Saudi Arabia HVDC Transmission Market Research Report: Forecast (2026-2032)

Saudi Arabia HVDC Transmission Market Report Key Takeaways:

• The Saudi Arabia HVDC Transmission Market size was valued at around USD 115.45 million in 2025 and is projected to reach USD 170.4 million by 2032. The estimated CAGR from 2026 to 2032 is around 5.72%, indicating strong growth.
• By application, the Bulk Power Transmission represented 62% of the Saudi Arabia HVDC Transmission Market size in 2025.
• By technology, the Voltage Source Converter (VSC) represented 68% of the Saudi Arabia HVDC Transmission Market size in 2025.
• Riyadh leads the Saudi Arabia HVDC Transmission Market with a substantial 48% market share in 2025
• The leading HVDC transmission companies are ABB Ltd., GE Vernova, Hitachi Energy Ltd., Mitsubishi Electric Corporation, Schneider Electric SE, NR Electric Co., Ltd., Sungrow Power Supply Co., Ltd., AESC Group Ltd., Hyundai Engineering & Construction (Hyundai E&C), Larsen & Toubro Limited (L&T), XJ Electric Corporation, Toshiba Energy Systems & Solutions Corporation, and others.

Market Insights & Analysis: Saudi Arabia HVDC Transmission Market (2026- 2032):

The Saudi Arabia HVDC Transmission Market size was valued at around USD 115.45 million in 2025 and is projected to reach USD 170.4 million by 2032. Along with this, the market is estimated to grow at a CAGR of around 5.72% during the forecast period, i.e., 2026-32. The Saudi Arabia HVDC transmission market is poised for steady, long-term expansion as the Kingdom accelerates power system transformation under Vision 2030. HVDC technology is increasingly central to enabling efficient transmission of large volumes of electricity over long distances with reduced losses, a necessity given the rapid growth of renewable energy and the strategic development of giga-projects. For instance, the Yanbu-NIC HVDC Light® project, where Hitachi Energy is deploying three HVDC transmission links with a total capacity of up to 9 GW, including world-class ±525 kV systems that support renewable power evacuation to industrial and urban hubs.

The Kingdom’s power infrastructure modernization is reinforced by broader smart grid initiatives. In December 2025, the 13th Saudi Smart Grid Conference (SASG 2025) opened in Riyadh under the patronage of the Ministry of Energy, featuring global discussions on smart grid systems, digital technologies, and energy storage solutions, critical elements for integrating HVDC links with real-time monitoring and automated control. Saudi grid authorities have also advanced distribution network automation to approximately 40 percent by the end of 2025, with continued deployment of advanced grid control centers and energy storage projects that support HVDC interoperability and renewable stability.

Overall, the convergence of HVDC and smart grid technologies will underpin grid resilience, renewable integration, and long-distance transmission between remote generation zones and urban load centers. As Saudi Arabia expands renewable capacity, already nearing 64 GW of projects under development and invests in digital grid platforms and storage, HVDC systems will remain essential for efficient power transfer, driving sustained market growth through the end of the decade.

Saudi Arabia HVDC Transmission Market Recent Developments:

• January 2025: Saudi Electricity Company (SEC) issued tenders for two major +500 kV HVDC overhead transmission links (each 508 km & 466 km, 3000 MW capacity) to connect Eastern and Central regions, signifying expanded long-distance HVDC infrastructure.
• December 2025: Egypt–Saudi Arabia electricity interconnection project started trial operations early 2025, involving subsea cables and converter substations for 1,500 MW in phase one of the USD 1.6 billion HVDC link, accelerating cross-border power trade and grid integration.

Saudi Arabia HVDC Transmission Market Scope:

Saudi Arabia HVDC Transmission Market Drivers:

Vision 2030 Grid Modernization Driving Market Demand

Saudi Arabia’s Vision 2030 framework explicitly drives a comprehensive modernization and expansion of the national power grid, which is foundational for the deployment of high-voltage direct current (HVDC) transmission technologies. The state-owned Saudi Electricity Company (SEC) plans to increase the length of its transmission network by about 60 percent from roughly 99,800 km to 160,000 km by 2030, including the installation of nine new high-voltage HVDC lines linking regions and neighboring countries. This expansion addresses rising demand, renewable integration, and resilience.

The government’s Electricity Sector Integration program, instituted via Royal Decree, guides regulatory and structural reforms that enhance system coordination and renewable readiness, directly supporting grid modernization aligned with Vision 2030 goals. Concurrently, Saudi Arabia is investing in a major power system upgrade valued at up to USD 58.7 billion between 2025 and 2030, allocating around USD 36 billion for transmission backbone networks and grid modernization to ensure reliability and accommodate new generation capacity.

Vision 2030 also targets a renewable electricity share of roughly 50 percent by 2030, necessitating robust transmission infrastructure to connect remote solar and wind projects to demand centers. Looking beyond 2030, planned expansion of grid digitalization, multi-terminal HVDC links for regional interconnections, and integration of green hydrogen hubs will further sustain HVDC demand.

Moreover, Vision 2030’s grid modernization initiatives, grounded in government planning, significant public investment, and renewable targets, are a key structural driver that will expand the HVDC transmission market, enabling efficient long-distance power flows and integration of new generation assets.

Saudi Arabia HVDC Transmission Market Trends:

Integration of HVDC with Smart Grid Technologies

A major trend in the Saudi Arabia HVDC transmission market is the integration of HVDC systems with smart grid technologies to improve reliability, flexibility, and renewable energy integration. For example, the Saudi Ministry of Energy reported the installation of over 11 million smart meters nationwide by December 2024, enabling real-time monitoring of electricity consumption and supporting the management of dynamic HVDC power flows.

Further illustrating this trend, the government plans to automate 40 percent of the distribution network by the end of 2025, including the commissioning of nine advanced grid control centers by 2026. These upgrades enhance system control, fault detection, and operational stability, which are essential for high-capacity HVDC transmission, particularly over long distances and between remote renewable generation zones.

The integration also supports Saudi Arabia’s growing renewable energy portfolio, projected to reach 64 GW by 2025, with additional battery storage systems for balancing intermittent energy generation. By combining HVDC technology with smart grids, the system ensures optimized power flow, reduced transmission losses, and enhanced grid flexibility, enabling efficient long-distance electricity transfer.

The integration of HVDC with smart grid technologies represents a strong trend that will drive market growth, facilitating reliable transmission of large-scale renewable energy and supporting the Kingdom’s Vision 2030 grid modernization goals.

Saudi Arabia HVDC Transmission Market Challenges:

High Capital Intensive Process

One of the foremost challenges facing the Saudi Arabia HVDC transmission industry is the high capital investment required to plan, build, and commission ultra-high-voltage transmission corridors. HVDC projects involve specialized converter stations, advanced control systems, and extensive transmission line infrastructure, all of which require significant upfront capital. For example, major HVDC contracts awarded by the Saudi Electricity Company (SEC) illustrate the scale of investment. Hyundai Engineering & Construction secured a USD 725 million contract for a ±500 kV HVDC transmission line spanning approximately 1,089 km, reflecting the high cost of constructing long-distance, high-capacity power links.

Similarly, Larsen & Toubro (L&T) was awarded a USD 403.8 million contract for another segment of a ±500 kV HVDC project to strengthen national transmission capacity. Additionally, Saudi Services for Electro-Mechanical Works (SSEM) received USD 526.6 million for another section of the same HVDC corridor, underscoring the substantial financing required per segment of transmission infrastructure.

These figures highlight the high initial investment barrier that such systems present compared to traditional alternating current (AC) transmission lines. The specialized nature of HVDC converter stations, power electronics, and long transmission spans increases capital costs significantly, making financing and budget allocation more challenging for utilities and government bodies. While Saudi Arabia is securing syndicated financing (e.g., a USD 13 billion utility financing arrangement to support infrastructure projects, including grid expansion), high upfront costs remain a constraint that can affect project prioritization and timelines.

Overall, these elevated capital requirements pose a challenge for rapid HVDC deployment, requiring strong financial planning and multi-year funding commitments to ensure project viability and long-term grid development.

Saudi Arabia HVDC Transmission Market (2026-32) Segmentation Analysis:

The Saudi Arabia HVDC Transmission Market report and forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Application:

• Bulk Power Transmission
• Interconnecting Grids
• In-feed Urban Areas

Bulk power transmission holds the largest share of the Saudi Arabia HVDC transmission market, around 62%, primarily due to the Kingdom’s need to move large volumes of electricity across long distances efficiently. Saudi Arabia’s renewable energy resources, particularly solar and wind, are concentrated in geographically remote regions, while electricity demand is centered in urban, industrial, and coastal zones. HVDC-based bulk transmission enables the transfer of multi-gigawatt power loads with significantly lower line losses compared to conventional AC systems, making it the preferred solution for long-distance, high-capacity corridors.

Additionally, bulk power HVDC links support grid stability by allowing controlled power flow, which is critical as intermittent renewable energy penetration increases. Large infrastructure developments, including giga-projects, industrial clusters, and inter-regional grid strengthening initiatives, further amplify the demand for bulk transmission solutions. As Saudi Arabia continues to scale utility-scale renewable projects and reinforce national grid reliability, bulk power transmission remains the dominant application segment within the HVDC market.

Based on Technology:

• Line Commutated Converter (LCC)
• Voltage Source Converter (VSC)
• Capacitor Commutated Converter (CCC)

Voltage Source Converter (VSC) technology dominates the Saudi Arabia HVDC transmission market with an estimated 68% market share. Market dominance is driven by its superior flexibility and compatibility with modern power systems. Unlike conventional LCC technology, VSC systems allow independent control of active and reactive power, making them highly suitable for integrating renewable energy sources such as solar and wind. VSC-based HVDC systems can operate with weak or passive grids, which is especially important for powering new urban developments, industrial zones, and isolated renewable hubs. Their compact converter station footprint also makes them ideal for space-constrained locations and underground or subsea transmission requirements.

Furthermore, VSC technology enables black-start capability and rapid voltage control, enhancing overall grid resilience and operational reliability. As Saudi Arabia advances grid digitalization and smart grid deployment, the technical advantages of VSC systems align closely with the Kingdom’s future-ready transmission objectives, reinforcing their leadership in the HVDC technology segment.

Saudi Arabia HVDC Transmission Market (2026-32): Regional Projection

The Saudi Arabia HVDC transmission market is dominated by Riyadh, accounting for around 48% market share. Riyadh is the political and economic capital of the Kingdom and serves as a major hub for industrial, commercial, and urban electricity demand. The city’s rapid urbanization, high electricity consumption, and strategic location for connecting renewable energy projects in remote regions make it a focal point for HVDC infrastructure development. Large-scale projects, such as the Yanbu–NIC HVDC Light® transmission system, are designed to transmit power from Western renewable zones to Riyadh and surrounding areas, ensuring a stable energy supply for industrial zones and metropolitan demands.

The city also hosts several advanced grid control centers and smart grid pilot programs, enabling integration of HVDC systems with automated monitoring and renewable energy sources. This combination of high demand, strategic location, and grid modernization initiatives reinforces Riyadh’s dominance in the Saudi HVDC market.

Gain a Competitive Edge with Our Saudi Arabia HVDC Transmission Market Report

• Saudi Arabia HVDC Transmission Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Saudi Arabia HVDC Transmission Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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