North America 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.S., Canada) Forecasts, 2023-2031

Market Overview

The North American solid state transformer market size was valued at USD 158 million in 2021 and is projected to reach USD 608 million by 2031, registering a CAGR of 13.2% during the forecast period (2022-2031).

Solid-state transformers (SST) comprise high-power semiconductors, high-frequency transformers, and control circuits. It is also called a smart transformer or a clever universal transformer. Smart transformers give you more control over how power is distributed. Networks enabling needed smooth AC-DC and DC-AC conversions. It is used for various purposes, including producing alternative energy, traction trains, the power grid, and the electric industry.

Highlights

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

Market Dynamics

North America Solid State Transformer Market Drivers

Increasing Investment in Smart Grid Infrastructure

A smart grid is a network or grid that allows for the two-way flow of data and electricity. In the past twenty years, the smart grid idea has gained momentum. It is currently a crucial component of the electrical sector's digital transition. Solid-state transformers are preferable to traditional transformers in smart grids because of their modular construction flexibility and ability to enable bi-directional power transmission and deployment in A.C. and D.C. grids. Recently, electronic intelligence capabilities for power control and operations monitoring were incorporated into the grid to accommodate power flows, meet reliability requirements, and accommodate future projected usage. This led to an increase in the demand for smart grid technologies like solid-state transformers. In the United States, for instance, the GridWise Alliance issued its thorough Policy Framework for Grid Investments in Economic Recovery in December 2020. This document highlights the requirement for USD 50 billion in federal funding for grid modernization. Several grid modernization schemes are anticipated to boost demand for solid-state transformers throughout the projection period.

North America Solid State Transformer Market Restraints

High Cost

Solid-state transformers are expensive because of several things, such as the cost of the semiconductors used to make them and the extra control and tracking equipment needed to run them. This extra equipment can make a solid-state generator more expensive, especially if it is being added to an existing power system. Solid-state transformers can cost up to 10 times as much as old-style transformers. For example, a solid-state 50 kVA (kilovolt-ampere) transformer can cost anywhere from USD 60,000 to USD 100,000, while a standard 50 kVA transformer would cost between USD 6,000 and USD 10,000.

Even though the cost of solid-state transformers is slowly decreasing as technology improves and the market becomes more competitive, they are still more expensive than standard transformers. This difference in cost can be a big reason why people don't use it, especially in small and medium-sized companies with limited budgets.

North America Solid State Transformer Market Opportunities

Integration with Renewable Energy Sources

Renewable energy sources like wind and solar power are becoming increasingly common. In 2019, renewable energy sources made up 11% of all the electricity made in the U.S., which is projected to continue.

Solid-state transformers can make it possible to use direct high-voltage current (HVDC) transmission lines to send power from green energy sources in the middle of nowhere over long distances. Standard A.C. transmission is less efficient than HVDC transmission, especially over long distances. HVDC transmission can help reduce energy loss and improve the total efficiency of a system. 

Regional Analysis

North America is a significant revenue contributor and is expected to grow at a CAGR of 13.2% during the forecast period. The United States and Canada are the two most important nations in the North American region.

The U.S. held the largest market share in the region. The primary driver for this market is the use of solid-state transformers in various industries, such as traction trains, power distribution, electric vehicle charging stations, alternative power production, and many others. It also has power supply and distribution systems applications for use in ships and aviation. The market for North American solid-state transformers is anticipated to be driven by the rising adoption of renewable energy generation, new metro projects, and the development and deployment of smart grids across numerous nations.

Additionally, Canada has been investing in smart grids. The national "Pan Canadian Framework" initiative addresses several important infrastructures to aid the country's clean growth and climate change progress. The Canadian government committed USD 100 million to utility projects in 2020 to lower GHG emissions and improve the use of the current energy infrastructure. The Canadian government has invested over USD 180 billion over 12 years in automotive, green infrastructure, trade, and tourism projects as part of the country's infrastructure strategy. This Investment will open many doors for developing solid-state transformers and other power distribution systems.

Segmental Analysis

The North American 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 13.8% 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 13.7% 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 16.1% 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.