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HV MMC Market

The market for HV MMC was estimated at $2.8 billion in 2025; it is anticipated to increase to $4.3 billion by 2030, with projections indicating growth to around $6.7 billion by 2035.

Report ID:DS2401015
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Power Generation
HV MMC
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Report Summary
Market Data
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Table of Contents

Global HV MMC Market Outlook

Revenue, 2025

$2.8B

Forecast, 2035

$6.7B

CAGR, 2026 - 2035

9.2%

The HV MMC industry revenue is expected to be around $2.8 billion in 2026 and expected to showcase growth with 9.2% CAGR between 2026 and 2035. Building on this outlook, HV MMC has become a strategic enabler of modern high-voltage power electronics, with utilities and developers relying on it to support HVDC transmission, grid stability, and renewable energy integration at scale. Transmission & distribution and power generation together account for about 73.2% of overall HV MMC demand, underscoring its central role in bulk power transfer, grid interconnections, and utility-scale projects. Policy-driven decarbonization, rising offshore wind integration, cross-border interconnectors, and the need for controllable voltage source converter platforms are accelerating adoption, while ongoing investments in grid modernization and power quality enhancement continue to reinforce the long-term relevance of HV MMC systems across both mature and emerging markets.

HV MMC, typically configured as a high-voltage modular multilevel converter, is defined by its highly modular submodule architecture, excellent scalability, low harmonic distortion, and high efficiency, which make it well suited for long-distance HVDC transmission, flexible AC transmission systems, and demanding industrial and utility applications. Key features such as redundancy, fault-tolerant operation, and fine-grained voltage control enable reliable integration of large renewable assets, including offshore wind farms and remote solar generation, into meshed AC grids. Major applications span point-to-point and multi-terminal HVDC links, grid interties between regions, dynamic reactive power compensation, and advanced power quality management in complex networks. Within the technology landscape, the half-bridge type dominates the HV MMC market, contributing approximately $1.74 billion in revenue in 2025 as the preferred topology for balancing cost, performance, and protection requirements in high-voltage installations. Recent trends, including digital control advancements, enhanced semiconductor devices, and the broader energy transition, are further driving demand for HV MMC solutions as core infrastructure for next-generation transmission and distribution networks.

HV MMC market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
HV MMC Market Outlook

Market Key Insights

  • The HV Mmc market is projected to grow from $2.8 billion in 2025 to $6.7 billion in 2035. This represents a CAGR of 9.2%, reflecting rising demand across Power Generation, Transmission & Distribution, and Transportation & Traction.

  • Siemens Energy, Hitachi Energy, and Mitsubishi Electric are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the HV Mmc market and are expected to observe the growth CAGR of 6.7% to 9.7% between 2025 and 2030.

  • Emerging markets including Brazil, South Africa and Indonesia are expected to observe highest growth with CAGR ranging between 8.8% to 11.5%.

  • Transition like Transition to Renewable Energy is expected to add $361 million to the HV Mmc market growth by 2030.

  • The HV Mmc market is set to add $3.9 billion between 2025 and 2035, with manufacturer targeting Transmission & Distribution & Transportation & Traction Application projected to gain a larger market share.

  • With

    increasing adoption of hvdc projects and growing renewable energy integration globally, and

    Advancements in Modular Converter Topologies Enhancing Efficiency and Reliability in Industrial Networks, HV Mmc market to expand 141% between 2025 and 2035.

hv mmc market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
HV MMC - Country Share Analysis

Opportunities in the HV MMC

Rapid expansion of offshore wind farms across the North Sea and Baltic Europe is also accelerating demand for HV MMC solutions in export HVDC transmission links and grid modernization projects. Developers are prioritizing compact, high-efficiency converters to reduce platform size and lifecycle costs, creating an untapped premium segment for digitally monitored systems. Half-Bridge HV MMC currently leads this space globally, growing from about $1.74 to $2.57 billion by 2030, while advanced Full-Bridge variants capture the highest 12.4% CAGR in complex marine grid topologies.

Growth Opportunities in Asia-Pacific and Europe

In Asia-Pacific, HV MMC adoption is primarily driven by large-scale Transmission & Distribution projects, where high voltage modular multilevel converter platforms enable HVDC transmission, long-distance power transmission, and renewable energy integration across rapidly expanding grids. The top opportunities center on ultra-high-voltage DC corridors, regional interconnection projects, and grid modernization programs that require flexible AC transmission systems and robust converter designs tailored to diverse climatic and regulatory conditions. Competitive intensity is high, with strong regional equipment manufacturers and engineering firms exerting price pressure and accelerating innovation cycles, compelling new entrants to differentiate through system efficiency, localized manufacturing, and lifecycle service capabilities. Key regional drivers include sustained electricity demand growth, large-scale solar and wind deployment, railway electrification in fast-growing metros, and policy support for smart grid infrastructure, making T&D-focused HV MMC portfolios with scalable, cost-optimized configurations and strong local partnerships the most attractive strategic investment path.
In Europe, HV MMC demand is most closely aligned with Power Generation-linked projects and advanced Transmission & Distribution applications, particularly for offshore wind power evacuation, cross-border interconnectors, and grid-supporting converter stations that stabilize systems with high renewable penetration. The top opportunities lie in premium, technology-intensive deployments such as multi-terminal HVDC transmission, hybrid AC/DC grid nodes, and repowering or upgrading of existing converter assets with next-generation control, protection, and grid-forming capabilities. Competitive dynamics are shaped by a concentrated group of high-end solution providers and specialized engineering firms competing on reliability, digital integration, and compliance with stringent European grid codes rather than on price alone. Core regional drivers include ambitious decarbonization targets, accelerated offshore wind build-out, reinforcement of interconnection capacity between countries, and heightened attention to grid resilience and cybersecurity, positioning advanced HV MMC solutions with strong digital monitoring, smart grid infrastructure integration, and long-term service contracts as the most compelling avenue for market expansion and capital allocation.

Market Dynamics and Supply Chain

01

Driver: Increasing Adoption of HVDC Projects and Growing Renewable Energy Integration Globally

The rising deployment of HVDC transmission projects is also a key driver for the HV MMC market. HV MMC provide efficient high-voltage direct current conversion, enabling long-distance electricity transmission with minimal losses and improved grid stability. These systems are also critical for connecting remote renewable energy sources such as offshore wind farms and large solar parks to main grids. Simultaneously, the growing integration of renewable energy systems is also fueling demand for flexible and reliable power converters that can also manage variable generation. HV MMC allow precise voltage and reactive power control, ensuring consistent power quality despite fluctuating inputs from renewables. Together, these factors drive investments in HV MMC technology, supporting both sustainable energy growth and the modernization of power transmission infrastructure globally.
Technological advancements in modular multi-level converter topologies are also another primary driver for HV MMC adoption. Modern modular designs reduce switching losses, enhance voltage stability, and improve fault-tolerance in high-voltage applications. Industrial power networks benefit from these innovations by achieving higher operational efficiency, better power quality, and reduced maintenance requirements. The ability to scale converter modules based on load demand also provides flexibility for industrial facilities, enabling reliable energy management across complex grids. These technological improvements make HV MMC increasingly attractive for industries seeking efficient, robust, and future-ready power conversion solutions.
02

Restraint: High Capital Costs and Complex Project Financing Limit Deployment of HV MMC Systems

A major restraint for the HV MMC market is the high upfront capital expenditure required for HVDC converter stations and associated infrastructure. The cost of modular multi‑level converter equipment, high‑voltage transformers, control systems, and engineering integration can be significantly higher than traditional HVAC solutions. For example, developers of long‑distance HVDC transmission projects may face financing challenges or delayed approvals due to tight budgets, which can reduce immediate demand for HV MMC technology. High project costs also affect revenue growth for suppliers, as utilities and industrial operators often defer investments or seek phased implementations, slowing overall market expansion and adoption.
03

Opportunity: Utility grid modernization for long-distance HVDC transmission in India and Industrial power quality and reliability solutions for data centers globally

In India, ambitious renewable integration targets and long-distance corridor build-outs are driving a new wave of HV MMC deployments for bulk HVDC transmission and inter-regional AC links. State utilities and transmission developers seek fault-resilient, black-start capable converters that stabilize weak grids and enable high solar and wind penetration across the national grid. This aligns strongly with Full-Bridge HV MMC, projected globally to rise from $0.70 to $1.26 billion by 2030, outpacing Half-Bridge units, particularly in north–south and green-energy-corridor projects requiring advanced fault-blocking capability.
Global hyperscale data centers and energy-intensive process industries are seeking HV MMC-based medium-voltage DC architectures to improve power quality, uptime, and energy efficiency. Operators increasingly value modular, serviceable converters that integrate seamlessly with on-site generation and battery storage, yet adoption remains nascent outside leading technology hubs. This creates a differentiated opportunity for Hybrid HV MMC, forecast globally to grow from $0.35 to $0.50 billion by 2030 at roughly 7.73% CAGR, particularly in campus-style industrial parks and mission-critical colocation facilities.
04

Challenge: Technical Skill Shortages and Integration Challenges Hinder HV MMC System Adoption

Another key market restraint is the shortage of specialized technical expertise required to design, commission, and maintain HV MMC converter stations. HV MMC technology involves complex control algorithms, high‑power semiconductor modules, and sophisticated protection schemes that demand skilled engineers and technicians. In regions with limited experience in HVDC and advanced converter technologies, this skills gap leads to longer project timelines, increased operational risks, and higher labor costs. For instance, some utilities delay HV MMC deployment due to concerns about workforce readiness, which impacts market demand and slows diffusion of this advanced power conversion technology into new transmission and industrial networks.

Supply Chain Landscape

1

Power Electronics Components

Mitsubishi Electricimperix
2

HV MMC Assembly

Siemens EnergyHitachi EnergyMitsubishi Electric
3

HVDC Substations

Siemens EnergyHitachi EnergyShandong Taikai High Voltage Switchgear Co. Ltd
4

Grid Applications

HVDC Transmission ProjectsRenewable Integration SystemsIndustrial Power Networks
HV MMC - Supply Chain

Use Cases of HV MMC in Power Generation & Transmission & Distribution

Power Generation : High-voltage modular multi-level converters (HV MMC) are widely used in power generation to facilitate the integration of renewable energy sources into the grid. Single-phase and three-phase HV MMC enable stable voltage and reactive power control, supporting both onshore and offshore wind farms, as well as solar power plants. Power generation operators benefit from the system’s ability to handle high voltages efficiently while minimizing harmonic distortions and losses. By providing precise control over power flow, HV MMC enhance grid reliability, optimize energy output, and allow operators to meet regulatory standards for voltage quality and system stability.
Transmission & Distribution : In transmission and distribution networks, HV MMC are primarily deployed in high-voltage direct current (HVDC) systems for long-distance power transfer and interconnection between regional grids. Three-level and multi-level HV MMC topologies are preferred due to their ability to reduce switching losses and maintain high efficiency across long transmission lines. Grid operators leverage HV MMC to enhance controllability, improve fault ride-through capability, and regulate power flow between distant substations. The technology allows for flexible load management, reduces bottlenecks, and supports reliable electricity delivery, even in regions with fluctuating demand or high integration of renewable energy sources.
Transportation & Traction : HV MMC technology is increasingly applied in transportation and traction systems, especially for high-speed rail networks and electrified metro systems. Multi-level converter topologies with modular architecture are commonly used to convert and regulate power for traction motors efficiently. Operators benefit from reduced energy losses, smoother acceleration, and improved regenerative braking, which feed excess energy back into the grid. By providing reliable and precise voltage control, HV MMC enhance operational efficiency and performance while reducing maintenance costs. The technology also supports the expansion of electrified transport networks while minimizing environmental impact through energy-efficient power management.

Recent Developments

The HV MMC market is advancing with increased integration of HVDC transmission projects and renewable energy integration systems, driven by demand for efficient long‑distance power transfer and grid flexibility. A key trend is the adoption of digitalization, AI‑driven analytics, and IoT monitoring, which enhances converter reliability, predictive maintenance, and real‑time control. Utilities and industrial power networks increasingly prioritize adaptive control algorithms and scalable modular designs to improve power quality, reduce losses, and support future smart grid deployments.

April 2025 : A consortium of Hitachi Energy India Ltd and Bharat Heavy Electricals Limited (BHEL) secured a major contract from Rajasthan Part I Power Transmission Ltd to design and deliver a ±800 kV, 6 GW, 950 km HVDC link to transmit renewable energy across India. This award involves HVDC converter terminals and related systems crucial to HV MMC‑based transmission infrastructure.
June 2025 : Hitachi Energy extended its service partnership with Eletrobras for the Rio Madeira HVDC system in Brazil, one of the world’s longest HVDC links. The extended agreement includes advanced digital monitoring and control support for the HVDC infrastructure, ensuring reliable operation of the MMC‑based system over its lifecycle.
June 2025 : Mitsubishi Electric signed a memorandum of understanding (MOU) with GE Vernova to enhance cooperation on power semiconductors for HVDC transmission systems, supporting the deployment of HV MMC and related HVDC technology by strengthening supply chain collaboration for key converter components.

Impact of Industry Transitions on the HV MMC Market

As a core segment of the Power Generation industry, the HV MMC market develops in line with broader industry shifts. Over recent years, transitions such as Transition to Renewable Energy and Implementation of AI and IoT have redefined priorities across the Power Generation sector, influencing how the HV MMC market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Transition to Renewable Energy

The accelerating transition to renewable energy is a decisive growth catalyst for the HV MMC market, with high-voltage modular multilevel converter solutions expected to add $361 million in incremental market expansion by 2030. By enabling stable, high-capacity HVDC transmission and advanced grid integration of large-scale solar and wind power, HV MMC technology mitigates intermittency, enhances power quality, and supports long-distance, low-loss energy transfer. Utilities and transmission system operators are prioritizing HV MMC-based renewable energy integration projects to modernize aging grids, accommodate rising distributed generation, and meet decarbonization targets. This positions HV MMC as a core strategic asset in next-generation smart grids, underpinning system reliability while unlocking attractive, long-term investment opportunities across global power infrastructure.
02

Implementation of AI and IoT

The integration of AI and IoT technologies is transforming the HV MMC market by significantly enhancing system intelligence and operational efficiency. AI-driven analytics enable advanced load management, fault detection, and optimized power distribution, allowing utilities and industrial networks to operate HV MMC systems with improved reliability and reduced downtime. Meanwhile, IoT devices provide real-time monitoring and remote control, facilitating predictive maintenance and faster response to anomalies. This transition benefits associated industries such as power generation, renewable integration, and high-voltage transmission, where enhanced accuracy and system dependability improve grid stability and energy efficiency. For example, offshore wind farms and industrial microgrids using AI-enabled HV MMC can achieve higher energy throughput while minimizing operational disruptions and maintenance costs.