Behind the lights in your living room and the roaring machines in your factory are an insignificant "energy conditioner"-a transformer. In 2024, this once-unknown "big iron box" suddenly became a global hot commodity: Asian power stations are urging orders, European projects and other goods, African power grids are waiting for goods, and orders from China manufacturers are scheduled for half a year later. It is not that transformers have suddenly become "popular", but that the normal operation of the global power system is inseparable from them.
The global thirst for transformers has long been written into the data. Everbright Securities data shows that from January to August 2024, the export value of my country's large and medium-sized transformers reached 19.6 billion yuan, a year-on-year surge of 49.3%. Among them, the export growth rates of Europe and North America were as high as 88.1% and 71.7% respectively. Buyers from many countries went straight to China factories with orders. Behind this wave of craze is the "collective upgrade" of the global power system.
The popularization of new energy is the first to break the balance between supply and demand. Distributed power supplies such as photovoltaics and wind power bloom at multiple points. It is no longer a centralized power supply from a single power plant. Each power generation node requires a dedicated transformer for voltage regulation. The explosion of the electric vehicle and energy storage industries has added more firepower: the spread of charging piles and power exchange stations has caused the demand for small and medium-sized transformer equipment to surge; the power of single cabinets in AI data centers has soared from 10kW to 100kW. Any slight fluctuations in voltage may lead to computing power interruption, forcing dual upgrades in transformer specifications and quantity, just like the need to widen roads for urban expansion. The explosive growth of power demand has made transformers a much-needed product.
But global production capacity cannot keep up with this wave of demand. Transformers may seem to be mechanical devices, but in fact they contain "fine craftsmanship": the iron core stacking accuracy needs to reach millimeter level, the coil winding density directly affects energy efficiency, and slight omissions in the insulation drying process may cause high-voltage arc damage to equipment. More importantly, the core material, oriented silicon steel, was once monopolized by foreign countries, and its manufacturing difficulty is comparable to "embroidery on steel." Wood Mackenzie data shows that the current average global transformer delivery cycle has exceeded 2 years, and large equipment even has to wait 4 years. Many new energy projects have been forced to be postponed due to lack of equipment.。
China's ability to accept this wave of "global orders" relies on the hard strength of the entire industry chain. In the field of core materials, my country's oriented silicon steel production capacity has reached 3 million tons. With its independently developed laser scoring technology, Baosteel has won 40% of the global market share. Its products can save electricity annually for transformers, equivalent to rebuilding a Three Gorges Hydropower Station. From silicon steel and copper to insulating paper, the domestic supply chain has achieved "self-sufficiency" and avoided the risk of "stuck necks". Years of UHV construction have honed our manufacturing skills: TBEA's overseas power transmission and transformation orders in 2024 will increase by 60% year-on-year. The overseas delivery cycle of Huaming Equipment will be only 2-3 months, which is far faster than that of European and American companies by more than 2 years.。
The "China Mark" is engraved in the demand portraits of different markets: Asia's new energy projects are rushing for the construction period, giving priority to China's rapid delivery; in the construction of basic power grids in Africa, China companies 'localized services are more down-to-earth; Europe is limited by local production capacity and proactively purchases China equipment for emergencies; although North America has local manufacturing policies, facing a 30% supply and demand gap, it still needs to rely on import supplements。
What is more noteworthy is that China's transformers are shifting from "fighting for quantity" to "fighting for technology." In August 2025, the world's first 500-kilovolt vegetable oil transformer developed by Guangzhou Power Supply Bureau of China Southern Power Grid was successfully put into operation. Natural ester insulating oil was used to replace mineral oil, which could reduce carbon by 72.8 tons throughout its life cycle and achieve 24-hour intelligent monitoring.。The launch of smart transformers and environmentally friendly equipment has transformed China companies from "suppliers" to "solution providers." They not only sell equipment, but also provide operation and maintenance upgrade services.
This wave of craze will not fade in the short term. RystadEnergy predicts that global transformer production capacity expansion will take 1-2 years, and the tight supply and demand situation will continue until the end of 2026。With the triple demands of new energy layout, AI computing power growth, and old power grid upgrades, the "just-needed attribute" of transformers will only become stronger. The competitive advantages of China companies have gradually extended from production capacity and speed to technical services and standard setting.
A small transformer has become the "just-needed code" for global energy transformation. With their solid supply chains, excellent manufacturing capabilities and flexible delivery services, China companies truly stand at the C position on the world stage. The power grid industry never needs fancy hype. The most powerful "business card" is the hard power that can keep the lights on and the factories running in various countries. When the world is asking "Where is the transformer?" the answer given by China has long been written in every equipment going to sea.
