Solid State Transformers Market Size, Share & Trends Analysis Report By Product, By Component (Converters, High-frequency Transformers, Switches), By Application, By End-use, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global Solid State (Smart) Transformers (SST) market size was valued at USD 100.1 million in 2016. The smart transformer market is presumed to gain traction over the forecast period as these transformers are expected to be commercialized by 2018. The gradual shift from traditional transformers and rising inclination towards implementation of SST are presumed to propel the industry growth. Furthermore, the growing advancements in smart grid solutions are expected to foster the adoption of SSTs over the forecast period.

The other factors that are anticipated to drive the industry growth are growing railway infrastructure in developing regions and implementation of renewable energy sources such as wind and solar energy. The industry is poised to grow at a significant pace, owing to the advantages provided by SSTs. Benefits such as bidirectional power flow, efficient power transmission, and AC to DC conversion are expected to further propel the demand for SST.

Currently, the SST industry is in its nascent stage; however, it has huge growth potential in power grids and distribution networks. Furthermore, growing investments in distribution and power transmission infrastructure across various regions such as North America, Europe, and Asia Pacific are expected to lead to the growth of the industry over the next eight years.

The large-scale adoption of SiC and GaN-based semiconductors with high current and voltage ratings is expected to positively influence the commercialization of SSTs. These semiconductors are the core components of an SST. Currently, the manufacturing costs of SiC and GaN semiconductors are high. A reduction in their prices, owing to their increasing usage, is expected to lead to a decrease in costs of SSTs.

Product Insights

The power solid state transformer segment dominated the market in 2016 and was valued at USD 49.5 million. These SSTs are cost-effective and hence, are expected to witness higher adoption in developing regions such as Asia Pacific and Latin America. Features such as bidirectional supply are expected to enhance the power distribution efficiency of these transformers, which is anticipated to further drive their adoption.

The traction SST is estimated to register a CAGR of 24.4% from 2017 to 2025 and is the fastest-growing product segment. The development of railway infrastructure in developing regions is expected to stimulate the demand for traction SSTs. Furthermore, features such as compact design and lightweight are presumed to drive their adoption over the forecast period.

Component Insights

Converter generated the highest revenue in 2016 and was valued at USD 48.6 million. Converters form the core components and are used for manufacturing SSTs. Moreover, the applications of the transformers can be increased using different configurations of converters. Furthermore, the use of different configurations helps improve the power supply efficiency and increase the operating life of the SSTs.

High-frequency transformer is anticipated to be the fastest-growing segment, registering a CAGR of 24.2% from 2017 to 2025. The implementation of high-frequency components of various capacities facilitates the designing of SSTs with different configurations, based on the output power supply. Furthermore, these components enable a reduction in size, which is expected to be instrumental in decreasing the cost of an SST.

Application Insights

Power distribution generated the highest revenue in 2016 and was valued at USD 41.5 million. The use of SSTs for power distribution is driven by their benefits, such as power distribution efficiency, over conventional transformers. Moreover, technological proliferation in the smart grid technology is expected to surge the use of SSTs for power distribution applications.

Traction locomotive is expected to be the fastest-growing application segment, growing at a CAGR of 26.0% over the forecast period. The establishment of transport infrastructure in developing economies, such as Asia Pacific, is presumed to drive the adoption of SSTs in the region. Moreover, the evolving railway infrastructure in regions such as Europe is expected to foster the industry growth.

End-use Insights

Energy generated the highest revenue in 2016 and was valued at USD 47.9 million. The advancements in renewable energy generation are anticipated to positively influence the demand for SSTs. The transformers are instrumental in reducing the costs involved in electricity generation and this is further expected to propel the industry growth over the forecast period.

Transportation is estimated to be the fastest-growing end-use segment, registering a CAGR of 25.1% over the next eight years. The use of SSTs in electric transport infrastructure improves energy distribution. For instance, the use of SSTs in electric vehicle charging infrastructure enables a reduction in electricity consumption charges, as SSTs supply power based on requirements, rather than maintaining a constant power supply.

Regional Insights

Europe generated the highest revenue in 2016 and is anticipated to be the fastest-growing regional market, registering a CAGR of 23.8% over the next eight years. The presence of key companies such as Siemens AG and Alstom, that is presumed to propel the adoption of SSTs in the European region. Moreover, the government investments in smart grid are expected to further drive the industry growth in the region.

North America is expected to witness higher market growth, owing to the presence of key industry players such as ABB Ltd. and General Electric, which are expected to serve the local market. Developing countries in Asia Pacific including China and Japan, are expected to witness significant growth, owing to the presence of local manufacturers of SST components such as converters, switches, and fuses. This is anticipated to enable the key players to outsource manufacturing activities to the region.

Competitive Insights

The key players in the industry include ABB Ltd., General Electric, Alstom, Mitsubishi Electric Corporation, Siemens AG, Schneider Electric SE, Cooper Power Systems, Varentec, Inc., Amantys Limited, and GridBridge, among others. The industry players are investing in research and development activities to improve its reliability and efficiency.

The industry comprises various global players that serve multiple industries such as power and transportation among others. The players have higher market shares and multiregional presence. Barriers to entry are high in the industry, which can be attributed to the need for higher initial investments. Competition among the players is high as they are largely focused on retaining industry shares. Moreover, in the recent years, the key players have made investments for developing the SST technology to gain first-mover advantage.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global solid state (smart) transformer market based on product, technology, application, end-use, and region.

• Product Scope (Revenue, USD Million; 2014 - 2025)

  • Distribution Solid State Transformer

  • Power Solid State Transformer

  • Traction Solid State Transformer

• Component Scope (Revenue, USD Million; 2014 - 2025)

  • Converters

  • High-frequency Transformers

  • Switches

  • Others

• Application Scope (Revenue, USD Million; 2014 - 2025)

  • Alternative Power Generation

  • Electric Vehicle Charging Stations

  • Power Distribution

  • Traction Locomotives

  • Others

• End-use Scope (Revenue, USD Million; 2014 - 2025)

  • Energy

  • Transportation

  • Others

• Regional Scope (Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Brazil

    • Mexico

  • MEA