The global HVDC Transmission System market is poised for significant growth, expanding from 22,963.7 Million in 2025 to 64,478.9 Million by 2035. The market grows at a CAGR 10.9% from the period 2025 to 2035.
The high voltage direct current (HVDC) transmission system market is important for the efficient transmission of power over long distances while minimizing power loss. It offers grid stability and supports cross-border power trading and integration of renewable energies such as wind and solar into national grids.
HVDC systems also serve to transfer emergent power loads, reducing emissions while keeping up with decarbonization objectives, and providing maximum reliability for energy supply within economies. The demand for HVDC technology is influenced by the requirement to connect remote renewable source generation points to consumption or to relieve transmission bottlenecks and reinforce energy security.
Moreover, the advances in HVDC technology also enhance the flexibility of a grid, which is critical for modern energy infrastructures as well as sustainability.
Global HVDC Transmission System Market Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2024 | USD 20,846.7 million |
| Estimated Size, 2025 | USD 22,963.7 million |
| Projected Size, 2035 | USD 64,478.9 million |
| Value-based CAGR (2025 to 2035) | 10.9% CAGR |
HVDC systems facilitate the delivery of higher efficiencies on electricity obtained with less power loss incurred when an electric flow is transmitted over long distances. Special characteristics include voltage source converters (VSC) that improve flexibility in grids and direct bi-directional power flow in addition to larger transmission capacity subsequent to asynchronous interconnection of grids for HVDC systems.
These systems are well-suited to undersea and underground power transmission where they minimize the environmental and visual impacts. Modular systems also allow the scalability and integration with existing infrastructure depending on the need.
They also provide grid stability through fast recovery from faults and low-frequency oscillation damping. Advanced control systems coupled with HVDC technology hope to facilitate integration of renewable energies with their intermittency, thus serving well the future energy networks.
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The below table presents the expected CAGR for the global HVDC Transmission System market over several semi-annual periods spanning from 2025 to 2035. This assessment outlines changes in the memory interconnect industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 represents first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2024 to 2034, the business is predicted to surge at a CAGR of 10.7%, followed by a slightly lower growth rate of 10.3% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 10.7% (2024 to 2034) |
| H2 | 10.3% (2024 to 2034) |
| H1 | 10.6% (2025 to 2035) |
| H2 | 11.2% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to increase slightly to 10.6% in the first half and go higher at 11.2% in the second half. In the first half (H1) the market witnessed a decrease of 10 BPS and in the second half (H2), the market witnessed an increase of 90 BPS.
Integration of Renewable Energy Sources Drive the Market Demand
The primary driver of the HVDC transmission system market is the increasing emphasis on renewable energy. This is because most renewable energy projects, like offshore wind farms and largescale solar plants, are built in remote areas beyond the reach of conventional AC transmission systems.
There, among them, lie the HVDC systems that can transmit large amounts of power and have relatively low transmission losses. For example, in Germany, the DolWin3 project connects North Sea offshore wind turbines to the onshore grid so that they can transmit 900 MW clean energy.
Owning a net-zero commitment towards 2050 makes Europe the obvious leader in terms of renewable integration. According to statistics, installable capacity of renewable energy sources worldwide reached over 3,372 GW in 2023.
Through HVDC, these renewables are integrated into now existing grids and that will help in managing the stability of the grid in the time of intermittent renewable energy generation. This is also reflected in other parts of the world where combined large-scale renewable projects are increasingly reliant on such technology; for example, China and the United States.
Increasing Electricity Demand with Rapid Urbanization & Industrial Expansion
Global electricity demand is ever on the rise as a result of rapid urbanization, industrial expansion, and increased electrification in the various sectors, including transport.
The International Energy Agency (IEA) reported that the global electricity demand rose by 2.4 in 2022, particularly led by emerging economies in Asia and Africa. Such high demand necessitates developing effective transmission systems capable of handling long-distance power transfers at capacity.
However, HVDC transmission systems are thought to meet this need because they are more efficient when it comes to lower transmission losses than the conventional AC systems. For example, India has the Raigarh-Pugalur HVDC link, which went into operation in 2021, with a capacity of 6,000 MW, presenting a viable solution for South India's ever-increasing energy needs.
The ±1100 kV Changji-Guquan HVDC project of China is an example of this technology; it is regarded as the world's most powerful HVDC link because it transmits 12,000 MW over a distance of about 3,000 km, thus demonstrating the technology's capabilities for long-distance, high-capacity transmission.
It is further propelled by the increasing diffusion of electric vehicles (EVs). In the end, such new demands underscore strong transmission infrastructure, and it is noteworthy that, as the case may be, HVDC systems are going to be central to some energy grids supporting EV charging stations, stimulating industrial growth, and assuring efficiency and endurance in use.
Grid Compatibility and Infrastructure Challenges Pose as Threat to the Market Growth
There are technical problems for HVDC connecting to currently operating AC grids, especially in parts where there are older gird infrastructures. The HVDC systems will require converter stations in order to convert AC to DC power and vice versa; therefore, it will take into account the additional cost and complexity for the integration work.
In India, the integration of the Raigarh-Pugalur HVDC link with existing grid had its obstacles in ensuring compatibility with regional power systems.
Adoption of HVDC systems will require substantial upgrading of the old networks in such countries, making projects even more costly and time-consuming as they require modernization. With no standardization for integrating HVDC systems worldwide, cross-border projects also face additional challenges.
The industry showcased a CAGR of 10.1% during the period between 2020 and 2024. The industry reached a value of USD 20,846.7 million in 2024 from USD 14,176.0 million in 2020.
Between the years 2020 and 2024, the HVDC transmission system showed enormous growth worldwide. Such growth in this period was largely caused by two factors: increasing integration of renewable energy in the region and the demand for inter-country trading of electricity.
Rising energy demands have also caused the market to expand significantly. Huge investments were made in green projects, mostly in offshore wind farms in Europe and Asia.
On the other hand, the market is estimated to grow at a CAGR of 10.9% during the forecasted period between 2025 and 2035. The market is expected to grow swiftly as it has a potential to reach a value of USD 64,478.9 million in 2035 from USD 22,963.7 million in 2025.
The market is anticipated to follow a swiftly growing pace from 2025 to 2035, in view of advancements made in HVDC technology, governmental initiatives in favor of energy transition, and global interconnection.
Tier-1 vendors include those global-high voltage direct current transmission system product companies which have large footprints and are comprehensive in their portfolio as well as consistently innovating. Such companies dominate the market with around 35%-40% market share and give end-to-end HVDC solutions, such as designing, manufacturing, installing, and maintaining systems.
Besides, the projects they lead include interconnectors between countries and ultra-high voltage systems. Some examples are ABB, Siemens Energy, and GE Grid Solutions which constantly leverage advanced technologies like Steeply Variable Voltage Source Converters (VSC) and modular multilevel converters.
These vendors, however, also partner government and utility bodies to dominate on very high scale projects like SuedLink in Germany or even UHVDC systems of China.
Tier-2 vendors are those whose products are human-defined into account-oriented regional markets. Typically, these companies are dealing with products from metros, such as cables or transformers or even control systems, integrated into larger HVDC schemes.
Business operations in such significant projects are mostly strategic partnerships formed with Tier-1 vendors. Examples of this tier include companies like Prysmian Group and Hitachi Energy, with highly hefty positions in Europe and Asia but covering 30%-35% share in the market.
They contribute significantly to interconnections in the region as well as projects dealing with renewable energy such as connecting offshore wind farms to national grids. They all have their specialized expertise and cost-efficient solutions adapted to the needs of regions to gain competitive advantages.
Tier-3 vendors are small, niche players or new entrants that come to offer specific components or localized markets, accounting for around 25%-30% of the world market. These vendors usually focus on supplying some auxiliary products like insulation, circuit breakers, conditioners, and so on.
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The section highlights the CAGRs of countries experiencing growth in the HVDC Transmission System market, along with the latest advancements contributing to overall market development. Based on current estimates USA, India and Germany are expected to see steady growth during the forecast period.
| Countries | CAGR from 2025 to 2035 |
|---|---|
| India | 12.9% |
| China | 11.8% |
| Germany | 9.4% |
| South Korea | 11.0% |
| United States | 9.2% |
The HVDC transmission system market in the USA is experiencing growth due to an increasing need for modernizing grids, further integrating renewable energy sources into the grid. The cleaner the energy source, the greater the lengths to which the USA goes in creating extensive HVDC connections for the remote wind and solar farms to urban centers.
One such example is Champlain Hudson Power Express, the New York High Voltage Direct Current Transmission project, in which 1,250 MW of hydropower produced in Canada will be transmitted to New York City and expected to be operational by 2025. Increasing emphasis on a reduction of carbon emissions as well as improving grid stability drives the adoption of HVDC technology.
It is also a welcome boost to the demand for HVDC systems because of the commitment of the Biden administration to expanding clean energy infrastructure and modernizing power grids. The forecast is that by 2025, the USA would need over USD 130 billion to upgrade transmission infrastructure, a good portion of that fund aimed for HVDC solutions.
The rapid industrialization and urbanization in India are putting forward the demands for developing very efficient power transmission systems, which leads into the development of the HVDC transmission system market in the country. India invests huge amounts in HVDC technologies for rising electricity demands in remote and rural areas.
The ±800 kV UHVDC link between Bihar and Jharkhand is a manifestation of India's commitment, which transmits up to 6,000 MW of electricity over 1,365 km making it one of the longest HVDC links in the world. India is going to make 40% of its capacity with non-fossil fuel-based electricity sources by 2030 and is expected to have HVDC systems to support resource utilization from renewable energy sources like solar and wind.
The National Electricity Plan has proposed investments close to USD 20 billion for supporting HVDC infrastructure development in line with this target. Besides that, the country's commitment to energy security and reliability has pumped further demand for the HVDC technology as the means of power transfer over long distances without being subject to the sags and surges which affect reliability.
China has emerged as a giant in the global HVDC transmission system due to its fast exploitations of renewable energy and UHVDC projects. The strategy that is known as "Go West" attempts to export energy recourses from the rich western provinces to the energy-hungry east, which then employs the HVDC technology to minimize transmission losses.
Take, by way of example, the ±1100 kV Changji-Guquan UHVDC link, which is 3,380 km in length and considered the world's longest and most powerful transmission link, transmitting 12,000 MW. This project will be essential in balancing the supply with demand of electricity in rapidly developing regions in China.
By 2035, the target is that over 90% of total electricity capacity will come from non-fossil fuels; this target will need of course the development of HVDC technologies. Heavy investments are being made by the Chinese government on UHVDC projects into constructions.
The section provides detailed insights into key segments of the HVDC Transmission System market. This section showcases the growth and highest market share among segments in the market.
Offshore wind farms are increasing rapidly, Europe and Asia, and it is time to find something that can really carry power over long distances from these offshore winds to the mainland grid. Subsea HVDC systems represent a good solution to this problem, allowing the transmission of high volumes of electricity over very long distances with only minor losses.
The North Sea Wind Power Hub project, for example, connects various offshore wind farms to a centralized grid system via subsea HVDC connections-for a future transmission capacity of around 10 GW, basically Europe's major subsea HVDC project.
Environmental gains from subsea HVDC are hard to discount, the systems having reduced the landscape and ecology footprint from coastal and marine environments compared with equivalent overhead lines.
For instance, hydropower from Norway is carried as a subsea HVDC link with the Skagerrak project, all this across the North Sea with a minimum environmental disruption.
All over the world, there is talk about how to create sustainable energy solutions in the future which can help with carbon footprints. The last straw is advances in cable and converter technology, which have made installing subsea HVDC systems even less expensive and easier, making them very appealing in the market.
| Segment | Subsea (Deployment) |
|---|---|
| CAGR (2025 to 2035) | 9.5% |
Energy Transmission & Distribution, the leading contributor to digitalization and stabilization in modern HVDC transmission systems will have dominant share in the overall HVDC transmission systems market. Need arises to effectively transport electricity over vast distances at reasonable cost from renewable resources, e.g. wind energy and solar energy.
These form the background for the setting of demand for HVDC technology in this sector. Major example of such project is the SuedLink in Germany and the Northeast Project operating in the USA. The projects not only connect these renewable energy sources to major cities but also are driven by HVDC technology to minimize transmission losses and keep the grid stable.
Further, there lies emphasis on upgrading the transmission and distribution systems due to greater need for energy security by countries and decreased carbon emission levels.
Examples of these mega projects include China's development of UHVDC such as Changji-Guquan linking projects which will improve energy transfer efficiency and further facilitate findings of non-fossil fuels into the system.
Thus, government incentives and investments for upgrading infrastructures are a boon to this market in particular, making it the largest revenue-earning segment in the HVDC business. Indispensability of energy transmission along with the emerging requirement of the demand for uninterrupted power supply further adds to this business dimension as leading competitor in HVDC markets.
| Segment | Energy Transmission & Distribution (Application) |
|---|---|
| Value Share (2025) | 49.0% |
An advanced technology and geographical expansion characterize the competition outlook in the HVDC transmission systems market. Ultra-high voltage (UHV) systems, modular multi-level converters (MMC), and the integration of renewable energy sources have brought increasing competitiveness in the market as companies scramble for leadership in these areas.
Major companies are increasingly differentiating themselves by providing more efficient, scalable, and affordable solutions. There is a trend towards strategic partnerships and alliances for expanding technological capacities and new market access.
This competition is bound to grow further with increasing precedence of energy security and sustainability in countries and utilities, thus increasing the pressure on companies to innovate and deliver high-performance HVDC solutions.
Industry Update:
In terms of system, the segment is divided into products and services.
In terms of deployment, the segment is segregated into overhead, underground, subsea and combination.
In terms of application, the segment is segregated into Energy Transmission & Distribution, Distributed Energy Resources, Renewable Energy and Other Application.
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe and Middle East and Africa (MEA).
The Global HVDC Transmission System industry is projected to witness CAGR of 10.9% between 2025 and 2035.
The Global HVDC Transmission System industry stood at USD 22,963.7 million in 2025.
The Global HVDC Transmission System industry is anticipated to reach USD 64,478.9 million by 2035 end.
South Asia & Pacific is set to record the highest CAGR of 12.3% in the assessment period.
The key players operating in the Global HVDC Transmission System industry include Siemens AG, GE Vernova (GE Grid Solutions), Hitachi Energy Ltd., ABB Ltd., Prysmian SpA and Mitsubishi Electric Corporation.
| Market Size (2023) | USD 18.2 billion |
|---|---|
| Expected Market Size (2033) | USD 41.5 billion |
| Predicted Market CAGR (2023 to 2033) | 8.6% |
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