Photovoltaic (PV) power generation utilizes the photovoltaic effect at semiconductor junctions to convert light energy into electrical energy. The process involves converting the direct current (DC) generated by a PV power station into alternating current (AC) through an inverter. Depending on the grid connection voltage level, transformers perform the necessary step-up operations to transmit the electricity to the national grid, where the typical grid voltage is 10 kV. At the user end, depending on whether the usage is residential or commercial, the voltage is typically 220 V or 380 V, achieved through step-down operations performed by transformers from the grid to the end user.
Transformers play a critical role in the transmission and distribution process. In addition to power transmission and voltage transformation, transformers in PV systems also provide electrical isolation (preventing DC components and leakage currents from entering the grid) and voltage matching. Typically, each 500 kW PV power system requires a 1,000 kVA transformer. PV power stations must also install step-up transformers and auxiliary substation equipment for grid-connected power generation. A photovoltaic step-up transformer refers to a PV transformer capable of boosting the low AC voltage output from the PV inverter to a higher voltage level.
Global Photovoltaic Step-up Transformer Market Overview
In 2023, the global market size for photovoltaic step-up transformers reached $1.229 billion, with an expected growth of $2.407 billion by 2030, representing a compound annual growth rate (CAGR) of 9.05%.
From a production standpoint (volume), China and Europe are the two major production regions, accounting for 63.77% and 15.34% of the market share in 2023, respectively. In the coming years, China is expected to maintain the fastest growth rate, with its market share projected to reach 64.00% by 2030.
In terms of product types (volume), dry-type transformers hold a significant position, with an anticipated market share of 68.37% by 2030. From an application perspective, ground-mounted photovoltaic systems accounted for approximately 87.73% of the market share in 2023, with a CAGR of about 10.25% expected in the coming years.
On the consumption side, China is currently the largest consumer market globally, with a 56.31% market share in 2023, followed by Europe and North America, with shares of 13.44% and 13.39%, respectively. Europe is expected to experience the fastest growth, with a CAGR of approximately 12.40% from 2024 to 2030.
Future Outlook
Photovoltaic step-up transformers, classified as new energy transformers, have broad application prospects in the field of PV power generation.
With the rapid development of domestic advanced soft magnetic material production technology and the continuous maturation of manufacturing processes, the market for high-end materials such as ultra-thin silicon steel strips and amorphous alloy ribbons is expanding, leading to an increasingly sufficient supply. The challenges of raw material costs and supply chain security are expected to be further resolved. The photovoltaic step-up transformer industry is characterized by intense competition in the high-end product segment and overcapacity in the low-end segment. Technological innovation and widespread adoption will further promote product upgrades and iterations, fostering healthy development within the industry.