In 2026, the global electrical industry is at a critical juncture of deep restructuring. Under the triple driving forces of grid aging and upgrading, large-scale integration of new energy, and the rapid development of computing infrastructure, the demand for power transformers and reactors continues to rise. As the world’s largest manufacturer of power equipment, China’s export of transformers, reactors, and core materials such as silicon steel sheets has experienced explosive growth, becoming an important force driving global energy transformation. The latest data shows that from January to February 2026, China’s export of transformers above 10MVA increased by 61% year-on-year, with exports to the United States surging by 182% and reaching a new high.
A New Global Pattern in the Electrical Industry
Structural shortages continue to worsen.
Currently, there is a severe imbalance between supply and demand for large-scale power transformers worldwide. The delivery cycle has extended from an average of 12 months in 2019 to over 24 months, and some high-end models have even been scheduled for production until 2028. In terms of prices, the cumulative increase in transformers on the international market has reached 77% (since 2019), and the equipment shortage in North America is as high as 35%. The demand side is mainly driven by three major trends:
1. The global AI data center construction boom has increased the demand for power load.
2. The EU’s “Green New Deal” requires the elimination of outdated equipment with energy efficiency lower than the IE3 standard.
3. The annual average growth rate of electricity consumption in emerging markets such as Southeast Asia and Africa is 7%, and the expansion of power grids is urgently needed.
Accelerated iteration of the technical route
The industry technology is undergoing a transition from traditional electromagnetic structures to intelligent and efficient ones:
- 110kV grade amorphous alloy transformers have become the mainstream products, widely used in urban distribution networks and new energy power stations.
- The patent competition for solid-state transformers is becoming increasingly fierce. European and American enterprises occupy more than 80% of the high-end market share in the field of high-frequency power electronics.
- The application of superconducting materials in reactors has achieved breakthrough progress, significantly improving system energy efficiency and dynamic response capabilities.
II. In-depth Analysis of China’s Export Situation
The breakthrough of key data
In the first two months of 2026, China’s power equipment exports delivered an outstanding performance:
| INDEX | DATA FOR JANUARY-FEBRUARY 2026 | COMPARED CHANGE |
| Total export value of transformers | USD 629,000,000.00 | +61% |
| Export volume to the United States | Accounting for 18% of the total amount | +182% |
| Average price per unit | USD 31,430.00 | +30% |
| The proportion of large-scale equipment with a capacity of over 330 MVA | 65% | +15% |
This growth is not only reflected in the quantity, but also in the upgrading of the product structure towards higher-end levels.
Regional Market Dynamics
North American Market: Affected by policy incentives and insufficient local production capacity, the import dependency rate is as high as 72%, making it an important export destination for China’s high-end transformers.
European Market: With the intensive launch of new energy grid connection projects, the overall equipment shortage exceeds 40%, providing broad space for Chinese enterprises.
Southeast Asian Market: Each country has increased investment in power grid infrastructure, with the import growth rate of power equipment reaching 55%, making it the fastest-growing region.
III. Decoding the Core Competitiveness of Made-in-China Products
The advantages of the entire industrial chain are prominently displayed.
China’s power equipment manufacturing industry has established a complete closed loop from raw materials to complete machines:
Material autonomy and controllability: High-grade silicon steel sheets achieve 100% self-sufficiency, and the 0.18mm ultra-thin specification is exclusively produced globally.
Leading technology: The no-load loss of amorphous alloy transformers is 15% lower than international standards, and its energy efficiency performance ranks among the world’s top.
Outstanding delivery efficiency: The average delivery cycle is only 9 months, far exceeding the 24-month level of international counterparts.
IV. Challenges and Response Strategies
Rise in trade barriers
The complex external environment brings new challenges:
1. The United States has imposed a 25% tariff on transformers with a capacity of 330 MVA and above.
2. The EU’s energy efficiency regulations have led to a 40% extension of the certification period.
3. Countries like India and Vietnam have implemented mandatory requirements for domestic production rates, restricting the purchase of foreign equipment.
Pathways for technological breakthrough
To overcome the dual constraints of “certification barriers” and “material bottlenecks”, the industry is taking three major measures:
Material research: Relevant departments have set up a 20 billion yuan special fund to focus on breaking through the engineering application of high-temperature superconducting materials.
Standard output: Actively promoting the inclusion of Chinese technical proposals in the IEC international standard system.
Green manufacturing: Setting a target of reducing energy consumption by 40% in green power production by 2028, and building a low-carbon supply chain.
The prospect of future
Short-term forecast (2026)
The total export value of transformers for the entire year is expected to exceed 10 billion dollarsThe demand for new energy supporting reactors is expected to increase by 40%.
The proportion of electrical equipment used in hydrogen production and storage will rise to 15%.
Medium and long-term transformation
2028 goal: The proportion of high-efficiency products in new energy-saving transformers will reach 75%.
2030 prospect: The global transformer market size is expected to exceed 200 billion US dollars.
China’s positioning shift: Transition from “capacity output” to “technology standard output”, competing for global energy equipment discourse power.
Industry warning:
At present, it is urgently necessary to accelerate the pursuit in cutting-edge fields such as solid-state transformers and superconducting materials. Only by breaking through the technical core bottleneck and international certification barriers can China truly consolidate its leadership position in the global energy equipment sector.
