Solid State Transformers Market Segmented By product such as Power Solid State Transformer, Distribution Solid State Transformer and Traction Solid State Transformer used in Power Distribution, Alternative Power Generation, Traction Locomotives and Electric Vehicle Charging Stations
Industry: Semiconductor Electronics
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP32413
Solid state transformers can be used for an AC-to AC converter in an electrical system. It is a type of electric power converter, which has replaced conventional transformer used for AC electric power distribution. Solid state transformer is more complex as compared to conventional transformer that operating at utility frequency.
The solid state transformer is more efficient, smaller, and high operating performance than a conventional transformer due to its operations at high frequency. 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. It provides a switch combination redundancy for balancing different range voltage levels.
The increasing alternative energy and rising investments in smart grids and energy systems are creating potential growth opportunities for the solid state transformer market. The global solid state transformers market is estimated to experience an increase over the forecast period due to multiple factors such as increasing demand for alternative power generation, and growing transportation infrastructure in developing regions.
Furthermore, solid state transformers can be used for electric transport infrastructure to improve energy distribution. For instance, the use of solid state transformers in electric vehicle charging infrastructure.
It enables a reduction in electricity consumption charges, as solid state transformers supply power based on demands, instead of maintaining a constant power supply. Such factors are fueling the growth for the solid state transformers market during the forecast period.
Sales of solid state transformers to increase due to rising demand for growing advancements in smart grid applications such as power distribution efficiency, and ranging from alternatives power generations to traction locomotives for power grids and electricals industries.
The need for handling high load capacity as well as efficient bi-directional power flow in power grid sectors is driving the growth of the solid state transformers market. Solid state transformers also provide various applications such as locomotive and other traction systems, smart (power) grids, and offshore energy generation systems such as tidal, wind, or any other source.
Solid state transformers are also used for power grids and distribution networks to installation of renewable energy generation capacities, energy storage capacity additions, and investments into power transmission and distribution infrastructure. Such factors surge in the demands for solid state transformers market growth during the forecast period.
There is an increase in the use of distributed energy sources and renewable energy. The adoption of traditional transformers has increased the complexity of the electrical power grids. The need for reducing this complexity, adoption of newer technologies such as modular solid state transformer, among others are growing to ensure better control and more reliable operation of the grid.
Advantages and benefits such as business productivity to offer bidirectional power flow, adoption of SiC and GaN-based semiconductors, and efficient power transmission, are the primary factors resulting in an increasing number of solid state transformers manufacturer and solution providers offering new and innovative products for business continuity.
The integration of technologies such as IoT, Cloud, artificial intelligence, and others is expected to drive the solid state transformers market for improved performance.
Some of the major challenges hampering the growth of the global solid state transformers market are high development and maintenance costs and lack of magnetic isolation and other operational challenges. Intense vendor competition results in declining profit margin per vendor, which in turn, hinders the growth of the solid state transformers market.
Based on product, the solid state transformers market has been segmented as
Based on application, the solid state transformers market has been segmented as
Based on the region, the solid state transformers market has been segmented as
Key players such as General Electric Company
are actively involved in offering solid state transformers for different applications.
The solid state transformers manufacturer and solution provider’s strategy has been consistent with its more conservative approach to product innovation, which enables customers to integrate newer technologies in an evolutionary manner. This strategy also helps the solid state transformer manufacturers to enhance their customer base and product offerings.
In September 2020, Hitachi ABB Power Grids launched open and scalable ecosystem for digitalization of transformers. The ecosystem is designed to drive data-driven intelligence and decision making in the operations and maintenance of transformers and power grids.
The solid state transformer manufacturer and solution provider’s major strategy lies in partnering with other companies from the semiconductor and electronics sector to upgrade their basic solid state transformer products, and gain revenue and traction in the market with the advanced features of the product.
In December 2019, STMicroelectronics partnered with Schneider Electric on carbon neutrality and co-development of energy-efficient solutions. According to this partnership, STMicroelectronics supplies various energy-efficient component to Schneider Electric for use in different speed drives, building management systems, power monitoring systems, and uninterruptible power supply (UPS) systems.
Smart grid and traction transformers offer new growth opportunities for the solid state transformers market during the forecast period. The smart transformers can be utilized for providing additional flexibility to control power distribution networks, thus enabling the smooth conversion of DC to AC and AC to DC, as per requirement.
The growing adoption of renewable power resources such as solar energy & wind energy, and traction locomotives, among others, are major factors boosting the adoption of the solid state transformer across the globe.
Continuous developments and implementation of new solutions such as smart transformers and smart grid technology for various applications such as alternative power generation, electric vehicle charging stations, among others to create potential opportunities for market growth.
The U.S. is estimated to be the dominant market in 2021 in terms of revenue sales for the solid state transformers market. Product launches and product innovation is expected to remain as the key strategy of key players in this market to increase their sales growth.
The growth of the solid state transformers market in North America is attributed to the rise in the adoption of renewable power generation and EV charging stations and power grids in this region. Also, the factors such as enhanced power distribution efficiency, continuous technological advancements, and government investments in smart grids are promoting the growth of the U.S. solid state transformers market.
East Asian countries like China and Japan are creating potential growth opportunities for the growth of the solid state transformers market owing to the presence of local manufacturers of solid state transformers components such as switches, converters, and fuses.
The power grid and wind energy sectors are growing rapidly in the East Asia region owing to a high number of Tier II & Tier III manufacturers and solution providers, which in-turn has to increase the demand for solid state transformers in the region drastically.
Nowadays, demand for solid state transformers is increasing significantly for various applications such as electric vehicle charging stations, power grids, traction locomotives, and alternative power generation, among others.
Growing demand for power solid state transformers, traction solid state transformers, and distribution solid state transformers are expected to have the highest impact on the China solid state transformers market over the forecast period.
Amid the COVID-19 lockdown, there has been an impact on the solid state transformers market and has also disrupted production and supplies the solid state transformers products in the global market.
Due to a considerable decrease in the production from many parent industries such as energy, and power grid among others, is one of the major problems in the solid state transformer market is that of turbulence in global supply chains.
Governments around the world were compelled to reduce business activity in response to minimize the threat of coronavirus. Owing to the spreading of the COVID-19 virus in all the regions are creating supply-side production and demand-side challenges for the solid state transformers.
However, it is expected that when the COVID-19 pandemic situation gets controlled during Q2-Q3, 2021, the market returns to annual growth in 2021 up to 14.0% to 15.0% due to increasing investments in smart grids and energy systems.
NOTE - All statements of fact, opinion, or analysis expressed in reports are those of the respective analysts. They do not necessarily reflect formal positions or views of the company.
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