HVDC Transmission Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Type (High-power Rating Projects and Low-power Rating Projects), By Technology (Line Commutated Converter (LCC) and Voltage Source Converters (VSC)), By Application (Subsea, Underground, Overhead, and Mixed), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 13.39 Billion
CAGR (2026-2031)	7.03%
Fastest Growing Segment	Subsea
Largest Market	North America
Market Size (2031)	USD 20.13 Billion

Market Overview

The Global HVDC Transmission Market is projected to grow from USD 13.39 Billion in 2025 to USD 20.13 Billion by 2031 at a 7.03% CAGR. High Voltage Direct Current (HVDC) transmission systems are specialized power networks designed to convert alternating current into direct current, enabling the efficient bulk transfer of electricity over vast distances and via submarine cables. The market is primarily propelled by the escalating necessity to interconnect asynchronous national grids and the imperative to integrate remote renewable energy sources, particularly offshore wind farms, into central power systems. These drivers are fundamental to modernizing energy infrastructure, as they minimize transmission losses and facilitate the reliable exchange of high-capacity power across borders to support decarbonization targets.

However, the industry faces a significant challenge in the form of infrastructure development lags caused by complex permitting processes and supply chain bottlenecks which threaten to impede project commissioning. These delays create a critical disparity between the planned expansion of grid capabilities and the actual deployment of necessary assets. According to 'ENTSO-E', in '2025', 'current transmission development projects address only a portion of the long-term system needs, leaving a gap of 28 gigawatts in necessary cross-border capacity by 2040'.

Key Market Drivers

The expansion of offshore wind farm infrastructure and the integration of remote renewable energy generation serve as the primary catalysts for HVDC adoption. As wind energy projects move further from shore to capitalize on higher wind speeds, High Voltage Direct Current technology becomes essential to minimize the significant electrical losses that occur with alternating current over long subsea distances. This shift necessitates massive industrial scaling to manufacture the required voltage source converters and transformers needed to transmit clean power to onshore centers. According to Hitachi Energy, May 2024, in the 'Hitachi Energy announces $4.5 billion investment to accelerate the energy transition' press release, the company committed an additional USD 4.5 billion in manufacturing capacity by 2027 specifically to support this rapid integration of renewables and grid modernization.

The interconnection of asynchronous regional power grids and the need for enhanced grid stability further drive the market. Transmission system operators are increasingly relying on HVDC links to facilitate cross-border energy trading, which balances the supply fluctuations inherent in renewable energy systems. These interconnectors allow nations to share surplus power instantly, thereby enhancing energy security and meeting government decarbonization mandates through strengthened infrastructure. According to Terna Group, March 2024, in the '2024-2028 Industrial Plan', the operator allocated EUR 16.5 billion to modernize the grid and strengthen interconnections, focusing heavily on strategic submarine HVDC infrastructure. This surge in infrastructure spending is reflected across the broader supply chain. According to Prysmian Group, in 2024, the company reported a transmission order backlog exceeding EUR 18 billion, underscoring the sustained global demand for high-voltage connectivity solutions.

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Key Market Challenges

The Global HVDC Transmission Market is severely constrained by infrastructure development lags resulting from intricate permitting procedures and acute supply chain bottlenecks. These delays disrupt the project lifecycle, creating a disconnect between the urgent demand for grid interconnection and the actual deployment of transmission assets. When regulatory approvals stall or essential components are unavailable, capital-intensive projects remain in limbo, deferring revenue realization and increasing financial risk for developers. This uncertainty directly hampers market growth by slowing the rate at which new renewable generation can be integrated into the grid, effectively capping the volume of new transmission capacity that can be commissioned within a given timeframe.

The impact of these supply chain frictions is quantifiable and has visibly deteriorated project timelines. According to the 'International Energy Agency', in '2025', 'procurement lead times for specialized high-voltage direct current cables extended beyond five years due to manufacturing constraints and high global demand'. Such extended timelines force transmission system operators to postpone critical interconnections, thereby reducing the immediate market opportunity for technology providers and stalling the momentum of grid expansion efforts.

Key Market Trends

The advancement of Ultra-High Voltage DC (UHVDC) technology for bulk power transfer is fundamentally reshaping the market by enabling the efficient transmission of electricity across continental distances. Unlike traditional systems, UHVDC lines operating at 800 kV and above drastically reduce transmission losses, making them the preferred architecture for national supergrids connecting resource-rich remote areas with high-demand urban centers. This technological shift is driving unprecedented capital allocation toward grid backbone projects, as utilities prioritize capacity and long-distance efficiency. According to the State-owned Assets Supervision and Administration Commission (SASAC), July 2024, in the 'China's Largest Power Utility Firm Sees Annual Grid Investment Cross $84b' report, the State Grid Corporation of China announced a record annual investment exceeding CNY 600 billion to accelerate the construction of these ultra-high voltage transmission lines and digitalized grid infrastructure.

Concurrently, the Widespread Adoption of Voltage Source Converter (VSC) Technology is establishing a new industry standard, rapidly displacing older Line Commutated Converter (LCC) systems for complex applications. VSC systems offer superior controllability, including independent active and reactive power management and black-start capabilities, which are critical for stabilizing grids heavily reliant on intermittent generation. This technical superiority has led to the standardization of VSC designs for major interconnections, resulting in massive contract awards for converter stations. According to GE Vernova, June 2024, in the 'GE Vernova-Seatrium consortium wins EURO 2 billion contract from TenneT' press release, the company secured a landmark agreement valued at approximately EUR 2 billion to supply the VSC-based HVDC system for the Nederwiek 2 project, confirming the market's decisive shift toward this advanced converter technology.

Segmental Insights

The subsea segment is identified as the fastest-growing category in the Global HVDC Transmission Market, primarily due to the accelerating deployment of offshore wind farms. As nations prioritize renewable energy integration, efficient underwater cables are essential for transporting power from remote marine locations to onshore grids. Additionally, the demand for cross-border interconnections to enhance energy security drives this expansion. Initiatives by regulatory entities such as the European Commission regarding inter-regional grid connectivity further mandate the use of subsea HVDC systems to facilitate reliable long-distance electricity transmission and decarbonization.

Regional Insights

North America maintains a leading position in the global HVDC transmission market, driven by substantial investments in grid modernization and renewable energy integration. The region prioritizes replacing aging electrical infrastructure to enhance operational reliability and efficiency. Additionally, the United States Department of Energy actively facilitates projects designed to transport power from remote wind and solar farms to densely populated urban centers. This focus on long-distance energy transmission supports the continuous expansion of high-voltage networks. Consequently, supportive regulatory frameworks and the demand for stable interconnections establish North America as the primary contributor to market development.

Recent Developments

• In June 2025, Hitachi Energy announced its role in supplying key technologies for the Gansu-Zhejiang ultra-high voltage direct current (UHVDC) project in China. The company was selected to provide converter transformers and power semiconductors for what was described as the world's first ultra-high voltage flexible direct current transmission line. This infrastructure, spanning approximately 2,370 kilometers, utilized voltage-sourced converter technology at both ends to enhance grid flexibility and renewable integration. The project was designed to transmit significant volumes of electricity from the Gobi Desert to the Zhejiang province, thereby optimizing the regional energy mix and reducing reliance on fossil fuels.
• In August 2024, Siemens Energy signed a cooperation agreement with Mitsubishi Electric to co-develop direct current switching stations and circuit breaker technologies. This collaboration aimed to establish standard requirement specifications for multi-terminal high-voltage direct current (HVDC) systems, which are critical for the stability of complex power grids. The initiative focused on accelerating the technological readiness of these components to enable the efficient management of large-scale renewable energy resources, such as offshore wind farms. By combining their technical expertise, the companies sought to drive the global deployment of flexible and robust transmission infrastructures while continuing to operate independently in the market.
• In July 2024, GE Vernova entered into a research and development agreement with four German transmission system operators to advance the design of a multi-terminal high-voltage direct current (HVDC) connection solution. The collaboration focused on engineering a multi-hub system capable of connecting multiple terminals, contrasting with traditional point-to-point links. As part of this initiative, the partners aimed to develop a new 525-kilovolt direct current circuit breaker to facilitate fault isolation within the grid. This breakthrough research was intended to establish the technical foundation for a future meshed European offshore grid and enhance the integration of renewable energy sources.
• In February 2024, Prysmian finalized three strategic contracts valued at approximately €5 billion with the transmission system operator Amprion for major grid expansion projects in Germany. These agreements included the delivery of cable systems for the offshore grid connections BalWin1 and BalWin2, as well as the underground cable project DC34. The deal encompassed around 4,400 kilometers of high-voltage direct current (HVDC) and dedicated metallic return cables, marking the largest package in both value and volume ever awarded to the company. This collaboration aimed to support the transmission of offshore wind energy from the North Sea to consumers in Western and Southern Germany.

Key Market Players

• Hitachi Energy Ltd.
• Siemens Energy AG
• General Electric Company
• ABB Ltd.
• NR Electric Co., Ltd.
• Prysmian S.p.A.
• Nexans S.A.
• NKT A/S
• Toshiba Energy Systems & Solutions Corporation
• Mitsubishi Electric Corporation

By Type	By Technology	By Application	By Region
High-power Rating Projects Low-power Rating Projects	Line Commutated Converter (LCC) Voltage Source Converters (VSC)	Subsea Underground Overhead Mixed	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global HVDC Transmission Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• HVDC Transmission Market, By Type:

• High-power Rating Projects
• Low-power Rating Projects

• HVDC Transmission Market, By Technology:

• Line Commutated Converter (LCC)
• Voltage Source Converters (VSC)

• HVDC Transmission Market, By Application:

• Subsea
• Underground
• Overhead
• Mixed

• HVDC Transmission 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