Solid State Transformer Market Expected to Reach US$ 430.2 Million by 2028

Jun 09, 2023

The solid state transformer (SST), also known as a smart transformer, is a advanced electrical energy device that allows for bi-directional power flow. It has the ability to compensate for voltage sags and harmonic distortion, connect asynchronous networks, and interface between direct current (DC) and alternating current (AC) ports. Additionally, SSTs can isolate disturbances from the power source and load, eliminating the need for mechanical actuators or tap changers. Due to these advantages, SSTs are extensively used in various applications such as traction/locomotives, electric ships, and power grids worldwide.

As of 2022, the global solid state transformer market size stood at US$ 187.9 million. According to IMARC Group, the market is expected to reach US$ 430.2 million by 2028, with a compound annual growth rate (CAGR) of 14.3% during the forecast period of 2023-2028.

The increasing adoption of electric vehicles in several countries, driven by growing environmental awareness, is a major factor propelling the growth of the solid state transformer market. Additionally, the expanding energy sector and the widespread use of SSTs in smart grids for various services such as reactive power compensation, energy quality improvement, and power factor correction are driving market growth.

Solid state transformers have also emerged as superior alternatives to conventional converters in many countries, leading to an increased demand. Furthermore, the integration of distributed power sources into the distribution grid using SSTs, along with the rising popularity of renewable energy sources such as wind and solar power, is positively influencing the market. Technological advancements and extensive research and development activities by key players in the industry are expected to further boost the solid state transformer market in the coming years.

The solid-state transformer (SST) market is experiencing significant growth and offering lucrative opportunities. The increasing focus on renewable energy integration, smart grid deployment, and the electrification of transportation are driving the demand for SSTs. These transformers play a critical role in efficient power management, grid stability, and bidirectional power flow, enabling the integration of renewable energy sources and the optimal operation of smart grids. The need for resilient and high-quality power supply, combined with advancements in power electronics technologies, further drives the adoption of SSTs. This dynamic market provides ample scope for innovation, product development, and market expansion, particularly in the utility, renewable energy, and transportation sectors. With continuous advancements and investments, the SST market is poised for substantial growth in the foreseeable future.

The market is segmented based on product, component, voltage level, application, end-user, and region. The product segment includes distribution solid state transformers, power solid state transformers, and traction solid state transformers. The component segment comprises converters, high-frequency transformers, switches, and others. Based on voltage level, the market is categorized into high voltage (HV), medium voltage (MV), and low voltage (LV). The application segment includes alternative power generation, electric vehicle charging stations, power distribution, traction locomotives, and others. The end-user segment covers energy, transportation, and others. The market is further segmented into various regions, including North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Key players in the solid state transformer market include ABB Ltd., Alstom SA, Eaton Corporation PLC, Electric Research and Manufacturing Cooperative Inc. (ERMCO), General Electric Company, Hitachi Ltd., Kirloskar Electric Company Ltd., Mitsubishi Electric Corporation, Schneider Electric SE, Siemens AG, Synergy Transformers, and Vollspark.

In summary, the solid state transformer market is expected to witness significant growth in the coming years. The increasing adoption of electric vehicles, advancements in renewable energy integration, and advancements in power electronics technologies are driving the market. With ample opportunities for innovation and market expansion, the solid state transformer market is poised for substantial growth.