Solid State Transformer (SST) Market Expected to Reach $1,329.7 Million by 2027, at a Growing CAGR of 27.1% - Research DiveDownload Sample Reports Overview
The global solid state transformer (SST) market forecast will reach up to $1,329.7 million in 2027, at a 27.1% CAGR growing from $176.0 million in 2019 as per analysis before the coronavirus outbreak. According to a recent analysis by Research Dive, the COVID-19 outbreak has had a significant impact on the global solid state transformer (SST) market growth and is expected to account for $1,246.4 million in 2027, at a 26.0% CAGR.
Solid State Transformer (SST) Market drivers:
The global solid state transformer market is majorly driven by increasing concentration on alternative energy production sources along with high investments on the smart grids developments and advancements. In addition, rapid growth in the industrial sector has increased the power consumption rate across the globe due to government favorable initiatives for industrialization and modernization of manufacturing facilities. This factor is also expected to impel the growth of the market in the estimated time. However, huge investments are required for the installation of SST systems, which is expected to be a major restraint for the market growth.
COVID-19 impact on Solid State Transformer (SST) Market:
The COVID-19 lockdown has a marginal negative impact on the global solid state transformer (SST) market due to global power distribution and transmission industry experiencing challenging time. This is attributed to uncertain revenue because commercial and industrial operations are completely stopped and there is a low demand for electricity except for domestic use.
However, during this situation, leading market players are adopting several strategies such as new product launches and joint ventures to increase their market share in the overall industry. For example, July 2020, ABB, global leader in technology, launched new Terra 184 electric vehicle chargers in Japan to help the modernization of country’s electric charge vehicle infrastructure. Also, these chargers offer convenient and fast changing options across Japan at anytime and anywhere. This factor will accelerate the market growth in the pandemic period.
Solid State Transformer (SST) Market, Segmentation Analysis:
The global market is categorized on the basis of product into distribution solid state, power solid state and traction solid state. Among these, power solid state product segment generated the largest market share in 2019 of the solid state transformer market and is predicted to continue its growth in the forecast years. Wide utilization of power solid state transformers at the transmission substations and power generation substations to minimize the load fluctuations will boost the market growth in the forecast years.
The global market is categorized on the basis of application into power grid, electric vehicle charging stations, traction locomotives and alternative power generation. Among these, the alternative power generation segment was the major contributor to the market, with $98.6 million in 2019, and is projected to reach $683.5 million by 2027, at a 25.7% CAGR in the forecast period. Growing focus on energy generation from alternate sources is directly projected to drive the demand for the SST systems in the forecast time. This expected growth is majorly owing to increasing consciousness among the people about air pollution and government initiatives.
Solid State Transformer (SST) Market, Regional Analysis:
Europe region accounted for a significant market share in 2019, which was 36.9% and is expected to reach up to $470.3 million by 2027. Increasing consumption of electricity in the European countries, especially Germany, France and UK, has augmented the demand for adoption of SST systems in the European region. Germany and UK offer most lucrative opportunities for solid-state transformer provides, as these are the largest consumers of electricity in Europe. These factors will fuel the market growth in the forecast years.
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Solid State Transformer (SST) Market, Market Players:
The significant manufacturers in the global solid state transformer (SST) market are Schneider Electric, Siemens, Mitsubishi Electric Corporation, ABB, General Electric, Eaton, GRIDBRIDGE, Varentec, Inc., MASCHINENFABRIK REINHAUSEN GMBH and among others. Major manufacturers in global market are concentrating on product developments and joint venture to fortify their presence in the overall market.
Porter’s Five Forces Analysis for Solid State Transformer (SST) Market:
- Bargaining Power of Suppliers: Solid state transformer (SST) market contains huge concentration of large and small & medium size traders and negotiating power is estimated to be high. The price of innovative smart SST systems is fluctuating from one trader to another.
- The bargaining power of suppliers is HIGH.
- Bargaining Power of Buyers: Solid state transformer (SST) market has high number of buyers, but cost related to advanced power grids systems is estimated to be huge.
- The negotiating power of the buyer is HIGH.
- Threat of new entrants: This market requires huge initial expenditure for the adoption of advanced SST systems and market contains high number of market participants. The risk of new entrants is LOW.
- Threat of substitutes: This market contains higher number of alternative systems and delivers low penetration solid state transformer systems. The risk of replacements is HIGH.
- Rivalry among market players: Solid state transformer (SST) market has high number of leading players. These manufacturers are emphasizing on joint ventures and product advancements to increase their market share in the global industry, thereby, resulting in HIGH competition in the industry.