Solid-State Transformer Market Size

Solid State Transformer (SST) Market Analysis

The potential market size of the solid-state transformer was estimated at USD 4.97 million in 2021. It is expected to reach USD 7.12 million by 2027, at a CAGR of 5.38% during the forecast period (2022-2027). In 2020 and Q1 2021, the solid-state transformer market in the United States and Canada was impacted by the COVID-19 pandemic. During the pandemic, several transmission and renewable projects were delayed, causing a decrease in the demand for transformers. For instance, in 2020, Greek industrial group Mytilineos' turnover from its renewables and storage development decreased by 40% due to contracting and construction delays caused by the pandemic. Increasing integration of renewable energy in the power generation mix and increasing investment in smart grid technologies are expected to drive the market during the forecast period. The technical advantages of solid-state transformers over conventional transformers are likely to drive the market. However, performance constraints, such as high cost and reliability, are expected to restrain the market's growth during the forecast period.

• In recent years, the smart grid investments remained focused on hardware, such as digital substations and smart meters. The smart grid application segment is expected to dominate the solid-state transformer market during the forecast period.
• Reduced prices due to mass production, investments in R&D by manufacturers, and technological advancements are expected to create immense opportunities for the solid-state transformer market in the coming years.
• Asia-Pacific is expected to be the largest and fastest-growing market during the forecast period, with most of the demand coming from countries like China, India, and Japan.