HVDC Converter Station Market Trends

Growth Drivers

Rising Installed Renewable Energy Capacity – The world has seen a significant increase in renewable energy generation capacity in recent years. As of the end of 2020, renewable energy had a total installed capacity of 2,799 GW, which represents an increase of 45% compared to 2015. HVDC converter stations play a crucial role in the transmission of renewable energy, particularly over long distances. HVDC converter stations are used to transmit power from offshore wind farms to onshore grids. Since offshore wind farms are typically located far from shore, HVDC transmission is often more cost-effective and efficient than using traditional AC transmission systems.
Ongoing Urbanization around the world - Rising income levels and increasing demand for electricity nationwide contribute to increased demand for HVDC transmission. In today's world, 56% of his population live in urban areas, which is driving the demand for electricity across the globe. The urban population is expected to double by 2050, with almost 7 in 10 people living in cities.
Rise in Research Spending – Growth in the global market during the forecast period can be further attributed to increased investment in research and development activities to continuously find more viable solutions for electricity transmission. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in the year 2019.
Rapidly Growing Chemical Industry – For instance, chemical demand is expected to increase by 8% each year by 2025. By 2025, India's chemical industry will contribute USD 290 billion to its gross domestic product.
Spiking Electricity Consumption – The world consumed nearly 23,500 TWh (terawatt-hours) of electricity in the year 2020, according to the International Energy Agency (IEA) and it is anticipated to grow more over the forecast period.

Challenges

High Cost of Installing HVDC Terminal Stations – The cost of installing HVDC terminal stations can be high owing to several factors, including equipment costs, civil works, and others, which is estimated to hamper the market growth.
Dearth of Skilled Professionals
Presence of Product Alternative

HVDC Converter Station Market: Key Insights

Base Year	2024
Forecast Year	2025-2037
CAGR	8.1%
Base Year Market Size (2024)	USD 11.72 billion
Forecast Year Market Size (2037)	USD 32.16 billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of HVDC converter station is assessed at USD 12.48 billion.

The HVDC converter station market size was over USD 11.72 billion in 2024 and is projected to reach USD 32.16 billion by the end of 2037, growing at around 8.1% CAGR during the forecast period i.e., between 2025-2037. Increasing number of cross border power transmission activities, and rising renewable energy generation capacity globally will boost the market growth.

Asia Pacific is anticipated to dominate majority industry share of about 35% by 2037, attributed to fact that there is a huge demand for transmission systems in China and India and a growing need for electricity to transport bulk goods in the region.

The major players in the market include ABB, Ltd., Siemens AG, General Electric Company, XJ Group Corporation, Bharat Heavy Electricals Limited, Alstom SA, Nissin Electric Co Ltd., Toshiba Corporation, Hitachi Ltd., C-EPRI Electric Power Engineering Co. Ltd.

HVDC Converter Station Market Trends