A Snapshot of The Latest Developments in The Transformer Industry

First, the leading enterprises performance is bright, industry boom degree climbed

China Xidian 2025 first quarter financial report shows that the company's net profit reached 295 million yuan, up 42.1% year-on-year, non-net profit increased by as much as 54.1% year-on-year. This growth is mainly benefited from the accelerated landing of grid transformation projects and the release of demand in the field of new energy. During the same period, the total domestic transformer output is expected to exceed 2.2 billion kVA, with an average annual growth rate of 5%, extra-high voltage projects and urban power grid upgrades become the core driving force.

Second, technological innovation to promote industrial upgrading

Intelligent and digital

AI technology has been accelerated into power grid management, extending transformer life through real-time monitoring and predictive maintenance, and reducing operation and maintenance costs by 30%-50%. The penetration rate of intelligent substations has reached 60%, and IoT technology helps realise remote energy optimisation and distribution.

Speed up the application of environmentally friendly materials

Amorphous alloy transformer due to iron loss reduction of 70% -80%, in the State Grid bidding is expected to increase from 15% (2023) to 50% (2030).6. Dry-type transformers with oil-free insulation advantage, 2025 production will reach 380 million kVA.

Third, new energy demand generates market growth

Wind power, photovoltaic and other new energy grid demand surge, supporting the transformer market annual growth rate of 15%. Hydrogen electrolysis equipment and high-power rectifier transformer customised demand, the eastern seaboard occupies 40% market share, the mid-west is relying on new energy bases to accelerate catch-up.

Fourth, the policy and challenges co-exist

Policy dividend release

A level of energy-efficient transformers can enjoy 70% VAT refund, energy-saving renovation projects were 30% equipment purchase subsidies.

Cost pressure intensified

Silicon steel sheet prices rose 10% in 2024, resulting in industry profits shrinking 8%. Small and medium-sized due to technical barriers and overcapacity, facing increased competition in the low-end market.

V. Global Competitive Landscape Reshaping

Domestic head enterprises such as TBEA and Pinggao Electric occupy 65% of the high-voltage market share, and the field of intelligent transformers to accelerate domestic substitution. International giants ABB, Siemens through joint ventures to expand the advantages of converter technology, the global market size of large power transformers is expected to exceed 23.6 billion U.S. dollars in 2034, with a compound annual growth rate of 6.76%.

Conclusion

2025 transformer industry in technology iteration and policy-driven continued expansion, but need to deal with raw material fluctuations and structural overcapacity challenges. Leading enterprises with technical barriers and scale effect to lead the market, intelligent, green transformation will become the focus of future competition!