Download Sample, Automotive Sector and Renewable Sector Boost the Growth of Solid-State Transformer
The demand for solid-state transformers (SST) is expected to increase due to rising vehicle production. SSTs are used in the automotive industry to enable improved energy management, EV charging, and drivetrain performance. Furthermore, global vehicle production is increasing because of economic growth and higher disposable incomes, leading to greater demand for personal and commercial vehicles. According to the data of the International Organization of Motor Vehicle Manufacturers (OICA), in 2023 global vehicle production was recorded at 95.11 million units, which registers a growth compared to 2022. Increasing vehicle production increases the demand for original equipment manufacturer brake systems. Also, the rising rate of renewable power generation can be considered a driving factor for the solid-state transformer market. SSTs are popular in renewable power due to their high efficiency, compact design, and ability to manage voltage variations. Advanced control capabilities boost the integration of solar and wind, improving grid stability and energy distribution.
Additionally, as per the data of the Indian Energy Agency by 2024, wind and solar PV exceed hydropower in electricity generation. In 2025, renewables top coal as the largest source. Wind and solar PV are expected to surpass nuclear power in 2025 and 2026 respectively. It is expected that renewable energy will hold over 42% of global electricity in 2028, with wind and solar PV doubling to 25% thus making renewable power generation a lucrative market.
Additionally, as per the data of the Indian Energy Agency by 2024, wind and solar PV exceed hydropower in electricity generation. In 2025, renewables top coal as the largest source. Wind and solar PV are expected to surpass nuclear power in 2025 and 2026 respectively. It is expected that renewable energy will hold over 42% of global electricity in 2028, with wind and solar PV doubling to 25% thus making renewable power generation a lucrative market.
Railway Systems Due to Its Expansion Fuels Solid State Transformer Market
Solid State Transformers play a key role in railway systems to provide efficiency, reliability, and flexibility in power management. The new SST technology utilizes power electronics that can handle any change in voltage and frequency, thus allowing the integration of intermittent renewable energy sources and advanced train control systems. Thus, railway network expansion boosts solid-state transformer market growth, increasing demand for railway freight, improving connectivity, drives economic development. As per the data of the European Rail Supply Industry Association, the global rail market is expected to experience an annual growth of 3% by 2027 and is expected to reach US$ 233 billion between 2025 and 2027.
Furthermore, as per the data of the International Energy Association, the global demand for transport is growing fast. Given present trends, passenger and freight activity will more than double by 2050. Rail transportation is highly energy efficient, carrying 8% of the world's passengers and 7% of global freight with only 2% of total energy demand. The major manufacturers are improving efficiency and thermal performance, along with more effective communication capabilities for smart grid integration, to make this innovation stand apart—from not only being operationally more efficient but in contributing to the shift toward greener rail transport.
Furthermore, as per the data of the International Energy Association, the global demand for transport is growing fast. Given present trends, passenger and freight activity will more than double by 2050. Rail transportation is highly energy efficient, carrying 8% of the world's passengers and 7% of global freight with only 2% of total energy demand. The major manufacturers are improving efficiency and thermal performance, along with more effective communication capabilities for smart grid integration, to make this innovation stand apart—from not only being operationally more efficient but in contributing to the shift toward greener rail transport.
Recent Trends in the Solid-State Transformer Industry
- SSTs are being developed for fast charging stations.
- SSTs support the development of smart grids by enabling better communication and control.
- Advances in semiconductor technology like SiC and GaN, are leading to smaller, lighter, and more efficient SSTs
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Navigating Compatibility and Efficiency Challenges in Solid State Transformers
The problem of compatibility in (Solid State Transformer) SSTs is essentially the problem of making the advanced power transformer operate satisfactorily with existing systems and parts in which it will be installed. SST uses modern technology such as power electronics to better convert electricity than conventional transformers. Since they operate differently, though, problems occur when one tries to connect them to older equipment or infrastructure. SST will pose a challenge to ensure that they are able to handle multiple power levels, connect seamlessly with various types of energy sources, and maintain reliable performance in real-world conditions. This aspect of compatibility will need to be overcome before SSTs can find their place within the power grids or any other applications.
Furthermore, the challenge in maximizing the conversion efficiency for these transformers the electricity in its forms gets converted with little energy loss in an SST. This helps in saving energy and reducing costs. The efficiency of SSTs is, tricky in achieving very high levels because the heat generated and the quality of the components used may lead to energy waste within the conversion process. Such an outcome may prohibit even the otherwise positive effects of SSTs regarding support for renewable energy sources or enhanced grid reliability. This is to surmount the challenge and eventually make the SSTs a practicable and efficacious option in modern power systems.
Furthermore, the challenge in maximizing the conversion efficiency for these transformers the electricity in its forms gets converted with little energy loss in an SST. This helps in saving energy and reducing costs. The efficiency of SSTs is, tricky in achieving very high levels because the heat generated and the quality of the components used may lead to energy waste within the conversion process. Such an outcome may prohibit even the otherwise positive effects of SSTs regarding support for renewable energy sources or enhanced grid reliability. This is to surmount the challenge and eventually make the SSTs a practicable and efficacious option in modern power systems.
Major Acquisition and Collaborations Drives the Solid-State Transformer Market
In October 2021, GE-Prolec Transformers, Inc., a subsidiary of a 50/50 joint venture between GE and Xignux, a Mexico-based private company, announced that it had completed the acquisition of SPX Corporation's SPX Transformer Solutions business. The contract purchase price was US$ 645 million, subject to a net working capital adjustment and other typical adjustments. The acquisition of SPX Transformer Solutions, which was known for its Waukesha® transformers, services, and components, allowed Prolec GE to comprehensively serve the growing Americas market with a broader portfolio of innovative and sustainable solutions for the delivery of electrical energy.
In March 2021, Hitachi ABB Power Grids, a global technology leader, and Nanyang Technological University, Singapore (NTU Singapore), a leading research-intensive university, worked together to advance developments in Solid State Transformer (SST) technology. The project was led by the Energy Research Institute @ NTU (ERI@N) and was supported by the National Research Foundation, Singapore (NRF). The project was part of the Singapore Government’s flagship Energy Grid 2.0 initiative aimed at shaping the next-generation grid system and transforming how energy was managed by consolidating multiple energy sources into a single intelligent network that was more efficient, sustainable, and resilient.
In March 2021, Hitachi ABB Power Grids, a global technology leader, and Nanyang Technological University, Singapore (NTU Singapore), a leading research-intensive university, worked together to advance developments in Solid State Transformer (SST) technology. The project was led by the Energy Research Institute @ NTU (ERI@N) and was supported by the National Research Foundation, Singapore (NRF). The project was part of the Singapore Government’s flagship Energy Grid 2.0 initiative aimed at shaping the next-generation grid system and transforming how energy was managed by consolidating multiple energy sources into a single intelligent network that was more efficient, sustainable, and resilient.
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How Asia Pacific, Europe and North America Shows Promising Opportunity for Solid State Transformer
Asia Pacific can be considered a promising market because of the rising production of commercial vehicles and cars. Due to this rising production, various countries in Asia Pacific have been named as automotive hubs driven by both local consumption and export opportunities. Also, as per the data of the International Organization of Motor Vehicle Manufacturers, four out of five top global vehicle manufacturers belong to Asia Pacific countries. As per the data, a total of 49.2 million units were produced in Asia Pacific out of 94 million global production. The top four countries include China, which produced 30 million units, followed by Japan, which produced a total of 8.9 million units. India held the fourth rank and produced a total of 5.8 billion units, and South Korea produced 4.2 billion units annually, thus making Asia Pacific a promising market. Further, Europe also presents lucrative opportunities for the SST market due to the rising trend towards the automobile industry.
As per the data of Association des Constructeurs Européens d’Automobiles the European Union experienced a significant increase in new car sales, rising by nearly 14% to a total of 10.5 million units. And in 2022, the EU had a US$ 98.7 billion surplus in new car trade, similar to the previous year. China emerged as the largest source of car imports for the EU, with volumes and values increasing by nearly 40% and over 37%, respectively, which eventually made the European market a promising market. Also, the rail network in North America, especially in the United States, can be considered a lucrative market, as according to the data, the U.S. Department of Transportation has a huge rail network consisting of approximately 9,982 miles. The U.S. freight rail network is spread over 140,000 route miles, being the largest, safest, and most cost-efficient in the world. Seven Class I railroads and numerous regional and local lines make up the nearly US$ 80 billion industry, which results in a lucrative market for solid-state transformers.
As per the data of Association des Constructeurs Européens d’Automobiles the European Union experienced a significant increase in new car sales, rising by nearly 14% to a total of 10.5 million units. And in 2022, the EU had a US$ 98.7 billion surplus in new car trade, similar to the previous year. China emerged as the largest source of car imports for the EU, with volumes and values increasing by nearly 40% and over 37%, respectively, which eventually made the European market a promising market. Also, the rail network in North America, especially in the United States, can be considered a lucrative market, as according to the data, the U.S. Department of Transportation has a huge rail network consisting of approximately 9,982 miles. The U.S. freight rail network is spread over 140,000 route miles, being the largest, safest, and most cost-efficient in the world. Seven Class I railroads and numerous regional and local lines make up the nearly US$ 80 billion industry, which results in a lucrative market for solid-state transformers.
The report provides a detailed overview of the solid-state transformer market insights in regions including North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa. The country-specific assessment for the solid-state transformer market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the solid-state transformer market. These Y-o-Y projections on regional and country-level markets brighten the political, economic,c and business environment outlook, which are anticipated to have a substantial impact on the growth of the solid-state transformer market. Some key countries and regions included in the solid-state transformer market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Poland, Belgium, Sweden, Austria, Norway, Denmark, Finland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Kenya, Rest of MEA |
Solid State Transformer Market Research Report Covers In-depth Analysis on:
- Solid state transformer market detailed segments and segment-wise market breakdown
- Solid state transformer market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in solid state transformer industry)
- Current, historical, and forthcoming 10 years market valuation in terms of solid-state transformer market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Solid state transformer market demand analysis
- Solid state transformer market pricing analysis over the forecast period (by key segment and by region)
- Solid state transformer market regional insights witha region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in solid state transformer market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in solid state transformer market
- Solid state transformer market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on solid state transformer market forecast by countries
- Mergers and acquisitions in the solid state transformer market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
Which industries are driving the demand for solid-state transformers?
Industries such as renewable energy, smart grids, electric vehicle infrastructure, and data centers are driving the demand for solid-state transformers due to their need for advanced and efficient power distribution technologies.
What challenges are manufacturers facing in the solid-state transformer market?
Manufacturers face challenges like high production costs, complex design requirements, and limited industry awareness, which can hinder the adoption and commercialization of solid-state transformers on a large scale.
How do advancements in renewable energy impact the solid-state transformer market?
Advancements in renewable energy boost the adoption of solid-state transformers, as these technologies enable seamless integration of variable energy sources, ensuring stable and efficient power distribution across smart grid systems.
