| Status : Published | Published On : Jan, 2024 | Report Code : VRSME9052 | Industry : Semiconductor & Electronics | Available Format :
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Page : 161 |
Global Solid State Transformer Market – Analysis and Forecast (2025-2030)
Industry Insight by Component (Converters and Switches), by Product (Distribution Transformer, Traction Transformer, Power Transformer), by Application (Alternative Power Generation, Electric Vehicle Charging Stations, Power Distribution, Traction Locomotives, Others), by End Users (Energy, Transportation, Others), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)
Industry Overview
The Global Solid State Transformer Market is poised for substantial growth, with an estimated value of USD 0.15 billion in 2023 projected to reach USD 0.48 billion by 2030. This growth is expected to be driven by a robust compound annual growth rate (CAGR) of 12% during the forecast period of 2025-2030.
A solid-state transformer achieves the core task of a transformer along with proposing numerous benefits. It is an assembly of high power-driven semiconductor components that offer conservative high-frequency transformers and control circuitry which is used to deliver a high level of flexible control to power distribution systems. Solid-state transformers are progressively being unified into smart grid systems and are most frequently used in both converter and inverter circuits. Major characteristics driving the expansion of the solid-state transformer industry are the increasing importance of substitute energy production across the world and huge investments in the smart grid and energy systems. Similarly, the growth of the electric vehicle market is expected to drive the growth of the global solid-state transformer market.
The COVID-19 has a massive impact on the power electronics industry. Numerous manufacturers observed shipment interruptions for five or more weeks from China and other countries.
The effect of COVID-19 associated loss factors differs on the nature of the business, product portfolio, company size, and its supply chain dependence. However, several governments across the world are helping businesses to improve the loss, which can discharge much of the stress businesses might suffer post-pandemic. As the pandemic has reached its end in several regions, industries are anticipated to raise their production with improved planning, which can drive the demand for energy. This is expected to produce new opportunities for the solid-state transformer market in the post-COVID-19 period.
Market Segmentation
Insight by Component Outlook
Based on the component outlook, the global solid-state transformer market is spread into converters and switches. Converters produced the highest revenue in 2019. Converters form the core components and are used for emerging SSTs. Additionally, the applications of the transformers can be enlarged using different formations of converters. Furthermore, the use of different formations helps recover the power supply efficiency and increases the functioning life of the SSTs.
Insight by Product Outlook
Based on the product, the global solid-state transformer market is characterized into distribution transformer, traction transformer, power transformer. Traction solid-state transformers are likely to grow at the highest CAGR during the forecast period. This is due to the significant shift from conventional transformers to innovative solid-state transformers and increasing traction locomotives in emerging economies. The growth can be credited to the acceptance of the transformers for power generation using non-conventional energy sources such as wind, solar and tidal energy. Wind energy is a key sponsor to the power produced through alternate sources of energy, while, APAC region is a leader in the domain. The growing adoption of these alternate energy sources is anticipated to further growth in the solid-state transformers market.
Insight by Application Outlook
Based on the application, the global solid-state transformer market is separated into alternative power generation, electric vehicle charging stations, power distribution, traction locomotives, others. The power distribution segment holds the major market share. The reasons that can be credited to the use of SSTs for power distribution are determined by their benefits, such as power distribution efficiency, over conventional transformers. Furthermore, technological production in the smart grid technology is likely to surge the use of SSTs for power distribution applications.
Insight by End-User Outlook
Based on the end-user, the global Solid State Transformer Market is characterized Energy, Transportation, Others. The Energy segment is likely to grow at the highest CAGR during the forecast period.
The improvements in renewable energy generation are expected to positively influence the demand for solid-state transformers. The transformers are involved in dropping the costs involved in electricity generation and this is further likely to propel the industry growth over the forecast period.
Global Solid State Transformer Market Report Coverage
|
Report Metric |
Details |
|
Historical Period |
2018 - 2023 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025 - 2030 |
|
Market Size in 2023 |
U.S.D. 0.15 Billion |
|
Revenue Forecast in 2030 |
U.S.D. 0.48 Billion |
|
Growth Rate |
12% |
|
Segments Covered in the Report |
By Component, By Product, and By Application, By End-User. |
|
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
|
Regions Covered in the Report |
North America, Europe, Asia-Pacific, Middle East, and Rest of the World |
Industry Dynamics
Industry Trends
The concept of the smart grid enhanced in the last two decades and has now become an important part of the digital transformation of the electricity segment. Major corporations and countries are becoming more tangled in the technological improvement and development of novel and more effective solid-state transformers to be used for grid applications. For instance, Hitachi ABB Power Grids and Nanyang Technological University, underneath Singapore Government's flagship Energy Grid 2.0 initiative intended at determining the next-generation grid system, cooperated to work organized for the advanced developments in solid-state transformer (SST) expertise.
Growth Drivers
The market is expected to experience significant growth during the forecast period due to factors such as the increasing integration of renewable energy in the power generation mix and the rising investment in smart grid technology. Solid-state transformers offer technical advantages over conventional transformers, further contributing to the market's growth. An example of this trend is the launch of GridWise Alliance's comprehensive Policy Framework for Grid Investments in Economic Recovery in December 2020, which calls for a federal spending of USD 50 billion to transform the grid. These grid innovation initiatives are expected to boost the demand for solid-state transformers in smart grids throughout the forecast period.
Challenges
Some of the major challenges hindering the growth of the global solid-state transformers market are high growth and maintenance costs and lack of magnetic separation and other operational challenges. Strong vendor rivalry results in declining profit margin per vendor, which in turn, hampers the growth of the solid-state transformers market.
Opportunities
Due to increasing investment in electric vehicles, solid-state transformers get profitable opportunities over the forecast period. The Asia Pacific is severely capitalizing on the development of electronic vehicles. This is generating lucrative opportunities for MV/LV solid-state transformers in the region. These vehicles are already obtaining a substantial share in the global automotive sector and are estimated to replace combustion engine vehicles in the forecast period.
Geographic Overview
Asia-Pacific is expected to be the largest and fastest-growing market, due to the increasing investment in smart grid technology and the growing demand for electricity leading to rising in investment in power infrastructure all over the region.
China is the world’s leading market for power transmission and distribution (T&D) and is also composed to become a significant consumer of smart grid technology, maintained by its policy to lessen carbon emissions and obligation to green development. In 2020, the public utility State Grid of China capitalized around USD 65 billion, with ultra-high voltage (UHV) plans accounting for 40% of the total investment. However, investment in China’s transmission was reduced by nearly USD 10 billion over the 2019 level, as there was a progressive focus on the upgrading of rural power grids and the construction of distribution networks.
The development of the solid-state transformers market in North America is credited with rising in the acceptance of renewable power generation and EV charging stations and power grids in this region. Also, the factors such as improved power distribution efficiency, continuous technological progressions, and government investments in smart grids are endorsing the growth of the U.S. solid-state transformers market.
Competitive Insight
The Solid State Transformer Market is consolidated with very few companies and research institutes operating in the market.
In December 2019, STMicroelectronics associated with Schneider Electric on carbon impartiality and co-development of energy-efficient solutions. According to this partnership, STMicroelectronics delivers various energy-efficient components to Schneider Electric for use in diverse speed drives, building management systems, power monitoring systems, and uninterruptible power supply (UPS) systems.
Some of the key players operating in the pressure sensor market: ABB, Eaton Corporation plc., General Electric, Mitsubishi Electric Corporation, Schneider Electric SE, Siemens AG, Kirloskar Electric Company, Synergy Transformers, SPX Transformers Solutions Inc., ERMCO, Alstom SA, and among others.
The Solid State Transformer Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- By Component
- Converters
- Switches
- By Product
- Distribution Transformer
- Traction Transformer
- Power Transformer
- By Application
- Alternative Power Generation
- Electric Vehicle Charging Stations
- Power Distribution
- Traction Locomotives
- Others
- By End-User
- Energy
- Transportation
- Others
Region Covered in the Report
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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Source: VynZ Research
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Source: VynZ Research
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Solid State Transformer Market