Report Overview

Saudi Arabia HVDC Transmission System Market – Industry Trends & Forecast Report, 2031

Saudi Arabia HVDC Transmission System Market size was estimated at USD 314.43 million in 2024. During the forecast period between 2025 and 2031, Saudi Arabia HVDC Transmission System Market size is projected to grow at a CAGR of 7.6% reaching a value of USD 525.05 million by 2031. The growth of Saudi Arabia HVDC Transmission System Market is propelled by the advantages of HVDC transmission systems, offering advanced control capabilities, and allowing for precise regulation of Application flows and voltage levels. As a result, it enhances grid stability, reduces the risk of blackouts, and improves the overall reliability of the electricity supply.

HVDC Transmission System – Overview

A high-voltage direct current (HVDC) transmission system is a technology that transmits electricity using direct current (DC) rather than the more common alternating current (AC). HVDC systems are especially suited for efficiently moving large amounts of Application over long distances, as they incur significantly lower transmission losses compared to AC lines-typically about 3.5% per 1,000 km, which is roughly half the losses of similar AC systems. In HVDC transmission, electricity generated as AC is converted to DC at a converter station at the sending end, transmitted via overhead lines or cables, and then converted back to AC at the receiving end.

Saudi Arabia HVDC Transmission System Market

Growth Drivers

Expansion of Cross-border Energy Exchange

The implementation of favorable initiatives to enhance cross-border energy exchange by the government is significantly contributing to the growth of the overall Saudi Arabia HVDC Transmission System Market. The Kingdom is using HVDC technology to strengthen its interconnection with neighboring countries. These systems play a vital role in balancing regional Application supply, as the country is aiming to export surplus renewable energy to nearby markets. This focus on energy trade is increasing investments in HVDC infrastructure and the large-scale interconnection projects, which in turn is driving market growth. In addition to this, increasing investments and funding from both the public and private sectors are driving Saudi Arabia HVDC Transmission System Market and ensuring steady market growth in the coming years.

Challenges

High Initial Capital Investment

High initial capital investment is a significant barrier to the rapid deployment of HVDC infrastructure in Saudi Arabia, as these projects require substantial upfront spending on converter stations, specialized equipment, and transmission lines. Converter stations alone represent a major portion of the total cost, often exceeding the costs associated with equivalent AC systems, especially for shorter distances or lower-capacity projects. The capital costs for HVDC installations are influenced by multiple factors, including the technology used, route length, Application transfer capacity, and installation conditions, with converter stations and advanced control systems adding to the financial burden. Consequently, these factors could affect the growth of Saudi Arabia HVDC Transmission System Market.

Impact of Escalating Geopolitical Tensions on Saudi Arabia HVDC Transmission System Market

Intensifying geopolitical tensions among countries across the regions are reshaping Saudi Arabia HVDC Transmission System Market through disrupt supply chains, inflate costs for critical HVDC components, and delay project timelines due to increased risk aversion among investors and contractors. As Saudi Arabia navigates a complex diplomatic landscape-balancing relations with major countries, such as the US, China, and Russia-its ability to maintain stable partnerships is crucial for securing the technology transfers, expertise, and international investments needed for large-scale HVDC projects.

Saudi Arabia HVDC Transmission System Market

Segmental Coverage

Saudi Arabia HVDC Transmission System Market – By Technology

By technology, Saudi Arabia HVDC Transmission System Market is segmented into Line Commutated Converter (LCC), Voltage Source Converter (VSC), Capacitor Commutated Converter (CCC). LCC technology, which relies on thyristor-based systems, has traditionally dominated high-capacity and long-distance transmission projects because of its proven reliability and cost-effectiveness for large-scale power transfers. These systems are well-suited for bulk electricity movement across vast distances, making them a staple in major infrastructure projects.

Saudi Arabia HVDC Transmission System Market – By Component

Based on component, Saudi Arabia HVDC Transmission System Market is segmented into Converter Stations, Transmission Cables, Transformers, and Switchgears. Converter stations are the pillar of any HVDC system, as they perform the critical function of converting alternating current (AC) to direct current (DC) for transmission, and then back to AC at the receiving end, enabling efficient long-distance power transfer and grid interconnection.

Saudi Arabia HVDC Transmission System Market - By Application

The application segmentation of Saudi Arabia HVDC Transmission System Market consists of Bulk Power Transmission, Interconnecting Grids, Infeed Urban Areas, Subsea, Underground, and Overhead. Bulk power transmission is a primary application, enabling the efficient movement of large volumes of electricity over long distances-such as transmitting power from remote solar or wind farms to densely populated urban centers-while minimizing losses and ensuring grid stability.

Saudi Arabia HVDC Transmission System Market – By End User

Saudi Arabia HVDC Transmission System Market by end user is segmented into Utilities, Industrial, Commercial, and Residential. The utilities segment, comprising national and regional grid operators, represents the largest and most significant share of the market. This dominance is driven by ongoing efforts to modernize and expand the power grid, enhance reliability, and support the integration of renewable energy sources.

Competitive Landscape

Major players operating in the highly competitive Saudi Arabia HVDC Transmission System Market include ABB Ltd, Siemens Energy AG, General Electric Company, Schneider Electric SE, Mitsubishi Electric Corporation, Hitachi Energy Ltd, NR Electric Co., Ltd, Toshiba Energy Systems & Solutions Corporation, Sungrow Power Supply Co., Ltd, and AESC Group Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2024 - Hyundai Engineering & Construction co. (Hyundai E&C) secured a contract with Saudi Electricity Co. (SEC) to construct a 500kV high voltage direct current (HVDC) transmission line between Riyadh and Kudmi, valued at approximately SKW 1 trillion (about USD 765 million).

Scope of the Report

`

By Technology

• Line Commutated Converter (LCC)

• Voltage Source Converter (VSC)

• Capacitor Commutated Converter (CCC)

By Component

• Converter Stations

• Transmission Cables

• Transformers

• Switchgear

By Application

• Bulk Power Transmission

• Interconnecting Grids

• Infeed Urban Areas

• Subsea, Underground, Overhead

By End Users

• Utilities

• Industrial

• Commercial

• Residential

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia HVDC Transmission System Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing investments in smart grid modernization
         2. Growing adoption of renewable energy sources
         3. Expansion of cross-border power exchange
      2. Restraints
         1. High Initial Capital Investment
         2. Shortage of Local Expertise
      3. Opportunities
         1. Shifting Towards the Decarbonization in the Power Sector
         2. Increased public and private sector investments
      4. Challenges
         1. Operational and Maintenance Difficulties
         2. Regulatory and Logistical Hurdles
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia HVDC Transmission System Market: Marketing Strategies
5. Saudi Arabia HVDC Transmission System Market: Pricing Analysis
6. Saudi Arabia HVDC Transmission System Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Technology
         1. Line Commutated Converter (LCC)
         2. Voltage Source Converter (VSC)
         3. Capacitor Commutated Converter (CCC)
      2. By Component
         1. Converter Stations
         2. Transmission Cables
         3. Transformers
         4. Switchgear
      3. By Application
         1. Bulk Power Transmission
         2. Interconnecting Grids
         3. Infeed Urban Areas
         4. Subsea, Underground, Overhead
      4. By End User
         1. Utilities
         2. Industrial
         3. Commercial
         4. Residential
7. Competitive Landscape
   1. List of Key Players and Their End Users
   2. Saudi Arabia Automotive Retail Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Saudi Arabia HVDC Transmission System Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. ABB Ltd
   2. Siemens Energy AG
   3. General Electric Company
   4. Schneider Electric SE
   5. Mitsubishi Electric Corporation
   6. Hitachi Energy Ltd
   7. NR Electric Co., Ltd
   8. Toshiba Energy Systems & Solutions Corporation
   9. Sungrow Power Supply Co., Ltd
   10. AESC Group Ltd
   11. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents
    5. Assumption & Limitation

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1   Saudi Arabia HVDC Transmission System Market Segmentation

Figure 2   Saudi Arabia HVDC Transmission System Market Value Chain Analysis

Figure 3   Company Market Share Analysis, 2024

Figure 4   Saudi Arabia HVDC Transmission System Market Size, By Value (USD Million), 2019–2031

Figure 5   Saudi Arabia HVDC Transmission System Market Share, By Technology, By Value (USD Million) 2019–2031

Figure 6   Saudi Arabia HVDC Transmission System Market Share, By Component, By Value (USD Million) 2019–2031

Figure 7   Saudi Arabia HVDC Transmission System Market Share, By Application, By Value (USD Million) 2019–2031

Figure 8   Saudi Arabia HVDC Transmission System Market Share, By End User, By Value (USD Million) 2019–2031

List of Tables

Table 1      Saudi Arabia HVDC Transmission System Market Share, By Technology, By Value (USD Million) 2019–2031

Table 2      Saudi Arabia HVDC Transmission System Market Share, By Component, By Value (USD Million) 2019–2031

Table 3      Saudi Arabia HVDC Transmission System Market Share, By Application, By Value (USD Million) 2019–2031

Table 4      Saudi Arabia HVDC Transmission System Market Share, By End User, By Value (USD Million) 2019–2031

Table 5      ABB Ltd Company Overview

Table 6      ABB Ltd Financial Overview

Table 7      Siemens Energy AG Company Overview

Table 8      Siemens Energy AG Financial Overview

Table 9      General Electric Company: Company Overview

Table 10    General Electric Company Financial Overview

Table 11    Schneider Electric SE Company Overview

Table 12    Schneider Electric SE Financial Overview

Table 13    Mitsubishi Electric Corporation Company Overview

Table 14    Mitsubishi Electric Corporation Financial Overview

Table 15    Hitachi Energy Ltd Company Overview

Table 16    Hitachi Energy Ltd Financial Overview

Table 17    NR Electric Co., Ltd Company Overview

Table 18    NR Electric Co., Ltd Financial Overview

Table 19    Toshiba Energy Systems & Solutions Corporation Company Overview

Table 20    Toshiba Energy Systems & Solutions Corporation Financial Overview

Table 21    Sungrow Power Supply Co., Ltd Company Overview

Table 22    Sungrow Power Supply Co., Ltd Financial Overview

Table 23    AESC Group Ltd Company Overview

Table 24    AESC Group Ltd Financial Overview