) subsea cable project, which will be the longest HVDC cable in the UK, aims to connect Peterhead in Scotland with Drax in England by 2029 to support up to 50GW of offshore wind capacity as part of the UK's net zero vision.

• In January 2024, Alfanar Group entered into a strategic agreement with Saudi Authority for Industrial Cities and Technology Zones (Modon) under which it will be developing HVDC converter station for the Saudi Arabia government authority. This station will be developed for Tabuk Industrial City requirement.

HVDC Converter Station Market Report Scope

Global HVDC Converter Station Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the HVDC converter station market report on the basis of technology, type, and region:

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • Line Commutated Converter (LCC)

  • Voltage Source Converter (VSC)

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Bi-Polar

  • Monopolar

  • Back-to-back

  • Multi Terminal

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE