Europe Solid State Transformer Market Size, Share & Trends Analysis Report By Voltage Level (Low, Medium, High), By Type (Power Solid-State Transformer, Distribution Solid-State Transformer, Traction Solid-State Transformer), By Application (Renewable Power Generation, Electric Vehicle Charging Station, Power Distribution, Traction Locomotive, Others) and By Country(U.K., Germany, France, Italy, Russia, Nordic, Benelux, Rest of Europe) Forecasts, 2023-2031

Market Overview

The Europe solid state transformer market size was valued at USD 252 million in 2021 and is projected to reach USD 1,079 million by 2031, registering a CAGR of 14.1% during the forecast period (2022-2031).

An advanced type of transformer, known as a smart transformer or solid-state transformer (SST), incorporates various semiconductor components, control circuits, and another high-frequency transformer. It controls voltage fluctuations to enhance power quality compared to traditional transformers. Grid losses are reduced, supply reliability is improved, and power supply disruptions are prevented from protecting the load. It converts voltage from Alternate Current (A.C.) to Direct Current (D.C.), D.C. to A.C., and D.C. to D.C. at various voltage levels. It currently serves various applications, including renewable power generation, electric vehicle charging facilities, and power grids.

Highlights

• Medium level dominates the market by voltage. 
• Distribution solid state transformer dominates by product.
• Renewable power generation dominates by application.

Market Dynamics

Europe solid state transformer market drivers

Increasing demand for renewable energy

Europe is increasingly embracing renewable energy, with nations like Germany and the U.K. establishing ambitious goals for using renewable energy sources. When it comes to integrating renewable energy sources into the grid, solid-state transformers can be crucial because they offer advanced management and monitoring capabilities that can boost system reliability and efficiency. For instance, according to a report by WindEurope, Europe installed a record 19 G.W. of new wind power capacity in 2020, making up 54% of all new power capacity increases. When it comes to integrating renewable energy sources into the grid, solid-state transformers are essential because they offer advanced management and monitoring capabilities that can increase system dependability and efficiency. The need for solid-state transformers in Europe is anticipated to rise as the use of renewable energy sources spreads.

Europe solid state transformer market restraints

Technical complexity

Solid-state transformers can be more challenging to design, manufacture, and maintain since they are more complicated than conventional transformers. Their adoption can be hampered due to rising costs and declining reliability. The sophisticated power electronics and control systems of solid-state transformers, which call for specific knowledge and expertise to develop and build, cause their complexity. The evolution of the E-STAS project in Europe demonstrates the technological difficulties of solid-state transformers—the project aimed to create a medium-voltage distribution grid-compatible 3.3 kV solid-state transformer. The transformer included cutting-edge power electronics, such as high-voltage silicon carbide switches, and sophisticated control algorithms to increase efficiency and dependability. However, the creation of the solid-state transformer proved to be a considerable technical difficulty that necessitated the integration of numerous systems and parts. 

Europe solid state transformer market opportunities

Growth in new power electronics

Wide-bandgap semiconductors, one of the newest power electronics technologies, are allowing the creation of solid-state transformers with greater operating frequencies, larger voltage ratings, and improved efficiency. Additionally, these technologies can simplify and integrate them into current systems by reducing the size and weight of solid-state transformers. Additionally, the expansion of the power electronics market as a whole, which is anticipated to reach USD 45 billion in Europe by 2025, is being driven by the development of new power electronics technologies. The rising demand for dependable and efficient power electronics in various industries, such as smart grids, electric vehicles, and renewable energy fuels, this risen.

Regional Analysis

The U.K., Germany, France, Spain, Italy, Russia, Nordics, Benelux, and the Rest of Europe are countries included in Europe. In recent years, the European Union (E.U.) has significantly evolved its legislation on the promotion of renewables. E.U. leaders in 2009 set a target that E.U. energy consumption would have a 20% share from renewable energy sources by 2020. Furthermore, they decided in 2018 to achieve a 32% share of E.U. energy consumption from renewable sources by 2030. They are discussing the future policy framework for the post-2030 period. Power and distribution transformers will be necessary to transition toward renewable energy, such as solar and wind. The need for reliable distribution systems arises as most of these solar and wind farms will be installed in outer parts of town. Solid-state transformers are likely to experience an increase in demand.

The International Energy Agency (IEA) report published in early 2020 states that the German automotive industry produces the fourth largest amount globally and leads in exporting machinery, vehicles, chemicals, and household equipment.

Additionally, several neighboring countries such as Austria, Belgium, Denmark, Estonia, Finland, France, Italy, Latvia, Luxembourg, Norway, Portugal, Slovenia, Spain, Sweden, the U.K., and Portland are connected to Germany's electricity market. During the forecast period, the demand for solid-state transformers is expected to be driven by the increase in renewable energy farms and grid expansion projects. Considerable increases in wind and solar P.V. electricity generation have occurred in Italy in the past few years.

Segmental Analysis

The Europe 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 14.5% 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 14.6% 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 16.6% during the forecast period.

Recent Developments

• April 2023- Alstom will equip the latest-generation ETCS signaling technology on 37 locomotives in the SNCB fleet.
• April 2023- G.E. introduced new options to reduce LM2500XPRESS* Aeroderivative Gas Turbines emissions.