Transformer Hot Spotlight

1.The market growth: renewable energy and infrastructure investment double wheel drive

Dry-type transformer demand outbreak

In the context of the rapid development of renewable energy, dry-type transformers have become the focus of the market due to environmental protection, safety and other characteristics. Data show that in 2025, China's dry-type transformer annual output is expected to reach 380 million kVA, with an average annual growth rate of 5.67%.1 Wind power, photovoltaic and other areas of surging demand, the head of the enterprise, such as the gold plate technology in 2020 dry-type transformer production has exceeded 26,390,000 kVA, the growth rate of revenue of more than 60%.1 The overall market scale continues to expand.

Overall market size continues to expand

In 2023, the total domestic transformer output reached 2.075 billion kVA, and is expected to exceed 2.2 billion kVA in 2025.2 The construction of extra-high voltage power grids, upgrading of urban distribution networks and the expansion of charging piles for new energy vehicles have become the main driving force, and the growth rate of the extra-high voltage transformer market is l

2. the policy guidance: energy efficiency upgrade and green transformation into the core

National energy efficiency standards to accelerate the landing

In 2024, the ‘Notice on In-depth Development of Energy Efficiency Diagnosis of Key Energy Consumption Units’ requires mapping the energy efficiency level of transformers in use, and promoting the elimination of old equipment.34 By 2025, the proportion of energy-efficient power transformers needs to be increased by 10 percentage points, with an annual carbon dioxide emission reduction of about 9.3 million tonnes of carbon dioxide10.

Local policies to strengthen green manufacturing

Shanghai, Guangdong and other provinces and municipalities have introduced equipment renewal programmes to explicitly promote the transformation of energy-consuming transformers and green silicon steel material research and development.34 Yunnan Province has proposed the development of plateau-type energy-saving transformers, and Jiangsu Province plans to bring the energy efficiency of key industry-using equipment up to the international advanced level in 2027.3

3, technological innovation: new materials and intelligent reshaping of the industry

Amorphous alloy material breakthrough

Amorphous alloy transformer due to no-load loss reduction of 60% -80%, become the first choice for energy-saving transformation of the power grid. Domestic enterprises such as TBEA has achieved large-scale production, promoting the overall improvement of the industry's energy efficiency level 79.

Intelligent and digital integration

Intelligent transformer integrated Internet of Things, edge computing technology, remote monitoring and fault warning. Xuji Electric and other companies have launched intelligent transformer and distribution systems adapted to new energy grid integration, with revenue growth of 13.5% year-on-year in 20237.

4. the competitive landscape: head enterprises dominate the high-end market

Gradual increase in industry concentration

TBEA led the market share of 4.09%, followed by Xuji Electric and Baochang Electric, but small and medium-sized enterprises still occupy more than 70% of the low-end market share.12 The acceleration of domestic substitution in the high-end field will increase TBEA's overseas revenue to 18% in 2023.7 The export market continues to expand.

Export market continues to expand

China's transformer exports for three consecutive years to maintain double-digit growth in 2023 reached 2.74 million (units), Southeast Asia, Africa and other emerging markets to become the main incremental 27.

5. Future Prospects: Technology Iteration and Global Market Opportunities

Ultra-high voltage and flexible transmission technology

With the construction of the ‘Shagoe Wasteland’ large-scale wind base, ± 800kV and above UHV DC transformer demand surge, the head of the enterprise R & D investment accounted for more than 5%57.

Circular economy and recycling system

The National Development and Reform Commission has proposed to improve the transformer recycling system, and it is expected that the utilisation rate of recycled materials for retired transformers will reach more than 90% in 2025310.

Conclusion

In 2025, China's transformer industry is shifting from scale expansion to ‘technology + green’ double-wheel drive. The release of policy dividends, accelerated technology iteration and globalisation will drive the industry to energy efficient and intelligent transformation. Enterprises need to seize the window period of equipment renewal, break through the core materials and high-end market barriers, in order to occupy the first opportunity in the new round of competition.