Summary of Solid-State Transformer Industry Trends Industry Overview - The solid-state transformer (SST) industry is driven by the need for power supply upgrades in data centers due to increasing server power demands. Traditional UPS systems face challenges such as large footprint and low efficiency, leading to a shift towards HVDC and SST solutions aimed at higher voltage levels, reduced footprint, and lower losses [1][2][3]. Key Points and Arguments - **Transition from UPS to HVDC**: The existing power supply technology is evolving from UPS to HVDC, with companies like Delta and Alibaba launching Panama power solutions, and NVIDIA proposing an 800V ACDC solution to optimize efficiency and reduce space [1][5]. - **SST Advantages**: SSTs offer significant advantages including smaller footprint, higher efficiency, and the ability to output direct current, making them compatible with energy storage and renewable energy systems, particularly in green energy data centers [1][7]. - **Market Demand**: North America has a high demand for self-sustaining energy solutions due to large data center scales and weak grid infrastructure, while China benefits from strong grid support and policies favoring green energy integration [1][8]. - **Power Increase Impact**: The rapid increase in server power, from 6 kW to over 1 MW, necessitates a proportional increase in power distribution room size under traditional methods, highlighting the urgent need to reduce equipment footprint [3][4]. Development Trends - **SST Development Acceleration**: The development of SSTs is gaining momentum, with major equipment manufacturers and cloud service providers engaging in technical discussions and collaborations expected to yield results within the next year [2]. - **Limited Current Applications**: Currently, SST applications are limited to demonstration projects, with only a few hundred units operational globally. Companies like China West Electric and Sifang have made deliveries, while others like Delta have mature products [10][11]. Competitive Landscape - **Leading Companies**: China West Electric and Sifang are leading in the SST field due to their technological expertise and market positioning. Other companies like Jinpan Technology and New Special Electric are also making strides, with Jinpan focusing on the North American market [14][12][15]. - **Market Entry and Technology**: New entrants like Newpan are quickly adapting to the SST market, leveraging their existing expertise in transformers and power electronics [15]. Market Potential and Assumptions - **Market Size Estimates**: The SST market is projected to reach several hundred billion in the next three years, with key assumptions including the growth of computing power installations and the unit value of power equipment [16][17]. - **Penetration Rates**: By 2029 or 2030, SST penetration rates are expected to reach around 10% in North America and 5% in China, with potential for accelerated industry progress [18]. Conclusion - The solid-state transformer industry is poised for significant growth driven by technological advancements and increasing demand for efficient power solutions in data centers. The competitive landscape is evolving, with established players and new entrants vying for market share, while the overall market potential remains substantial.