North America HVDC Transmission Market By Type (High-power Rating Projects, Low-power Rating Projects), By Technology (Line Commutated Converter (LCC), Voltage Source Converters (VSC)), By Application (Subsea, Underground, Overhead, Mixed), By Country, Competition, Forecast and Opportunities, 2020-2030F

Market Overview

North America HVDC Transmission Market was valued at USD 4.61 Billion in 2024 and is expected to reach USD 6.30 Billion by 2030 with a CAGR of 5.34% during the forecast period. The North America HVDC transmission market refers to the growing deployment of high-voltage direct current infrastructure across the United States and Canada to support the efficient movement of electricity over long distances with minimal energy losses.

HVDC technology is gaining prominence in the region as power utilities and governments face increasing pressure to modernize aging grid systems, reduce carbon emissions, and integrate rapidly expanding renewable energy capacity into the transmission network. Unlike conventional alternating current systems, HVDC enables long-distance transmission with significantly lower line losses and allows precise control of power flows, which is essential for stabilizing the grid amid the variability of wind and solar energy sources. The market is set to rise due to the strategic need to connect remote renewable energy projects in areas such as the Midwest wind corridor and Southwestern solar zones to high-demand urban centers along the East and West Coasts.

HVDC enables asynchronous grid interconnections, which means different regional grids can be linked without requiring synchronized operation, improving grid flexibility, reliability, and resilience against blackouts. The advancement of converter station technologies, such as voltage source converters and modular multilevel converters, has reduced the size and environmental impact of HVDC systems, making them more viable in both rural and urban settings. As North America accelerates its transition toward clean energy and electrified economies, HVDC is increasingly recognized as a foundational technology for transporting renewable power, reducing transmission bottlenecks, and enhancing cross-border energy exchange between the United States and Canada.

In addition, policy support, decarbonization mandates, and federal infrastructure investments are accelerating HVDC project planning and development across the continent. Transmission operators are also investing in HVDC to accommodate growing electricity demand from data centers, electric vehicles, and industrial electrification. With its unique capabilities in supporting high-capacity, long-distance, and flexible power transmission, HVDC is poised to become an essential component of North America’s future energy infrastructure, driving sustained growth in the regional market over the coming decades.

Key Market Drivers

Expansion of Renewable Energy Projects Across Remote Locations

The North America High Voltage Direct Current Transmission Market is significantly influenced by the rapid expansion of renewable energy infrastructure across geographically dispersed and remote areas. In the United States and Canada, solar farms in desert regions, wind farms across the Midwest, and offshore wind projects along the coastlines are increasingly supplying clean electricity to the grid. These renewable energy generation sites are typically located far from major population centers where electricity demand is concentrated. Traditional alternating current systems are often inefficient for long-haul power transfer due to higher line losses and limited control over transmission. High voltage direct current transmission addresses this challenge by enabling efficient and low-loss power transfer across vast distances, which is critical for integrating renewable energy into national grids without compromising reliability or stability. The inherent efficiency of high voltage direct current transmission not only reduces power dissipation but also enables greater energy throughput, making it an indispensable technology in the renewable energy value chain.

Governments across North America are establishing long-term sustainability goals that require massive additions of renewable generation capacity. The United States aims to achieve a carbon-free electricity sector by 2035, while Canada is similarly targeting net-zero emissions by 2050. These national goals necessitate the rapid and large-scale deployment of renewable energy infrastructure, and high voltage direct current transmission offers the most technically and economically viable method for transmitting this energy from remote production zones to urban demand centers. The increasing complexity of the energy mix, combined with the physical remoteness of clean energy resources, mandates the use of transmission technologies that are robust, flexible, and future-ready. High voltage direct current transmission enables power producers to avoid bottlenecks, manage fluctuations in energy supply, and support grid balancing operations efficiently. As utility-scale renewable projects expand in remote areas, the demand for new high voltage direct current corridors is expected to escalate, thereby driving sustained growth in this specialized transmission market. As of 2024, the United States has over 130 gigawatts of wind capacity and more than 110 gigawatts of solar capacity installed, with more than 60 percent of this capacity located over 500 kilometers from major urban load centers, underscoring the rising necessity for long-distance high voltage direct current transmission lines.

Cross-Border Power Exchange Between the United States and Canada

One of the key growth drivers of the North America High Voltage Direct Current Transmission Market is the expansion of cross-border electricity exchange between the United States and Canada. Both nations maintain deeply interconnected energy markets and benefit mutually from the transfer of surplus electricity. Canada, with its vast hydropower resources, often exports low-carbon electricity to the United States, especially during peak demand periods or when intermittent renewable generation falls short. High voltage direct current transmission is ideally suited for such cross-border transfers because it supports asynchronous interconnections, allowing grid operators to decouple systems while maintaining power flow. This technical capability reduces the risk of cascading blackouts and increases reliability, especially across different regulatory environments and operational standards. As energy security and economic interdependence between the two countries grow stronger, so does the need for efficient and reliable transmission infrastructure that transcends national boundaries.

In addition to reliability and stability, high voltage direct current transmission also offers economic benefits to cross-border power trade by minimizing transmission losses over long distances and offering better control over flow dynamics. Several provinces in Canada, including Quebec and Manitoba, are investing in or operating high voltage direct current links to export electricity to the United States, supporting decarbonization goals in New England, New York, and the Midwest. These energy exchanges are expected to rise as both countries pursue electrification of transport, heating, and industrial processes. New interconnection projects will increasingly rely on high voltage direct current transmission to meet energy demand growth without overloading alternating current infrastructure. Moreover, federal and provincial support for sustainable energy cooperation and joint infrastructure development is expected to encourage long-term investments in this technology. As power trade expands in volume and complexity, high voltage direct current transmission will serve as a strategic tool for cross-border grid integration and energy reliability. Canada exported approximately 60 terawatt-hours of electricity to the United States in 2023, representing more than 10 percent of Canada’s total electricity generation, much of it routed through long-distance transmission corridors suitable for high voltage direct current systems.

Increasing Load Demand from Data Centers and Electrification

The rise in electricity consumption driven by the rapid expansion of data centers and the electrification of various sectors is another fundamental driver of the North America High Voltage Direct Current Transmission Market. Data centers are among the most energy-intensive facilities, and their proliferation across the continent—especially in suburban and exurban areas—has created unprecedented localized demand for high-quality, reliable electricity. Additionally, the growing adoption of electric vehicles, heat pumps, and electric industrial equipment is putting pressure on traditional transmission systems, which are already nearing capacity in many regions. High voltage direct current transmission systems, due to their high capacity and lower losses, are increasingly being utilized to feed these concentrated loads from distant generation sources. Their ability to deliver bulk power over long distances makes them a critical enabler of infrastructure resilience and service continuity, especially in scenarios where demand surges are common.

At the same time, grid congestion in high-growth urban and industrial regions is making it difficult to accommodate new demand through conventional transmission upgrades. High voltage direct current transmission offers a compact, scalable, and often underground alternative that minimizes right-of-way challenges and accelerates deployment timelines. In some cities, new high voltage direct current projects are being planned specifically to supply power to data center clusters, given their requirement for consistent voltage levels and minimal service interruption. This trend is expected to accelerate as cloud computing, artificial intelligence, and digital services proliferate, driving the construction of hyperscale data centers with power requirements exceeding hundreds of megawatts. Combined with government and utility initiatives to build clean energy-powered digital infrastructure, high voltage direct current transmission is expected to become a foundational element in meeting the region’s future electricity demand efficiently and sustainably. A single hyperscale data center can consume between 100 and 150 megawatts of electricity, equivalent to the power needs of approximately 80,000 U.S. homes, with over 300 new data center projects currently planned or under construction across North America.

Technological Advancements in Converter and Cable Systems

Technological innovation is playing a pivotal role in accelerating the adoption of high voltage direct current transmission systems across North America. Advances in converter station technologies, such as voltage source converters and modular multilevel converters, have significantly improved system efficiency, scalability, and environmental compatibility. These innovations allow high voltage direct current installations to be more compact, produce less noise, and operate reliably under a wider range of grid conditions. They also make it possible to integrate renewable and conventional generation sources more seamlessly. Similarly, breakthroughs in high-performance cable materials and insulation techniques are enabling underground and underwater transmission over longer distances, which is particularly important for densely populated or environmentally sensitive regions. These capabilities are removing traditional deployment barriers and broadening the scope of viable high voltage direct current transmission projects.

The improved cost-efficiency and performance of new high voltage direct current technologies are reshaping transmission planning across North America. In the past, high voltage direct current systems were reserved for a few select applications due to cost and complexity, but modern designs are now competitive with alternating current systems even for mid-range distances. Grid operators are also benefiting from advanced monitoring and automation features embedded in new high voltage direct current infrastructure, which supports predictive maintenance, faster fault detection, and real-time grid management. Research institutions and manufacturers in the United States and Canada are collaborating to develop next-generation high voltage direct current solutions, including superconducting cables and hybrid high voltage direct current-alternating current networks. These innovations are fostering a more dynamic, reliable, and future-proof grid, and as the technology continues to evolve, adoption across both new and retrofit projects is expected to rise sharply. Modern voltage source converters used in high voltage direct current systems can operate at voltages exceeding ±525 kilovolts and deliver power transfer capacities of up to 2,000 megawatts per link, which is enough to supply electricity to over 1.5 million households.

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Key Market Challenges

Regulatory Fragmentation and Inter-Jurisdictional Complexity

One of the foremost challenges facing the North America High Voltage Direct Current Transmission Market is the fragmented regulatory environment that complicates project approvals, implementation timelines, and cross-jurisdictional coordination. In the United States, electricity transmission infrastructure is regulated at both the federal and state levels, with entities such as the Federal Energy Regulatory Commission overseeing interstate transmission, while state public utility commissions have authority over in-state siting and permitting. This dual-layered oversight often results in misalignment of policy objectives, inconsistent permitting standards, and conflicting environmental and land use considerations. The challenge is further exacerbated when projects cross multiple states or provinces, each with distinct legal requirements, stakeholder groups, and procedural expectations. As a result, even technically viable and economically beneficial high voltage direct current transmission projects often face significant delays or legal opposition. These obstacles slow down critical infrastructure upgrades needed to integrate renewable energy, expand grid capacity, and enhance reliability.

In Canada, a similar complexity arises due to the constitutional allocation of power generation and transmission regulation to the provinces. Interprovincial projects often suffer from coordination issues, and when extended to cross-border electricity transfers into the United States, the process becomes even more cumbersome. Despite the technical superiority of high voltage direct current systems in enabling cross-regional and cross-border transmission, the lack of a harmonized regulatory framework across North America significantly increases project risk and cost. Stakeholders—including utilities, independent power producers, and developers—must navigate a patchwork of environmental assessments, indigenous consultations, land acquisition negotiations, and rate approvals. These complications often deter investment in new high voltage direct current infrastructure or force project sponsors to downgrade the scope to comply with local limitations. The absence of streamlined, collaborative permitting frameworks represents a fundamental bottleneck in scaling high voltage direct current deployment and realizing its full potential in regional grid decarbonization strategies.

High Capital Costs and Uncertain Return on Investment

The North America High Voltage Direct Current Transmission Market also grapples with the significant capital intensity required for the deployment of long-distance, high-capacity infrastructure. High voltage direct current projects involve complex engineering, specialized materials, and advanced converter station technologies, all of which contribute to high upfront costs. Building a single high voltage direct current transmission line—especially one that spans hundreds of kilometers and connects remote generation sites to urban load centers—can require billions of dollars in capital outlay. These costs must often be borne by a combination of utilities, private investors, and, in some cases, public entities, each with different expectations for risk, control, and return. The capital commitment is particularly challenging in a policy landscape that is still evolving, with ongoing debates over cost-allocation mechanisms, transmission access, and market integration. Without clear frameworks that assure timely cost recovery or market incentives, many investors remain cautious about financing high voltage direct current projects, especially those not underwritten by guaranteed long-term offtake agreements.

The return on investment for high voltage direct current infrastructure is influenced by a wide range of variables, including energy market volatility, evolving policy mandates, and future demand patterns. Unlike more flexible distributed energy systems, high voltage direct current projects are designed for long-term operation and require stable, predictable revenue streams to be financially viable. In many regions of North America, the regulatory structures for transmission cost allocation and rate design remain outdated or ill-suited for high capital transmission projects. Utilities often encounter difficulties in justifying high voltage direct current expenditures to regulators and ratepayers, especially when alternative solutions—such as localized generation or alternating current upgrades—appear less costly in the short term. This leads to a risk-averse investment climate, where projects that would be beneficial from a long-term grid planning and decarbonization perspective fail to move forward due to financial uncertainty. Overcoming this barrier will require both policy reform and innovative financing mechanisms that can de-risk capital commitments while aligning with long-term energy transition goals.

Limited Technical Workforce and Supply Chain Constraints

Another critical challenge impeding the growth of the North America High Voltage Direct Current Transmission Market is the shortage of specialized technical expertise and manufacturing capacity required to execute high voltage direct current projects at scale. Unlike conventional transmission systems, high voltage direct current infrastructure requires a workforce trained in the design, construction, and operation of direct current systems, including advanced converter station equipment, cable laying, and substation integration. This specialized knowledge is not yet widespread in North America, where most engineering and utility training programs have historically focused on alternating current technologies. As utilities and developers attempt to scale up high voltage direct current deployment, they frequently encounter a shortage of experienced engineers, technicians, and project managers capable of overseeing complex installations and ensuring system reliability. This limitation not only slows down project timelines but also increases labor costs and the risk of implementation errors, thereby undermining the technical and economic feasibility of new high voltage direct current initiatives.

In parallel, the supply chain for high voltage direct current components such as power semiconductors, transformers, converter modules, and high-capacity direct current cables remains underdeveloped in the North American context. Much of this equipment is sourced from a limited number of global manufacturers, often based in Europe or Asia, leading to long lead times, currency risks, and vulnerability to geopolitical tensions. Delays in the delivery of high voltage direct current system components have already affected several transmission projects, and as demand surges due to decarbonization and electrification trends, these bottlenecks are expected to intensify. Moreover, the lack of domestic manufacturing capacity limits regional self-sufficiency and increases dependence on imports. For North America to fully capitalize on the strategic advantages of high voltage direct current transmission, there must be concerted efforts to build a domestic talent pipeline and invest in local supply chain resilience. Without addressing these gaps in workforce readiness and equipment availability, the expansion of high voltage direct current transmission infrastructure will remain constrained, despite growing market demand and policy support.

Key Market Trends

Strategic Integration of Renewable Energy Corridors through High Voltage Direct Current Infrastructure

A significant trend shaping the North America High Voltage Direct Current Transmission Market is the strategic development of transmission corridors specifically designed to connect large-scale renewable energy projects with major consumption centers. High voltage direct current systems are increasingly being employed to transport wind energy generated in the Midwest and solar energy produced in the Southwest to high-demand urban areas along the East and West Coasts. This trend is driven by the technical advantage of high voltage direct current systems, which offer minimal transmission losses over long distances compared to conventional alternating current infrastructure. As utility-scale renewable projects expand in geographic regions that are often far removed from load centers, stakeholders are prioritizing high voltage direct current investments to ensure the viability and reliability of these generation assets.

Public utilities, independent system operators, and regional transmission organizations are revisiting long-term grid plans to incorporate multi-state high voltage direct current routes that can serve as renewable energy superhighways. These systems are also seen as instrumental in meeting state-level clean energy mandates and decarbonization goals without relying solely on local generation resources. Consequently, high voltage direct current transmission is no longer viewed as a niche solution but as an essential enabler of North America's energy transition. This trend is expected to continue over the next decade as federal incentives, climate legislation, and regional coordination efforts align to support the integration of diverse renewable energy sources through efficient and scalable transmission systems.

Emergence of Underground and Submarine High Voltage Direct Current Projects for Urban and Coastal Grid Expansion

The emergence of underground and submarine high voltage direct current projects is becoming a notable trend in the North America High Voltage Direct Current Transmission Market, especially in regions facing right-of-way constraints or high environmental sensitivity. Traditional overhead transmission lines often encounter public opposition, legal hurdles, and land acquisition challenges, particularly in densely populated urban zones or environmentally protected coastal regions. In response, utilities and transmission developers are increasingly turning to underground and undersea high voltage direct current technologies, which offer a more discreet and socially acceptable alternative. These systems enable the expansion of transmission capacity without disrupting surface infrastructure, making them highly attractive in metropolitan areas such as New York City, Los Angeles, and Vancouver, where space is limited and public resistance to above-ground infrastructure is high.

Submarine high voltage direct current cables are being used to connect offshore wind farms in the Atlantic and Pacific Oceans directly to onshore substations, thereby facilitating clean energy integration while minimizing visual and ecological impacts. The advancement of cable manufacturing techniques, thermal insulation materials, and directional drilling technologies has made these applications more technically feasible and economically competitive than in previous decades. As demand for grid modernization and urban load reliability continues to rise, the use of underground and submarine high voltage direct current transmission solutions is likely to accelerate, influencing project design norms and investment decisions across North America.

Digitalization and Grid Automation Enhancing High Voltage Direct Current System Efficiency and Control

Digitalization is reshaping the operational landscape of the North America High Voltage Direct Current Transmission Market by introducing advanced automation, monitoring, and predictive maintenance tools that enhance system efficiency and reliability. The integration of digital twin models, artificial intelligence algorithms, and high-speed sensor networks into high voltage direct current infrastructure allows operators to perform real-time diagnostics, simulate power flow scenarios, and optimize converter performance under varying load conditions. These capabilities are especially critical in high voltage direct current systems, where the dynamic control of power direction, voltage stability, and fault isolation must be managed with high precision.

Utilities are leveraging cloud-based control platforms, machine learning analytics, and cybersecurity protocols to ensure the resilience of their high voltage direct current assets in the face of growing cyber threats and climate-induced disruptions. Digital innovations are also enabling remote operation of converter stations and facilitating smoother integration with smart grid applications and distributed energy resources. Furthermore, data analytics are being used to inform asset lifecycle management, reducing maintenance costs and improving investment planning. As digital infrastructure becomes more affordable and scalable, its adoption in the high voltage direct current transmission segment is likely to accelerate, transforming how projects are designed, monitored, and optimized. This trend is indicative of a broader shift toward intelligent energy networks capable of adapting to complex grid conditions and evolving market demands.

Segmental Insights

Type Insights

In 2024, the High-power Rating Projects segment dominated the North America HVDC Transmission Market and is expected to maintain its dominance throughout the forecast period. This segment’s leadership is primarily driven by the increasing demand for the transmission of large volumes of electricity over long distances, which is critical for integrating renewable energy sources such as wind, solar, and hydroelectric power located in remote areas into major urban load centers. High-power rating projects, typically characterized by capacities exceeding 1,000 megawatts, offer significant advantages in terms of reduced transmission losses and greater efficiency compared to lower-capacity systems.

The development of large-scale interregional corridors and cross-border interconnections between the United States and Canada is further bolstering the demand for high-power rating systems, as these projects facilitate the transfer of clean energy across state and national boundaries, thereby supporting regional energy security and decarbonization goals. Moreover, utilities and grid operators are prioritizing investments in these projects to improve grid stability, accommodate increasing electricity demand, and modernize aging infrastructure. The economies of scale achieved through high-power rating projects result in lower costs per megawatt of transmitted electricity, making them more economically viable for long-term transmission planning.

Technological advancements in converter stations, insulation materials, and system control capabilities are enhancing the reliability and performance of high-power rating HVDC systems, encouraging further adoption. Given these factors, the high-power rating projects segment is well-positioned to sustain its dominant position in the North America HVDC Transmission Market, playing a critical role in the region’s transition toward a more resilient and sustainable energy future.

Technology Insights

In 2024, the Line Commutated Converter (LCC) technology segment dominated the North America HVDC Transmission Market and is expected to maintain its dominance throughout the forecast period. This technology is widely favored for high-capacity and long-distance transmission projects due to its proven reliability, cost efficiency, and suitability for bulk power transfer.

Major infrastructure projects connecting hydroelectric sources in Canada to load centers in the United States continue to rely on line commutated converter systems because of their operational maturity and scalability. While voltage source converter systems are gaining traction in niche applications such as offshore wind integration and urban transmission, line commutated converter systems remain the dominant choice for large-scale applications, ensuring their continued market leadership in the region.

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Country Insights

Largest Country

In 2024, the United States emerged as the dominant country in the North America HVDC Transmission Market, driven by its large-scale investments in grid modernization, renewable energy integration, and long-distance power transmission infrastructure. The United States government and regional transmission operators have actively pursued high voltage direct current projects to support the growing deployment of wind and solar energy across remote areas in the Midwest and Southwest, where high-capacity transmission is essential for delivering electricity to urban load centers. Major interregional high voltage direct current corridors are being developed to connect energy-abundant zones with densely populated demand hubs, aligning with federal decarbonization goals and state-level clean energy mandates.

In addition, technological advancements in converter stations and control systems, along with strong regulatory support and public-private partnerships, have accelerated project approvals and funding in the country. Utilities are prioritizing high voltage direct current systems for their ability to enhance grid reliability, reduce transmission losses, and manage bidirectional energy flow across asynchronous networks. These factors have collectively positioned the United States at the forefront of high voltage direct current infrastructure development in North America, and it is expected to maintain its leadership due to ongoing investments and strategic focus on building a resilient and low-emission power grid.

Emerging Country

Canada is rapidly emerging as a significant country in the North America HVDC Transmission Market due to its abundant renewable energy resources, particularly hydroelectric power. The country’s extensive clean energy generation capacity in provinces such as Quebec and Manitoba positions it as a crucial supplier of electricity to the United States. To support this growing cross-border electricity trade, Canada is investing heavily in HVDC transmission infrastructure that enables efficient long-distance power transfer with minimal losses.

Government policies focused on sustainability and grid modernization are accelerating the development of these projects. Collaboration between Canadian and American utilities is strengthening regional grid integration, enhancing reliability and energy security. These factors collectively are propelling Canada’s increasing influence in the North America HVDC Transmission Market during the forecast period.

Recent Developments

• In May 2025, GE Vernova announced a USD 16 million investment in India to expand its electrification manufacturing and engineering, focusing on advanced grid technologies. The investment includes a new manufacturing line in Chennai and a new facility in Noida. These expansions will boost production of High Voltage Direct Current and Flexible Alternating Current Transmission Systems, enhancing grid stability and supporting India’s renewable energy integration and export demands.
• In December 2024, Hitachi Energy signed contracts worth over 2 billion euros with German transmission system operator Amprion to deliver four converter stations for two HVDC links, V48 and V49. These links, part of Korridor B, will transmit clean energy from North Sea wind farms to western industrial centers, supporting Germany’s clean energy transition. The contracts follow a September 2023 capacity reservation agreement securing manufacturing and workforce resources.
• In August 2024, Mitsubishi Electric and Siemens Energy signed an agreement to co-develop Direct Current Switching Stations and Circuit Breaker specifications for Multi-terminal High Voltage DC systems. This collaboration aims to enhance the efficient operation of large-scale renewable energy sources like offshore wind. Building on their January joint development, the partnership accelerates DC Circuit Breaker technology deployment, supporting global decarbonization and robust long-distance power transmission.
• In June 2024, LS Cable & System began mass production of 525 kV high-voltage direct current cables for TenneT’s major grid connection projects, BalWin4 and LanWin1. These cables are designed to support a combined capacity of 2 gigawatts, enhancing power transmission efficiency and reliability. This development marks a significant milestone in advancing high-capacity HVDC infrastructure for the integration of renewable energy into the grid.

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.
• Mitsubishi Electric Corporation

Report Scope:

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

• North America HVDC Transmission Market, By Type:

o   High-power Rating Projects

o   Low-power Rating Projects               

• North America HVDC Transmission Market, By Technology:

o   Line Commutated Converter (LCC)

o   Voltage Source Converters (VSC)

• North America HVDC Transmission Market, By Application:

o   Subsea

o   Underground

o   Overhead

o   Mixed

• North America HVDC Transmission Market, By Country:

o   United States

o   Canada

o   Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the North America HVDC Transmission Market.

Available Customizations:

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Company Information

• Detailed analysis and profiling of additional market players (up to five).

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