HVDC Transmission System Market

HVDC Transmission System Market Overview

The global HVDC transmission system market is projected to evolve at a CAGR of 9.2% during the forecast period, as per recent analysis. The market value is expected to increase from USD 11.3 billion in 2024 to USD 27.4 billion by 2034. The HVDC transmission systems industry registered a CAGR of 8.1% at the end of 2023.

HVDC Transmission System Market Analysis and Insights

• The increasing need for bulk power transmissions over long distances and increased penetration of HVDC is expected to drive market growth in the anticipated period.
• HVDC transmission systems can transmit electricity with minimal losses, making them an ideal solution for areas with high power demand but limited infrastructure.
• The increasing demand for renewable energy sources, such as wind and solar power.
• These energy sources are often located in remote areas, far from population centers, and require efficient transmission systems to bring the electricity to where it is needed.
• HVDC transmission systems are well-suited to this task, as they are able to transmit large amounts of electricity over long distances with minimal losses.
• The increasing demand for electric vehicles and other forms of electric transportation is also driving the growth of the HVDC transmission system market.
• As more and more vehicles become electric, the need for more efficient and reliable charging infrastructure grows, which requires the installation of HVDC transmission systems.
• With the development of new technologies and the increasing adoption of electric vehicles and other forms of electric transportation, the market is likely to expand.

Attributes	Details
Market Size, 2024	USD 11.3 billion
Market Value, 2034	USD 27.4 billion
Value CAGR (2024 to 2034)	9.2%

Key Opportunities for the HVDC Transmission System Market

• The increasing demand for renewable energy and the push toward a greener and more sustainable future create lucrative opportunities in the market.
• HVDC transmission systems are ideal for transmitting renewable energy over long distances, making them an essential component of the renewable energy sector.
• A growing need for efficient and reliable power transmission systems. Traditional power transmission systems, such as AC transmission systems, have limitations, such as power losses during transmission over long distances.
• HVDC transmission systems, on the other hand, are highly efficient and can transmit power over long distances with minimal power loss. This makes HVDC transmission systems ideal for transmitting power from remote areas to urban centers.
• The increasing investments in infrastructure development are projected to create significant opportunities for the forecast period. Governments worldwide are investing heavily in infrastructure development, including power transmission systems.

Challenges for the HVDC Transmission System Market

• The initial cost of setting up an HVDC transmission system is quite high, which makes it difficult for small and mid-sized companies to invest in it.
• The high cost of equipment, installation, and maintenance are some of the key factors that make it difficult for the HVDC market to grow.
• The lack of standardization in the HVDC transmission systems. Different manufacturers use different standards and protocols, making it difficult for the buyers to choose the right one. This lack of standardization also makes it difficult for the manufacturers to compete with each other.
• HVDC transmission systems are primarily used for long-distance transmission of power and are not suitable for short distances. This limits their application areas and makes it difficult, which is expected to hamper the market growth in the coming years.

Category-wise Insights

The HVDC Transmission System Solutions Segment Dominates the Market by System Component

Attributes	Details
System Component	HVDC Transmission System Solutions
Market Share in 2024	63.4%

• HVDC systems enable efficient long-distance power transmission, as they experience lower losses and can transmit power over longer distances with less voltage drop compared to AC systems.
• HVDC systems are ideal for transmitting power from renewable energy sources to urban areas as they can stabilize the fluctuating power output from these sources.
• HVDC systems can connect asynchronous grids, which allows for more efficient and reliable power transmission across regions.

The LCC Segment Dominates the Market by Technology

Attributes	Details
Form	LCC
Market Share in 2024	43.2%

• The market share of LCC in HVDC transmission systems represents a significant 43.2% in 2024.
• The LCC (Line Commutated Converter) segment is dominating the HVDC transmission system market due to its lower cost and ease of availability.
• LCCs have been in use for several decades and are a proven technology. They are efficient and reliable, making them the preferred choice for long-distance power transmission applications.
• LCCs are also capable of handling high power levels and are suitable for bulk power transmission.

However, they have certain limitations, such as low controllability and inability to operate in weak AC systems. Despite these limitations, LCCs continue to dominate the HVDC transmission system market due to their cost-effectiveness and reliability.

Country-wise insights

Countries	CAGR through 2024 to 2034
United States	6.1%
Germany	8.7%
China	9.7%
Japan	10.5%
Australia	12.7%

HVDC Transmission System Market in the United States

• The growing need for long-distance transmission of electrical power has led to the adoption of HVDC transmission systems, as they are more efficient than AC transmission systems for long-distance power transmission in the United States.
• The increasing adoption of electric vehicles has also fueled the demand for HVDC transmission systems as they require high-voltage charging infrastructure.

HVDC Transmission System Market in Germany

• Germany strongly focuses on improving energy efficiency and reducing greenhouse gas emissions, increasing the demand for HVDC transmission systems.
• The German government has set ambitious goals to increase the share of renewable energy in the country, which is driving the expansion of the HVDC transmission system market.
• The increasing demand for electricity, coupled with the need for efficient and reliable power transmission, is driving the growth of the industry.
• The growing consumer demand for EVs and other electric-powered technologies in Germany is expected to drive the demand for HVDC transmission systems. These systems can help to improve the stability and reliability of power supply to these technologies, which is crucial for their widespread adoption.

HVDC Transmission System Market in China

• China is the world's leading electricity producer and consumer. With the country's rapidly growing economy and increasing demand for electricity, the existing power transmission infrastructure is facing limitations.
• This has increased interest in high voltage direct current (HVDC) transmission systems in China.
• HVDC systems are also more reliable and have a lower environmental impact. The Chinese government has also been investing heavily in clean energy sources, which are often located in remote areas.

HVDC Transmission System Market in Japan

• Japan is a country that has been at the forefront of technological advancements for decades. In recent years, the demand for high-voltage direct current transmission systems has increased in Japan for several reasons.
• HVDC transmission systems are more efficient in transmitting power over long distances, making them ideal for connecting remote renewable energy sources to the power grid.
• The surge in submarine and underground HVDC transmission systems in Japan is estimated to account for a sizable market share due to several island-based projects.
• HVDC transmission systems offer higher efficiency, lower losses, and improved stability than traditional AC transmission systems, making them a viable solution for upgrading the country's power infrastructure.
• Japan's geographical location and vulnerability to natural disasters such as earthquakes and typhoons have increased the importance of reliable and resilient power transmission systems.
• HVDC transmission systems are more resilient to disturbances caused by natural disasters, making them a suitable solution for ensuring the reliability of the power grid in Japan.

HVDC Transmission System Market in Australia

• HVDC systems are more efficient than traditional AC transmission systems, which makes them a more cost-effective option for transmitting large amounts of power over long distances.
• This is particularly important in Australia, where many of the industrial areas are far from the leading power generation centers.
• The government has also been investing heavily in upgrading the country's power infrastructure in recent years, which has led to increased demand for HVDC transmission systems.
• The government recognizes the importance of modernizing the country's power grid to ensure a reliable and secure supply of electricity to all individuals, and HVDC systems are seen as a key asset for this effort.

Competitive Landscape

The HVDC transmission systems industry is quite intense, with several players vying for a larger share. Companies are focusing on developing advanced and innovative technologies to improve the efficiency and reliability of HVDC systems. They are also investing in research and development to develop eco-friendly and energy-efficient HVDC transmission systems to cater to the growing demand for sustainable energy solutions.

Recent Developments

• In 2018, ABB Ltd., a technology pioneer, assisted China in building the world's first high-voltage direct current (HVDC) grid.
• In 2021, Siemens Limited announced the successful commissioning of India's first high-voltage direct current (HVDC) link with voltage-sourced converter (VSC) technology.
• In 2021, Hitachi ABB signed a contract to create an interconnection that allows Saudi Arabia and Egypt to exchange up to 3000 MW of power. This project enables the 1350-kilometer-long connecting line to carry electricity across the Red Sea via overhead power lines and a subsea cable.
• In 2021, Prysmian Group was assigned to supply high-voltage DC cable systems for an underground transmission project in the United States. The SOO Green HVDC Link, a 2100 MW interregional transmission project connecting two of the prominent energy markets in the United States, was part of this arrangement.

Key Market Players

• ABB Ltd.
• Siemens AG
• Toshiba Corporation
• General Electric Co.
• Mitsubishi Electric Corporation
• Prysmian SpA
• TransGrid Solutions Inc.
• Abengoa S.A.
• ATCO LTD.
• LS Industrial Systems Co., Ltd.

Key Market Segments

By System Component:

• HVDC Transmission System Solution
  • AC & DC Harmonic Filters
  • Converters
  • DC Lines
  • Circuit Breakers
  • Others
• HVDC Transmission System Services

By Technology:

• LCC
• VSC
• Others

By Deployment:

• Overhead
• Underground
• Subsea
• Combination

By Power Rating:

• Below 1000 MW
• 1000 to 2000 MW
• 2000 MW & above

By Region:

• North America
• Latin America
• East Asia
• South Asia
• Europe
• Oceania
• The Middle East and Africa

Frequently Asked Questions

Which System Component Segment Contributes more to the HVDC Transmission System Market?

Within the system component segment, the HVDC transmission system solution segment held 63.4% of the share in 2024.

What is the United States HVDC Transmission System Market Outlook?

The United States accounts for around 6.1% of the market share in 2024.

What is the Industry Outlook of HVDC Transmission Systems in China?

China is estimated to hold a 9.7% share of the market in 2024.

How Large is the HVDC Transmission System Market in 2024?

The market is currently valued at around US$ 11.3 billion.

What is the Projected Valuation of the Market for 2034?

The market is set to reach a valuation of around US$ 27.4 billion by the end of 2034.

What Was the Historical CAGR for the Global Market?

Demand for the HVDC transmission system increased at an 8.1% CAGR from 2019 to 2023.