According to Precedence Research, the global solid-state transformers market size accounted for USD 25.00 million in 2025 and is predicted to increase from USD 35.05 billion in 2026 to approximately USD 733.53 million by 2035, expanding at a CAGR of 40.20% from 2026 to 2035.
Solid-State Transformers Market Key Insights
- By technology, the medium voltage solid-state transformers segment held 45% of market share in 2025.
- By technology, the distribution solid-state transformers segment held 25% of market share and is expected to grow at the highest CAGR of 43.2% between 2026 and 2035.
- By application, the smart grid applications segment held a major market share of 30% in 2025.
- By application, the renewable energy integration segment held 25% of market share in 2025 and is expected to register the fastest growth of 44.2% CAGR during 2026 and 2035.
Solid-State Transformers Market Overview
SSRs are being deployed in the real grid with pilot deployments. As of November 2025, the U.S. Department of Energy has confirmed the DIRECT project. This work pre-shrinks single-stage solid-state transformers to become cascaded multi-module systems. With field deployment, it actively targets a load-serving circuit instead. The Energy Department’s Office of Electricity also granted about USD 20 million separately via its Flexible Innovative Transformer Technologies program. A one-MVA three-winding solid-state transformer (SST) was funded by GE Vernova for a public utilities substation. It wasn’t just a solo powerhouse.
This confidence translates right through into company activity this year. In November 2025, Infineon and SolarEdge joined forces on solid-state transformer technology. The target is direct medium-voltage power conversion for challenging application areas. These firms are complementing them with an equal amount of serious capital investment from startups. In February 2026, heroin Power raised USD 140 M from Andreessen Horowitz and Breakthrough Energy Ventures. DG Matrix was also funded for USD 60 million by a group. That, in addition to ABB, included Mitsubishi Heavy Industries.
Regional Outlook for Solid-State Transformers Market
North America America held a 30% share of the market in 2025 and is expected to grow at a 39.7% CAGR between 2026 and 2035, driven by extensive grid modernisation programmes and rapid deployment of advanced power electronics across utility networks.
United States
The U.S. demand is largely led by huge investments in smart grids, upgrades in transmission, and nationwide electrification projects. There are ongoing federal initiatives that promote advanced transformer adoption in all parts of the energy world, particularly in utility-scale energy projects.
Asia-Pacific Asia Pacific led the market, capturing the largest revenue share in 2025, accounting for an estimated 38%, and is estimated to grow at a strong CAGR of 44.8% over the projected period, due to ongoing power infrastructure investments that are expected to accelerate long-term market expansion.
China
Domestic manufacturers strengthen production of advanced semiconductor devices and grid equipment. Rapid renewable energy deployment further accelerates solid-state transformer adoption.
Europe Europe is expected to hold 24% of the market in 2025 and is estimated to grow at a considerable CAGR of 40.5% over the projected period, supported by ambitious decarbonisation policies and continuous investment in intelligent electricity infrastructure.
Germany
Domestic adoption is further strengthened by, of course, the engineering skills developed and ongoing investment in smart grid technologies. This technology is promoted for industrial application by the need for efficient power conversion.
Market Scope
| Report Coverage | Details |
| Market Size in 2025 | USD 25.00 Million |
| Market Size in 2026 | USD 35.05 Million |
| Market Size by 2035 | USD 733.53 Million |
| Market Growth Rate from 2026 to 2035 | CAGR of 40.20% |
| Dominating Region | North America |
| Fastest Growing Region | Asia Paicfic |
| Base Year | 2025 |
| Forecast Period | 2026 to 2035 |
Segmental Outlook of Solid-State Transformers Market
By Component Type Insights
Why Did Power Electronic Converters Dominate the Solid-State Transformers Market?
The power electronic converters segment dominated the market with a share of 32% in 2025, due to their central role in multi-stage voltage conversion and precise bidirectional power regulation.
The semiconductor devices segment held 28% of the market share in 2025 and is expected to grow at the fastest CAGR of 44.5% between 2026 and 2035, driven by rapid advances in silicon carbide and gallium nitride technologies for high-power switching applications.
By Technology Type Insights
How Did Medium Voltage Solid-State Transformers Secure Leadership in the Solid-State Transformers Market?
The medium voltage solid-state transformers segment dominated the market with a share of 45% in 2025, due to their superior benefits, such as fewer conversion stages, a smaller physical footprint, and native support for high-voltage DC architectures. They enable direct conversion, eliminating bulky copper-and-iron components.
The distribution solid-state transformers segment held a 25% share of the market in 2025 and is expected to grow at the fastest CAGR of 43.2% between 2026 and 2035, driven by their widespread application to manage bi-directional power flow, regulate voltage, and integrate renewable energy. They enable electrification and increase grid reliability and resilience.
Solid-State Transformers Market Companies
ABB Ltd. – A global leader in electrification, automation, and industrial digitalization solutions serving utilities, industries, and infrastructure sectors. It offers advanced electrical equipment, robotics, motion systems, and energy management technologies.
Eaton Corporation – Eaton is a leading intelligent power management company that delivers electrical, hydraulic, and mechanical power solutions worldwide. The company focuses on improving energy efficiency, safety, and sustainability across multiple industries.
General Electric – General Electric (GE) is a diversified industrial technology company known for its innovations in aerospace, energy, and healthcare. Its energy business provides advanced power generation, grid modernization, and electrification solutions.
Hitachi Ltd – Hitachi Ltd. develops advanced digital, energy, industrial, and infrastructure technologies for global markets. The company is recognized for its smart grid, power systems, and sustainable energy solutions.
Mitsubishi Electric Corporation – Mitsubishi Electric manufactures a broad portfolio of electrical and electronic products, including factory automation and power distribution systems. The company emphasizes innovation, energy efficiency, and reliable infrastructure technologies.
Schneider Electric – Schneider Electric specializes in energy management and industrial automation solutions for residential, commercial, and industrial applications. Its digital technologies help improve operational efficiency and sustainability.
Siemens AG – Siemens AG is a global technology company providing solutions in electrification, automation, digital industries, and smart infrastructure. It is a major innovator in industrial software, intelligent grids, and sustainable energy systems.
