Middle East and Africa 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(UAE, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, Rest of MEA) Forecasts, 2023-2031

Market Overview

The Middle East and Africa solid state transformer market size was valued at USD 105 million in 2021 and is projected to reach USD 344 million by 2031, registering a CAGR of 11.4% during the forecast period (2022-2031).

A solid-state transformer (SST), commonly called a smart transformer, is a modern style of transformer that includes additional high-frequency transformers, control circuits, and several semiconductor components. Reducing voltage fluctuations improves the power quality compared to conventional transformers. It lowers grid losses, improves supply consistency, and shields the load from interruptions in the power supply. It converts voltage from Direct Current (D.C.) to A.C., DC to D.C., and D.C. to D.C. at various voltage levels. It currently serves various applications, including power grids, electric vehicle charging stations, and renewable energy generation.

Highlights

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

Market Dynamics

Middle east and africa solid state transformer market drivers

Government initiatives

Governments in the Middle East and Africa (MEA) are spending much money to update their power networks and use more advanced power electronics technologies. For example, the United Arab Emirates (UAE) wants to get 50% of its energy from renewable sources by 2050. The government has started several projects to reach this goal, such as the Dubai Clean Energy Strategy 2050, which aims to get clean energy to make up 75% of Dubai's energy mix by 2050.

In the same way, Saudi Arabia's Vision 2030 plan calls for the country to produce 27,3 GW of green energy by 2024 and have 50% of its energy come from renewable sources by 2030. To help reach this goal, the government has started several programs. One is the National Renewable Energy Program, which aims to add 58.7 GW of renewable energy capacity by 2030.

Middle east and africa solid state transformer market restraints

Lack of awareness

The relative newness of solid-state transformer technology is one of the causes of the lack of awareness. There are still very few instances of successful deployment of the technology in the region, and adoption of the technology is still in its early phases. There won't be enough qualified workers with solid-state transformer design, installation, and maintenance experience. This lack of knowledge may make potential consumers skeptical and resistant to change. It can also be challenging for utilities and companies to assess the technology and decide whether it fits their requirements.

Middle east and africa solid state transformer market opportunities

Development in power electronics and solid-state technology

Power electronics and solid-state technology in the region are advancing significantly. These developments allow the area to adopt new technology and raise its energy systems' effectiveness, efficiency, and dependability. Innovations in power electronics and solid-state technology may improve the flexibility, power density, and energy storage system integration of solid-state transformers (SSTs). These enhancements can increase efficiency, decrease losses, and optimize the operation of the power grid. Solid-state transformers can be made more extensively and affordably by achieving cost savings through innovative materials, production techniques, and control systems.

Regional Analysis

U.A.E, Turkey, Saudi Arabia, South Africa, Egypt, Nigeria, and the Rest of the Middle East and Africa comprise the Middle East and Africa regions. Increased demand for electricity is driving rapid growth in the Saudi Arabian electricity generation, transmission, distribution, and smart grid power sector. 60% of the electricity the country requires is generated by Saudi Arabia's heavy reliance on liquid petroleum. The nation is improving the entire power generating, distribution, and transmission sector to reduce the amount of oil used in producing electricity. The company upgraded the transmission and distribution infrastructure, investing USD 5 billion. Of this amount, USD 4 billion was used for generation and distribution. In 2040, the country will expand its power generation capacity from 82GW in 2018 to 160GW.

Additionally, the government plans to invest nearly USD 50 billion during these nine years to develop 30 solar and wind projects as part of its 2030 strategy. Due to these plans, the solid-state transformer market will experience ample growth opportunities during the forecast period. The South African government has developed an infrastructure plan worth USD 23.2 billion in network industries related to the project pipeline, such as energy, water, transport, and telecommunication. As a part of Bid Windows 5, the government requested proposals for 2,600 MW of wind and solar energy. All these proposals and investments will drive the growth of the solid-state transformer market.

Segmental Analysis

The Middle East and African solid state transformer markets are 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 11.8% 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 11.4% 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 12.1% 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.