Solid State Transformer (SST) Market, by Product (Distribution Solid State, Power Solid State, and Traction Solid State), Application (Electric Vehicle Charging Stations, Power Grid, Traction Locomotives, Alternative Power Generation), Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2020–2027

According to a new study conducted by Research Dive, the global solid state transformer (SST) market revenue will surpass $1,246.4 million by 2027, at a 26.0% CAGR, increasing from $176.0 million in 2019. North America will experience a notable growth and is projected to generate a revenue of $284.6 million till 2027. The global market was commanded by Europe region and it registered for $64.9 million in 2019.

Solid State Transformer Market Synopsis

Growing trend towards the adoption of electric vehicles, along with the favorable government initiatives to support the electric vehicle industry across the globe is expected to accelerate the growth of the solid state transformer market.

On the other hand, the high expenses associated with the production of solid state transformers is a growth-restricting factor for the market.

According to the regional analysis of the market, the North America solid state transformer market is anticipated to observe lucrative growth by garnering a revenue of $284.7 million during the review period.

Solid state transformer (SST) Market Analysis:

Solid state transformers are also called power electronic transformers as well as electronic power transformers, and these are specially utilized to replace traditional transformers in AC electric power distribution channels. It is a type of small, electric, weightless power distribution and transmission system.

COVID-19 impact on the Global Solid State Transformer (SST) Market

In the previous years, the global market has experienced a noteworthy growth and is estimated to reach up to $1,329.7 million by 2027. This growth is owing to increasing demand for electric charge vehicles and increasing investments on renewable sources for energy generation. However, unavailability of raw materials for manufacturing of electrical equipment due to complete lockdown in China, which is major manufacturing hub is a major restraint for the growth of the market. Also, transportation of finished products and equipment has been effected drastically, which is expected to impact the solid state transformer market in a negative way during the pandemic. Factoring the effect of theCOVID-19 outbreak, the global market is predicted to account for $1,246.4 million by 2027.

However, the significant players are implementing several business growth tactics to reinforce their presence in the global industry. For instance, in recent times, Schneider Electric, a leading company in transformers market, agreed to build next generation smart grid networks systems in Egypt to ensure reliable, safe and efficient electricity supply for customers and industries. As per this agreement, the company made a strategic partnership with Egyptian Electricity Holding Company to establish four control centers to optimize and monitor the country’s electrical network systems. This factor will fuel the market growth in the pandemic time.

Increasing adoption of most advanced systems in the renewable energy generation systems is a major driving factor for the global solid state transformer (SST) market

Solid State Transformer (SST) Market Drivers: Growing trend for incorporation of solid state transformers in the electricity distribution and transmission systems for efficient optimization of power systems is expected to create ample growth opportunities for the global market in the coming years. This expected growth is attributed to increasing adoption of smart transformers based on SST technologies in the electric vehicles and renewable energy generation stations for electricity flow controllability and dc connectivity. In addition, SST systems have major benefits such as higher load resonant capacity, bi-directional electricity flow, most effective in power management and many other advantages. These factors are increasing adoption of solid state transformers in power generation systems, which will propel the market growth in the forecast years.

To know more about solid state transformer (SST) market drivers, get in touch with our analysts here.

https://www.researchdive.com/350/Analyst-Review/solid-state-transformer-sst-market

Huge initial investment is a major restraint for the growth of the solid state transformer (SST) market

High expenditure is required for the production of solid state transformers, which is predicted to hinder the market growth in the forecast years. Also, huge installation as well as high maintenance costs are necessary for the SST systems, which is further estimated to hamper the market growth.

Rapid growth in the electric vehicle industry is expected to have enormous investment opportunities in the solid state transformer (SST) market

Increasing trend towards electric vehicle adoption and favorable government initiatives to support the electric vehicle industry due to increasing consumer preference is expected to create ample growth prospects for the global market in the coming years. Moreover, scientist and researchers are conducting several web conferences to create awareness about the benefits of solid state transformers in the energy systems, which is projected to impel the market growth in the coming time. For example, in May 2020, in India, IEEE Hyderabad section conducted free live webinar called “Solid State Transformer (SST) and their applications in offshore energy systems”. In this, the speaker discussed about offshore energy applications of SST systems in the renewable energy generation sources such as subsea, wind and other energy sources.

To know more about Solid state transformer (SST) market opportunities, get in touch with our analysts here.

https://www.researchdive.com/350/Analyst-Review/solid-state-transformer-sst-market

Power product segment accounted for highest market size in the previous years

Source: Research Dive Analysis

The global market classification has been done based on product type into power solid state, traction solid state and distribution solid state transformers. Among these, power solid state segment generated for a significant market size in the past decades; it was valued at $100.6 million in 2019 and is predicted to retain its steady growth throughout the forecast years. Extensive utilization of power solid state transformers for multiple transformer applications such as voltage transformation, voltage regulation, distribution systems monitoring, and many other applications is a reason for the growth of this segment. This factor will impel the market growth during the estimated period.

Alternative power generation application segment held the global market share in 2019

Source: Research Dive Analysis

The global market segmentation is done based on application into electric vehicle charging stations, power grid, traction locomotives and alternative power generation. In these, alternative power generation segment has contributed major revenue share in 2019, which was over 56.0% and is expected to continue its command over the global market with a rate of 25.7% CAGR in the estimated time. Wide utilization of SST systems for alternative power generation application to avoid air pollution because of adverse effects on the environment by fossil fuels is a major factor for the growth of the segment.

North America is predicted to create have immense growth opportunities during the forecast time

North America region will witness to have noteworthy growth during the estimated time and is predicted to generate a revenue of $284.7 million till the end of 2027. This expected growth is majorly owing to rapid growth in renewable energy generation capabilities into advanced power grid systems along with the growing investments on the advancements of power distribution systems.

Europe region has dominated the global solid state transformer (SST) market share in the previous years, which was about 36.8% and is projected to continue its dominance over the global industry in the prediction time. Increasing power consumption in major European economies such as France, UK, Germany, and other countries are directly increasing demand for SST systems for efficient management of energy sources. This aspect is expected to drive the market size in the estimated period.

To explore more about Solid state transformer (SST) market, get in touch with our analysts here.

https://www.researchdive.com/350/Analyst-Review/solid-state-transformer-sst-market

Product launches and R&D investments are the common strategies followed by the key players

Source: Research Dive Analysis

The significant players in this market are Siemens, Schneider Electric, GRIDBRIDGE, ABB, Mitsubishi Electric Corporation, General Electric, MASCHINENFABRIK REINHAUSEN GMBH, Varentec, Inc. and Eaton among others. These market players are adopting several growth approaches, including partnerships & collaboration, R&D activities and new services launches to increase their presence into the local markets. These strategies are the most commonly followed by prominent participants to fortify their competitive edge.

Porter’s Five Forces Analysis for Solid state transformer (SST) Market:

• Bargaining Control of Suppliers: The SST market contains huge number of SMEs and large-scale suppliers and changing price of the systems is expected to be high. Thereby, the cost of solid state transformer systems & technologies is estimated to be high. The bargaining control of suppliers is HIGH.
• Bargaining Control of Consumer: The market has high number of consumers and buyers always concentrate on costs of different advanced power grid systems. Thus, the bargaining control of consumer is HIGH.
• Threat of New Applicants: The market contains high number of participants, and huge investments are required for manufacturing of SST systems. These aspects are providing LOW threat of new market players in the industry.
• Threat of Substitute: The solid state transformer market has high number of substitute technologies & equipment’s and thus there is HIGH threat of alternative systems.
• Rivalry among market players: Solid state transformer (SST) market contains huge number of significant market players. These key players are concentrating on various tactics including new technology introduction and R&D activities to support to gain competitive edge in the overall industry. These factors are resulting HIGH rivalry among the leading market players.