Many forces drive our society to improve the power grid infrastructure, such as a rise in demand for continuous and sustainable electricity, efficient power transmission and distribution, and an increase in investment in smart grids. To meet this requirement for improving power grid infrastructure, manufacturers of regular power transformers aim their products or develop their products to fulfill the needs of a rapidly growing smart grid infrastructure. This momentum is being supported by the tremendous growth of interactive digital communications, stricter government rules, reliability and efficiency regulations, the introduction of smart meters, and a greater reliance on secondary power supplies.
The global solid-state transformer market is expected to value $207.3 million in 2025 and is projected to reach $467.0 million in 2031, following a CAGR of 14.34% during the forecast period 2026-2031. The growth in the global solid-state transformer market is expected to be driven by an increase in investment toward the building and construction of power transmission and distribution networks, renewable power generation, and EV charging station infrastructure across the globe.
Read Report Overview: Solid-State Transformer Market
Market Drivers and Challenges in the Global Solid-State Transformer Market
The rapid pace of renewable power integration into grids, the EV industry, and the electrification of railways routes are expected to drive the growth of the solid-state transformer market in the coming years. Additionally, reducing reliance on conventional coal and oil-based electricity is expected to drive the growth of the renewable energy industry in the future. In fact, countries such as Germany, India, the U.S., and Canada and regions such as the U.K. and China have already started to generate electricity from solar and wind in the past few years. Solid-state transformers connect these various energy sources to power grids and improve the efficiency of power transmission systems.
Global Solid-State Transformer Market (by Application)
Solid-state transformers are expected to find broad use or are expected to be largely adopted in various applications, including renewable power integration, smart grid, electric vehicle charging stations, traction locomotives, aviation, ships, and others. It is expected that rapid growth of the renewable energy and electric vehicle sector will benefit the smart power transfer devices such as solid-state transformers owing to their benefits such as small size and weight ratio, high efficiency, reliability, and others.
Recent Developments in the Global Solid-State Transformer Market
- In January 2022, Eaton Corporation acquired Royal Power Solutions (EV component producer) for $600 million. Under the agreement between the Department of Energy (DOE) and Eaton Corporation, Eaton would develop and demonstrate electric vehicle charging infrastructure (EVCI). To support this charging infrastructure, Eaton would develop a solid-state transformer. This acquisition strengthened the position of eMobility company in the EV sector.
- In March 2021, Hitachi Energy (formerly Hitachi ABB Power Grids) collaborated with Nanyang Technological University (NTU) Singapore. This collaboration aimed at advancing developments in solid-state transformer (SST) technology. This project is supported by the National Research Foundation, Singapore (NRF). This would enhance the product portfolio of the company and its presence in the solid-state transformer market.
- In December 2019, ERMCO, Inc partnered with SP Energy Networks (a U.K. electricity network operator). Through this partnership, ERMCO would provide smart transformer solutions to LV Engine project. This project would monitor or demonstrate how smart transformers can efficiently manage energy, and then they would deliver smarter grids with lower carbon emissions.
- In December 2021, Eaton Corporation signed an agreement with the Department of Energy (DOE). This agreement or award was aimed at developing low-cost fast-charging infrastructure, solid-state transformers, and modular chargers in a three-year timeframe (2022-2025). This would strengthen the position of the company in the solid-state transformer market globally.
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Analyst View
According to Rakhi Tanwar, Principal Analyst, BIS Research, “The solid-state transformer market is expected to provide a great replacement to the conventional transformers used for bidirectional power transfer, isolation, and high-frequency applications. Through R&D and adoption of the solid-state transformer products in the future, the power transformer losses can be mitigated along with an increase in reliable and continuous electricity supply for end users."
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.
The top segment players leading the market include key power, distribution, and traction transformer manufacturers in the market and the ones engaged in the research and development of solid-state transformers across the globe.
