HVDC Converters Market Size

HVDC Converters Market Size

HVDC Converters Market size surpassed USD 4.5 billion in 2023 and is anticipated to register 22.7% CAGR from 2024 to 2032, on account of the mounting expenditure on grid infrastructure modernization projects.

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The suitability of these converters to rapidly changing grids is pegged to its advantages overall classical alternating current solutions, including higher transfer capacities and active power control. The growing need for a resilient and reliable grid has stimulated spending on grid modernization projects. For example, in February 2023, the U.S. Energy Department announced USD 48 million in funding to enhance power grid security, reliability, and resiliency in the country. The establishment of HVDC converter stations will therefore gain momentum to carry power from a large power plant to a single converter station.

Likewise, a shift in focus toward grid interconnection through IT integration across the electricity sector and smart grid expansion will create lucrative growth prospects for HVDC transmission system developers. Despite positive influences, fluctuating prices of raw materials, especially aluminum, and the high dependency on imports, may hamper industry growth to a certain extent. Moreover, political instability and strict regulations led to a decline in grid infrastructure investment, thereby resulting in slow-paced HVDC converters market development by 2032.