High Voltage Direct Current Power Supply Market - By Installation Type (Overhead, Underground, Subsea), By Voltage Level (<1,000V, 1,000-4,000V, >4,000V), By Technology, By End Use & Forecast, 2024 – 2032

High Voltage Direct Current Power Supply Market Size

High Voltage Direct Current Power Supply Market was valued at USD 3.91 billion in 2023 and is expected to grow at a CAGR of over 8.2% between 2024 and 2032. The incorporation of renewable energy is one of the major factors propelling the market growth.
 

HVDC technology is essential for effectively transferring renewable energy over extended distances with the global shift toward more environmentally friendly energy sources including solar, wind, and hydroelectric power. For instance, in June 2022, Hitachi Energy partnered with Petrofac, a leading global service provider, to jointly develop grid integration and support infrastructure for the rapidly growing offshore wind market. The collaboration involved the development of high-voltage alternating current (HVAC) and high-voltage direct current (HVDC) solutions.
 

HVDC systems, in contrast to conventional alternating current (AC) transmission, can send large amounts of electricity across hundreds or thousands of kilometers while minimizing losses. This capability is crucial for transporting renewable energy to population areas with high electricity demand from remote, resource-rich locations, such as offshore wind farms in the ocean or solar farms in deserts. Grid operators may more effectively manage fluctuating renewable energy generation with HVDC systems, which smooths out power swings.
 

Intercontinental power transfer is another significant factor propelling the HVDC power supply market growth. With the use of HVDC systems, electricity may be sent across continents, linking remote power grids and promoting global energy trade. Enhancing energy security, diversifying energy sources, and promoting global economic development all depend on this capacity. Effective cross-border interchange of power is made possible by intercontinental HVDC transmission systems, such as submarine cables that span seas or underground lines that connect adjacent nations. These projects improve grid resilience, foster energy market integration, and give nations access to cheaper & cleaner energy sources by diversifying energy supply pathways. Additionally, intercontinental HVDC transmission can assist in regionally and globally balancing the supply and demand for power, maximizing the use of renewable energy resources and boosting sustainable development initiatives worldwide.
 

The sophisticated nature of HVDC systems is the source of the market's complexity and technological challenges for HVDC power supplies. A sophisticated converter technology is needed for these systems to effectively convert voltages between Alternating Current (AC) and Direct Current (DC) across extended distances. Sophisticated control and protection systems are required for the design and operation of HVDC converters as they must manage high voltages and currents while minimizing losses and guaranteeing grid stability. Complexities including voltage compatibility, harmonic control, and synchronization problems are introduced when integrating HVDC into current AC networks, necessitating careful design and collaboration with AC grid operators. Furthermore, the introduction of harmonics and electromagnetic interference due to converter switching necessitates robust filtering and mitigation strategies to meet regulatory standards and maintain grid reliability. As HVDC projects scale up in size and complexity, ensuring scalability, modularity, and technological compatibility becomes increasingly challenging.
 

High Voltage Direct Current Power Supply Market Trends

The rising use of HVDC systems to make it easier to integrate renewable energy projects into the current power grids is one notable trend. Electricity from renewable resources, such as offshore wind farms and solar parks, can be efficiently transmitted over vast distances to urban areas and industrial hubs owing to HVDC technology. This capacity is essential for reducing transmission losses and getting beyond geographic restrictions, which will help the world move to greener and more sustainable energy sources. The need for HVDC systems keeps rising as nations work to cut carbon emissions and meet renewable energy targets, especially in areas with abundant renewable energy resources.
 

The growth of interregional and intercontinental HVDC transmission projects is another significant trend. Governments and utilities are investing in cross-border hybrid variable distribution (HVDC) links to improve energy security, encourage market integration, and ease international energy trade. Through these projects, neighboring countries and continents can efficiently interchange electricity, strengthening grid resilience and promoting economic cooperation. Submarine cables that connect continents, or other intercontinental HVDC transmission lines, are essential for diversifying energy sources and guaranteeing a steady supply of energy globally. This pattern emphasizes how crucial HVDC technology is to the development of global, integrated, and sustainable energy networks.

Another important trend in the industry is the development of HVDC converter technology. Voltage source converter (VSC) advancements and line-commutated converter (LCC) upgrades are increasing the flexibility, dependability, and efficiency of the system. Advanced control and protection systems that maximize power flow, maintain grid stability, and reduce operating hazards are features of modern HVDC systems. HVDC systems may support smart grid initiatives, smoothly integrate with renewable energy sources, and react to dynamic grid conditions owing to these technological advancements.

High Voltage Direct Current Power Supply Market Analysis

Based on installation type, the market is divided into overhead, underground, and subsea. The subsea segment is expected to register a CAGR of 10% during the forecast period.
 

• The high voltage direct current (HVDC) power supply market's subsea segment is essential to enable energy transmission across undersea environments. Tidal power installations and offshore wind farms are examples of offshore renewable energy sources that are connected to onshore networks using subsea HVDC cables. The harsh elements of the maritime environment, including fluctuating temperatures, corrosive saltwater, and high pressures, are intended to be tolerated by these cables.
   
• HVDC technology can provide a lot more power over a long distance with less loss than traditional alternating current (AC) transmission, and hence it is more desirable for subsea applications. Renewable energy can be integrated into a more diverse energy mix owing to its efficiency, which is especially helpful for linking isolated offshore energy sources to onshore grids.
   
• Governments and energy companies are investing in the development of subsea HVDC infrastructure to improve energy security, support decarbonization goals, and meet growing electricity demand sustainably. The subsea HVDC segment is growing as countries worldwide strive to harness their offshore renewable energy potential and reduce reliance on fossil fuels. Regions, such as Europe, with extensive offshore wind resources in the North Sea, are leading adopters of subsea HVDC technology.
   

Based on technology, the market is divided into line commutated converters (LCC), voltage source converters (VSC), and ultra-high voltage direct current (UHVDC). The Voltage Source Converters (VSC) segment dominated the global market with a revenue of over 1 million in 2032.
 

• A vital part of the high voltage direct current power supply market, the Voltage Source Converters (VSC) segment provides cutting-edge technology for effective and adaptable power transmission. In contrast to conventional HVDC systems that utilize Line Commutated Converters (LCCs) and thyristor valves, VSC-based HVDC systems employ semiconductor-based converters, including Insulated Gate Bipolar Transistors (IGBTs), to offer accurate voltage and frequency control as well as bidirectional power flow.
   
• Applications requiring grid stabilization, the integration of renewable energy sources, and the connectivity of asynchronous AC grids are especially well-suited for VSC technology. The capacity of VSC-based HVDC to respond quickly and dynamically to grid disruptions, allowing for voltage and frequency regulation and bolstering grid stability, is one of its main advantages. Maintaining the dependability and effectiveness of power transmission networks is dependent on this skill, particularly in areas where the use of variable renewable energy sources, such as solar and wind power, is prevalent.
   
• Furthermore, in urban and offshore settings where space and environmental considerations are important, HVDC integration is made easier by VSC-based HVDC systems. Compared to LCC-based HVDC solutions, these systems are renowned for their smaller size, lower environmental effect, and decreased electromagnetic interference. Consequently, VSC technology finds increasing applications in submerged and subsurface Hybrid Variable-voltaic Direct Current (HVDC) projects, such as connecting offshore wind farms to continental grids.
   

Asia Pacific dominated the global high voltage direct current power supply market in 2023, accounting for a share of over 30%. The high voltage direct current (HVDC) power supply industry is dominated by the Asia Pacific region for several important reasons. Initially, the demand for energy has increased significantly due to the fast industrialization and urbanization of nations such as China, India, Japan, South Korea, and Southeast Asian countries. HVDC technology is a good choice for connecting regional grids and efficiently distributing power over wide geographic areas with its advantages over traditional AC transmission, including reduced transmission losses over long distances and the capacity to link asynchronous AC grids.
 

Furthermore, Asia Pacific nations are making significant investments in renewable energy sources, such as solar and wind, which are frequently found in isolated locations distant from significant load centers. HVDC transmission allows for minimum power loss over long distances, and hence it is perfect for integrating these renewable energy sources into the grid. HVDC technology is being used by nations with aggressive renewable energy targets, such as China, to transfer power from renewable-rich regions to densely populated areas.
 

The HVDC power supply business in the U.S. is distinguished by notable developments in grid modernization and incorporation of renewable energy. The transmission of renewable energy from resource-rich areas, including wind farms in the Midwest and solar arrays in the Southwest, to population centers across the nation is made possible in large part by HVDC technology. According to national energy plans and environmental goals, the implementation of HVDC systems helps to reduce greenhouse gas emissions, improve grid dependability, and assist the diversification of energy sources. Furthermore, interregional HVDC transmission projects are promoting economic growth and energy resilience. Examples of these projects include the links between offshore wind farms and coastal cities, as well as linkages between regional grids. The high voltage direct current power supply market in the U.S. is still evolving.
 

The market for HVDC power supplies in Japan is distinguished by a deliberate emphasis on disaster resilience, renewable energy adoption, and energy security. Connecting renewable energy sources, such as offshore wind farms and solar arrays, to heavily populated places, such as Tokyo and Osaka, is made possible in large part by HVDC technology. Investments in HVDC systems to effectively integrate renewable energy into the grid have increased due to the nation's determination to lower its reliance on nuclear power in the wake of Fukushima. Japan needs to use HVDC transmission to maximize energy transfer across a range of voltage levels and large distances. Furthermore, the country is recognized as a global pioneer in sustainable energy solutions owing to its technological leadership in HVDC converter technology, which includes improvements in VSC and LCC technologies. The Japan market continues to expand with projects aimed at enhancing grid resilience, promoting energy efficiency, and supporting smart city initiatives through HVDC infrastructure.
 

In February 2023, Mitsubishi Electric Corporation (Japan) acquired Scibreak AB, a Swedish company specializing in Direct Current Circuit Breakers (DCCBs). This move aimed to enhance their joint efforts in developing DCCB technologies for HVDC systems, aligning with the global expansion of renewable energy sources.

The market for HVDC power supplies in South Korea is fueled by the country's fast urbanization, industrialization, and emphasis on energy efficiency. Supporting South Korea's ambitious renewable energy ambitions, which include offshore wind farms and solar PV installations, is made possible by HVDC technology. The nation's hilly geography, constrained land supply, and densely populated urban areas make efficient energy transmission technologies such as HVDC networks necessary. Strategic investments in HVDC infrastructure by South Korea are intended to improve transmission losses, increase grid stability, and efficiently incorporate renewable energy sources into the national system. Partnerships between utilities, the government, and companies in the private sector help the market by advancing HVDC technology and implementing cutting-edge grid solutions. HVDC technology will be essential in South Korea's ongoing shift to a low-carbon economy.
 

The market for HVDC power supplies in China is distinguished by large investments in infrastructure development and renewable energy. The transmission of electricity from renewable sources, including wind energy in the north and hydropower in the southwest, to demand centers in fast expanding cities, such as Beijing, Shanghai, and Guangzhou, is made possible in large part by HVDC technology. The installation of Ultra-high Voltage (UHV) HVDC transmission lines is a clear indication of China's determination to improve grid performance, lower emissions, and promote economic expansion. With notable breakthroughs in converter technology and grid integration solutions, the nation leads the world in HVDC transmission capacity and technological innovations. The need for HVDC systems is further stimulated by China's Belt and Road Initiative, which makes infrastructure connectivity and cross-continental energy trading possible throughout Asia and beyond.
 

High Voltage Direct Current Power Supply Market Share

• ABB Ltd. and Siemens AG hold a significant share of over 30% in the high voltage direct current power supply market. The market for HVDC power supplies is dominated by ABB Ltd. owing to its extensive experience and position as a leader in power distribution and transmission technologies. HVDC technologies from ABB are well known for their dependability, effectiveness, and capacity to transfer significant amounts of power across great distances with little loss. The organization has led the way in the development of Line Commutated Converter (LCC) and Voltage Source Converter (VSC) technologies, serving a wide range of uses from improving grid stability and dependability to linking renewable energy sources. Due to its global reach and diverse project portfolio, ABB has demonstrated its capacity to deliver complex and large-scale HVDC projects. Notable HVDC installations include the North Sea Link, which connects Norway and the UK.
   
• Another significant competitor in the HVDC power supply industry is Siemens AG, which has a strong market share owing to its broad range of HVDC solutions and knowledge of power transmission technology. High efficiency, dependability, and sophisticated grid control capabilities define Siemens' HVDC systems, which make them perfect for incorporating renewable energy sources and boosting grid stability. With projects such as the Rio Madeira HVDC link in Brazil and the DolWin3 offshore wind connection in Germany, Siemens has a proven track record of completing cutting-edge HVDC projects all around the world. The company can handle a wide range of customer needs and operational issues across different locations and industries owing to its technological superiority in both LCC and VSC-based HVDC systems.
   

High Voltage Direct Current Power Supply Market Companies

Major players operating in the industry are:

• ABB Ltd.
• Siemens AG
• General Electric (GE)
• Hitachi Energy (formerly Hitachi ABB Power Grids)
• Toshiba Corporation
• Mitsubishi Electric Corporation
   

High Voltage Direct Current Power Supply Industry News

• In January 2024, DNV launched a Joint Industry Project (JIP) with ten offshore wind and transmission developers to identify changes to electrical standards and standardization needed to enable the connection of High Voltage Direct Current (HVDC) transmission into the U.S. electric grid. HVDC is an essential component for integrating offshore wind and other sources of clean energy reliably and cost-effectively into the power grid over long distances.
   
• In October 2023, Japan and the U.S. upgraded their HVDC transmission infrastructure to support the renewable energy transition. Meanwhile, the U.S. Department of Energy (DOE) recently unveiled USD 10 million in funding for research projects tackling HVDC transmission costs.
   

The high voltage direct current power supply market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Installation Type

• Overhead
• Underground
• Subsea

Market, By Voltage Level

• <1000V
• 1000-4000V
• >4000V

Market, By Technology

• Line commutated converters (LCC)
• Voltage source converters (VSC)
• Ultra-High voltage direct current (UHVDC)

Market, By End-use Industry

• Telecommunication
• Medical
• Oil & gas
• Industrial
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA