Solid state transformer market seen hitting $468 million by 2028

By AI, Created 12:11 PM UTC, May 29, 2026, /AGP/ – A new Allied Market Research report says the global solid state transformer market will grow from $141.5 million in 2020 to $468.0 million by 2028, powered by smart grids, renewable energy, and electric vehicle charging demand. Europe leads the market now, while Asia-Pacific is expected to post the fastest growth.

Why it matters: - Solid state transformers are becoming a key piece of next-generation power infrastructure as utilities, industries, and governments push grid modernization. - The market’s growth is tied to three major shifts: renewable energy expansion, electric vehicle adoption, and smarter electricity networks. - The technology can improve voltage control, efficiency, and bidirectional power flow in systems that need to handle more variable power demand.

What happened: - Allied Market Research projects the global solid state transformer market will rise from $141.5 million in 2020 to $468.0 million by 2028. - The forecast implies a 16.9% compound annual growth rate from 2021 to 2028. - The report points to renewable energy infrastructure, EV adoption, and power grid modernization as the main growth drivers. - The report includes a downloadable brochure and a paid full report option at purchase options.

The details: - Solid state transformers differ from conventional transformers by adding AC-to-DC conversion, bidirectional power flow, compact design, remote monitoring, and advanced voltage regulation. - The devices are positioned for renewable energy systems, EV charging stations, smart grids, rail transportation, and industrial uses. - Rising solar and wind deployment is increasing demand for power conversion systems that can manage fluctuating output and support grid integration. - Smart grid buildout is also boosting adoption because solid state transformers can help utilities reduce losses, improve stability, and manage electricity demand more precisely. - EV charging networks create another demand stream because fast charging, voltage conversion, and vehicle-to-grid communication require more advanced power management. - The report says high costs, semiconductor complexity, limited awareness, and a lack of standardized infrastructure still slow wider adoption. - Ongoing research and development is expected to improve cost efficiency and technical maturity over time. - In February 2021, Hitachi ABB and Nanyang Technological University in Singapore partnered to improve solid-state transformer technology, with support from the National Research Foundation Singapore.

Between the lines: - The market is being pulled by the same long-term forces reshaping the broader power sector: electrification, decentralization, and digital control. - Solid state transformers look most relevant where power needs are changing fast, especially in renewables, microgrids, and fast-growing charging networks. - The report’s growth outlook also suggests the technology is moving from a niche industrial component toward a broader infrastructure play, even as cost remains a barrier.

What’s next: - Power solid-state transformers are expected to remain the largest product segment, helped by utility-scale power systems and industrial applications. - Traction solid-state transformers are projected to grow fastest, with a 17.7% CAGR, as electric rail, locomotives, and electric buses expand. - The electric vehicle charging segment is forecast to post the fastest application growth at 21.5% CAGR. - Europe held the largest regional share in 2020, while Asia-Pacific is expected to grow fastest at 18.6% CAGR. - The competitive field includes Alstom SA, Eaton Corporation, General Electric Company, Hitachi ABB, Power Systems & Controls Inc., Red Box Aviation, Schneider Electric, Siemens AG, Varentec Inc., and Vollspark. - Future demand will likely track continued spending on renewable energy, smart grids, and electrified transport.

The bottom line: - Solid state transformers are moving into a bigger role as power systems become cleaner, smarter, and more distributed.