Solid-State Transformer Market Poised to Hit $468 Million by 2028 Amid Smart Grid & EV Infrastructure Boom

Smart Grid & EV Charging Demand Boost Solid-State Transformer Market at 16.9% CAGR Through 2028

WILMINGTON, DE, UNITED STATES, July 10, 2025 /EINPresswire.com/ --

According to a recent report by Allied Market Research, the global solid-state transformer market size was valued at $141.5 million in 2020 and is projected to reach $468 million by 2028, growing at a CAGR of 16.9% from 2021 to 2028. This significant growth is driven by a rising shift toward electric mobility, smart grid development, and renewable energy integration.

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Solid-state transformers (SSTs) are a revolutionary advancement over traditional transformers, offering real-time voltage regulation, remote monitoring, and bi-directional power flow capabilities. These smart transformers are not only compact and efficient but also enable seamless AC to DC conversion—making them ideal for modern power distribution systems, especially where renewable energy and electric vehicles (EVs) intersect.

⚙️ Market Drivers: Renewable Energy, Electric Vehicles & Smart Grid Expansion

One of the most prominent drivers of the solid-state transformer market is the global acceleration of renewable power generation. As countries invest in wind and solar infrastructure, the need for intelligent power flow regulation has become paramount. SSTs play a critical role in balancing grid loads, managing power quality, and enabling storage integration.

🚗 EV Charging Stations: As the world shifts toward clean mobility, the need for smart charging infrastructure is surging. Solid-state transformers can efficiently handle high power demands, offer bidirectional flow for vehicle-to-grid (V2G) applications, and reduce transmission losses—making them ideal for EV charging networks.

🏭 Smart Grids: Traditional grid systems are evolving into intelligent networks that require real-time data exchange and adaptive voltage control. SSTs allow grid operators to remotely adjust power supply and respond to fluctuations, which improves overall grid stability.

Despite these advantages, high initial costs and limited end-user awareness are slowing down adoption. However, ongoing R&D efforts, as seen in partnerships like Hitachi ABB's collaboration with Nanyang Technological University, aim to reduce costs and bring commercial SSTs to market sooner.

🧭 Segmentation Overview: Application & Product Type Deep Dive

The solid-state transformer market is segmented by product type, application, and region, each reflecting unique demand patterns and technological adoption rates.

🔌 1. By Product Type: Power SSTs Dominate, Traction SSTs Rising

Power Solid-State Transformers held the largest market share in 2020, thanks to their cost efficiency and increasing adoption in the power distribution and utility sector. These transformers offer robust support for grid management and help utilities meet modern energy challenges with smart capabilities.

Traction Solid-State Transformers are projected to grow at the fastest CAGR of 17.7%, driven by rising interest in electrified rail systems and electric vehicles. With governments investing in low-carbon transportation, SSTs are being explored for use in metros, high-speed trains, and EV support infrastructure.

Distribution Solid-State Transformers offer smart solutions at the local utility level. Though a smaller segment, it’s crucial in enabling decentralized power generation and local energy balancing—especially for urban and rural microgrids.

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⚡ 2. By Application: Renewables Lead, EV Charging Grows Fastest

Renewable Power Generation was the leading application in 2020, reflecting the importance of SSTs in integrating intermittent energy sources like solar and wind into the grid. These transformers improve energy conversion and delivery efficiency, ensuring minimal losses and grid compatibility.

EV Charging Infrastructure is expected to grow at a CAGR of 21.5%, the highest among all application segments. The rapid deployment of EVs globally has triggered demand for smart, scalable, and high-efficiency transformers that can support both urban fast-charging hubs and residential setups.

Other growing applications include traction locomotives, power distribution, and industrial power systems, which are increasingly turning to solid-state solutions to reduce energy losses, improve monitoring, and enhance safety.

🌍 Regional Insights: Europe Leads, Asia-Pacific Rising Fast

Europe accounted for the largest market share in 2020 (over 37%) due to strong government initiatives around renewable energy adoption and EV infrastructure. Countries like Germany, the UK, and France are leaders in both energy decentralization and smart grid modernization.

Asia-Pacific is projected to register the highest CAGR of 18.6%, with countries such as China, India, Japan, and Australia investing heavily in next-gen energy technologies. Massive EV deployment targets and grid overhaul projects are pushing SST adoption forward.

North America continues to advance its smart grid infrastructure, while LAMEA is gradually adopting SSTs as renewable installations increase and urbanization continues.

🏭 Competitive Landscape: Innovation & Strategic Alliances

Leading companies in the solid-state transformer industry include:

Hitachi ABB

General Electric Company

Siemens AG

Eaton Corporation

Schneider Electric

Varentec Inc.

Vollspark

Alstom SA

Red Box Aviation

Power Systems & Controls Inc.

These firms are focusing on partnerships, research collaboration, and product launches. For instance, the joint initiative by Hitachi ABB and NTU Singapore, backed by the National Research Foundation, aims to commercialize next-gen SST technology capable of transforming power delivery for tomorrow’s energy grid.

🦠 COVID-19 Impact: Temporary Setback, Long-Term Opportunity

The pandemic disrupted manufacturing and project execution across power sectors globally. Lockdowns delayed renewable energy projects and transformer installations, while global supply chains faced severe bottlenecks—particularly affecting materials sourced from China and Southeast Asia, key players in solar and wind power equipment.

However, as economies rebound and energy demands stabilize, the market is witnessing renewed interest in sustainable grid solutions and resilient energy infrastructure, restoring growth momentum for SST technologies.

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🔮 Outlook: Smart Energy Begins with Smart Transformers

The solid-state transformer market is entering a crucial growth phase driven by the global clean energy transition. With increasing integration of EVs, solar panels, wind farms, and smart cities, SSTs are no longer a futuristic concept—they are becoming a necessity.

As R&D accelerates and costs reduce, solid-state transformers will play a pivotal role in delivering reliable, efficient, and intelligent power across industries and geographies. 🌱🔋🌍

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