Status : Published Published On : Sep, 2021 Report Code : VRSME9052 Industry : Semiconductor & Electronics Available Format : Page : 161

Global Solid State Transformer Market – Analysis and Forecast (2021-2027)

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 anticipated to grow from USD 141.5 million in 2020 to USD 438.91 million by 2027, growing at a CAGR of 15.9% during the forecast period 2021-2027. 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.

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

Factors such as the growing integration of renewable energy in the power generation mix united with increasing investment in smart grid machinery are projected to drive the market during the forecast period. Also, the technical benefits of solid-state transformers over conventional transformers are also likely to drive the market. For instance, in December 2020, GridWise Alliance in the United States launched its inclusive Policy Framework for Grid Investments in Economic Retrieval, which precisely outlines the need for USD 50 billion in federal spending for grid transformation. Some such grid innovation plans are likely to upsurge the demands of the solid-state transformers in smart grids during 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, the 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 emission 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 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.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle
Solid State Transformer Market