Market Overview
| Study Period | 2021 - 2031 |
|---|---|
| Forecast Data Period | 2026 - 2031 |
| Historical Data Period | 2021 - 2024 |
| Market Size (2026) | USD 3.58 Billion |
| Market Size (2031) | USD 5.67 Billion |
| Growth Rate (2026 - 2031) | 9.63% CAGR |
| Market Concentration | Medium |
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. | |
China High-Voltage Direct Current (HVDC) Transmission Systems Market Analysis by Mordor Intelligence
The China High-Voltage Direct Current Transmission Systems Market size is estimated at USD 3.58 billion in 2026, and is expected to reach USD 5.67 billion by 2031, at a CAGR of 9.63% during the forecast period (2026-2031).
Rapid build-out of ultra-high-voltage (UHV) corridors, rising offshore-wind connections, and sustained policy support under the 14th Five-Year Plan are steering the market toward double-digit expansion.[1]State Grid Corporation of China, “Annual Investment Plan 2026,” SGCC.COM.CN Converter-station investments dominate capital outlays because valve-hall, transformer, and cooling assemblies account for almost half of project costs, while submarine-cable demand is accelerating as coastal provinces integrate far-from-shore wind farms.[2]Jiangsu Zhongtian Technology, “Offshore HVDC Cable Portfolio,” CHINAZTT.COM Beijing’s decision to guarantee cost recovery through distance-indexed transmission tariffs has trimmed financing risk and encouraged provincial grid companies to lock in long-term loans at concessional rates.[3]National Development and Reform Commission, “Grid Tariff Adjustment Notice No. 27 (2025),” NDRC.GOV.CN Foreign vendors such as Hitachi Energy still supply niche components at ±800 kV and above, yet the value chain is steadily localizing as domestic suppliers ramp press-pack IGBT and XLPE-cable capacity.
Key Report Takeaways
- By transmission type, overhead links led with 64.8% of the China high-voltage direct current transmission systems market share in 2025; submarine systems are forecast to post the fastest 12.0% CAGR through 2031.
- By component, converter stations held 54.5% revenue share in 2025, while transmission-medium cables are poised to expand at a 10.8% CAGR to 2031.
- By voltage rating, above-800 kV corridors commanded 53.2% of the China high-voltage direct current transmission systems market size in 2025 and are projected to grow at a 10.1% CAGR during the period.
- State Grid Corporation and China Southern Power Grid awarded 94% of engineering-procurement-construction contracts in 2025, underscoring concentrated buyer power within the Chinese high-voltage direct current transmission systems market.
Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of January 2026.
China High-Voltage Direct Current (HVDC) Transmission Systems Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Policy push under 14th Five-Year Plan | 2.80% | Xinjiang, Qinghai, Gansu, Sichuan | Medium term (2-4 years) |
| Accelerating West-to-East renewable power transfer | 2.50% | Western generation hubs to Eastern load centers | Long term (≥4 years) |
| Surge in large-scale offshore wind HVDC links | 1.90% | Jiangsu, Guangdong, Fujian | Medium term (2-4 years) |
| Flexible VSC-HVDC demand from hyperscale data centers | 1.20% | Beijing-Tianjin-Hebei, Yangtze River Delta, Pearl River Delta | Short term (≤2 years) |
| Semiconductor and EV-battery clusters’ high-quality-power needs | 0.90% | Jiangsu, Guangdong, Sichuan, Shaanxi | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Policy Push Under 14th Five-Year Plan
Twelve new UHV corridors received central approval, turning HVDC investment from discretionary to mandatory for provincial operators. State Grid earmarked CNY 600 billion (USD 83 billion) for grid capex in 2026, 45% of which targets HVDC converter stations and ±800 kV lines.[4]State Grid Corporation of China, “Annual Investment Plan 2026,” SGCC.COM.CN Tariff guarantees indexed to distance allow sponsors to close 15-year policy-bank loans at 3.2% interest, widening the spread versus commercial funding and shortening breakeven timelines. The mechanism has already de-risked the Xizang-Guangdong project despite its 23-year nominal payback horizon. Renewable-integration mandates that call for 150 GW of wind and solar to flow eastward by 2030 further lock in demand for flexible VSC-HVDC topologies with black-start and frequency-support capability.
Accelerating West-to-East Renewable Power Transfer
Xinjiang recorded double-digit curtailment when the existing Hami-Chongqing link hit 85% loading. The upcoming Gansu-Zhejiang ±800 kV VSC corridor will shift 8 GW across 2,370 km and enable reverse flow during photovoltaic peaks, easing thermal limits on the AC grid. Qinghai’s solar base shows why extra transfer capacity matters: by 2025, the province’s peak load of 9.2 GW absorbed barely one-quarter of its installed capacity, making sub-3% HVDC losses decisive for revenue preservation. Every percentage-point loss above 3% wipes USD 28 million from annual earnings on an 8 GW line operating 6,000 full-load hours.
Surge in Large-Scale Offshore Wind HVDC Links
Beyond 50 km from shore, AC cables require costly reactive-compensation platforms. Jiangsu’s Rudong project proved that a ±400 kV VSC link can remove two-thirds of these platforms and shrink total installed cost by 18%. Guangdong faces typhoon forces that raise armored-cable prices to USD 2.8 million per km, yet developers accept the premium because 40-year design life and lower upkeep outweigh the upfront outlay. Domestic suppliers commanded 68% of submarine-cable orders in 2025 thanks to 9-month delivery cycles that undercut European imports constrained by trans-Pacific logistics.
Flexible VSC-HVDC Demand from Hyperscale Data Centers
China’s East-West Computing Resource initiative pushes 30% of new data-hall capacity toward western regions, where weak AC grids threaten voltage stability. VSC-HVDC feeders modulate active and reactive power in 10 ms, meeting 99.99% uptime guarantees without static VAR compensators. The Zhangbei four-terminal DC grid removed 12 such compensators and freed 18 ha of substation land, cutting auxiliary spend by USD 340 million. Operators like Alibaba Cloud now co-finance dedicated DC feeders to avoid 4-6 annual voltage events that breach service-level agreements.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Very high upfront CAPEX and extended payback | −1.4% | Nationwide, acute in western provinces | Long term (≥4 years) |
| Grid-code complexity for multi-terminal HVDC meshing | −0.8% | Pilot sites in Xizang, Sichuan, Guangdong, Hebei | Medium term (2-4 years) |
| Domestic supply bottleneck for ≥±800 kV valves | −0.6% | Hunan, Shaanxi, Jiangsu | Short term (≤2 years) |
| Environmental approvals for new corridors | −0.5% | Qinghai, Gansu, Xizang, Sichuan | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Very High Upfront CAPEX and Extended Payback
The Gansu-Zhejiang ±800 kV VSC project costs USD 612,500 per MW, 28% above a comparable 1,000 kV AC route. Provinces must co-fund converter stations, yet face tariff caps of CNY 0.05 per kWh that jeopardize debt coverage ratios below 1.2×. Xizang-Guangdong assumes 6,800 operating hours, but hydropower seasonality could stretch payback to 28 years if utilization falls. Each unplanned outage day erodes project NPV by USD 4.2 million, making predictive maintenance on cooling loops and DC filters central to investment returns.
Grid-Code Complexity for Multi-Terminal HVDC Meshing
The three-terminal Xizang-Guangdong corridor must stabilize DC voltage across AC networks with dissimilar short-circuit ratios, a scenario not fully addressed by IEC 61975. The smaller Zhangbei ±500 kV grid logged three DC-bus excursions in its first 18 months and had to de-rate transfer 12% for stability. At ±800 kV, hybrid mechanical-semiconductor DC breakers cost USD 10 million apiece, and only NR Electric and Xuji Group hold type-test certification, creating a two-vendor bottleneck that can raise procurement prices by 35%.
Segment Analysis
By Transmission Type: Offshore Wind Propels Submarine Surge
Overhead corridors held 64.8% of the Chinese high-voltage direct current transmission systems market in 2025, led by projects such as the 915 km Longdong-Shandong line, whose per-kilometer cost of CNY 1.5-2 million remains 60% below submarine alternatives. Submarine links, however, are forecast to post a 12.0% CAGR to 2031 as Jiangsu and Guangdong fast-track far-from-shore wind farms that demand ±400 kV VSC technology.
The China high-voltage direct current transmission systems market size for submarine links benefits from cost savings achieved by eliminating multiple AC platforms. The Rudong project, operational since 2024, removed three intermediate stations and cut the total bill by 18%. Offshore adoption is further bolstered by domestic cable makers that offer 9-month lead times and renminbi pricing, a 4-6% cost edge over European peers. Underground HVDC remains a niche option for short urban segments where overhead routes face right-of-way hurdles, as seen in Beijing’s 12 km section priced at CNY 8.2 million per km.
Note: Segment shares of all individual segments available upon report purchase
Get Detailed Market Forecasts at the Most Granular Levels
Download PDF
By Component: Converter Complexity Sustains Station Dominance
Converter stations accounted for 54.5% of the Chinese high-voltage direct current transmission systems market share in 2025. A single ±800 kV VSC station demands 480 high-rating IGBT modules, converter transformers with ±15% tap range, and sophisticated cooling, pushing electrical procurement alone above USD 680 million. Transmission-medium cables are projected to grow 10.8% CAGR through 2031 on the back of offshore-wind tie-ins and conductor uprating of aging ±500 kV corridors.
Domestic firms control 68% of medium-voltage content, yet valve-grade 8-inch wafer fabs remain scarce, forcing 60% import content at the VSC top tier. Still, suppliers able to bundle civil works, HVAC, and fire suppression alongside electrical scope can capture more than half of converter-station value, cementing a competitive moat for integrated players inside the China high-voltage direct current transmission systems market.
By Voltage Rating: Ultra-High Voltage Cements Efficiency Lead
Links above 800 kV captured 53.2% of 2025 revenue and will grow at a 10.1% CAGR. The ±1 100 kV Changji-Guquan and Zhundong-Wannan lines ship 12 GW each over 3,200 km with losses under 2.8%, outperforming lower-voltage corridors by 70 bps. The China high-voltage direct current transmission systems market size attached to above-800 kV projects is buoyed by fuel savings: trimming losses from 3.5% to 2.6% on a 10 GW path saves USD 72 million a year.
The 401-800 kV bracket suits medium-range corridors up to 1,500 km, while up-to-400 kV ratings dominate offshore wind and point-to-point data-center feeders where compact stations are valued. Only two global vendors can deliver 8.5 kV thyristors needed for ±1 100 kV valves, a constraint that prolongs lead times to 18 months and reinforces foreign participation in the ultra-high-voltage tier.
Note: Segment shares of all individual segments available upon report purchase
Get Detailed Market Forecasts at the Most Granular Levels
Download PDF
Geography Analysis
Generation in the western provinces of Xinjiang, Qinghai, Gansu, and Xizang totaled 118 GW of wind and solar in 2025, yet these regions house limited local demand. They exported 87 TWh over HVDC links to Jiangsu, Zhejiang, Guangdong, and Shandong, which together consumed 62% of transmitted power. Transmission bottlenecks surfaced when curtailment in Xinjiang topped 12% during shoulder months, underscoring the lag between renewable build-out and corridor approvals.
Coastal provinces are mitigating import dependence by bankrolling local offshore wind. Jiangsu committed CNY 18 billion in 2025 for submarine HVDC cables that will connect 27.3 GW of turbines planned through 2030. Guangdong is adopting armored XLPE designs to survive typhoon loading, accepting USD 2.8 million per-km cable costs in exchange for a 40-year life that cuts operating spend.
Sichuan operates as a hydropower swing producer inside the emerging Xizang-Guangdong three-terminal network. It injects 2 GW in the monsoon season and withdraws energy during dry months, effectively using the DC corridor as a long-distance storage asset. The model illustrates how multi-terminal projects can balance regional supply diversity once grid-code challenges are resolved.
Competitive Landscape
State Grid and China Southern Power Grid dominated 94% of EPC awards in 2025, establishing a regulated duopoly that defines technical standards and procurement cycles. In equipment, Hitachi Energy, Siemens Energy, and ABB collectively supplied 42% of converter transformers and semiconductors for projects at ±800 kV and above. Domestic challengers, TBEA, NR Electric, Xuji Group, and China XD, captured 68% in the ±500 kV space by offering 25-30% price concessions and 9-month lead times.
White-space opportunities lie in VSC systems, where 62% of valve content still relies on imports. Firms capable of localizing 8-inch wafer production could unlock a USD 1.8 billion addressable market by 2031. Procurement data also show a rising share for Shenzhen Sieyuan Electric, which won 12% of protection-and-control lots in the March 2025 tender by pricing 18% below incumbents.
Technology strategies are diverging. State Grid pilots hybrid-commutated converters that cut valve count by 30% and could save USD 85 million on an 8 GW link, though commercialization awaits IEC-62501 certification expected in 2028. China Southern Power Grid pursues meshed DC grids, aiming to translate its record with flexible ±160 kV demos into large-scale ±800 kV networks once grid-code revisions mature.
China High-Voltage Direct Current (HVDC) Transmission Systems Industry Leaders
State Grid Corporation of China
Hitachi Energy
NR Electric
TBEA
Siemens Energy
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competitors?
Download PDF
Recent Industry Developments
- October 2025: Hitachi Energy received the first 1,100 kV GIS order for the Nanchang substation expansion in Jiangxi.
- September 2025: China has begun constructing a ±800 kV HVDC power transmission line to deliver clean energy from Xizang Autonomous Region to the Guangdong-Hong Kong-Macao Greater Bay Area. Spanning 2,681 kilometers, the project, costing 53.2 billion yuan (7.5 billion USD), crosses the Qinghai-Tibet Plateau, Yunnan-Guizhou Plateau, and southern China's hilly terrain.
- March 2025: State Grid’s 12th HVDC tender awarded CNY 1.959 billion to 38 suppliers, with Sieyuan capturing 12% of protection lots.
- July 2024: The ultra-high voltage direct current (HVDC) transmission line is expected to transmit over 36 billion kilowatt-hours (kWh) of electricity annually from Gansu province in the west to Zhejiang province in the east, traversing four additional provinces along the route, as reported by state-run CCTV.
China High-Voltage Direct Current (HVDC) Transmission Systems Market Report Scope
The High-Voltage Direct Current (HVDC) Transmission Systems Market involves developing, manufacturing, installing, and operating HVDC technologies for efficient long-distance power transmission. These systems, including converter stations, transformers, valves, cables, and control systems, enable power transfer between asynchronous grids and over long distances with minimal losses.
The Chinese high-voltage direct current transmission systems market is segmented by transmission type, component, voltage rating, and geography. By transmission type, the market is segmented into submarine, overhead, and underground. By component, the market is segmented into converter stations, transmission medium, and others. By voltage rating, the market is segmented into up to 400 kV, 401 to 800 kV, and above 800 kV. The report also covers the market size and forecasts for the geography. Market sizing and forecasts have been done for each segment based on revenue (USD billion).
By Transmission Type
| Submarine HVDC Transmission System |
| Overhead HVDC Transmission System |
| Underground HVDC Transmission System |
By Component
| Converter Stations |
| Transmission Medium (Cables) |
| Others (Control & Protection Systems, Reactive Power Equipment, Accessories) |
By Voltage Rating
| Up to 400 kV |
| 401 to 800 kV |
| Above 800 kV |
| By Transmission Type | Submarine HVDC Transmission System |
| Overhead HVDC Transmission System | |
| Underground HVDC Transmission System | |
| By Component | Converter Stations |
| Transmission Medium (Cables) | |
| Others (Control & Protection Systems, Reactive Power Equipment, Accessories) | |
| By Voltage Rating | Up to 400 kV |
| 401 to 800 kV | |
| Above 800 kV |
Need A Different Region or Segment?
Customize Now
Key Questions Answered in the Report
What is the current value of the China high-voltage direct current transmission systems market?
The market was valued at USD 3.58 billion in 2026 and is on track to hit USD 5.67 billion by 2031.
Which segment holds the largest China high-voltage direct current transmission systems market share?
Overhead transmission accounted for 64.8% of revenue in 2025, reflecting lower per-kilometer costs on long inland routes.
How fast will submarine HVDC links grow through 2031?
Submarine systems tied to offshore wind are expected to register a 12.0% CAGR, the fastest among transmission types.
Why are converter stations so dominant in project budgets?
Valve halls, transformers and cooling assemblies together absorb more than half of total costs, giving converter stations a 54.5% revenue share in 2025.
Which voltage class is expanding quickest?
Corridors rated above 800 kV, including the world-leading ±1 100 kV lines, are projected to grow at a 10.1% CAGR as developers seek lower line losses over 2 000 km-plus distances.
Who are the major players in equipment supply?
Hitachi Energy, Siemens Energy and ABB lead in ultra-high-voltage components, while domestic firms such as TBEA, NR Electric and Xuji Group dominate the mid-voltage tier.
