HVDC Transmission Market Size, Share & Trends Analysis Report By Technology (Line Commutated Converter, Voltage Source Converter), By Type (Overhead, Subsea), By Region, And Segment Forecasts, 2024 - 2030

HVDC Transmission Market Size & Trends

The global HVDC transmission market size was estimated at USD 11.98 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 driving the growth of the market. HVDC technology offers lower power losses over long distances compared to traditional alternating current (AC) systems, making it ideal for transmitting large amounts of electricity from remote renewable energy sources to urban centers. For example, China's West-East Electricity Transfer Project uses HVDC to transmit power from hydroelectric dams in the west to population centers in the east, over distances exceeding 2,000 kilometers.

Another crucial factor propelling the market is the growing focus on renewable energy integration. As countries worldwide aim to reduce carbon emissions and increase their reliance on clean energy sources, HVDC systems play a vital role in connecting offshore wind farms and solar installations to the main grid. For instance, the NordLink project between Norway and Germany utilizes High Voltage Direct Current (HVDC) technology to exchange renewable energy between the two countries, enhancing grid stability and facilitating the integration of intermittent power sources.

Additionally, the need for grid interconnection and the development of supergrids are driving HVDC adoption. HVDC links allow for the connection of asynchronous grids, enabling power trading between regions and countries with different electrical frequencies. This is particularly relevant in Europe, where initiatives such as the North Sea Wind Power Hub aim to create an interconnected offshore grid linking multiple countries. Such projects not only improve energy security but also promote market integration and optimize the use of renewable resources across borders.

Moreover, technological advancements in HVDC systems are further fueling market growth. The development of voltage-source converters (VSC) has expanded the applications of HVDC, making it more suitable for smaller-scale projects and offering improved control capabilities. Additionally, innovations in HVDC circuit breakers and the potential for multi-terminal HVDC systems are opening new possibilities for creating more flexible and resilient power grids. These technological improvements are making HVDC an increasingly attractive option for utilities and grid operators looking to modernize their transmission infrastructure.

Technology Insights

Voltage source converter (VSC) technology segment registered the largest revenue market share of over 53.0% in 2023. Based on the technology, the market is segmented into line commutated converter (LCC) and voltage source converter (VSC). VSC technology is a newer and increasingly popular HVDC transmission method. It uses insulated-gate bipolar transistors (IGBTs) for power conversion, offering greater flexibility and control. VSC systems can independently control active and reactive power, making them suitable for weak AC grids and offshore wind farm connections. They also have a smaller footprint, faster response times, and the ability to black-start a power system.

On the other hand, LCC technology is the more established HVDC transmission method. It employs thyristor valves for power conversion and is particularly suitable for high-power, long-distance transmission projects. LCC systems are known for their high efficiency, lower losses, and ability to handle large power capacities, often exceeding 1000 MW. However, they require a strong AC network at both ends of the transmission line and have limited ability to control reactive power.

Type Insights

Overhead segment accounted for the highest revenue market share of over 50.0% in 2023. Based on the type, the market is segmented into overhead, subsea, mixed, and underground. This type is the most common and cost-effective for land-based transmission, especially for bulk power transfer across vast areas. Overhead HVDC lines can span hundreds or thousands of kilometers with minimal power losses, making them ideal for connecting remote renewable energy sources to urban centers or linking different power grids.

Subsea HVDC transmission type is expected to grow at a fastest CAGR of 5.1% during the forecast period. It involves laying cables along the ocean floor to transmit power between land masses separated by bodies of water. This type is crucial for connecting offshore wind farms to onshore grids and for creating interconnections between countries or regions divided by seas or oceans. Subsea high voltage direct current cables are heavily insulated and designed to withstand harsh marine environments, offering a reliable means of power transmission without visual impact on coastal areas.

Regional Insights

The HVDC transmission market in North America growth is due to the technological leadership and innovation in the region. Major companies such as General Electric, ABB, and Siemens are actively involved in developing and deploying HVDC technology across the region. These companies are not only advancing HVDC systems but are also involved in large-scale projects that set benchmarks for the industry. For instance, the Pacific DC Intertie, an HVDC link connecting the Pacific Northwest with Southern California, demonstrates the capacity for HVDC to transfer significant amounts of power over long distances, which is crucial in reducing transmission losses and ensuring a stable power supply across states.

Asia Pacific HVDC Transmission Market Trends

Asia Pacific HVDC transmission market dominated and accounted for the largest revenue share of over 53.0% in 2023. The Asia Pacific region is home to several countries with ambitious renewable energy goals. Countries such as Japan, South Korea, and Australia are investing in offshore wind farms and large-scale solar projects, often located far from population centers. HVDC systems are ideal for connecting these remote renewable sources to the grid. A notable example is the proposed Australia-ASEAN Power Link, which aims to transmit solar energy from Australia's Northern Territory to Singapore via a 3,800 km undersea HVDC cable.

The HVDC transmission market in Japan is witnessing significant growth.Japan's unique geographical and energy landscape has necessitated significant investment in HVDC technology. As an island nation with limited domestic energy resources, Japan has long sought to diversify its energy mix and improve grid stability. HVDC transmission allows for efficient long-distance power transfer, making it ideal for connecting Japan's main islands and integrating renewable energy sources from remote locations. For example, the Hokkaido-Honshu HVDC Link, completed in 2019, spans 149 kilometers undersea to connect Hokkaido's wind power resources with the main grid on Honshu.

Europe HVDC Transmission Market Trends

Europe HVDC transmission market growth can be attributed to several key factors, including its strong commitment to renewable energy, advanced infrastructure, and strategic cross-border electricity trade. The European Union's aggressive targets for reducing carbon emissions have led to a rapid expansion of renewable energy sources such as wind and solar power. However, these renewable sources are often located in remote areas, far from major consumption centers.

Key HVDC Transmission Company Insights

The 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.

Competition focuses on factors such as technological innovation, project execution capabilities, cost-effectiveness, and after-sales support. As countries worldwide invest in upgrading their power infrastructure and expanding renewable energy capacity, companies are vying for market share through strategic partnerships, R&D investments, and expanding their global footprint.

Recent Development

• In March 2023, Hitachi Energy and Gulf Cooperation Council Interconnection Authority (GCCIA) has signed a contract to upgrade the Al-Fadhili high-voltage direct current (HVDC) converter station. After upgradation, the Al-Fadhili station will be able to exchange up to 1,800 megawatts of electricity between these states. Additionally, the station serves the special purpose of maintaining the stability of the connected grids. This upgrade project will replace hardware and software with Hitachi Energy’s cutting-edge MACH™ control and protection system, the brain behind HVDC links.

• In March 2023, Siemens Energy, in a consortium with FATA, part of the Danieli group, has secured a contract worth USD 1.07 Billion from the Italian transmission system operator (TSO) Terna, to supply four converter stations for the Tyrrhenian Link project in Italy. The project aims to transmit electricity between the islands of Sicily and Sardinia and the Italian mainland through a 970km-long double underwater high-voltage (HV) cable. Siemens Energy will provide the high-voltage direct current (HVDC) transmission technology for the power link, which can exchange up to 1GW for each interconnection.

HVDC Transmission Market Report Scope

Global HVDC Transmission 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 this study, Grand View Research has segmented the global HVDC transmission market report based on 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)

  • Overhead

  • Subsea

  • Mixed

  • Underground

• 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