A solid-state transformer (SST), sometimes called a smart transformer, is a modern type of transformer that includes a variety of control circuits, semiconductor components, and another high-frequency transformer. As opposed to normal transformers, it improves power quality by limiting voltage variations. It decreases grid inefficiencies, enhances supply dependability, and safeguards the load from power failures. It can convert voltage from Alternate Current (AC) to Direct Current (DC), DC to DC, and DC to AC, at various voltage levels. It currently serves a wide range of applications, including electric vehicle charging stations, renewable power generation, and power grids.
The global solid state transformer market is anticipated to reach US$1.48 billion, advancing at a CAGR of 18.4% from 2021 to 2031 (forecast period).
Electric vehicles are being manufactured at a breakneck pace in the electric mobility segment, necessitating the expansion of charging infrastructure in the coming future. Moreover, since EV charging is reliant on direct current (DC) sources, the necessity for active power control has risen, pushing the demand for smart transformers. Furthermore, the rising demand for electric vehicle charging infrastructure has a substantial impact on the valuation of the solid state transformer market.
Electric vehicles are becoming increasingly popular around the world. Several governments are investing enormous effort into creating them since they are viewed as viable methods to environmental concerns. Automobile manufacturers are continually investing in electric vehicle research and development. Such factors are propelling the growth of the solid state transformer market. Furthermore, rising investment in the automotive sector is projected to have an impact on the overall growth of the solid state transformer market.
Solid State Transformer Market to Recover Amid COVID-19 Crisis
The COVID-19 outbreak has affected practically every industry, impeding all industrial and commercial activities globally. Global lockdowns were imposed as a consequence of the outbreak, resulting in enormous disruptions in manufacturing and supply in industries such as consumer electronics, automotive, pharmaceuticals, aviation, and oil and gas. The COVID-19 has had a considerable impact on the worldwide solid state transformer market.
COVID-19 has varying effects based on the type of business, firm size, product range, and reliance on a supply chain. However, various governments around the world are aiding businesses in recovering their damages, which can ease most of the pressure that businesses may face during an outbreak. As the pandemic comes to an end in various parts of the world, businesses are likely to intensify productivity with effective planning, increasing energy consumption. This is expected to create new opportunities for the worldwide solid state transformer market in the coming years.
Strong Usage in Wind Energy Production to Aid Market Expansion
During the forecast period, renewable power generation applications is anticipated to grow at the fastest rate. The projected early adoption of these transformers for power production from solar, wind, and tidal energy accounts for the rapid expansion. Wind, tides, and sun are alternate forms of energy for power generation; they have the ability to resolve the world’s ever-increasing energy demand while also lowering the carbon impact.
Wind energy is a significant contributor to the power generated by alternative sources of energy. An induction generator linked with a wind turbine is used in a conventional wind energy farm to transform mechanical energy into electrical energy. The generated energy is then delivered to STATCOMs through a step-up transformer. It is then supplied into the power system. The step-up transformer raises the voltage level, whereas the STATCOM raises the power factor of the generated electricity. Though traditional systems (STATCOMs and step-up transformers) are cost-effective, solid state transformers can serve as both STATCOMs and step-up transformers with superior reactive power adjustment. This is projected to expand the use of solid state transformers for wind energy production, thereby boosting the global market.