Thursday, September 7, 2023

Solid State (Smart) Transformer Market Insights, Size, Share, In-Coming Trends, Top Key Players - Hitachi ABB, Siemens AG, General Electric Company

 The global solid-state transformer will be less impacted due to the COVID-19 pandemic and will continue to grow its revenue size at a CAGR of 16.9%. Solid-state transformers are an integral part of the energy grid, mainly due to the rapid penetration of renewable energy sources and efforts to strengthen the performance of the distribution network. In addition to performance enhancements, it helps in reducing greenhouse emissions over the long run and increases the security of the power grid. Moreover, all the key application areas of solid-state transformers, mainly the locomotive, electric mobility, and power distribution sectors are undergoing massive transformations due to global investments; thus, offering fresh opportunities for the solid-state transformer market. The global solid state transformer (SST) market size was valued at $141.5 million in 2020 and is projected to reach $468.0 million by 2028, growing at a CAGR of 16.9% from 2021 to 2028.


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Solid-state transformers work independently to regulate voltage fluctuations while maintaining contact with the power grid. Information related to voltage can be sent to the smart grid and corrective measures can be taken through remote administration. Optimized power supply is important for applications such as alternative energy generation such as via wind turbines and solar panels.

Major factors such as growing renewable energy generation, new smart grid installations, and electric mobility are projected to drive the global solid-state transformer market during the forecast period. Solid-state transformer technology is poised to grow at a remarkable pace, owing to its associated benefits over traditional transformers such as compact size, efficiency, AC to DC conversion, bidirectional power flow, and others.

In addition, the rise in demand for electric vehicles is anticipated to provide opportunities for companies operating in the solid-state transformer market. However, factors such as high cost associated with smart transformers and lack of awareness among potential end users are projected to hinder the solid state transformer market growth.

On the contrary, solid-state technology is likely to emerge as a mainstream transformer technology in the long run as research institutes and industry proponents like power companies strive to develop new designs of solid-state transformers that can cater to various end uses. For instance, in February 2021, major transformer makers Hitachi ABB and Nanyang Technological University in Singapore teamed up to improve solid-state transformer technology. The project is led by the Energy Research Institute and is supported by the National Research Foundation, Singapore (NRF). With this partnership, both Hitachi and NTU aim to launch commercial transformers based on solid-state technology.

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The global solid-state transformer market is segmented into product type, application, and region. Based on the product type, the market is segmented into distribution solid-state transformers, power solid-state transformers, and traction solid-state transformers. The power solid-state transformers segment accounted for the largest market share in 2020, owing to factors such as rapid adoption rate, economical costs, and a rise in product awareness in the power industry. The traction solid-state transformers are projected to grow at the fastest CAGR of 17.7%, owing to its potential use in locomotives and electric vehicles.

Applications of solid-state transformers include renewable power generation, electric vehicle charging stations, power distribution, traction locomotives, and others. The renewable power generation segment accounted for the largest market share in 2020. Renewable power generation from wind and solar panels requires smart transformers for better power management. However, the electric vehicle charging segment will grow at the fastest CAGR of 21.5% during the solid state transformer market forecast period. Furthermore, the rise in EV sales coupled with public and private investments in charging infrastructure is conducive to the adoption of smart transformers.

Region-wise, the solid state transformer market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Europe is accounted for the largest solid state transformer market share in 2020. This is attributed to the massive adoption of renewable energy such as wind and solar power plants in major European countries. These countries are also leading contributors to the global electric vehicle market. Asia-Pacific is anticipated to grow at the fastest CAGR of 18.6%. This fast growth rate can be attributed to the investments made by Asia-Pacific countries such as China, India, Japan, and Australia in the power industry.

Major players operating in the solid-state transformer industry include Alstom SA, Eaton Corporation, General Electric Company, Hitachi ABB, Power Systems & Controls Inc., Red Box Aviation, Schneider Electric, Siemens AG, Varentec Inc., and Vollspark.

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Key Findings Of The Study

• The solid state transformer market is projected to grow at a CAGR of nearly 16.9%, in terms of revenue, during the forecast period.
• Solid state transformer market opportunity is expected to be high through product development and product launches in the coming years.
• Electrification projects for meeting the present electricity demands, rise of electric mobility, adoption of renewable energy generation, and subsequent integration with the power grid are the major drivers.
• By region, Europe dominated the solid-state transformer market with a revenue share of over 37% in 2020.
• The qualitative data in the report aims on the solid-state transformer trends, dynamics, and developments in the solid-state transformer industry while the quantitative data provides information about the market share and size in terms of revenue. Solid state transformer market analysis is done by studying the various drivers, restraints, and opportunities

Impact Of Covid-19 On The Global Solid State Transformer Market

• Most of the industries have become non-operational during this pandemic event. The lockdown imposed in various countries hit the operations of various power distribution companies; thus, impacting their financial health. This led to a decline in the demand for transformers.
• Renewable energy generation is the largest application for solid-state transformer, which is also affected to a great extent during the pandemic. The pandemic negatively affected the demand for renewable energy generation. Complete or partial lockdown situation globally has led to supply chain disruption, leading to delays in project construction, having a direct impact on the commissioning of renewable electricity projects.
• In the global solar industry, more than 40% of the supply chain is reliant on supply from China and other Southeast Asian countries. China is the known source of this pandemic and the country is the most affected one in terms of material supply and material transport due to COVID-19. The above factors have impacted the growth of the global solid state transformer market.

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