The global high-voltage direct current (HVDC) transmission system market is projected to expand significantly, with an estimated market size of USD 22.9 billion in 2025 and USD 64.4 billion by 2035. This anticipated growth represents a CAGR of 10.9% during the forecast period.
The need for efficient, long-distance power transmission has emerged as the primary factor driving the adoption of HVDC systems. These systems are being deployed to reduce transmission losses and enhance power transfer capabilities, especially from offshore wind farms and remote solar energy installations.
| Attributes | Description |
|---|---|
| Estimated Size, 2025 | USD 22.9 billion |
| Projected Size, 2035 | USD 64.4 billion |
| Value-based CAGR (2025 to 2035) | 10.9% |
Subsea deployment, in particular, is expected to play a crucial role in Europe and Asia, where power must be transmitted across vast water bodies. However, several challenges, such as the high cost of converter stations and technical complexity in integrating HVDC with aging AC grid infrastructures are anticipated to hinder seamless deployment in certain regions.
The expansion is expected to be supported by substantial investments in large-scale energy infrastructure, grid modernization, and renewable energy integration. Countries such as India, China, and South Korea are expected to lead the adoption curve, owing to rising electricity demand and increasing commitments toward decarbonization.
Looking forward, market growth is expected to be shaped by advancements in voltage source converters (VSCs), ultra-high-voltage (UHV) technologies, and scalable modular systems over the past few years. Bio-based insulating materials, automated installation processes, and international grid interconnection initiatives are likely to be prioritized by utilities and governments alike.
In addition, growing emphasis on net-zero emission targets and energy security is expected to reinforce the importance of HVDC systems within national energy strategies. As a result, the combination of technological innovation, sustainability mandates, and cross-border collaborations is anticipated to propel the market through 2035. Investments in digital monitoring and predictive maintenance tools are also expected to gain traction, enhancing system reliability and lifecycle efficiency.
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 (2024 to 2034) | 10.7% |
| H2 (2024 to 2034) | 10.3% |
| H1 (2025 to 2035) | 10.6% |
| H2 (2025 to 2035) | 11.2% |
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.
High voltage direct current (HVDC) transmission products are witnessing rising demand due to the global shift toward renewable energy integration and the need for efficient long-distance power transmission. HVDC systems reduce energy losses compared to traditional AC systems, making them ideal for transporting electricity from remote solar, wind, and hydroelectric plants to urban centers.
Additionally, their ability to interconnect asynchronous power grids enhances grid stability and flexibility. Growing investments in cross-border power trading, coupled with government initiatives for energy efficiency and grid modernization, are further fueling the adoption of HVDC technology. The HVDC transmission products segment holds 72% share of the market.
HVDC transmission services are in high demand owing to the increasing need for grid reliability, system upgrades, and seamless renewable energy integration. As countries transition to low-carbon energy sources like offshore wind and solar farms located far from consumption centers, specialized HVDC services ensure efficient, long-distance power transfer with minimal losses. Additionally, services such as system design, maintenance, retrofitting, and grid interconnection support utilities in enhancing operational stability and flexibility.
| System Segment | Market Share (2025) |
|---|---|
| HVDC Transmission Products | 72% |
Subsea deployment of HVDC transmission systems is increasingly in demand due to the growing need for efficient power transmission across countries and regions separated by water bodies. HVDC technology offers superior performance for long-distance underwater power transfer with significantly lower transmission losses compared to AC systems.
The expansion of offshore renewable energy projects, especially wind farms, has also boosted the requirement for reliable subsea HVDC links. Additionally, these systems support cross-border interconnections, enabling energy trade and grid stability between nations. The subsea segment is poised to grow at 9.5% CAGR during the study period.
Overhead, underground, and combination deployment modes are popular for HVDC transmission systems due to their flexibility in meeting diverse geographical, environmental, and regulatory requirements. Overhead lines are cost-effective for long-distance, high-capacity transmission across open terrains. Underground deployment is favored in urban areas, environmentally sensitive zones, or where land availability is limited, ensuring minimal visual and environmental impact.
The combination mode leverages the advantages of both, optimizing cost, performance, and environmental compatibility by switching between overhead and underground as per site-specific needs. This adaptability makes these deployment modes essential for enabling reliable, efficient, and sustainable HVDC power transmission across various regions.
| 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 of 49% 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.
| Application Segment | Market Share (2025) |
|---|---|
| Energy Transmission & Distribution | 49% |
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 64.4 billion in 2035 from USD 22.9 billion 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.
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. Indian market 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.
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:
| Report Attributes | Details |
|---|---|
| Estimated Market Size (2025) | USD 22.9 billion |
| Projected Market Size (2035) | USD 64.4 billion |
| CAGR (2025 to 2035) | 10.9% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Forecast Period | 2025 to 2035 |
| Report Parameter | Revenue in USD billion |
| System Types Analyzed | Voltage Source Converter (VSC), Line Commutated Converter (LCC) |
| Deployment Types | Overhead, Underground, Subsea |
| Applications Analyzed | Energy Transmission & Distribution, Grid Interconnection, Bulk Power Delivery, Infeed Urban Areas |
| Regions Covered | North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, Middle East & Africa |
| Countries Covered | United States, Japan, Germany, India, United Kingdom, France, Italy, Brazil, Canada, South Korea, Australia, Spain, Netherlands, Saudi Arabia, Switzerland |
| Key Players | Siemens AG, GE Vernova, Hitachi Energy Ltd., ABB Ltd., Prysmian SpA, Mitsubishi Electric Corporation |
| Additional Attributes | Semi-annual growth updates, Renewable integration, Grid modernization, Cross-border projects, Market share analysis |
| Customization & Pricing | Available upon request |
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 22.9 billion in 2025.
The Global HVDC Transmission System industry is anticipated to reach USD 64.4 billion 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.
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