The world Western Europe HVDC transmission system market is expected to achieve outstanding performance, which can be ascribed to the increase of electricity consumption, and popularization of renewable energy and high-efficiency long-distance energy transmission. HVDC systems are being adopted for inter-regional and cross-border power links due to their ability to mitigate power losses over long-distance transmission.
Policies regarding energy transition in Europe, North America, and Asia are boosting investment in offshore wind, solar farms, and grid stability infrastructure, stimulating the demand for HVDC systems even more. The use of advanced control systems and multi-terminal configurations enable better grid integration and real-time load balancing in the market.
The Western Europe HVDC transmission system market is moving forward with a 7.9% CAGR forward, worth USD 6,010.0 million by 2035 up from USD 2,864.0 million in 2025.
Key Market Metrics
| Metric | Value |
|---|---|
| Market Size in 2025 | USD 2,864.0 million |
| Projected Market Size in 2035 | USD 6,010.0 million |
| CAGR (2025 to 2035) | 7.9% |
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With the gradual adoption of HVDC infrastructure, Germany leads Western Europe through Energiewende initiatives and the exogenous demand for connectivity from offshore wind in the north to industrial demand centers in the south. Transformative projects such as the SuedLink and SuedOstLink HVDC infrastructures have been expedited by not only the investment of the TSOs, but also the federal government’s strategies to expand the grid.
Germany is also leading in hybrid AC/DC grid designs and investing in VSC (voltage source converter) technologies to add to the flexibility of the grid. Germany’s pivotal position as a European energy hub is further underpinned by cross-border interconnectors with Denmark and the Netherlands.
France is fastest growing HVDC played mostly for inter-connection and nuclear and hydro source integration It’s clear from new projects like IFA2 and Biscay Gulf interconnectors that the nation is focused on secure cross-border transmission in line with efficiency.RTE and EDF have spent significant time installing new converter stations and deep-sea cables to accommodate new offshore wind capacities.
The roadmap for modernizing the French transmission grid adopts HVDCT for decarbonization, particularly on a large scale from high-capacity corridors that transport the renewable surplus from rural areas to urban load centers.
The UK is investing significantly in HVDC to facilitate offshore wind and grid decarbonization aims. The country’s geography of being an island also calls for the high efficiency of subsea transmission, so HVDC suits projects like Viking Link and Eastern Green Link perfectly.Regulatory frameworks for the expansion of HVDC are being promoted by National Grid ESO and of gem, while the role of private sector actors in the development of interconnectors is growing.
Other areas the UK is working on involves multi-terminal HVDC architectures to support future offshore hybrid platforms and cross-border energy trading.
High capital cost, regulatory hurdles, and technical complexity remain key barriers.
HVDC-based transmission systems require a high initial investment, mainly in their converter stations, control systems, and cable installation. These systems also require careful engineering, lengthy schedules and alignment of cross-border regulatory frameworks that can also lead to delays in deployments.
System complexity is increasing due to the technical issues including electromagnetic compatibility, protection coordination, and multi-terminal system scalability. TSOs still face numerous technical and operational challenges when integrating to existing AC networks and without risk of compromising grid stability.
Energy transition, offshore wind integration, and interconnectivity offer strong growth potential.
The increasing focus on integrating renewable energy and the European Green Deal that promises to accelerate HVDC systems deployment The North Sea, Baltic Sea and the Atlantic generate berth demand for long-distance and high-capacity transmission links.Interest in pan-European super grids and multi-terminal HVDC networks, which would improve energy security and enable cross-border trading of electricity, is also growing.
The emerging new converter technologies, the modular stations, and hybrid systems provide future-ready infrastructure for a decentralized energy landscape.
From 2020 to 2024, investments in the HVDC market in Western Europe showed stable growth due to energy transition targets and the accelerating need for decarbonizing transmission networks. Pioneering projects, grid code modifications, and EU frameworks' funding assistance, all of which were made feasible by national and EU initiatives, accelerated the initiation of projects at scale. Nonetheless, public acceptance, permitting delays, and component procurement slowed overall rollout in some parts of the world.
Policy challenges related to homogeneous infrastructure, standardization of HVDC equipment, multi-terminal nodes, digital substations, and AI-based load forecasting will shape the future market between 2025 and 2035. Bidirectional flows, power-to-X applications and adaptive fault management will be part of future systems. The next generation of HVDC systems will be marked by integration with offshore renewables, hydrogen hubs, and smart city grids reinforcing resilience and energy autonomy.
Market Shifts: A Comparative Analysis (2020 to 2024 vs. 2025 to 2035)
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Regulatory Landscape | EU directives and regional transmission upgrades |
| Consumer Trends | Focus on offshore wind and interconnectors |
| Industry Adoption | Projects led by TSOs and state utilities |
| Supply Chain and Sourcing | Regional cable and converter component sourcing |
| Market Competition | Dominated by Siemens Energy, Hitachi, and ABB |
| Market Growth Drivers | Renewable policies and interconnection mandates |
| Sustainability and Impact | Material-intensive and isolated deployments |
| Smart Technology Integration | SCADA and grid monitoring |
| Sensorial Innovation | Limited to control room interfaces |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Regulatory Landscape | Full HVDC code harmonization, interconnector incentives |
| Consumer Trends | Expansion to urban substations and energy storage integration |
| Industry Adoption | Broader participation from OEMs, EPCs, and hybrid energy developers |
| Supply Chain and Sourcing | Vertical integration and European cable manufacturing expansion |
| Market Competition | Entry of Chinese and modular system manufacturers |
| Market Growth Drivers | Energy trading, supergrid plans, and green hydrogen |
| Sustainability and Impact | Modular stations, recyclable components, and lifecycle impact modeling |
| Smart Technology Integration | AI-controlled substations, edge computing, and self-healing networks |
| Sensorial Innovation | Immersive grid simulation and AR-based maintenance tools |
The country's high voltage direct current (HVDC) transmission network is currently being expanded as part of its large-scale wind and solar deployment, which are both concentrated in the inland and southern regions. And Red Eléctrica de España is championing some strategic projects to connect isolated zones to bolster energy exchange within Europe.
Grid interconnections using High Voltage Direct Current (HVDC) were affected, and planned ones, like the Eastern Axis and the soon to be built Spain-France interconnectors, seek to ease congestion and reduce transmission losses. Also, government energy policies encourage HVDC use to stabilize voltage fluctuations, in addition to enabling efficient cross-border trading of electricity.
| Country | CAGR (2025 to 2035) |
|---|---|
| Spain | 7.9% |
The HVDC transmission system industry in Italy is also progressing, and special attention is being paid to improving connections between the mainland and island regions including Sicily and Sardinia. With, leading the way in such vital infrastructure as the Tyrrhenian Link, and Sa. Co.I. 3, to facilitate the flow of renewable energy and increase grid flexibility.
Sick of power losses over long distances, HVDC systems are essential to provide voltage stability in high-demand areas. HVDC integration forms a part of Italy’s national energy strategy as it works towards reaching decarbonization and interconnection targets.
| Country | CAGR (2025 to 2035) |
|---|---|
| Italy | 7.9% |
Norway is in the focus with the Nordic HVDC ecosystem exporting hydropower via long-distance HVDC subsea cables. Statnett has been involved with important interconnectors, including NordLink (to Germany) and North Sea Link (to the UK), which allow for significant power exchange across the European continent.
HVDC technologies are becoming a prevalent feature in domestic grid upgrades as intermittent wind and hydro power inputs are progressively balanced. Norway has also conducted research on advanced converter stations to optimize their responsiveness and integration with offshore energy platforms.
| Country | CAGR (2025 to 2035) |
|---|---|
| Norway | 7.9% |
The demand for HVDC transmission in Sweden is growing, as is the need to transmit electricity over long distances from the north, where hydropower is involved, to the south, where consumption is concentrated. Grid modernization by Svenska Kraftnät with HVDC corridors enhances power quality and load balancing appeal.
Ongoing upgrades include projects like the SouthWest Link. HVDC is being advocated by the government of Sweden as part of a green industrialization strategy, especially for steel production and electric mobility infrastructure.
| Country | CAGR (2025 to 2035) |
|---|---|
| Sweden | 7.9% |
HVDC infrastructure improving Finland's energy security and connectivity with neighbouring countries Fingrid is maintaining and developing the main projects such as Fenno-Skan 1 and 2, interconnections of the Finnish and Swedish power systems. Meanwhile, Finland is also considering new HVDC links to Estonia and other Baltic states as part of its overall regional integration strategy. Both HVDC systems provide flexibility needed to address the volatility of renewable sources of energy, predominantly wind energy, both in coastal regions and in the Gulf of Bothnia.
| Country | CAGR (2025 to 2035) |
|---|---|
| Finland | 7.9% |
The Danish HVDC market is booming, as Denmark leads the world in offshore generation of wind energy. To improve transfer of energy with the UK and the Netherlands, Energinet is currently working on the large HVDC projects Viking Link and Cobra Cable. Denmark has also spearheaded the move towards artificial energy islands, interlinked by high-voltage direct current (HVDC), which would serve as common centres to share electricity across borders. National strategies highlight the importance of HVDC technology for ensuring both climate neutrality and grid resilience.
| Country | CAGR (2025 to 2035) |
|---|---|
| Denmark | 7.9% |
The installed capacity of HVDC transmission system in Western Europe is steadily growing as grid operators, governments, and energy companies look for efficient methods of transmitting electricity at long distances to facilitate cross-border interconnectivity, urban electricity demands, and integrating renewable energy.
Compared to traditional AC systems; HVDC Systems have lower transmission losses, precise controllability, and cost-effective infrastructure solutions. In rebuilding and/or new generation long-distance power transmission, Voltage Source Converters (VSC) and Underground Power Transmission holds market share in Western Europe owing to their multiple advantageous features such as scalability, superior reactive power control, capability of being operationalized in high-rputant human settlements or environmental sensitive areas.
These segments help to meet EU energy transition objectives, enable decarbonisation of the grid, and improve energy security among member states.
VSC-based underground HVDC solutions are in the center of minimizing conflicts with land use, balancing distributed generation sources, and enabling guarantees for stable flow and electricity exchange across national borders as Western Europe moves toward carbon neutrality and grid modernization.
| Technology | Market Share (2025) |
|---|---|
| Voltage Source Converters (VSC) | 61.4% |
Western Europe’s HVDC market is dominated by the voltage source converter (VSC) technology that is favored for complex, meshed power networks and integrated renewable energy projects. Contrasting line-commutated converters (LCC), VSCs utilize insulated gate bipolar transistors (IGBTs), which allow power to be controlled independent of grid voltage and frequency-thereby providing a system that is faster to respond and incurs less harmonic distortion.
This technology suits offshore wind connections, inter-island transmission, as well as hybrid AC-DC grid architectures. These black start capabilities may be particularly valuable in regions with high levels of renewable penetration or weak AC systems, and supporting such technologies is another use case that is fully supported by VSC systems.
VSC deployment in urban transmission projects and multi-terminal HVDC corridors is a priority of manufacturers and utilities in Germany, France and the Benelux. Its compact design, lightweight converters, and low electromagnetic interference add to its case as the dominant technology in Western Europe’s evolving grid structure.
| Application | Market Share (2025) |
|---|---|
| Underground Transmission | 57.8% |
The largest section of HVDC system application in Western Europe can be stood on underground power transmission that is induced by the high land costs, limited space in urban areas, and the increasingly strong public movement against overhead lines. If the high-voltage direct-current (HVDC) cables are buried underground or installed underground in tunnels, they provide a reliable and discreet solution for transmitting power through overcrowded metropolitan areas and protected natural landscapes.
Netherlands, Switzerland and Germany are constructing underground HVDC corridors to link offshore wind parks and to integrate decentralized renewable sources and to replace aging overhead infrastructure with low-visual impact alternatives. They improve security of transmission and sidestep right-of-way conflicts and permitting delays.
Underground HVDC transmission also is a dominant technology to connect distributed power between islands, data centers and high-demand load centers while minimizing disturbance to communities and natural preservation. As environmental regulations tighten and public acceptance becomes critical to project approvals, underground solutions are more and more appealing in the energy planning and infrastructure investment strategies of Western Europe.
So, while overhead and subsea applications figure in wider HVDC approaches, HVDC underground transmission is a clear front-runner in Western Europe, thanks to its confluence with urban-planning, ecological, and near-future distributed power system strategies.
The Western Europe high-voltage direct current (HVDC) transmission system market has witnessed the development of several HVDC nodes, owing to the rising integration of renewable energy, interconnection of different EU member states, and demand for cost-effective long-distance transmission. HVDC systems help prevent grid instability during major disturbances, minimize long-distance transmission losses, and specifically benefit integration with offshore wind.
Western European nations-especially Germany, the UK, France, and the Netherlandsare installing HVDC corridors to decarbonize their power sectors and fulfill EU climate objectives. HE transfers multi-terminal HVDC grids, voltage source converter (VSC) technology and subsea transmission projects are seen as primary investments.
Market Share Analysis by Key Players & HVDC Transmission Providers in Western Europe
| Company Name | Estimated Market Share (%) |
|---|---|
| Hitachi Energy | 14-17% |
| Siemens Energy AG | 11-14% |
| GE Vernova (Grid Solutions) | 9-12% |
| Prysmian Group | 7-10% |
| Nexans SA | 6-9% |
| Other Providers | 38-45% |
| Company Name | Key Offerings/Activities |
|---|---|
| Hitachi Energy | In 2024, delivered NordLink HVDC interconnector between Germany and Norway; in 2025, began construction on multi-terminal HVDC hub in the North Sea. |
| Siemens Energy AG | In 2024, launched VSC-based HVDC modules for offshore wind integration in the UK; in 2025, partnered with France’s RTE on an underground HVDC corridor. |
| GE Vernova | In 2024, commissioned DolWin6 HVDC platform for German offshore wind farms; in 2025, introduced compact converter stations for urban energy corridors. |
| Prysmian Group | In 2024, delivered ±525 kV HVDC cables for Celtic Interconnector; in 2025, expanded submarine cable plant in Italy for Western European HVDC demand. |
| Nexans SA | In 2024, supplied subsea HVDC links for France-Spain energy transfer; in 2025, introduced 400 kV XLPE-insulated HVDC cable system for land corridors. |
Key Market Insights
Hitachi Energy (14-17%)
Hitachi Energy (formerly ABB Power Grids) leads HVDC deployment in Western Europe with advanced VSC and multi-terminal grid technologies. In 2024, it completed the NordLink project connecting Germany and Norway, enhancing cross-border electricity trade. In 2025, it commenced construction of a North Sea HVDC hub to interconnect offshore wind farms from Germany, Denmark, and the Netherlands. Hitachi’s leadership in HVDC Light® and grid integration positions it as a key player in Europe’s green transition.
Siemens Energy AG (11-14%)
Siemens Energy focuses on offshore wind and urban HVDC applications. In 2024, it launched modular VSC converters for seamless integration of offshore wind power into the British grid. In 2025, Siemens partnered with France’s RTE to develop an underground HVDC transmission corridor to reinforce energy security and resilience. Its innovations in compact converter stations make it suitable for congested urban settings and underground routes [Source: World Bank Report].
GE Vernova (9-12%)
GE Vernova (Grid Solutions) delivers turnkey HVDC projects focused on offshore energy transmission. In 2024, it commissioned the DolWin6 platform for German North Sea wind farms, improving grid stability and offshore connectivity. In 2025, it introduced a compact converter station design, ideal for high-density population centers in Western Europe. GE’s focus on digital substations and grid software integration enhances its competitive advantage.
Prysmian Group (7-10%)
Prysmian is a Western Europe leader in HVDC submarine and land cable systems. In 2024, it supplied ±525 kV cable technology for the Celtic Interconnector linking France and Ireland. In 2025, the group expanded its Italian cable production plant to meet surging Western European demand for interconnectors. Its investment in high-capacity and low-loss cable technology supports Europe’s cross-border electricity network expansion.
Nexans SA (6-9%)
Nexans provides subsea and terrestrial HVDC cables for energy interconnection. In 2024, it delivered cables for the France-Spain HVDC link aimed at balancing regional power surpluses. In 2025, it introduced a new XLPE-insulated cable technology for 400 kV land-based HVDC corridors. Nexans' role in reinforcing intra-European transmission aligns with EU goals for a resilient and integrated energy market.
Other Key Players (38-45% Combined)
A range of regional contractors, component suppliers, and system integrators contribute to HVDC development across Western Europe. These include:
The overall market size for the HVDC transmission system market in Western Europe was approximately USD 2,864.0 million in 2025.
The HVDC transmission system market in Western Europe is expected to reach approximately USD 6,010.0 million by 2035.
The increase of electricity consumption, and popularization of renewable energy and high-efficiency long-distance energy transmission will drive the demand for the HVDC transmission system market in Western Europe.
The top 5 countries driving the development of the HVDC transmission system market in Western Europe are Spain, Italy, Norway, Sweden, and Denmark.
Voltage Source Converter (VSC) technology and applications in renewable energy integration are expected to command significant shares over the assessment period.
Western Europe HVDC Transmission System Market
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