United States 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 Forecasts, 2023-2031

Market Overview

The U.S. solid state transformer market size was valued at USD 111 million in 2021 and is projected to reach USD 438 million by 2031, registering a CAGR of 13.4% during the forecast period (2022-2031).

A solid-state transformer (SST) is a modern power converter using electronic components to provide bi-directional power flow. These transformers, also called solid-state transformers, go by universal power electronics, intelligent universal transformers, energy control centers, and power electronics traction transformers. However, SSTs are commonly referred to as clever transformers. Recent interest has been drawn to solid-state technology due to advancements in power electronics, intelligent infrastructure, and the growth of application industries such as renewable energy production.

Highlights

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

Market Dynamics

The U.S. Solid State Transformer Market Drivers

Increasing Investment in Smart Grid Infrastructure

Smart grids monitor and regulate power flow using cutting-edge digital technologies and sensors, improving the grid's dependability, efficiency, and security. This minimizes the negative environmental effects of energy production and use and increases energy efficiency. California is one region that has witnessed considerable Investment in smart grid technology. The state has implemented several programs to update the electrical system and use more renewable energy. To test smart grid technologies, such as enhanced metering systems, demand response programs, and energy storage systems, the California Independent System Operator (CAISO) has, for instance, started several pilot initiatives. The use of smart grid technologies has grown due to these activities throughout the state. The Northeastern United States, home to states like Massachusetts, Connecticut, and New York, serves as another illustration. These states have implemented several initiatives to encourage smart grid technologies and boost energy effectiveness. For instance, the New York State Energy Research and Development Authority (NYSERDA) has started a Smart Grid Program to increase grid efficiency, security, and reliability. The Massachusetts Department of Energy Resources has launched a program to support deploying advanced metering infrastructure.

The U.S. Solid State Transformer Market Restraints

High Cost

Since solid-state transformers are currently more expensive than conventional transformers, some utilities and end users may find it difficult to adopt them. Manufacturers may find it challenging to grow production and obtain economies of scale due to the greater cost—for instance, the use of solid-state transformers in the ships of the United States Navy. To enhance the power distribution and control systems on its ships, the U.S. Navy has been investigating the usage of solid-state transformers. The Navy, which must adhere to severe financial restraints, has struggled with the high initial cost of solid-state transformers. Although solid-state transformers have advantages, including increased efficiency and dependability, their widespread use in the Navy's fleet has been constrained by their high price. The use of solid-state transformers in the electric utility industry is another such. Despite utilities' growing interest in the advantages of solid-state transformers, adoption may be hampered by their high initial cost. For instance, the Electric Power Research Institute (EPRI) conducted a study in 2019 to assess the utility industry's potential benefits of solid-state transformers. Although the study revealed that solid-state transformers could have many advantages, including increased grid flexibility and efficiency, the high initial cost was noted as a major barrier to implementation.

The U.S. Solid State Transformer Market Opportunities

Integration with Renewable Energy Sources

Solar and wind energy are examples of renewable energy sources that are becoming more prevalent. According to projections, 11% of the electricity produced in the United States in 2019 came from renewable sources.

Direct high-voltage current (HVDC) transmission lines can transport power from renewable energy sources across great distances using solid-state transformers. HVDC transmission is more effective than standard A.C. transmission, particularly over long distances. HVDC transmission can lower energy loss and raise a system's overall effectiveness. 

Regional Analysis

The U.S. holds a sizable portion of the market. The main factor driving this industry is the use of solid-state transformers in numerous industries, including traction trains, power distribution, electric vehicle charging stations, alternative power production, and many others. Power supply and distribution systems for use in ships and airplanes are another area in which it has applicability. The growing acceptance of renewable energy generation, new metro projects, and the creation and implementation of smart grids across several nations can drive the market in the country.

Segmental Analysis

The U.S. 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 12.7% 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 13.8% 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 16.3% during the forecast period.

Recent Developments

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