Solid-State Transformer Market: Current Analysis and Forecast (2021-2027)
A modular solid state transformer consists of several high-frequency transformers and is similar to a Multi-level converter. Solid state transformer provides a wide range of benefits such as voltage sag compensation, outage compensation, and instantaneous voltage regulation, metering, fault isolation, or advanced distribution automation environmental benefits. The reliability of such benefits drives growth for the solid state transformer market. The application potential of SSTs is wide, ranging from locomotives, light rail, EV fast chargers, PV inverters, and battery energy storage systems. Some of these are emerging domains and are expected to offer lucrative opportunities for market growth during the forecast period. Moreover, factors such as increasing integration of renewable energy in power generation mix combined with increasing investment in smart grid technologies is expected to drive the market during the forecast period. However, some of the restraints in the market include higher initial costs of implementations, inadequate SST testing infrastructure which are some factors impeding the growth of this market all over the world.
Based on product, the market is segmented into Power Solid State Transformer, Distribution Solid State Transformer, and Traction Solid State Transformer. The Power Solid State Transformer segment grabbed XX% market share of the Global Solid-State Transformer Market and gathered revenue of USD XX billion in 2020. The segment is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027 owing to factors such as rapid adoption rate, economical costs, and rise in product awareness in the power industry. However, traction solid-state transformers are projected to grow at the fastest CAGR, owing to its potential use in locomotives and electric vehicles.
Based on application, the market is classified into Renewable Power Generation, Electric Vehicle Charging Stations, Power Grids, Traction Locomotives, and Others. The Renewable Power Generation segment generated revenue of USD XX billion in 2020. The segment is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027 attributed to the expected early adoption of these transformers for power generation from wind, solar, and tidal energy.
For a better understanding of the market adoption of Solid-State Transformer, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Asia Pacific constitutes the largest market for the industry and generated revenue of USD XX billion in 2020 on account of planned investments in energy infrastructure and technology by various APAC countries.
Some of the major players operating in the market include Alstom SA, Eaton Corporation, Schneider Electric, Siemens AG, Hitachi ABB etc. Several M&A's along with partnerships have been undertaken by these players to boost their presence in different regions.