Global HVDC Transmission Market Overview
HVDC Transmission Market Size was valued at USD 8,639.1 million in 2022. The HVDC Transmission Market industry is projected to grow from USD 9,194.8 million in 2023 to USD 16,753 million by 2030, exhibiting a compound annual growth rate (CAGR) of 8.95% during the forecast period (2023 - 2030). HVDC stands for High Voltage Direct Current. It is a type of power transmission system that uses direct current (DC) to transmit electricity over long distances.
HVDC systems have several advantages over traditional alternating current (AC) transmission systems, including lower power losses, increased efficiency, and improved control Further, HVDC systems are typically used for long-distance power transmission, such as between countries or between offshore wind farms and the mainland. They are also used to connect asynchronous grids, such as the Eastern and Western Interconnections in the United States.
HVDC systems are a valuable tool for transmitting electricity over long distances. They offer several advantages over traditional AC systems, including lower power losses, increased efficiency, improved control, and reduced environmental impact. As the demand for electricity continues to grow, HVDC systems are likely to become even more important in the future. Overall, HVDC transmission is a valuable tool for transmitting electricity over long distances. It offers several advantages over traditional AC systems, but it is also more expensive to build and maintain.
High voltage direct current (HVDC) is utilized in long-distance transmission and direct flow for power transmission (also called electrical superhighway). Due to the direct current (DC), HVDC transmission asynchronously connects power grids in long-distance areas, eliminating different outage-causing issues. Further, HVDC transmission is more affordable for significant distance power transmission and produces lower electrical misfortunes responsible for the growth of the HVDC transmission market in near future.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
HVDC Transmission Market Trends
Increasing demand for electricity transmission
Electricity is essential for developing an economy and is increasing in demand as nations develop globally. Factors leading to higher demand for electricity include increasing household incomes, electrification of transportation, and growing digitalization globally. According to the International Energy Agency (IEA), the demand for electricity will increase by an average of 2.1% globally per year till 2040. As per IEA, there was more than 2.4% increase in electricity demand in 2022 itself compared to 2021.
This increasing electricity demand has led to a significant increase in applications of HVDC transmission technologies as it is the optimal mode for long-distance electricity transmission. For instance, the International Energy Agency (IEA) predicts that global electricity demand will grow by 3% per year on average over the next three years. This growth will be driven by a number of factors, including the increasing electrification of transportation and industry, the growth of renewable energy sources, and the need to improve grid reliability.
Moreover, to compensate for the rising electricity demands, there is a demand for conversion of existing HVAC corridors with HVDC transmission systems, leading to the drastic expansion of HVDC transmission globally in recent years. This conversion is expected to be the least-cost option in comparison to upgrading the existing HVAC systems. An estimated 50-150% increase in power capacity can be achieved by the converted lines for distances of about 350 kms. All these factors are expected to reflect positively on the HVDC transmission market. To meet this growing demand, governments and utilities are investing in new transmission infrastructure. This includes building new power lines, upgrading existing lines, and expanding substations.
Additionally, Asia Pacific region is expected to account for the significant growth, with China and India leading the way. These countries are rapidly expanding their economies, and the increasing adoption of electric vehicles is putting a strain on their electricity grids. China's electricity demand is expected to grow by 5% - 8% in 2023, according to the National Energy Administration. Whereas India's electricity demand is also expected to grow by more than 8% in 2023, according to the Central Electricity Authority due to the rising population and the increasing urbanization.
The increasing demand for electricity transmission in China and India is putting a strain on the existing transmission infrastructure. Moreover, to meet the growing demand, both countries are investing in new transmission lines and upgrading existing lines. The Chinese government is planning to invest USD 1 trillion in new transmission lines by 2030. Whereas the Indian government is planning to invest USD 200 billion in new transmission lines by 2025. The increasing demand for electricity transmission is also creating opportunities for new businesses. Companies that specialize in designing, building, and operating transmission infrastructure are seeing strong growth.
Growing demand for VSC technology
Voltage Source Converter-based High Voltage Direct Current (VSC-HVDC) is a novel technology for HVDC transmission which provides complete flow control in both directions, prevents fault propagation, improves voltage stability, and reduces network losses. HVDC Light (ABB), HVDC Plus (Siemens), and MonSin (GE/Alstom) are some of the common VSC-HVDC systems commonly used in the industry today. Additionally, VSC technology has several advantages over the line-commutated conversion (LCC) technology that has been used predominantly. The advantages include higher power and voltage at the same cost, smaller physical size making VSC-HVDC conversion stations 20-30% smaller than LCC-based stations, and black start capabilities. Hence, these factors are responsible to increase demand for VSC-HVDC transmission capabilities.
VSC technology is well-suited for transmitting power from renewable energy sources, such as solar and wind farms, because it can be used to control the flow of power in both directions. Furthermore, it is more efficient than traditional AC transmission technology for long-distance transmission, which can help to reduce transmission losses. For instance, GE and KAPES awarded contract to power South Korea's electric grid using latest HVDC technology where- GE and KAPES have been awarded a contract to build a new HVDC system in South Korea. The system will use VSC technology and will be used to transmit power from renewable energy sources to the country's electric grid.
Additionally, VSC technology can be used with cable-based transmission, which is a more environmentally friendly option than overhead transmission lines which directly or indirectly helps to increase transmission capacity of grid as well as to improve power reliability and grid stability. For instance, In July 2023, Powergrid Corporation of India Limited has commissioned India's first VSC-based HVDC system, which will help to improve power reliability and grid stability in the southern region of the country. In an addition in May 2023, Siemens has commissioned India's first VSC HVDC link which will help to improve power quality in the southern region of the country and will also help to increase the transmission capacity of the grid.
As the demand for renewable energy sources grows, VSC technology is becoming increasingly important. VSC-based HVDC systems are a more flexible and efficient way to transmit power over long distances, and they are well-suited for use with renewable energy sources. According to Hitachi Ltd. (Japan), VSC-HVDC systems are expected to add over 35 GW capacity globally between 2020 to 2026. This rate is double of what was observed between 2010-2019. Therefore, the growing demand for VSC technology is a driving factor for the HVDC transmission market.
HVDC Transmission Market Insights:
HVDC Transmission Market by Voltage Rating Insights
Based on voltage rating, the HVDC transmission market is segmented into up to 220 kV, 220 kV to 600 kV and Above 600 kV. Among these, the Above 600 kV segment accounted for the largest market share in 2022. It has emerged as the fastest-growing segment exhibiting a CAGR of 9.56% during the review period. The 220 kV to 600 kV segment accounted for the second-largest growing segment with a healthy CAGR of 8.70%. High-voltage direct current transmission with a voltage of up to 220 kV finds various applications where long-distance power transmission or specific network interconnections are required. HVDC systems are commonly used to connect power grids that operate at different frequencies or have significant geographic distances between them.
HVDC systems having higher voltage levels ranging from 220 kV TO 600 kV are ideal for transmitting large amounts of power over long distances, typically hundreds to thousands of kilometers. HVDC transmission systems rated above 600 kV are used in specific applications that require the transmission of ultra-high voltage power over extremely long distances or in projects such as transcontinental power transmission projects that aims at connecting power generation resources located thousands of kilometers from major load centers, minimizing the transmission losses and improving the grid efficiency.
HVDC Transmission Market by Transmission Capacity Insights
Based on transmission capacity, the HVDC transmission market is segmented into up to 12 GW, and Above 12 GW. Among these, the up to 12 GW segment accounted for the largest market share in 2022. It emerged as the fastest-growing segment exhibiting a CAGR of 9.35% during the review period. The high growth of the segment is attributed to the increasing demand for electricity due to propelling urbanization and industrialization. HVDC transmission systems of capacity up to 12 GW are effective in solving long-distance power transmission problems and facilitating the integration of renewable energy sources into the grid.
HVDC transmission is commonly used for facilitating interconnection between different countries or regions, further enabling energy exchange. HVDC transmission with capacities above 12 GW supports large-scale integration of renewable energy, along with ensuring stable and resilient power supply for mega-projects and interconnected regions. HVDC transmission systems with a capacity of over 12 GW can connect energy grids across continents, enabling intercontinental energy exchange and cooperation.
HVDC Transmission Market by Technology
By technology, the global market is segmented into Line Commuted Converter (LCC), Voltage Sourced Converter (VSC) and capacitor commuted converter (CCC). Among these, the Line Commuted Converter (LCC) segment emerged as the leading and the fastest-growing segment with a CAGR of 8.82%. The segment is projected to reach a value of USD 7,120.3 million by the end of the forecast period. The Voltage Sourced Converter (VSC) segment accounted for the second-largest growing segment with a healthy CAGR of 9.61%. Line-commutated converters (LCC) use mercury-arc valves. These converters are used mainly where very high capacity and efficiency are needed. Most of the HVDC transmissions are based online-commutated converters (LCC).
The term line-commutated indicates that the conversion process relies on the line voltage of the AC system to which the converter is connected to affect the commutation from one switching device to its neighbor. Voltage Source Converters (VSCs) are self-commutated converters used to connect HVAC and HVDC systems employing high-power electrical devices like IGBTs. VSC-based systems were introduced more recently and provide higher operational flexibility compared to LCC. A Capacitor Commuted Converter (CCC) is a type of converter that is used in high voltage direct current (HVDC) transmission systems. It is also known as a self-commutating converter. CCC is mainly used in low-rated HVDC systems and is suitable for applications that require high voltage transmission over short distances.
HVDC Transmission Market by Configuration
On the basis of configuration, the global market has been segmented into monopolar, bipolar, multi terminal and back-to-back. Among these, the bipolar segment was valued at USD 2,880.2 million in 2022 and is projected to register a CAGR of 9.45% during the assessment period. However, the monopolar segment emerged as the second largest growing segment, exhibiting the CAGR of 9.30%. Monopolar HVDC transmission system is a system that uses only a single conductor. Monopolar HVDC is commonly used for underwater or subsea power transmission where laying a complete bipolar cable system may not be practical or cost effective. In bipolar transmission, a pair of conductors is used, each at a high potential with respect to ground, in opposite polarity.
The cost of a transmission line is higher than a monopole with a return conductor because these conductors must be insulated for the full voltage. Multi terminal HVDC transmission systems enables the seamless integration and interconnection of multiple energy networks or regions. They facilitate energy exchange and resource sharing between different countries or regions, improving energy security and grid reliability. A back-to-back configuration for electric power transmission is a high-voltage direct-current (HVDC) system with both ends in the same switchyard. This is used to couple asynchronously operated power grids or for connecting power grids of different frequencies where no DC transmission line is necessary.
HVDC Transmission Market by Application
By application, the global market is segmented into bulk head transmission, interconnecting grids, and infeed urban areas. Among these, the bulk head transmission segment emerged as the leading and the fastest-growing segment with a CAGR of 9.20%. The segment is projected to reach a value of USD 7,300.2 million by the end of the forecast period. The interconnecting grids segment accounted for the second-largest growing segment with a healthy CAGR of 9.40%. Bulk head transmission refers to the concept of dividing a long-distance HVDC transmission line into multiple segments or sections, each of which operates independently. Each section is known as a bulk and is separated by converter stations.
HVDC transmission plays a vital role in connecting power grids and enables efficient and reliable energy exchange between different regions, countries or even continents. Interconnection of grids using HVDC enables load sharing and grid balancing in different regions. HVDC transmission is used in powering urban areas to efficiently transport large amounts of power from remote generation sources to densely populated cities. This application solves the specific problems associated with the supply of electricity to urban centers and offers several advantages.
HVDC Transmission Market Regional Insights
By region, the global market is segmented into North America, Europe, Asia Pacific, South America and Middle East and Africa. Among these, the Asia Pacific region emerged as the leading and the fastest-growing region with a CAGR of 9.67%. The segment is projected to reach a value of USD 6,910.1 million by the end of the forecast period. The Europe region accounted for the second-largest growing region with a CAGR of 8.45%. The expansion of power infrastructure in this region presents numerous opportunities for participants operating in HVDC transmission market. China is putting a lot of money into renewable energy and using the most up-to-date UHVDC technology for power transmission.
Moreover, Maharashtra (India), has also announced plans to build a 1GW underground transmission network capable of carrying 100 MW of electricity. The proposed 80 km HVDC transmission line will link Aarey to Kudus in Palghar District. The project will cost one billion dollars and will take three years to complete. Moreover, In February of 2020, GE upgraded the 300 MW, HVDC transmission line between Jeju Island and South Korea, the mainland. These are some HVDC projects which are helping to contribute to the growth of the Asia-Pacific HVDC transmission market.
HVDC Transmission Market Key Market Players & Competitive Insights
The HVDC transmission market is characterized by the presence of many regional and local players. The market is highly competitive, with all the players continually competing to gain a larger market share. The need for integrating renewable energy generation such as solar and wind into the electricity grid is increasing and thus there is need for efficient solution for long-distance power transmission with minimal losses and this factor will positively impact the market of HVDC transmission in the estimated timeframe. The vendors compete in terms of cost, product quality, reliability, and aftermarket services. It is crucial for vendors to provide cost-effective and efficient products to survive and succeed in a competitive market environment.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. ABB, Siemens, Hitachi, Mitsubishi Electric Corporation and Nexans are some of the key players operating in the global market. These companies compete in terms of availability, quality, price, and technology. They consider product development as their key strategy in the HVDC Transmission market.
Additionally, the companies are following both organic and inorganic strategies to strengthen their presence in the global market. They are focusing on product development and expansion to diversify their product portfolio and service offerings along with enhancing their customer relationship. Additionally, companies are also adopting various business development strategies that will further help in growing their business.
ABB: ABB Group (ABB) has various segments, including electrification products, robotics & motion, Stationary automation, and power grid segments. The company’s product offering includes control room solutions, drives, PLC automation, robotics, semiconductors, motors & generators, metallurgy products, PAFC & DMFC voltage products, robotics, transformers, and mechanical power transmission. The company used Voltage Source Converter (VSC), High-Voltage Direct Current Transmission (HVDC) power transmission technology, enabling interconnection between systems, with different frequencies implemented by converting alternating current into direct current. HVDC enables a secure and stable interconnection of power networks that operate on different voltages and frequencies.
HVDC also provides instant and precise control of the power flow and can increase the AC grid capacity. ABB also offers HVDC, FACTS, UPS & power conditioning, network management solutions, and smart building solutions. The company offers its products to automotive, construction, food & beverage, oil & gas, buildings & infrastructure, and mining industries through direct Deployments, distributors, wholesalers, and original equipment manufacturers (OEMs). The company operates in 100 countries across the Americas, Europe, Asia, the Middle East, and Africa.
Siemens: Siemens is a global engineering and manufacturing company specializing in electrification, automation, digitalization, innovation, and technology. It provides engineering solutions in automation and control, power, transportation, and medical diagnosis. The company operates transmission systems such as HVDC Classic and HVDC Plus. HVDC PLUS systems assist in meeting challenges such as ensuring reliable power supply in metropolitan areas, improving grid stability, and providing grid access for offshore wind farms. The company offers various products and services in technology, energy, financing, healthcare, industrial automation, mobility, services, software, and consumer products sectors.
It is considered the world’s largest producer of energy-efficient and resource-saving technologies and a leading provider of power generation, transmission systems, and medical diagnostic equipment. Siemens has a global presence with about 200 countries worldwide and operates through 289 production houses, manufacturing facilities, and R&D centers. The company’s business operations are segmented into six major categories: digital industries, smart infrastructure, gas & power, mobility, Siemens Healthineers, and Siemens Gamesa Renewable Energy.
HVDC Transmission Market Industry Developments
May 2021: Schneider Electric launched Edge Software & Digital Services Program to enable its partners to start new revenue streams with remote monitoring and management of their customers’ physical infrastructure. This initiative is anticipated to simplify and boost the speed of the time required for the establishment of managed power service practice.
February 2023: Mitsubishi Electric Corporation announced the acquisition of Swedish-based company named Scibreak AB, which is engaged in the business of direct current circuit breakers (DCCB). This acquisition will help the company to strengthen its business by developing DCCB technologies for HVDC systems.
Key Companies in the HVDC Transmission Market include.
- Mitsubishi Electric Corporation
- PSC Specialists Group, Inc
HVDC Transmission Market Segmentation:
HVDC Transmission Market Voltage Rating Outlook
HVDC Transmission Market Transmission Capacity Outlook
HVDC Transmission Market Technology Outlook
- Line Commuted Converter (LCC)
- Voltage Sourced Converter (VSC)
- Capacitor Commuted Converter (CCC)
HVDC Transmission Market Configuration Outlook
HVDC Transmission Market Application Outlook
HVDC Transmission Market Regional Outlook
- Middle East & Africa
- Rest of the Middle East & Africa
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 9,194.8 Million |
| Market Size 2032 |
USD 20,990.5 Million |
| Compound Annual Growth Rate (CAGR) |
8.95% (2024-2032) |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| Historical Data |
2019 & 2022 |
| Forecast Units |
Value (USD Million) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Voltage Rating, Transmission Capacity, Technology, Configuration, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, Middle East & Africa and South America |
| Countries Covered |
US, Canada, Germany, UK, France, Spain, Italy, China, India, Japan, South Korea, Brazil, Argentina, Saudi Arabia, UAE, South Africa. |
| Key Companies Profiled |
ABB, Siemens, Hitachi, Mitsubishi Electric Corporation, Nexans, NKT A/S, Schneider Electric, Toshiba Corporation, NR Electric Co., Ltd, AECOM, Prysmian Group, PSC Specialists Group, Inc., and ALSTOM. |
| Key Market Opportunities |
· Increasing Investment in HVDC to Connect Offshore Wind Power Will Drive the Market Growth |
| Key Market Dynamics |
· Rising Demand for Renewable Energy Sources Globally |
HVDC Transmission Market Highlights:
Frequently Asked Questions (FAQ) :
HVDC stands for High Voltage Direct Current. It is a type of power transmission system that uses direct current (DC) to transmit electricity over long distances. HVDC systems have several advantages over traditional alternating current (AC) transmission systems, including lower power losses, increased efficiency, and improved control Further, HVDC systems are typically used for long-distance power transmission, such as between countries or between offshore wind farms and the mainland. They are also used to connect asynchronous grids, such as the Eastern and Western Interconnections in the United States.
The Asia Pacific region dominated the HVDC Transmission Market with the largest market revenue share of 39.40% in 2023.
ABB, Siemens, Hitachi, Mitsubishi Electric Corporation, Nexans, NKT A/S, Schneider Electric, Toshiba Corporation, NR Electric Co., Ltd, AECOM, Prysmian Group, PSC Specialists Group, Inc., and ALSTOM.
The Above 600 kV segment dominated the global market with the largest revenue share of 64.08% in 2023.
The drums & containers segment dominated the HVDC Transmission Market with the largest market revenue share of 47.80% in 2023.
The Up to 12 GW segment dominated the market with the largest market revenue share of 57.41% in 2023.
The Line Commuted Converter (LCC) segment dominated the market with the largest market revenue share of 42.86% in 2023.
The Bipolar segment dominated the market with the largest market revenue share of 33.50%, in 2023.
The Bulk Head Transmission segment dominated the market with the largest market revenue share of 42.89%, in 2023.
