The convergence of aging power grid infrastructure and surging electricity demand has created rigid, structural demand for transformers worldwide. The current global wave of transformer demand is essentially the result of a supply–demand imbalance in power infrastructure, triggering industry-wide tension. As the core equipment for voltage conversion and power transmission, transformers have become a critical bottleneck: their shortage is now directly constraining global energy transition efforts and the rollout of power infrastructure upgrades.
Aging Grid Infrastructure Drives Urgent Replacement Demand
Across Europe and North America, most backbone grid facilities have been operating continuously for 40–50 years—well beyond their original design life. According to data from the Edison Electric Institute (EEI), more than 70% of transformers in the United States are operating past their intended service life. The situation in Europe is equally severe. A Goldman Sachs report released in September 2025 noted that a large share of grid equipment has entered a mandatory replacement cycle. In response, the European Union plans to invest €1.2 trillion over the next decade in grid modernization, while the United States has earmarked approximately $1.1 trillion for power sector upgrades. However, transformer supply shortages have already begun to delay the implementation of these large-scale investment plans.
Rapid Growth of Emerging Industries Pushes Power Demand to New Highs
The explosive expansion of artificial intelligence, data centers, and renewable energy is placing unprecedented pressure on power infrastructure. Training a single large AI model consumes enormous amounts of electricity; a newly built mid-sized data center by Meta alone requires hundreds of step-down transformers. In the renewable energy sector, a utility-scale photovoltaic plant with a capacity of 1 GW typically requires about 1.8 times as many transformers as a thermal power plant of the same size. The widespread adoption of electric vehicles has further amplified demand. In 2024, global production of 17.3 million new energy vehicles drove transformer demand up by 25% year-on-year. The concentrated emergence of these new industries is pushing already aging grids to the limits of their carrying capacity.
Insufficient Global Manufacturing Capacity Intensifies Supply–Demand Tensions
Capacity expansion among traditional equipment manufacturers is lagging far behind market demand. Hitachi Energy’s CEO has publicly stated that the transformer industry is operating at full capacity, and that it will take three to four years before planned expansions translate into effective supply. Siemens Energy expects its additional capacity to come online no earlier than 2028. As a result, delivery times have lengthened dramatically. The global average lead time for transformers has now extended to 115–130 weeks, while large power transformers face delivery cycles of 2.3 to 4 years. Analysts at Rystad Energy project that the global transformer supply crunch will persist at least through the end of 2026.
The transformer shortage has exposed the fragility of critical equipment supply chains within the global energy infrastructure upgrade process. Addressing this systemic challenge cannot rely on the efforts of a single country or company; it requires deep integration across the global industrial chain—in technical standards, capacity coordination, and supply–demand alignment.
The World Power Supply Expo 2026 presents a comprehensive industry landscape, spanning high-grade silicon steel, advanced insulation materials, intelligent winding equipment, and next-generation energy-efficient transformers. It serves as a high-efficiency interface connecting global grid operators, major EPC contractors, established power equipment giants, and emerging manufacturing forces.
By bringing together full value-chain participants from China, Europe, North America, and emerging markets, the expo aims to facilitate substantive dialogue on key issues such as power efficiency standards, modular design, rapid deployment solutions, and supply chain resilience. This cross-regional, cross-sector convergence is designed to accelerate the adoption of innovative solutions, optimize global capacity allocation, and provide a critical collaboration node to help ease current supply constraints and support global grid upgrade programs.
The current global shortage and upgrade demand signal that the world is entering a new cycle of power infrastructure reconstruction. Breaking through this bottleneck is not only about near-term project delivery; it will profoundly influence the pace of national energy transitions, the layout of emerging industries, and global climate action. Building a more resilient, intelligent, and efficient power equipment supply chain is tantamount to laying the foundation for economic security and sustainable development over the coming decades—its strategic importance is comparable to constructing the “vascular network” of a new energy era.