The HVDC transmission market is projected to reach USD 14.9 billion by 2028 from USD 11.4 billion in 2023, at a CAGR of 5.4% from 2023 to 2028.

The growing number of VSC-based HVDC projects, increasing adoption of renewable energy globally, growing demand for reliable power supplies, and favorable government policies and initiatives for HVDC transmission are the major factors driving the market growth. Furthermore, the constantly increasing technological advancements related to converter station components and the growing need for electricity exchange globally with the help of seamless interconnection of power grids are also expected to boost the market growth during the forecast period.

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HVDC Transmission Component Insights
Converter stations are expected to dominate the HVDC transmission market during the forecast period. The growing electricity demand globally and the subsequent increase in the need to transmit power have led to increased adoption of HVDC transmission as it facilitates transmission with lower losses over longer distances. The growing number of VSC-based HVDC transmission projects globally has driven the demand for insulated-gate bipolar transistor (IGBT) valves and circuit breakers used in converter stations. Furthermore, the growing need for improved and efficient power transmission and connection of asynchronous grids is expected to create a surge in demand for HVDC converter stations.

HVDC Transmission Project Type Insights
Point-to-point projects are expected to lead the HVDC transmission market during the forecast period. Point-to-point transmissions are generally used if high power is needed to be transmitted between two converter stations. Point-to-point transmission is highly suitable for transmitting power over long distances, and in recent years, there has been a significant increase in the adoption of bipolar configurations in point-to-point transmissions in the Asia Pacific due to their reliability in carrying high power loads. Furthermore, the increasing focus of European countries on using renewable energy and the subsequent need for efficient energy transmission would further drive the market growth for point-to-point transmissions.

HVDC Transmission Regional Insights
Asia Pacific held the largest share of the HVDC transmission market in 2022. An increasing number of HVDC transmission projects in countries such as China and India, a favorable regulatory environment for the development and sales of HVDC components, and an increasing number of rural electrification projects in the region are some of the major factors driving the market growth in the Asia Pacific. Moreover, the constantly increasing population, rapid urbanization, and the subsequently increasing demand for electricity in the region are also major factors driving the market growth. Furthermore, the presence of established market players in the region, such as Hitachi (Japan) and Mitsubishi Electric Corporation (Japan), is also expected to provide increased opportunities for the adoption of HVDC transmission in the region.