The Asia-Pacific solid state transformer market size was valued at USD 144 million in 2021 and is projected to reach USD 573 million by 2031, registering a CAGR of 13.4% during the forecast period 2022-2031.
A solid-state transformer (SST), also called a smart transformer, is an advanced type of transformer that uses semiconductors, control circuits, and another high-frequency transformer. Compared to standard transformers, it improves power by keeping the voltage from going up and down. It cuts down on grid losses and increases supply stability. It also keeps the load safe from power outages. It can change power from Alternating Current (A.C.) to Direct Current (D.C.), Direct Current (D.C.) to A.C., and Direct Current (D.C.) to Direct Current (D.C.) at different voltage levels. It is used for many things, such as renewable power generation, charging stations for electric vehicles, and power systems.
The solid-state transformer market in the Asia-Pacific region is primarily driven by the region's rapid development and urbanization. Some of the world's fastest-growing economies, which are also rapidly industrializing and urbanizing, are found in this region. Because of this, there is a rising need for energy to run factories, structures, and transportation networks.
The grid's stability and dependability can be increased using solid-state transformers, allowing efficient and dependable power delivery to businesses and populated areas. They provide sophisticated management and monitoring capabilities to lessen power outages and minimize corporate and industrial facility downtime.
Compared to conventional transformers, solid-state transformers have greater upfront costs, mostly because the power electronics and control systems required for their design are more expensive. This can make it challenging for local utilities and businesses to provide a business case for purchasing solid-state transformers, especially in areas with limited financial resources.
Renewable energy's strong growth in Asia-Pacific offers solid-state transformer market opportunities. China, India, Japan, and Australia have the world's largest and fastest-growing renewable energy markets. Solid-state transformers can boost renewable energy integration by improving efficiency and reliability. Power distribution efficiency and reliability are increasing demand for innovative power electronics technologies like solid-state transformers. Advanced power electronics technology can be used since many countries in the region invest considerably in power infrastructure upgrades. The Indian government's efforts to update power infrastructure and promote renewable energy are projected to boost the solid-state transformer market.
The Asia-Pacific solid state transformer market is segmented based on voltage, product, and application.
The voltage level is further segmented into Low, Medium, and High Levels.
The Medium Level dominated the market and is expected to register a CAGR of 13.7% over the forecast period.
Based on the product, the market is sub-segmented into Distribution Solid State Transformers, Power Solid State Transformers, and Traction Solid State Transformers.
Distribution Solid State Transformer is expected to dominate the market, registering the highest CAGR of 13.4% over the forecast period.
The application is segmented into Renewable Power Generation, Electric Vehicle Charging Stations, Power Distribution, Traction Locomotives, and Others.
The Renewable Power Generation segment dominated the market and is expected to grow at a CAGR of 14.4% during the forecast period.
Asia-Pacific is expected to be the biggest and fastest-growing market because more money is being put into smart grid technology, and more people are using energy. This has led to more money being put into power infrastructure all over the region.
China is the world's biggest market for moving and distributing power (T&D). It is expected to buy a lot of smart grid technology because of its plan to reduce carbon emissions and pledge to green development. In China's power sector in 2021, 8.11 trillion kilowatt-hours (KWh) of energy came from all different sources. Coal, natural gas, nuclear power, wind, water, biofuels, and the sun are all forms of energy that help power the country. China has the biggest industrial sector, so the country's energy needs have been rising steadily as industrial needs have grown quickly. Companies are now putting more money into distribution networks and focusing on smart grids. This is expected to increase the demand for SST in China over the next few years.
India already had 233.17 GW of thermal capacity as of February 2021. Renewable, hydro, and nuclear energies each had 91.15 GW, 46.20 GW, and 6.78 GW of built capacity. By 2030, the government wants to double the amount of renewable energy used to make power to 40%. India also increased the amount of solar power it wants to make by five times to 114 GW by 2022. The government is working on a plan called "Rent a Roof" to help it get 40 G.W. of power from solar roof projects by 2022. In F.Y. 2020, the top electricity use in the country was 170.83 GW.
Also, the Indian government has set a goal of installing 227 GW of renewable energy potential by the end of 2022. As of June 2019, the government had bid for power lines worth USD 5 billion. Solid state transformer deployment is likely because of investments in low and medium-voltage transmission lines during the forecast period.
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