The global smart transformer market is predictable to grow from total $903.7 Million market in 2015 to $2,545.8 Million in 2022, at a CAGR of 19.9% for year 2016-2022. A major penetration of renewable energy generation into the current generation combined in the next few years is likely to cause the growth in solid state transformers (SST) market. These kind of transformers, made of mainly power electronics based components which can also be referred to a type of power device and these devices are extremely active in regulating the magnitude of voltage, current or incidence according to the application wise necessities. Technology proliferation in power electronics has meaningfully reduced the scope of these transformers henceforth making them more flexible device for customer use.
A number of market drivers, specially, major capacity addition and fixing of renewable generation capacity is supporting the solid state transformers market. Major initiatives are underway to bring the SST’s from prototyping and investigation phases to profitable deployment and installation stage. These solid state transformers are probable to replace or temporarily replace the erstwhile distribution transformers which are being used currently.
The global solid state (smart) transformers market is mainly divided into application, product and geography. The application segment consists of other power generation, power grid, traction locomotives and EV charging stations, among these alternative power generation is the highest revenue-generating segment owing to the efficient electric generation technology via renewable energy sources. In addition to this, traction locomotives and power grids are some other major applications increasing the growth of solid state transformers market worldwide. Also related benefits of solid state transformers, like bidirectional power flow, input/output AC or DC power, improved power quality and reduced size & weight of transformers among others, would drive the growth of solid state transformers market worldwide. Power transformers are also expected to produce the highest revenue through the forecast period. However, traction type of transformers is expected to emerge as the fastest growing segment during the analysis period, due to the growing demand of solid state transformers in traction locomotives sector.
Smart transformers are finding its major applications in traction kind of transformers, which have previously reached minor scale positioning in certain countries. Smart transformer testing has been complete in some countries in Europe and North America region. It is likely that these topographies will originate out with the first fully commercial smart transformer designs suitable for various commercial use. Smart grid expenses are the uppermost in the Asia-Pacific region, especially in China which accounts for about a quarter of the total global investment. As the smart transformer technology reaches its profitable phase, adoption is likely to be seen in the Asia Pacific region.
Major companies operating in the global solid state transformers (smart) market includes, ABB Ltd., Schneider Electric SE, General Electric Co., Alstom SA, Mitsubishi Electric Corporation, Eaton, Grid bridge Inc., Varentec Inc. and Maschinenfabrik Reinhausen (MR).