Solid State Transformer (SST) Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.38 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Solid State Transformer (SST) Market Analysis
The potential market size of the solid-state transformer was estimated at USD 4.97 million in 2021. It is expected to reach USD 7.12 million by 2027, at a CAGR of 5.38% during the forecast period (2022-2027). In 2020 and Q1 2021, the solid-state transformer market in the United States and Canada was impacted by the COVID-19 pandemic. During the pandemic, several transmission and renewable projects were delayed, causing a decrease in the demand for transformers. For instance, in 2020, Greek industrial group Mytilineos' turnover from its renewables and storage development decreased by 40% due to contracting and construction delays caused by the pandemic. Increasing integration of renewable energy in the power generation mix and increasing investment in smart grid technologies are expected to drive the market during the forecast period. The technical advantages of solid-state transformers over conventional transformers are likely to drive the market. However, performance constraints, such as high cost and reliability, are expected to restrain the market's growth during the forecast period.
- In recent years, the smart grid investments remained focused on hardware, such as digital substations and smart meters. The smart grid application segment is expected to dominate the solid-state transformer market during the forecast period.
- Reduced prices due to mass production, investments in R&D by manufacturers, and technological advancements are expected to create immense opportunities for the solid-state transformer market in the coming years.
- Asia-Pacific is expected to be the largest and fastest-growing market during the forecast period, with most of the demand coming from countries like China, India, and Japan.
Solid State Transformer (SST) Market Trends
This section covers the major market trends shaping the Solid-State Transformer Market according to our research experts:
Smart Grid Application is Expected to Dominate the Market
- A smart grid is an electricity network/grid enabling a two-way flow of electricity and data. The concept of the smart grid accelerated in the last two decades. It has now become an essential part of the digital transformation of the electricity sector. Due to their modular construction flexibility, enabling bi-directional power flow, and deployment in AC and DC grids, solid-state transformers are preferred more than conventional transformers in smart grids.
- The three-stage solid-state transformers are typically designed for smart grid applications in which they have bi-directional power flow to transfer power from low voltage to high voltage.
- Recently, the modernization of the grid to accommodate power flows, serve reliability needs, and meet future projected usage led to the incorporation of electronic intelligence capabilities for power control purposes and operations monitoring, which is driving the demand for smart grid technologies such as solid-state transformers.
- For instance, in December 2020, GridWise Alliance in the United States launched its comprehensive Policy Framework for Grid Investments in Economic Recovery, which outlines the need for USD 50 billion in federal spending for grid modernization. Several such grid modernization plans are expected to increase the demand for solid-state transformers in smart grids during the forecast period.
- Major companies and countries are becoming more involved in the technological advancement and development of new and more efficient solid-state transformers used for grid applications. For instance, in March 2021, Hitachi ABB Power Grids and Nanyang Technological University, under the Singapore government's flagship Energy Grid 2.0 initiative to shape the next-generation grid system, collaborated to work together on the advancement of solid-state transformer (SST) technology.
- Therefore, based on the factors mentioned above, the smart grid application segment is expected to dominate the solid-state transformer market during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to be the largest and fastest-growing market due to the increasing investment in smart grid technology and the increasing demand for electricity, leading to increased investment in power infrastructure across the region.
- China is the world's largest market for power transmission and distribution (T&D). It is projected to become a significant consumer of smart grid technology, supported by its policy to reduce carbon emissions and commitment to green development. <In 2021, the total electricity generation from the various sources in the Chinese power sector was 8.11 trillion kilowatt-hours (KWh). Energy sources contributing to the country's energy generation include coal, natural gas, the nuclear, wind, hydro, biofuels, and solar energy. Since China has the largest industrial sector, the country's energy demand has been rising continuously owing to rapidly growing industrial demands.
- With the growing investment in distribution networks, companies are now focusing on smart grids, which is likely to drive the demand for SST in China during the forecast period.
- As of February 2021, India's total thermal installed capacity stood at 233.17 GW. The installed capacity of renewable, hydro, and nuclear energies totaled 91.15 GW, 46.20 GW, and 6.78 GW, respectively. The government plans to double the share of installed electricity generation capacity of renewable energy to 40% by 2030. India also raised the solar power generation capacity target by five-fold, to 114 GW, by 2022. The government is preparing a 'rent a roof' policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022. The peak power demand in the country stood at 170.83 GW in FY 2020.
- Furthermore, the Government of India has set a target to install 227 GW of renewable energy capacity by the end 0f 2022. As of June 2019, the Government launched USD 5 billion of transmission-line tenders. The investment in the low and medium voltage transmission lines is likely to provide opportunity for SST deployment during the forecast period.
- Therefore, based on the factors mentioned above, Asia-Pacific is expected to be the largest and fastest-growing market during the forecast period.
Solid State Transformer (SST) Industry Overview
The solid-state transformer market is consolidated with very few companies and research institutes operating in the market, including Delta Electronics Inc. and Hitachi Energy Ltd.
Solid State Transformer (SST) Market Leaders
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Hitachi Energy Ltd
*Disclaimer: Major Players sorted in no particular order
Solid State Transformer (SST) Market News
- In March 2021, Hitachi ABB Power Grids and Nanyang Technological University, Singapore (NTU Singapore), a leading research-intensive university, agreed to collaborate on advancing the solid-state transformer (SST) technology. The project is led by the Energy Research Institute and supported by the National Research Foundation, Singapore (NRF). It is part of the Singapore government's flagship Energy Grid 2.0 initiative to shape the next-generation grid system and transform how energy is managed by consolidating multiple energy sources into a single intelligent network that is more efficient, sustainable, and resilient.
Solid State Transformer (SST) Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition and Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Potential Market Size and Demand Forecast for Solid-state Transformers, in USD million, till 2027
- 4.3 Recent Trends and Developments
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4.4 Market Dynamics
- 4.4.1 Drivers
- 4.4.2 Restraints
- 4.5 Supply Chain Analysis
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4.6 Industry Attractiveness - Porter's Five Forces Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitutes Products and Services
- 4.6.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Application - (Qualitative Analysis Only)
- 5.1.1 Smart Gird
- 5.1.2 Traction
- 5.1.3 Other Applications
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5.2 Geography
- 5.2.1 North America
- 5.2.2 Europe
- 5.2.3 Asia-Pacific
- 5.2.4 Rest of the World
6. COMPETITIVE LANDSCAPE
- 6.1 List of Major Research Institutions and Companies Involved in the Solid-state Transformer (SST) Market
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Solid State Transformer (SST) Industry Segmentation
The scope of the solid-state transformer market report includes:
| Application - (Qualitative Analysis Only) | Smart Gird |
| Traction | |
| Other Applications | |
| Geography | North America |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
Solid State Transformer (SST) Market Research FAQs
What is the current Solid-State Transformer Market size?
The Solid-State Transformer Market is projected to register a CAGR of greater than 5.38% during the forecast period (2024-2029)
Who are the key players in Solid-State Transformer Market?
Hitachi Energy Ltd are the major companies operating in the Solid-State Transformer Market.
Which is the fastest growing region in Solid-State Transformer Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Solid-State Transformer Market?
In 2024, the Asia Pacific accounts for the largest market share in Solid-State Transformer Market.
What years does this Solid-State Transformer Market cover?
The report covers the Solid-State Transformer Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Solid-State Transformer Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
SST Industry Report
Statistics for the 2024 SST market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. SST analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
