HVDC Converter Station Market

• Demand for efficient power transmission systems is propelling Market Growth.

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 Global HVDC Converter Station Market Industry is projected to experience substantial growth over the coming years. With a market value of 6.1 USD Billion in 2024, it is anticipated to reach 9.36 USD Billion by 2035. This growth reflects a compound annual growth rate (CAGR) of 3.97% from 2025 to 2035, indicating a steady increase in demand for HVDC technology. Factors contributing to this growth include the rising need for efficient power transmission, the expansion of renewable energy sources, and supportive government policies. These projections highlight the market's potential and the critical role of HVDC systems in future energy infrastructure.

Government initiatives play a pivotal role in shaping the Global HVDC Converter Station Market Industry. Various nations are implementing policies that promote the adoption of HVDC technology as part of their energy transition strategies. For instance, incentives for renewable energy projects and funding for grid modernization are becoming increasingly common. These policies not only enhance the feasibility of HVDC projects but also stimulate investments in the sector. As a result, the market is expected to grow at a CAGR of 3.97% from 2025 to 2035, reflecting the positive impact of supportive regulatory frameworks on the industry.

The Global HVDC Converter Station Market Industry is experiencing a notable surge in demand driven by the transition towards renewable energy sources. As countries strive to meet their carbon reduction targets, the integration of wind and solar power into the grid becomes imperative. HVDC technology facilitates the efficient transmission of electricity over long distances, making it essential for connecting remote renewable energy sites to urban centers. This trend is reflected in the projected market value, which is anticipated to reach 6.1 USD Billion in 2024, indicating a robust growth trajectory as investments in renewable infrastructure continue to escalate.

The integration of smart grid technologies is emerging as a key driver for the Global HVDC Converter Station Market Industry. Smart grids enable better management of electricity supply and demand, enhancing the efficiency of power systems. HVDC technology complements smart grid initiatives by facilitating the integration of distributed energy resources and improving grid resilience. The synergy between HVDC systems and smart grid technologies is likely to attract significant investments, as utilities seek to modernize their infrastructure. This trend is expected to support the market's growth trajectory, aligning with the broader shift towards more intelligent and responsive energy systems.

Technological advancements are significantly influencing the Global HVDC Converter Station Market Industry. Innovations in converter technology, control systems, and materials are enhancing the efficiency and reliability of HVDC systems. For example, developments in voltage source converter technology allow for more flexible and controllable power flow, which is crucial for modern power grids. These advancements not only improve operational performance but also reduce costs associated with HVDC installations. As a result, the market is poised for growth, with projections indicating a value of 9.36 USD Billion by 2035, underscoring the importance of continuous innovation in the sector.

The Global HVDC Converter Station Market Industry is also driven by rising urbanization and the corresponding electrification needs. As urban populations expand, the demand for reliable and efficient power supply increases. HVDC technology offers a solution by enabling the transmission of large amounts of electricity over long distances with minimal losses. This capability is particularly vital for urban areas that require stable and uninterrupted power supply. The ongoing urbanization trends are expected to further fuel investments in HVDC infrastructure, thereby contributing to the overall market growth and enhancing energy security in densely populated regions.

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, Market Research Future 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 2025 to 2034. 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.