On February 4, 2026, industry research and corporate disclosure data show that driven by the dual boom of global power grid upgrading and AI computing infrastructure construction, the transformer market has witnessed explosive demand growth. Core domestic production bases are operating at full capacity, with customized product orders scheduled until the end of 2027. Leveraging its complete industrial chain advantages, China has become a core global supplier of transformers, with exports achieving growth in both volume and price.
The surging global demand for transformers stems from two major overlapping market drivers. On the one hand, European power grid upgrading is accelerating. Widespread blackouts in Spain and Portugal in 2025 have forced the EU to accelerate power grid reform. The bloc has launched a comprehensive grid initiative with an investment of nearly 1.2 trillion euros to modernize power infrastructure, shortening the approval period for grid projects from 10 years to 2 years. On the other hand, the construction of AI Data Centers (AIDC) is booming in North America. Frequent grid failures have exposed the adaptability flaws of the existing power system, and the North American Electric Reliability Corporation (NERC) has introduced stringent new grid connection regulations, fueling a sharp rise in demand for supporting transformers for data centers.
The domestic market also maintains strong momentum. The capacity utilization rate of transformer factories in Guangdong and Jiangsu, two core production hubs, remains above 90%, with leading enterprises operating at full production capacity. In 2025, the scale of China’s transformer market grew by more than 20% year-on-year, with high-end products for AI computing power and ultra-high voltage (UHV) applications accounting for over 35% of total orders, becoming the core driving force of industrial growth. Benefiting from robust market demand, listed enterprises including China XD Group and Siyuan Electric have achieved substantial growth in revenue and profits, while Jiuzhou Group turned losses into profits.
China’s export market performance is particularly outstanding. As the world’s largest transformer producer, China accounts for 60% of global production capacity. In 2025, China’s transformer export volume soared to 9.037 billion US dollars, a 146% increase compared with 2021. The average export price rose from 12,000 US dollars per unit in 2020 to 20,800 US dollars per unit, nearly doubling. According to Galaxy Securities research reports, North America currently faces a 30% supply gap in power transformers, with 80% of products relying on imports. Thanks to its short production cycle and high cost performance, Chinese transformers have become core supplies for the North American and European markets, and enterprises in Jiangsu have achieved batch exports of UHV transformers to North America.
