In 2026, driven by the triple demand of global power grid upgrades, new energy grid integration, and AI computing power expansion, the transformer maintains high prosperity and is steadily transforming in four major directions: green and low-carbon, intelligent and digital, overseas globalization, and solid-state new technologies.
I. Market demand continues to explode, with robust domestic and international orders
At the domestic level, power grid investment in the "5th Five-Year Plan" period is expanding significantly, and wind and solar installed capacity continues to grow. The demand for transformers supporting photovoltaic and wind power stations far exceeds that of thermal power. With the concentrated deployment of AI data centers, high-power distribution transformers have become a rigid necessity. The supply gap in overseas markets is even more pronounced. A large of aging power grids in Europe and the United States are entering an update cycle, and the supply-demand gap for transformers in Europe and the U.S. persists, with orders from companies already booked through 2028. In 2025, China's total transformer exports exceeded 64 billion yuan, a year-on-year increase of 35%, with Southeast Asia, the Middle East, Latin America, and Europe becoming the main incremental markets.
II. Three major long-term development trends
1. Green and energysaving become mandatory thresholds
The "dual carbon" policy is driving the industry to completely phase out high-loss old equipment, making first-tier energy efficiency transformers and natural ester eco- oil-immersed transformers the mainstream. Downstream customers generally increase requirements for carbon footprint and low-loss indicators in tenders. Lightweight and recyclable green materials are widely applied, and highenergy-consuming traditional products are gradually exiting the market. Meanwhile, special grid-connected transformers adapted to the fluctuating operating conditions of wind and solar power have become a key R&D focus
2. Full-link intelligence accelerates popularization
New smart transformers are equipped with built-in sensors and remote communication modules. Combined with digital twin systems, they can achieve real- load monitoring, fault early warning, and remote control, significantly reducing manual operation and maintenance costs. Equipment no longer solely performs the transformer function; it integrates into the smart dispatch system of power grid, serving as a core intelligent terminal of the new power system.
3. Technological iteration of Solid-State Transformers (SST)
Solid-state transformers are the next-generation core technology in the industry a smaller footprint, AC/DC compatibility, and higher conversion efficiency, making them a perfect match for DC data centers and energy storage power station scenarios. Multiple leading domestic manufacturers have with universities to deploy R&D, and they will gradually replace traditional power frequency transformers in the future, opening up a brand-new growth space.
4. Comprehensive upgrade of overseas expansion model
The industry is moving away from the simple equipment-selling model towards overseas factory construction, EPC general contracting, and the collaborative output of localized technical services. Companies such asBEA and Jinpan Technology have already established production bases in Southeast Asia, Turkey, and Mexico. Relying on complete industrial chains and delivery cycle advantages, they continue to seize the market, and the next 2-3 years remain a golden window for exports.
III. Future positioning and challenges of the industry
Industry experts state that 202 to 2030 is a critical stage for the transformer industry to transition from scale expansion to high-quality development. Beyond the opportunities, the industry also faces challenges such as breakthroughs in high-end special equipment, overseas trade barriers, and raw material price fluctuations. In the future, manufacturing enterprises equipped with green technology, intelligent R&D, and global capabilities will continue to hold a market advantage.