High Voltage Direct Current (HVDC) Transmission System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Transmission Type (Submarine HVDC Transmission System, HVDC Overhead Transmission System, and HVDC Underground Transmission System), Component (Converter Stations and Transmission Medium (Cables)), By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 13.46 Billion
CAGR (2026-2031)	8.88%
Fastest Growing Segment	Submarine HVDC Transmission System
Largest Market	Europe
Market Size (2031)	USD 22.43 Billion

Market Overview

The Global High Voltage Direct Current (HVDC) Transmission System Market will grow from USD 13.46 Billion in 2025 to USD 22.43 Billion by 2031 at a 8.88% CAGR. The Global High Voltage Direct Current (HVDC) Transmission System Market consists of infrastructure designed to transmit bulk electrical power over long distances using direct current technology, which significantly minimizes energy losses compared to conventional alternating current systems. The primary drivers supporting market growth include the urgent necessity to integrate remote renewable energy sources, particularly offshore wind farms, into central grids and the increasing requirement for cross-border interconnections to enhance energy security. These drivers are distinct from temporary trends as they represent fundamental structural shifts required to stabilize modern power networks against intermittent generation.

However, a significant challenge that could impede market expansion is the substantial initial capital expenditure required for converter stations and the lengthy regulatory approval processes associated with cross-jurisdictional infrastructure. Highlighting the strong project pipeline that necessitates these transmission capabilities, according to the 'Global Wind Energy Council', in '2024', a total of 56.3 GW of offshore wind capacity was awarded worldwide. This record volume of offshore awards underscores the critical demand for efficient HVDC systems to transport electricity from marine environments to onshore demand centers.

Key Market Drivers

The accelerated integration of remote renewable energy capacities, particularly offshore wind, serves as a primary catalyst for the adoption of HVDC technology. As generation sites move further from coastlines to access stronger wind resources, the physical limitations of alternating current cabling necessitate the use of direct current systems to minimize transmission losses. This structural shift is evident in the investment strategies of major transmission system operators who are upgrading networks to accommodate marine energy. According to TenneT, July 2024, in the 'Half-year Report 2024', the operator invested EUR 4.6 billion in grid infrastructure during the first six months of the year, a significant increase driven largely by the implementation of offshore connection systems. These capital allocations highlight the industry reliance on converter stations to transport clean energy to onshore consumption hubs.

Additionally, the growth in cross-border and inter-regional power interconnections is accelerating demand for high-capacity transmission corridors. Nations are increasingly interconnecting grids to enhance energy security and facilitate the trading of surplus renewable electricity across geopolitical boundaries. This interconnectivity requires long-distance subsea cables and specialized voltage source converters to stabilize voltage between asynchronous grids. According to NeuConnect, July 2024, in the 'NeuConnect marks year of important progress' press release, the GBP 2.4 billion project advanced major construction on the first direct link between the UK and Germany, designed to integrate two of Europe's largest energy markets. To support such extensive project pipelines, manufacturers are scaling production capabilities; for instance, according to Hitachi Energy, in 2024, the company committed an additional USD 4.5 billion to expand its global transformer and high-voltage product manufacturing footprint.

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Key Market Challenges

The substantial initial capital expenditure required for converter stations and the lengthy regulatory approval processes act as primary barriers to market entry and expansion. Financing these large-scale infrastructure projects necessitates distinct long-term commitments that many investors find risky due to uncertain regulatory environments and volatile material costs. Consequently, the high upfront financial burden often results in deferred investment decisions or the complete cancellation of planned interconnections, directly reducing the pace at which new transmission capacity is brought online.

Furthermore, these economic and procedural hurdles create severe bottlenecks that prevent the timely integration of renewable energy projects. When transmission infrastructure lags behind generation capacity due to funding or permitting delays, it creates a substantial backlog of projects unable to connect to the grid. Highlighting the scale of this limitation, according to the 'American Clean Power Association', in '2024', the interconnection queue in the United States exceeded 2,600 gigawatts of generation capacity waiting for grid access. This backlog demonstrates how infrastructure limitations and capital constraints effectively cap the operational growth of the market despite the high demand for power transfer.

Key Market Trends

The Development of Ultra-High Voltage Direct Current (UHVDC) Transmission Infrastructure is emerging to manage the spatial imbalance between generation and consumption. Unlike offshore connections, UHVDC systems transmit bulk electricity over vast continental distances, effectively creating 'power superhighways' for inland renewable bases. This trend is distinct in China, where operators are linking western energy resources with eastern demand hubs. According to Bloomberg, January 2025, the State Grid Corporation of China planned to increase its 2025 capital expenditure to over CNY 650 billion (USD 89 billion), a record investment focused on constructing ultra-high voltage lines to stabilize the grid against intermittent renewable generation.

Simultaneously, the Growth in Underground HVDC Cabling Projects for Urban Infeed is accelerating to bypass land-use restrictions and public opposition to overhead lines. Operators in densely populated areas are prioritizing buried cable corridors to expedite regulatory approval and minimize environmental impact. This approach requires significant capital for specialized cable technologies and converter stations. Highlighting this shift, according to Amprion, December 2024, the operator awarded a contract worth over EUR 2 billion to Hitachi Energy for the Korridor B project, a key initiative designed to transport power underground from the North Sea to the Ruhr region.

Segmental Insights

The Submarine HVDC Transmission System segment is positioned as the fastest-growing category within the global market, driven largely by the expanding deployment of offshore wind farms. As governments prioritize renewable energy integration, the need for efficient subsea cables to transport electricity over long distances has intensified. Furthermore, the development of cross-border interconnections to ensure grid stability and energy security contributes significantly to this demand. Initiatives supported by entities such as the European Commission promote these infrastructure projects, validating the shift toward submarine solutions for their superior capability in minimizing transmission losses across aquatic environments.

Regional Insights

Europe holds the leading position in the Global High Voltage Direct Current (HVDC) Transmission System market, driven by substantial investments in renewable energy integration and grid modernization. The region focuses heavily on connecting offshore wind farms to mainland grids, supported by initiatives from the European Commission to lower carbon emissions. Additionally, the European Network of Transmission System Operators for Electricity (ENTSO-E) facilitates extensive cross-border interconnections to ensure energy security and efficient power trading. This regulatory support for long-distance transmission and clean energy transition cements Europe as the primary hub for HVDC development.

Recent Developments

• In July 2025, Siemens Energy was selected as the preferred bidder to construct two high-voltage direct current (HVDC) converter stations for the £2.5bn Eastern Green Link 4 subsea electricity project connecting Scotland and England. This development was part of a major joint venture between National Grid and SP Energy Networks to deliver a 2-gigawatt link capable of powering millions of homes. The project involved the design and delivery of converter stations that would serve as critical components for transporting clean wind power over a 530-kilometer subsea cable. This selection followed a competitive procurement process and reinforced the company's position in the supply chain for essential energy infrastructure.
• In October 2024, Prysmian launched a groundbreaking 525 kV high-voltage direct current (HVDC) cable technology designed to set new standards for efficient and reliable power transmission. This innovation featured both P-Laser and XLPE insulated land cable systems capable of transmitting up to 2.5 gigawatts of power, which is nearly double the capacity of previous 320 kV systems. The technology was developed to minimize land usage and environmental impact by requiring fewer cables to transmit the same amount of electricity compared to traditional alternating current systems. This launch marked a major milestone in supporting the global shift toward renewable energy and connecting next-generation offshore wind farms to national grids.
• In July 2024, GE Vernova entered into a significant research and development contract with four German transmission system operators to design a multi-terminal high-voltage direct current (HVDC) connection solution. The agreement with TenneT, 50Hertz, Amprion, and TransnetBW focused on developing a new generation of technology that allows multiple terminals to connect with one another, creating a highly efficient electron highway. The scope of the project included the conceptualization and design of a new-to-market 525 kV direct current circuit breaker intended to isolate faults within the system. This breakthrough innovation was poised to fundamentally change how electricity is delivered across Germany and Europe by enabling more flexible grid configurations.
• In March 2024, Hitachi Energy announced a strategic collaboration with Grid United to deploy high-voltage direct current (HVDC) technology for transmission projects connecting eastern and western regional power grids in the United States. This partnership focused on bridging the east-west divide to dramatically boost nationwide transmission capacity and support the urgent need for smooth power sharing between energy markets. By utilizing advanced HVDC systems, the initiative aimed to overcome persistent bottlenecks in the energy transition and enhance grid reliability. The collaboration introduced an innovative capacity reservation approach to accelerate the development of multiple interconnections essential for meeting increasing electricity demand.

Key Market Players

• ABB Ltd
• Siemens AG
• C-EPRI Electric Power Engineering Co. Ltd
• General Electric Company
• Toshiba Corporation
• Mitsubishi Electric Corporation
• Prysmian Group

By Region

North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global High Voltage Direct Current (HVDC) Transmission System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• High Voltage Direct Current (HVDC) Transmission System Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE