VSC-HVDC Cable Sales Market Trends and Forecast
The future of the global VSC-HVDC cable sales market looks promising with opportunities in the offshore wind, island power, and offshore oil & gas extraction markets. The global VSC-HVDC cable sales market is expected to grow with a CAGR of 6.1% from 2025 to 2031. The major drivers for this market are the rising demand for renewable energy integration, the growing need for grid modernization, and the increasing focus on energy efficiency.
• Lucintel forecasts that, within the type category, ±535kv is expected to witness the highest growth over the forecast period due to the rising demand for high-capacity power transmission.
• Within the application category, offshore wind is expected to witness the highest growth due to the increasing focus on sustainable power sources.
• In terms of region, Europe is expected to witness the highest growth over the forecast period due to the growing focus on renewable energy integration.
Emerging Trends in the VSC-HVDC Cable Sales Market
New Developments in the VSC-HVDC Cable Sales Market VSC HVDC cable sales market is changing rapidly with up of the following trends that are anticipated to shape its future. These trends levels are indicative of increasing need for energy transmission systems that are effective, dependable and green. With more renewable energy sources coming online, VSC-HVDC technology is expected to provide the critical solution to the challenges of power transmission.
• Growth in Use of Renewable Resources: VSC-HVDC is becoming a prerequisite for the admittance of offshore wind and solar renewable energy sources into the national grids. As the global economies move towards low carbon environment, the power needs to be transmitted efficiently over long distances. VSC-HVDC cables are particularly designed for this because they reduce energy losses and guarantee divorcement of clean energy.
• Development in Technology of HVDC Systems: Increased activity in VSC-HVDC technology like enhanced modular converter stations and advanced insulation systems are repayable to market growth. These incremental developments are improving the efficiency and reliability of transmission lines, enabling their widespread adoption for large scale projects. The deployment of advanced control and monitoring systems are also augmenting the effectiveness of VSC HVDC systems.
• Government Assistance and Policy Support: Different governments across the globe have started the adoption of VSC-HVDC technology; these governments are putting in place policies and incentives to foster its adoption. Investment in the renewable energy infrastructure, along with the tax deduction benefits and investment as well as VSC-HVDC market regulation are increasing. Such policies are especially critical for nations that are striving to address their climate targets while growing their clean energy infrastructure.
• Increased Cross-Border Electricity Transmission: The giving of electricity resources among several countries has led to the giving more priority to the cross border power transmissions. For the long distance connections between countries, VSC-HVDC cables are best suited. Such countries will be able to inter change energy more efficiently with a greater stability of the grid. This is especially significant for regions such as Europe and Asia, which have been increasing the power trade through interconnection projects implemented within these continents.
• Growing Focus on the Modernization of Grids: The continual modernization of power systems all over the world is fueling the requirement for VSC-HVDC cables. The development of smarter flexible grids means, there is need for accommodating an increased range of power flows as a result of new sources of electricity supply. Investments on the grid upgrades are also assisting the VSC HVDC technology to become more accepted which results in enhanced efficacy energy distribution networks.
These shifts actively change the VSC-HVDC cables sales market by facilitating expansion, inspiring new investments, and making innovation within the power transmission industry necessary.
Recent Development in the VSC-HVDC Cable Sales Market
Recent activities in the VSC-HVDC cable sales market is indicative of the impact of technology, government policies, and business competition on the outcome of power transmission. The aim of these initiatives is to enhance grid reliability, support the integration of renewable energy sources, and bolster energy security.
• New Technology concerning Cable Developments: Some of the most important new changes in technology when it comes to cables design and its materials used are making VSC-HVDC cables more efficient and cost-effective. Innovations like cross-linked polyethylene, XLPE, are emerging as new insulating materials that endeavor to enhance the performance of cables at high voltages. In addition, new techniques of cable production are lowering the costs of VSC-HVDC system production and expanding opportunities for VSC-HVDC systems scaling for large projects deployment.
• Taking Offshore Wind Farm Projects To The Next Level: The European and North American offshore wind farms are growing at an astonishing rate. This rapid growth is increasing the need for VSC-HVDC cables. These cables are essential for connecting open-sea wind farms to onshore electricity grids. This development is particularly noteworthy for areas characterized by abundant wind resources but missing the urban infrastructure needed to make HVDC feasible.
• Connecting Grids Projects: In recent years, there has been a growth of several grid interconnection projects in different countries using the United States patented VSC forward technology. The new technology is allowing the interconnectors to be more effective and power sharing is becoming a norm among several countries. These projects, especially in changing demand regions, are aiding in the stabilization of power grids.
• Focused Development In Renewed Energy Sources Projects: VSC-HVDC technology has vast applications in renewable energy projects and as a result investment in them is growing rapidly. Many nations are focusing on increasing their renewable energy cover, especially in the vertical of sun and wind energy harvesting. VSC-HVDC cables are ideal for such grid systems as integrating the power from the renewable sources to the national grid becomes seamless, which allows smooth power system operation.
• Support for Policies and Regulation : The government is putting in place policies and laws to foster the development of VSC-HVDC market. A lot of nations are offering “green” funds and tax reduction allowances for the construction of the HVDC infrastructure, which is attracting private funding and expediting the pace of project implementation. This set of policies is important for nurturing the growth of VSC-HVDC technology and market development.
• This is another evidence of the increased importance of VSC-HVDC systems for the modernization of power grids and for the worldwide energy transition.
This is another evidence of the increased importance of VSC-HVDC systems for the modernization of power grids and for the worldwide energy transition.
Strategic Growth Opportunities in the VSC-HVDC Cable Sales Market
Investment into the power sector by various countries for renewable energy projects makes VSC-HVDC cable sales market increasingly important for smooth power delivery. They stand out as the focus areas for growth in various sectors:
• Selling Points of Offshore Wind Farm: Selling VSC HVDC cables for integration of offshore wind farms into the national grids is a potent market and business opportunity. These cables are best suited for power supply from offshore wind farms to the onshore power grids. The global focus on offshore wind energy development is expected to increase demand for VSC HVDC systems.
• Long-Distance Power Transmission: VSC-HVDC technology has particular importance in areas where renewable sources of power are located very far from the consumption centers, so it is ideal for Long-Distance Power Transmission. This creates a great opportunity for VSC-HVDC cables as these regions with large scale renewable energy projects require high efficiency systems to be implemented alongside the expansive regions.
• Grid Modernization and Smart Grids: This increasing global trend of adopting grid modernization and smart grid technologies offers a sizeable market opportunity. VSC-HVDC cables contribute towards making modern flexible, reliable, and efficient powers grids that are required as renewable energy usage increases and gets spread across different locations. This offers a reason that investments in smart grids will result in increased need of VSC-HVDC systems.
• Cross-Border Power Trading: As countries try to balance their energy consumption, production and carbon emission targets, Cross border power trading is on the rise. VSC-HVDC technology is crucial for permitting exchanges of energy between countries. Power can be transmitted through HVDC over long distances with less power loss. These manufacturers will get the opportunity to cater to the growing needs of VSC-HVDC systems as international grid interconnections continue to grow.
• Integration of Energy Storage Components: The application of energy storage systems, including large batteries, has become an integral part of managing the supply and demand of power grids. Implementation of VSC-HVDC technology is important for incorporating energy storage systems into the grids because it ensures that the stored energy is quickly and effectively transmitted when there is a need. As storage devices become increasingly common, this application is expected to grow.
These opportunities for growth are indicative of an ever increasing need for VSC-HVDC technology in other sectors of energy transmission, which in turn supports the overarching market’s expansion.
VSC-HVDC Cable Sales Market Driver and Challenges
The market for sales of VSC-HVDC cables does not operate in a vacuum and is impacted by different factors and conditions that either promote its growth or hinder it. Currently, it is the technologically sophisticated advancements, the government policies, and the increasing need for REI that are acting as propelling factors. On the other hand, infrastructure costs, regulatory frameworks, and environmental issues provide challenges and obstacles as well.
The factors responsible for driving the vsc-hvdc cable sales market include:
1. Increase in Renewable Energy Sources: The effort towards renewables is the driving factor that will enhance VSC-HVDC cable sales. The global investment on stream, solar or any other renewable source calls for new efficient power transmission systems which are best provided by VSC-HVDC. Also, with growing concerns regarding climate change, VSC technology becomes a necessity as it facilitates contouring energy regions for easy transmission of renewable energy assistance.
2. Governing Policies and Motivating Factors: All over the world, governments are providing incentives and policies that aid in the adoption of VSC-HVDC technology. Subsidies, tax credits, and mandates provide additional funds that drastically improve the market VSC-HVDC technology by attracting investment into the HVDC infrastructure and renewable energy development projects.
3. Innovation Within The Industry: The VSC-HVDC technology is an innovation that improves existing markets. New designs of cables, insulation materials, and the converter stations themselves are more economically favorable to VSC HVDC systems. These benefits make it possible to expand the use of technology for offshore wind projects, as well as for international and interregional electricity transmission projects.
4. A Reliable Source Of Energy And Support For The Electrical Grid: VSC-HVDC promises a dependable option for reinforcing grid security in the wake of rising concerns of energy security. These systems facilitate system balancing and load control between regions or countries, especially in a framework where the share of volatile renewable energy sources increases. VSC HVDC cables guarantee the stability of power systems at the national and international levels.
5. International Power Transmission Boosts Adoption Of The Technology: VSC-HVDC technology is gaining traction due to the rise in international power trades. HVDC transmission lines are required between many countries that have unequal energy power systems to help with the circulation of energy resources. This growing trend is raising the demand for adoption of VSC-HVDC systems for interconnection projects.
Challenges in the vsc-hvdc cable sales market are:
1. Major Investments for Infrastructure: One of the most major barriers to market growth is the high initial cost of building HVDC infrastructure. VSC-HVDC systems are very efficient and cost efficient in the long run, but the initial investment to the cables and the infrastructure poses problems for several countries and companies.
2. Cross Country Regulations: Each region and each country has different regulations when it comes to HVDC systems which makes the entire framework convoluted. Getting a regulatory approval for big infrastructure projects takes an excruciatingly long time which prevents timely implementation of VSC-HVDC systems. Regulations have to be unified and the cooperation across countries borders is also needed which is often problematic.
3. Eco-friendly Protests: On top of everything else, the geo-political implications of building cables, laying cables and constructing converters for energy stations poses serious concerns. Even though renewable energy has positive effects on the climate, development on HVDC infrastructure projects raises concern. Local communities and environmental efforts might oppose such projects hampering their progression.
To sum up, the VSC-HVDC cables sales market is widened due to renewable energy expansion supported by the government and technological development, however, hostile regulations, high expenses, and worrying eco impacts all pose issues that would prevent further development.
List of VSC-HVDC Cable Sales Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies VSC-HVDC cable sales companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the VSC-HVDC cable sales companies profiled in this report include-
• ABB
• GE Grid Solutions
• Sumitomo Electric
• Südkabe
• Hitachi Energy
• Siemens Energy
• Jiangsu Zhongtian Technology
• Ningbo Orient Wires & Cables
• Hengtong Optic-Electric
• Baosheng Science and Technology Innovation
VSC-HVDC Cable Sales Market by Segment
The study includes a forecast for the global VSC-HVDC cable sales market by type, application, and region.
VSC-HVDC Cable Sales Market by Type [Value from 2019 to 2031]:
• ±160KV
• ±200KV
• ±320KV
• ±535KV
VSC-HVDC Cable Sales Market by Application [Value from 2019 to 2031]:
• Offshore Wind
• Island Power
• Offshore Oil & Gas Extraction
• Others
VSC-HVDC Cable Sales Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the VSC-HVDC Cable Sales Market
The expansion in sales of cable VSC-HVDC is geometrically increasing from the past few years owing to rapid advancements in technology and the increasing need for clean and efficient energy transfer. Countries such as United States, China, Germany, India, and Japan have seen new developments in their VSC-HVDC cable infrastructure. These countries are focusing their attention to funding renewable power developments and large scale grid interconnections which increases the use of VSC-HVDC technology. For these reasons, the market is set to grow tremendously in the next few years.
• United States: To address renewables in a comprehensive way, particularly towards global warming, there is a new need in the US that tackles offshore wind energy – now increasingly seen as favorable,” PowerGrid America. The VSC-HVDC cable sales market in the United States is witnessing rapid growth with respect to thrust in the offshore wind projects. The goals of the government to expand its clean energy capacity which increased the demand for reliable grid interconnections. The long distance HVDC transmission lines is a primary step in this regard. High reliability interconnections with urban centers make it possible to bring renewable energy from the remote areas. In addition to these factors, increase in VSC-HVDC technology adoption is enabled by economic growth and investment in modernization of the grid.
• China: China still dominates the international market for the sale of VSC-HVDC cables due to the country’s focus on major renewable energy projects and interconnection of regional super power grids. On top of this, the rapid expansion of China’s offshore wind and solar energy markets is driving the need for VSC-HVDC cables which are central in performing energy transmission over long distances. In addition, the Chinese government is investing in HVDC infrastructure to achieve carbon emission reductions and cleaner energy sources. Growing projects like the East to West transmission lines are examples of China’s commitment to adopting HVDC technology.
• Germany : Germany is one of the leaders in the market for the sale of VSC-HVDC cables, and this is largely driven by the country’s aggressive energy transition policies. The need for remote clean energy, particularly offshore wind energy, is making it imperative for efficient transmission technologies to be developed. VSC-HVDC systems have become instrumental in the construction of offshore wind power plants by ensuring their connection to the mainland grid for power dispatch. In addition, the German market is expanding because of supportive regulations and investment in HVDC projects which makes Germany a major player in the European energy transition.
• India : India has been advancing rapidly in VSC-HVDC cable sales due to the increasing demand for reliable and efficient energy transmission infrastructure. The Indian government’s focus on renewable sources of power like solar energy has increased the economic feasibility of VSC-HVDC technology since it is effective in transmitting energy over long distances. The VSC-HVDC cables benefit with reduced transmission losses and enhanced stability of the grid. Furthermore, cross-border electricity trade that India intends to conduct with other countries is also accelerating the adoption of HVDC systems for power exchange.
• Japan : The market for VSC-HVDC cable sales is expanding in Japan as the country continues to spend on renewable energy investments and grid modernization initiatives. Japan is now attempting to link remote sources of renewable energy such as offshore wind farms to its national grid by constructing new transmission lines. The demand for VSC-HVDC cables is increasing since they do not suffer from voltage drop unlike conventional cables. Moreover, energy independence and reduction of Japan’s carbon footprint will create further opportunities for VSC-HVDC market expansion in the country.
Features of the Global VSC-HVDC Cable Sales Market
Market Size Estimates: Vsc-hvdc cable sales market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: Vsc-hvdc cable sales market size by type, application, and region in terms of value ($B).
Regional Analysis: Vsc-hvdc cable sales market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the VSC-HVDC cable sales market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the VSC-HVDC cable sales market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for VSC-HVDC cable sales market?
Answer: The global VSC-HVDC cable sales market is expected to grow with a CAGR of 6.1% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the VSC-HVDC cable sales market?
Answer: The major drivers for this market are the rising demand for renewable energy integration, the growing need for grid modernization, and the increasing focus on energy efficiency.
Q3. What are the major segments for VSC-HVDC cable sales market?
Answer: The future of the VSC-HVDC cable sales market looks promising with opportunities in the offshore wind, island power, and offshore oil & gas extraction markets.
Q4. Who are the key VSC-HVDC cable sales market companies?
Answer: Some of the key VSC-HVDC cable sales companies are as follows:
• ABB
• GE Grid Solutions
• Sumitomo Electric
• Südkabe
• Hitachi Energy
• Siemens Energy
• Jiangsu Zhongtian Technology
• Ningbo Orient Wires & Cables
• Hengtong Optic-Electric
• Baosheng Science and Technology Innovation
Q5. Which VSC-HVDC cable sales market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, ±535kv is expected to witness the highest growth over the forecast period due to the rising demand for high-capacity power transmission.
Q6. In VSC-HVDC cable sales market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, Europe is expected to witness the highest growth over the forecast period due to the growing focus on renewable energy integration.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the VSC-HVDC cable sales market by type (±160kV, ±200kV, ±320kV, and ±535kv), application (offshore wind, island power, offshore oil & gas extraction, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to VSC-HVDC Cable Sales Market, VSC-HVDC Cable Sales Market Size, VSC-HVDC Cable Sales Market Growth, VSC-HVDC Cable Sales Market Analysis, VSC-HVDC Cable Sales Market Report, VSC-HVDC Cable Sales Market Share, VSC-HVDC Cable Sales Market Trends, VSC-HVDC Cable Sales Market Forecast, VSC-HVDC Cable Sales Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.