Under the dual pressure of aging global power grid infrastructure and the surge in electricity demand from emerging industries, the shortage of transformer supplies has become a key bottleneck restricting global energy transition and power infrastructure development. Delivery cycles for European and American manufacturers typically range from 1.5 to 4 years, while China's transformer industry has achieved countercyclical high growth through its full industrial chain layout, excellent cost delivery efficiency, and rapid technological iteration, becoming a key force in alleviating global supply pressure. China's transformer exports hit a record high in 2025, with a total value of 64.6 billion RMB, a year-on-year increase of nearly 36%, accounting for approximately 60% of global production capacity.
Full Industrial Chain Coordination Ensures Stable Supply
The core advantage of China's transformer industry lies in its complete and independent industrial chain. From upstream core raw materials such as oriented silicon steel, to midstream components and insulation materials, and downstream complete machine manufacturing, an efficient and coordinated industrial ecosystem has been established. Especially in the case of oriented silicon steel, which accounts for a large portion of costs, China holds over 56% of global production capacity and over 60% of global output. Companies like Baosteel have achieved internationally leading levels in high magnetic flux oriented silicon steel technology. This enables the industry in China to effectively withstand international raw material price fluctuations and logistics disruptions, laying a solid foundation for fast delivery. Some companies have even achieved a full chain layout from "oriented silicon steel" to "energy-efficient transformers."
Cost and Delivery Efficiency Form the Core Global Market Competitiveness
In the face of a huge supply-demand gap, the cost control and delivery speed advantages of China's transformer industry have been greatly magnified. Chinese transformer products with the same performance cost only 1/3 to 1/5 of their European counterparts. Even more critical is the delivery cycle—while international giants take years to deliver, Chinese companies can deliver customized products within approximately 12 weeks, and ultra-high voltage equipment can be shipped in 3 to 6 months. This efficiency directly translates into strategic guarantees for customer projects. For example, in projects like the Saudi power grid, the fast delivery of Chinese companies prevented the huge losses that could have been caused by project delays. In the first eight months of 2025, China's transformer exports to Europe surged by over 138%, confirming this competitive advantage with market orders.
Technological Iteration Drives Product Upgrades toward Green and Smart Technologies
The competitiveness of China's industry is not only due to cost and scale but also to continuous technological breakthroughs and product upgrades. China has broken the international monopoly on the high-end transformer market, achieving mass production of 1000kV ultra-high voltage transformers and customizing high-end equipment for the world's largest electrolytic water hydrogen production project, placing its technological capabilities in the global first tier. At the same time, the industry is actively evolving toward green and intelligent technologies: energy-efficient amorphous alloy transformers, the world's first 500kV vegetable oil-insulated transformer, and other products have become export highlights. The proportion of intelligent transformers integrated with IoT and AI algorithms is continuously increasing, achieving a leap from equipment manufacturing to "manufacturing + services."
2026 World Power Industry Expo: A Platform for Verifying China's Transformer Industry's Capabilities
The 2026 World Power Industry Expo aims to validate the claims of China's transformer industry regarding "full industrial chain coordination," "efficient delivery," and "technological iteration." It will systematically present the complete value chain, from key materials (such as high-end oriented silicon steel), core components, to smart transformers and grid system solutions, providing an international verification window and a dialogue platform.
The expo will bring together grid operators, large EPC contractors, energy investment institutions, and professional buyers from over 100 countries. It will provide a focused and efficient platform for discussions on technical adaptations based on regional standards, business negotiations based on total lifecycle costs, and joint research on technologies for the future of smart grids. This will serve as a key bridge for global customers' specific project solutions, directly contributing to cost reduction and efficiency enhancement in global energy infrastructure projects, ensuring construction cycles.
The World Power Industry Expo's participation and shaping of this process will not only lead the development direction of a trillion-dollar equipment market but also contribute to creating a more efficient, interconnected, and resilient global energy network, laying a solid material foundation for the sustainable development of human society.