HVDC Converter Station Market Size was valued at USD 6.1 Billion in 2023. The HVDC Converter Station Market industry is projected to grow from USD 6.37 Billion in 2024 to USD 8.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.96% during the forecast period (2024 - 2032). Rising electricity consumption as a result of population increase and industrialisation, as well as the rapid development of renewable energy sources such as solar and wind power are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for HVDC converter station is being driven by the growing demand for efficient power transmission systems has resulted in a major increase in the demand for converter transformers. With endeavours to bring electricity to every home, the need for high-efficiency power transmission solutions is expected to stay high. Energy constraint has stifled economic growth in several countries throughout the world. Several government programmes and large expenditures are being made to improve the power generation and distribution sector. As a result, the need for converter transformers for high-efficiency power distribution applications has increased significantly. According to IBEF, the Asian Development Bank (ADB) and the Government of India agreed a US$ 100 million loan in December 2020 to modernise and update the power distribution system in Bengaluru, Karnataka, to improve the quality and reliability of electricity delivery.
Furthermore, the Government of India introduced the Ujwal Discoms Assurance Yojana (UDAY) to support operational and financial turnaround of State-owned Power Distribution Companies (DISCOMS), with the goal of reducing aggregate technical and commercial (AT&C) losses to 15% by 2021. During the projected period, these activities and innovations are expected to fuel the Converter Transformer Market growth.
The use of smart grid solutions is fueling the converter transformer market expansion. HVDC (high-voltage direct current) is a frequently used smart grid solution around the world because it is a highly efficient alternative for transmitting huge amounts of electricity over long distances and for specific purpose applications. HVDC is actually defining the grid of the future as a crucial enabler in the future energy system based on renewables. As a result, the Converter Transformer Market is expected to develop throughout the forecast period. It serves as an interface between the AC system and the thyristor valves in HVDC systems. A converter transformer's main advantage is that it works as a galvanic barrier between the AC and DC systems, preventing DC potential from entering the AC systems. It also converts voltage between the alternating current supply and the HVDC system.Thus, driving the HVDC Converter Station Market revenue.
The HVDC Converter Station Market segmentation, based on type includes monopolar, bi-polar, back to back, and multi-terminal. During the projection period, the bi-polar category is likely to be the largest in the market. The bipolar type is employed when the capacity of a single-pole type is insufficient. Furthermore, it is employed when increased energy availability or lesser load rejection power necessitates splitting the capacity into two poles.
The HVDC Converter Station Market segmentation, based on converter type, includes Line Commutated Current Sourced Converters (LCC), and Voltage Source Converters. The voltage source converters category is predicted to thrive as demand for offshore and underground transmission networks grows. It aids in the conversion of direct current to alternating current in the HVDC and power transmission system. Voltage source converters handle the sustained charge/discharge current that occurs as the converters switch. The VSC type allows for the transfer of bulk electricity of up to 1500MW.
Figure 1: HVDC Converter Station Market, by Distribution Channel, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The HVDC Converter Station Market segmentation, based on application includes power industry, powering island and remote loads, interconnecting networks, oil & gas. The powering island and remote loads segment is expected to achieve a significant market share, because of its widespread use in long-distance power transmission. Power can be delivered over vast distances via radial transmission from a meshed network or locally generated utilising diesel generators.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Europe HVDC Converter Station Market area will dominate this market, due to the increased power consumption. The presence of prominent players in the region is increasing the number of renewable sources such as solar energy, wind energy, and others for power generation for the residential and industrial sectors, hence assisting market expansion throughout the projection period.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: HVDC Converter Station Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America HVDC Converter Station Market accounts for the second-largest market share owing to the increasing energy demand and the expanding number of offshore wind farms. Further, the German HVDC Converter Station Market held the largest market share, and the UK HVDC Converter Station Market was the fastest growing market in the North American region
The Asia-Pacific HVDC Converter Station Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increase in the number of grid construction projects to accommodate rising electricity demand and outages. Moreover, China’s HVDC Converter Station Market held the largest market share, and the Indian HVDC Converter Station Market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the HVDC Converter Station Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, HVDC Converter Station industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the HVDC Converter Station industry to benefit clients and increase the market sector. In recent years, the HVDC Converter Station industry has offered some of the most significant advantages to medicine. Major players in the HVDC Converter Station Market, including Siemens AG (Germany), Crompton Greaves Ltd. (India), General Electric (U.S.), Nissin Electric Co Ltd (Japan), Toshiba Corporation (Japan and Hitachi Ltd. (Japan) and others, are attempting to increase market demand by investing in research and development operations.
ABB Ltd. is a Swedish-Swiss enterprise headquartered in Zürich, Switzerland. ASEA Brown Boveri was created in 1988 when Sweden's Allmänna Svenska Elektriska Aktiebolaget (ASEA) and Switzerland's Brown, Boveri & Cie amalgamated to form ASEA Brown Boveri, afterwards abbreviated to ABB. Both firms were founded in the late 1800s and were major makers of electrical equipment, a business in which ABB is still involved today. Since then, the company has grown into robotics and automation technology. In April 2020, ABB Limited provides high-voltage direct current (HVDC) converter transformers to the Chinese utility State Grid Corporation of China (SGCC). For three 800KV ultrahigh-voltage direct current (UHVDC) transmission links owned by SGCC, ABB will deliver innovative high-voltage direct current (HVDC) converter transformers as well as high-voltage equipment.
The General Electric Company (GE) is an American multinational conglomerate that was founded in 1892 in New York state and is headquartered in Boston. During 1889, Thomas Alva Edison (1847-1931) was involved in a number of electricity-related businesses, including Edison Lamp Company, a lamp manufacturer in East Newark, New Jersey; Edison Machine Works, a manufacturer of dynamos and large electric motors in Schenectady, New York; Bergmann & Company, a manufacturer of electric lighting fixtures, sockets, and other electric lighting devices; and Edison Electric Light Company, the patent-holding company and financial arbiter. In July 2021, Power Grid Corporation of India Limited (PGCIL), India's largest transmission utility, has placed multiple orders for General Electric high-voltage converter transformers and reactors.
In January 2022, Acradis NV signed a USD 5.39 million contract with TenneT BV to design three converter stations in the Netherlands. The converter stations will mostly be used to convert direct current generated by the planned IJmuiden Ver offshore wind farm, which will be located roughly 62 kilometres off the west coast of the Netherlands.​
In December 2021, Samsung C&T Corporation awarded Hitachi Energy a contract to develop an HVDC converter station in the United Arab Emirates. The agreement is for the supply of four high-voltage direct current converter stations to connect Abu Dhabi National Oil Company's offshore operations to the onshore power system.
In December 2021, Taiwan Electricity Company has made an order with Mitsubishi Electric Corporation for an HVDC converter system for the Changuang offshore wind farm project. The effort aided in the integration of renewable energy sources into Taiwan's electrical grid.
| Report Attribute/Metric | Details |
| Market Size2023 | USD 5.9 Billion |
| Market Size 2024 | USD 6.1 Billion |
| Market Size2032 | USD 8.7 Billion |
| Compound Annual Growth Rate (CAGR) | 3.96% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Converter Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â ABB Ltd. (Switzerland), Bharat Heavy Electricals Ltd. (India), Alstom (France), Siemens AG (Germany), Crompton Greaves Ltd. (India), General Electric (U.S.), Nissin Electric Co Ltd (Japan), Toshiba Corporation (Japan and Hitachi Ltd. (Japan) |
| Key Market Opportunities | Product releases and R&D by significant critical players. |
| Key Market Dynamics | Government incentive policies are rapidly expanding. |
HVDC Converter Station Market Highlights:
Frequently Asked Questions (FAQ) :
The HVDC Converter Station Market size was valued at USD 6.1 Billion in 2023.
The market is projected to grow at a CAGR of 3.96% during the forecast period, 2024-2032.
Europe had the largest share in the market
The key players in the market are Siemens AG (Germany), Crompton Greaves Ltd. (India), General Electric (U.S.), Nissin Electric Co Ltd (Japan), Toshiba Corporation (Japan and Hitachi Ltd. (Japan).
The bipolar category dominated the market in 2022.
The voltage source converters had the largest share in the market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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