The Japan HVDC Transmission System Market is projected to witness substantial growth between 2025 and 2035, propelled by the nation’s strategic push toward grid modernization and renewable energy integration. The market is expected to reach a value of USD 863.3 million in 2025, and it is projected to grow significantly to USD 2,139.4 million by 2035, representing a robust compound annual growth rate (CAGR) of 9.5% throughout the forecast period.
A major driver contributing to this market expansion is Japan’s increasing focus on stabilizing its electricity grid while accommodating large-scale renewable energy sources, especially offshore wind and solar. In the aftermath of the 2011 Fukushima disaster, Japan has steadily reduced its dependence on nuclear power and accelerated investments in renewable energy.
These sources are often geographically concentrated in remote or coastal regions, far from major demand centers. HVDC (High Voltage Direct Current) transmission systems provide a highly efficient solution to transport electricity over long distances with minimal losses, making them vital for connecting decentralized renewable projects to urban grids. Japan’s mountainous terrain and island-based geography further necessitate advanced transmission systems like HVDC for reliable, inter-regional electricity distribution.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 863.3 million |
| Industry Value (2035F) | USD 2,139.4 million |
| CAGR (2025 to 2035) | 9.5% |
In Japan, the HVDC Transmission System Solution segment dominates the market because the nation continues to invest in physical HVDC infrastructure. These consist of converter stations, control systems, and transmission lines necessary for long-distance power transmission.
Growing complexity of Japan's power grid driven by the rapid expansion of distributed energy resources has pushed government agencies and utilities to place system wide upgrades among their highest priorities. The addition of turnkey HVDC systems both from local and foreign suppliers makes it possible to modernize Japan's national grid, enhancing energy security and reducing transmission losses.
Because of the versatility and compactness of VSC technology, it is widely utilized in the Japanese HVDC market and is an excellent candidate for integration with offshore wind power and densely populated urban areas.
Unlike Line Commutated Converters (LCC), VSCs have the advantages of independent control of active and reactive power, black-start capability and greater suitability for weak grids, all features that are closely aligned with Japan's evolving energy profile. In addition, with Japan accelerating its offshore wind deployment as part of its Green Growth Strategy, VSC technology will remain the backbone of new HVDC transmission projects across the country.
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Hokkaido is positioning itself as Japan's key region for the electric transition for renewables, especially wind The open space and strong winds in the area have made it a leader in both onshore and offshore windmills. However, because Hokkaido is geographically separated from the rest of Japan's grid, it requires HVDC transmission systems to pass excess renewable energy to Honshu, the island where most of Japan's population resides.
As more projects arise, such as the Hokkaido-Honshu HVDC link, there is continued development in stable power transfer and advanced grid flexibility. This sector sees investment going into submarine HVDC cable systems and high-capacity converter terminals, with government support towards clean exports from northern Japan.
In particular, Tohoku is a large power producing region, for solar, wind and hydroelectricity. The area has since become ground zero for Japan’s grid reforms following the 2011 Fukushima accident. HVDC technology is being used for the integration of decentralized renewable sources as well as improving grid resilience.
One of the most important transmission corridors for power balancing is the Tohoku-Tokyo corridor (Murata, Yagita, Goto, 2020), and hence, HVDC technology is promoted to upgrade existing AC lines (e.g., Great Wall Liaohe scheme, projects for upgrading 1000 km distance AC to HVDC, etc.), in order to reduce power loss and real-time control of the voltage, frequency, etc. The government also hopes to attract private sector participation in developing HVDC technologies for the power export capabilities of Tohoku.
As the most populous and industrialized region, the center, Kantō-including Tokyo and Yokohama-has the greatest electricity demand in Japan. Now push our limits by establishing that HVDC systems are essential for reliable power supply, peak loads, and emergency backup in the region.
Expansion of space-constrained and low-disruptive underground and urban HVDC systems is gaining traction. Smart grid pilot projects underway in Kantō include modular HVDC systems, energy storage, and advanced grid control technology. To field-test next generation HVDC converter stations that use artificial intelligence and predictive analytics for grid optimization, power utility companies in the region are working with worldwide HVDC system integrators.
Chubu whose wide-scale producers like Nagoya call for a highly reliable energy infrastructure. Notably, heavy industries, such as automotive, aerospace, and electronics, are driving high-capacity high-voltage direct current (HVDC) transmission for reliability, especially as these industries move towards carbon neutrality goals.
Chubu has grid reinforcement schemes where HVDC is used to bridge regional power imbalances and connect industry with renewables. The region is also part of inter-regional HVDC pilot schemes, which are based on the emerging voltage source converter (VSC) technology for fast and flexible control of the grid.
Another significant area of industrial development and urbanization is in the Kansai region that encompasses Osaka, Kyoto, and Kobe with advanced HVDC infrastructure being constructed to meet peak loads and secure supply chains. As most cities do sit in earthquake zones, HVDC lines are considered a more stable and more resilient option than traditional AC systems, especially for critical infrastructure.
Meanwhile, Kansai is emerging as a leader in planning for a decarbonized grid, in which HVDC lines are used to support micro grids, battery storage systems and clusters of urban renewable energy. Public-private consortiums are working on next generation control systems for HVDC, including advanced monitoring to detect faults and automatically reroute power.
In more rural but industrially vibrant areas, such as Chugoku, HVDC technology can link spatially ununified energy systems, and optimize power quality in remote areas. Small hydro, geothermal, and biomass all have high potential in the area, and HVDC transmits the power economically to cities.
There is a growing government incentive for inter-region HVDC interconnections between Chugoku and the surrounding regions, allowing for more varying power exchange and stand-by aid. Cities like Hiroshima also help enable support for nameplate development of coastal HVDC converter terminals associated with offshore wind power transmission projects.
Shikoku faces specific challenges because of its small land area and aged grid infrastructure. When the island does turn to HVDC to modernize its energy transmission systems, it will already be well placed. HVDC cables between Shikoku and Kyushu and Honshu are a type of transmission line that can only be established in different grids.
The focus is on smaller, modular HVDC solutions suitable for mountainous or heavily forested countries. Mitsubishi Shikoku is also testing DC micro grids for small communities and industry parks, enabling them to be more energy independent and disaster resilient.
High Initial Investment and Long Payback Periods
These facilities represent a significant upfront cost in terms of converter stations, cable plants, and system integration. In a country such as Japan, where land acquisition and seismic codes also contribute to costs, payback on investments can be measured in decades. This deters small-scale and local power utilities, especially in less-populated areas.
Complex Regulatory and Grid Synchronization Issues
Japan's power supply has two frequency systems (the east with 50 hertz and the west with 60 hertz). HVDC is also necessary for synchronized operation of both systems, but this will require negotiation with, and respect for, the standards of existing grid managers and high safety and operating standards. HVDC installation can be slowed by delays in approval, as well as a lack of standardized interfaces.
Environmental and Public Opposition
While HVDC lines are more esthetically unobtrusive than AC towers, large scale schemes notably subsea or undersea or underground cables can cause environmental issues and opposition from local residents. In fact, public consultation, environmental impact studies, and negotiations with stakeholders are taking more and more time and need more and more resources.
Renewable Energy Integration and Grid Decarburization
HVDC systems are essential to transmitting renewable energy from rural generation zones that support Japan's ambitious 2050 carbon neutrality target and its push to close coal-fired power plants, into urban consumption centers. In order to properly deliver the generated power into the grid, we'll require long-distance HVDC lines for offshore wind farms in the Hokkaido and Tohoku area and solar clusters in the Chugoku and Kyushu area.
Inter-regional Connectivity and Frequency Balancing
HVDC serves as a key enabler for cross-frequency power exchange between Japan’s eastern and western grids. Upgrading interconnections using HVDC will improve grid reliability, allow for dynamic load shifting, and enhance disaster recovery capabilities. This is especially vital in a country frequently affected by earthquakes and typhoons.
Urban Grid Modernization and Smart HVDC Systems
Urban areas such as Kantō and Kansai are adopting digitalized HVDC systems with sophisticated monitoring, AI-powered fault detection, and integration into smart city platforms. These cutting-edge systems provide real-time control, improved safety, and interoperability with energy storage systems, EV infrastructure, and rooftop solar.
International Collaboration and Technological Leadership
Japan has world-class HVDC players like Hitachi Energy and Toshiba Energy Systems that are driving high-voltage converter technologies, compact stations, and superconducting materials. This has export opportunities as Japanese companies spearhead regional HVDC growth in Southeast Asia and the wider region.
Japanese HVDC (High Voltage Direct Current) transmission system market boost in movement from 2020 to 2024 was due to adoption of renewable energy, grid modernization and decarburization targets under the Green Growth Strategy. Japan, with its susceptibility to earthquakes and tsunamis even as its aging power infrastructure has left an ever-increasing demand for robust, energy-efficient HVDC systems to connect remote regional grids-was suitable for these highly efficient systems.
The Hokkaido Honshu HVDC interconnection and offshore wind farm connectivity expansion encouraged investments in subsea and underground HVDC connections through which electricity can be safely exchanged between islands thereby reducing losses in transmission. As Japan progresses toward its non-fossil energy goals and a carbon-neutral society by 2050, METI (Ministry of Economy, Trade and Industry) supported government initiatives, along with industry partners like Hitachi Energy, Toshiba, and Mitsubishi Electric, brought about an increase in installation of HVDC solutions.
From now until 2025 to 2035, the Japanese HVDC transmission market will be the key player in the true realization of grid flexibility, resilience, and decentralized energy source supply. A mainly coastal application, as the country increasingly connects very large offshore wind farms in the Sea of Japan and the Pacific coast (figure 2), HVDC system use will make long-distance, high-efficiency power transmission to large urban load centers possible. Additionally, the market will be further upgraded by using digital twin use cases, AI-based grid management, and modular multilevel converters (MMC) to boost the dynamic performance of grid.
HVDC technology will be at the heart of transforming East Asia's energy infrastructure as Japan emphasis interregional power balance, smart grid infrastructure, and cross-border energy collaboration with South Korea and Russia. Simultaneously, domestic companies would focus on localizing semiconductor-based HVDC equipment, improving HVDC circuit breakers, and upscaling hybrid HVDC-AC systems for city energy centers and disaster zones.
Market Shifts: A Comparative Analysis (2020 to 2024 vs. 2025 to 2035)
| Market Shift | 2020 to 2024 |
|---|---|
| Regulatory Landscape | METI and Japanese energy agencies introduced policies to decarbonize the grid, mandating interregional transmission system upgrades and enabling HVDC deployment for renewable energy integration. |
| Technology Trends | Adoption of Line Commutated Converters (LCC) and Voltage Source Converters (VSC) in key interconnection projects. HVDC enabled long-distance links between regional grids, enhancing energy security. |
| Infrastructure Strategy | HVDC applied in inter-island energy transfer (e.g., Hokkaido - Honshu), especially to support offshore wind and solar capacity in northern and southern prefectures. |
| Manufacturing & Innovation | Domestic OEMs like Hitachi Energy and Toshiba enhanced HVDC converter station designs. Focus on reliability, compactness, and integration into constrained urban spaces. |
| Sustainability & Grid Decarburization | HVDC systems supported the efficient dispatch of renewable energy, reducing curtailment of solar and wind power. Grid losses minimized through direct current transmission. |
| Disaster Resilience & Urban Demand | HVDC used for restoring power quickly in post-earthquake scenarios and for powering critical infrastructure independently from main grids. |
| Market Growth Drivers | Demand was driven by offshore wind projects, aging AC infrastructure, and regional grid fragmentation. Government funding supported HVDC pilot projects and international technology partnerships. |
| Market Shift | 2025 to 2035 |
|---|---|
| Regulatory Landscape | Future policies support full electrification goals, carbon neutrality by 2050, and mandatory HVDC compatibility for large-scale renewable projects. New standards enforce cybersecurity, disaster resilience, and AI integration into HVDC networks. |
| Technology Trends | Surge in use of Modular Multilevel Converters (MMC), AI-optimized control systems, and solid-state HVDC breakers. Digital twins used to simulate and maintain HVDC system health. DC micro grids emerge in urban areas and industrial zones. |
| Infrastructure Strategy | Expansion of HVDC subsea and underground links for new wind farms and geothermal projects. Urban energy corridors built with hybrid AC-DC systems to improve load balancing and disaster response. |
| Manufacturing & Innovation | Manufacturers prioritize compact, AI-ready HVDC modules, local production of semiconductors and SiC -based power devices, and plug-and-play HVDC skids for decentralized and portable grid applications. |
| Sustainability & Grid Decarburization | HVDC is central to Japan's zero-carbon strategy, enabling gigawatt-scale offshore wind integration and transnational energy transfer. Systems are built to operate within circular economy principles, with recyclable insulation and modular components. |
| Disaster Resilience & Urban Demand | HVDC is embedded into smart disaster management frameworks with autonomous re-routing, load shedding, and real-time grid diagnostics. Urban centers equipped with HVDC smart substations that support emergency backup for hospitals and data centers. |
| Market Growth Drivers | Market expansion fueled by Japan’s full renewable transition, digital energy grid goals, and HVDC’s role in facilitating next-gen nuclear, hydrogen, and cross-border energy exchanges. Government and private investment in HVDC R&D and localized component production increases. |
Tokyo leads Japan's HVDC transmission industry because of the high density of energy demand, urban electrification schemes, and proximity to national grid policy-making. HVDC systems play a crucial role in ensuring power stability and transmission efficiency in this heavily populated metropolitan area.
Tokyo's power grid is changing to include smart grid technology and long-distance DC transmission infrastructure to handle varying loads and inject renewable power from far-off areas. There is also the location of large utility headquarters and power R&D centers that facilitate ongoing innovation in converter station design, fault current limiters, and compact substation configurations specific to Tokyo's urban environment.
| City | CAGR (2025 to 2035) |
|---|---|
| Tokyo | 9.3% |
Osaka plays a pivotal role in Western Japan’s power transmission architecture, and its HVDC market is fueled by efforts to improve interconnection between Japan’s eastern and western grids. With different grid frequencies (50Hz east, 60Hz west), HVDC has become an essential component in frequency conversion and long-distance, low-loss transmission.
Investments in the upgrading of Osaka's power infrastructure using bipolar and VSC (Voltage Source Converter) based HVDC systems are growing, particularly for increased power routing to and from renewable sources in the Seto Inland Sea region. Osaka's industrial foundation and academic establishments further support high-performance switchgear and cable technology development.
| City | CAGR (2025 to 2035) |
|---|---|
| Osaka | 9.6% |
Kanagawa's location and integration into Tokyo's energy infrastructure position it as a dominant player in the HVDC value chain. The area is focusing on robust infrastructure planning, including HVDC solutions for disaster-proof power supply augmentation in the metropolitan corridor.
HVDC converter stations and underground cable networks are picking up pace owing to space limitations and population density. Kanagawa also favors regional data center development and port logistics, both of which demand reliable and scalable energy systems, propelling the demand for HVDC-based energy transport systems. University collaborations with technology firms are driving modular HVDC converter technologies that are suitable for urban applications.
| City | CAGR (2025 to 2035) |
|---|---|
| Kanagawa | 9.4% |
Aichi, which is a focus area of the automotive and manufacturing sectors, is an important industrial load center that requires stable and high-capacity power transmission. HVDC technologies are being researched more and more to improve grid stability and allow direct power flow from renewable generation sites in Hokkaido and Tohoku.
Aichi’s industry-driven need for uninterrupted power supply during production cycles is promoting adoption of multi-terminal HVDC grid concepts and smart load balancing mechanisms. Additionally, with companies in the region expanding into smart factory setups and low-carbon manufacturing, the demand for low-loss and high-voltage infrastructure solutions continues to climb.
| City | CAGR (2025 to 2035) |
|---|---|
| Aichi | 9.7% |
Fukuoka's HVDC market is unfolding with strategic value as Japan advances to link offshore renewable energy farms in Kyushu to high-demand areas on the mainland. The city serves as a hub for inter-island HVDC cable projects, especially for backing undersea cable corridors for renewable integration.
Fukuoka's geographical position and government-supported clean energy policies facilitate regional grid strengthening through low-loss transmission technologies and hybrid AC/DC substations. Innovation ecosystems associated with the city's green tech aspirations and digitalization also assist in testing sophisticated control algorithms and dynamic reactive power support systems for HVDC lines.
| City | CAGR (2025 to 2035) |
|---|---|
| Fukuoka | 9.2% |
By system component, Japanese HVDC transmission system market is dominated by Solution segment led by aggressive integration of renewable energy into the grid and modernization of grid in Japan. The need for efficient, long-haul electricity transmission infrastructure is preferable for Japan, which has increasingly shifted towards renewables since the Fukushima disaster in 2011. HVDC systems are a critical means of bringing power from remote solar parks and offshore wind farms to urban centers with minimal transmission losses.
With the need to secure energy and to accommodate the fluctuations that come through renewable sources, Japanese utility players and governmental apparatus are putting money on investment not only in converter stations but complete HVDC systems, transmission lines and grid interconnection facilities. Due to their capital-intensive and long-term nature, such projects offer transmission system providers solutions with a much larger market share than services.
HVDC technology is becoming increasingly attractive in Japan, where its island-based geography and mountainous landscape will lead to more inter-island power transfer and subsea cable projects. Grid-scale HVDC infrastructure expansion due to the government's "Green Growth Strategy" has further accelerated the adoption of transmission system solutions over maintenance or retrofitting service.
In Japan's HVDC transmission market by technology, VSC technology has the highest market share since it is more flexible, it has a smaller footprint and is capable of paving the way for complex grid-to-grid connections in densely populated regions. This is why VSC technology is particularly well suited for Japan's urban power landscape, where land availability and the need for compact, modular converter stations prevail. This contrasts with Line Commutated Converter (LCC) systems that demand bigger footprints and more complex systems.
Japan’s ambitious targets for offshore wind power development-10 GW of capacity by 2030 and as much as 45 GW by 2040-have made VSC the interoperability technology of choice for new interconnection projects. The VSC systems will offer better grid stability, black-start capability, and reactive power support with grid pre-conditions, thus balancing the offshore wind within the energy system without disrupting the system frequency or voltage levels.
Major Japanese power company such as TEPCO, J-Power and foreign leader in HVDC technology are already putting VSC solution in service for energy transition in Japan. These schemes are part of Japan's decarburization strategies and further reinforce VSC's lead in HVDC technology in Japan. The demand for decentralized power supply and flexible grid infrastructure will continue to influence HVDC transmission, and we see VSC will remain as the market leader in Japan.
The growth of HVDC transmission (high voltage direct current transmission) system market in Japan is significantly driven by the country's key priorities of harnessing renewable energy sources and enhancing the reliability of the grid. Increasing needs for more efficient and long-distance transmission of energy has led to the adoption of this HVDC technology.
Key companies in the Japanese market are focusing on advanced converter stations, submarine & underground cables and system integration services that meet the evolving energy infrastructure. Technological innovation, alliances, and government programs driving sustainable energy solutions are the key dynamics of this market.
Recent Developments
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Hitachi Energy Ltd. | 25-30% |
| Mitsubishi Electric Corporation | 20-25% |
| Toshiba Corporation | 15-20% |
| Sumitomo Electric Industries Ltd. | 10-15% |
| Other Companies (combined) | 20-30% |
| Company Name | Key Offerings/Activities |
|---|---|
| Hitachi Energy Ltd. | Provides HVDC systems with advanced converter technologies, focusing on integrating renewable energy sources and enhancing grid stability. |
| Mitsubishi Electric Corporation | Develops HVDC transmission solutions, including converter stations and control systems, emphasizing energy efficiency and reliability. |
| Toshiba Corporation | Offers HVDC transmission equipment and systems, specializing in high-capacity and long-distance power transmission projects. |
| Sumitomo Electric Industries Ltd. | Manufactures HVDC cables and related components, focusing on submarine and underground transmission applications. |
Other Key Players (20-30% Combined)
What was the overall size of the Japan HVDC Transmission System Market in 2025?
The japan HVDC Transmission System Market is expected to reach USD 2,139.4 Million in 2035.
The nation’s strategic push toward grid modernization and renewable energy integration will drive demand for HVDC Transmission System Market in Japan.
The top cities driving the development of Japan HVDC Transmission System Market market are Tokyo, Osaka, Kanagawa, Aichi, Fukuoka, owing to the strong presence of petrochemical and manufacturing industries.
HVDC Transmission System and Voltage Source Converter(VSC) are expected to command a significant share over the assessment period.
On the basis of System Component, the HVDC Transmission System Market in Japan is categorized into (AC & DC Harmonic Filters, Converters, DC Lines, Circuit Breakers and Others), HVDC Transmission System Services.
On the basis of technology, the HVDC Transmission System Market in Japan is categorized into LCC, VSC and Others.
On the basis of deployment, the HVDC Transmission System Market in Japan is categorized into Overhead, Underground, Subsea, Combination.
On the basis of Power Rating, the HVDC Transmission System Market in Japan is categorized into Below 1000 MW, 1000 to 2000 MW, 2000 MW & above.
On the basis of Cities, the HVDC Transmission System Market in Japan is categorized into Kanto Region, Chubu Region, Kinki (Kansai), Kyushu and Okinawa, Tohoku Region.
Japan HVDC Transmission System Market
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