HVDC Converter Market Size, Share, Growth Analysis, By Technology(Line Commutated Converter (LCC) technology and Voltage Source Converter (VSC) technology), By Application(Power transmission, offshore and railway), By Region - Industry Forecast 2024-2031

Global HVDC Converter Market size was valued at USD 867.42 billion in 2021 and is poised to grow from USD 1000 billion in 2022 to USD 17000 billion by 2030, growing at a CAGR of 15.5% in the forecast period (2023-2030).

HVDC Converter is a technology used to transmit large amounts of electrical power over long distances. HVDC stands for High Voltage Direct Current, which means that the electrical power is transmitted in the form of direct current rather than alternating current (AC), which is commonly used for power transmission over shorter distances. The HVDC Converter technology consists of two main components; the converter station and the transmission line. The converter station converts the AC power from the power grid to DC power, which is then transmitted over the HVDC transmission line. At the receiving end, another converter station converts the DC power back to AC power for distribution to the local power grid. The use of HVDC Converter technology offers several advantages over AC power transmission. HVDC transmission lines have lower power losses than AC transmission lines, which mean that more of the generated power reaches its destination. HVDC transmission lines can be used to stabilize the power grid by transmitting power from areas with surplus power to areas with power deficits. HVDC transmission lines can be used to integrate renewable energy sources such as wind and solar power into the power grid. HVDC transmission lines can transmit power over longer distances than AC transmission lines, making them ideal for transmitting power over vast distances, such as across oceans.

The global HVDC converter market is expected to experience significant growth in the coming years, driven by several factors such as the increasing demand for renewable energy, the need for efficient and reliable power transmission systems, and government support for clean energy and energy efficiency measures. One of the primary drivers of the global market is the growing demand for renewable energy sources such as wind and solar. As the world shifts towards a low-carbon economy, there is a need to integrate more renewable energy sources into the power grid. HVDC transmission systems are well-suited for transmitting power generated from renewable sources over long distances with low losses, making them an attractive option for developers of renewable energy projects. Additionally, the aging infrastructure of the power grid in many regions is driving the demand for new transmission systems. Many transmission lines and transformers are nearing the end of their useful life, and replacing them with new AC infrastructure can be costly and disruptive. HVDC transmission systems can be a more cost-effective solution, as they can be installed alongside existing AC infrastructure, reducing the need for extensive upgrades. Another factor driving the growth of the HVDC converter market is government support for clean energy and energy efficiency measures. Governments in many regions have established policies and programs to encourage the development of clean energy sources and the modernization of the power grid. For example, the European Union has set targets to reduce greenhouse gas emissions, which has led to increased investments in renewable energy sources and advanced grid technologies such as HVDC transmission systems. However, there are also some challenges facing the global HVDC converter market. These include the high initial capital costs of HVDC systems, technical challenges related to high-frequency noise, harmonics, and stability issues and competition from alternative technologies such as FACTS.

US HVDC Converter Market is poised to grow at a sustainable CAGR for the next forecast year.