Why are transformers hot-selling overseas

People’s Daily (March 13, 2026, Page 08)

The seemingly unremarkable transformer has now become a “hot commodity” in overseas markets. Data from the General Administration of Customs shows that the total value of transformer exports exceeded 64.6 billion yuan in 2025, an increase of nearly 36% year-on-year; the average export price per transformer reached 205,000 yuan, up about one-third year-on-year. Many transformer companies have ample orders on hand, with some orders for data centers already scheduled into 2027.

Why are transformers so popular overseas? From a direct perspective, the robust demand in the global market has provided a tailwind for the transformer industry: the electrical grid facilities in developed countries like Europe and the United States are entering a cycle of renewal; emerging market countries are increasing electricity consumption and raising the proportion of clean energy generation, accelerating grid investment layouts; and the construction of computing infrastructure like overseas data centers is speeding up. Multiple layers of demand are driving the growth of transformer exports.

Upon deeper reflection, under this favorable trend, why can Chinese companies stand out among many competing nations and maintain their position as the world’s largest transformer producer? It may be observed from three key words. From these, we can not only understand the reasons for the strong sales but also grasp the deeper logic of how “Made in China” confidently ventures into the world.

The first is “speed,” which stems from the interconnectedness of the industrial chain.

The competitiveness of products lies not only in the products themselves but also in the industrial chain behind them. From raw materials like copper and aluminum to components like iron cores and tap changers, China has established the most complete transformer production system in the world, accounting for about 60% of global capacity. It is the tight integration of upstream and downstream, along with the independent control of the industrial chain, that enables Chinese companies to quickly respond to changes in market demand, with delivery times significantly shorter than the 18 months to 2 years of their American and European counterparts.

The product competitiveness brought by a complete industrial system is not unique to the transformer industry. For example, from high-precision reducers and high-performance servo systems to intelligent controllers, the supporting industrial system for robots is becoming increasingly complete. Robots produced in the Yangtze River Delta have achieved 100% localization of core components and a 40% reduction in costs, with China’s industrial robot exports exceeding imports for the first time in 2025.

Industrial competition cannot be a solo endeavor. Based on scale and supporting advantages, building a safe and efficient industrial chain supply chain is the foundation for companies to “ride the wave” in the international market and the solid foundation for Chinese manufacturing to stand at the forefront.

The second is “adaptation,” which comes from accurately capturing and meeting market demands.

Innovation is reflected not only in technological upgrades but also in the dynamic adaptation of products to market needs. Targeting the environmental needs of the European and American markets, plant oil transformers have been developed; to adapt to the application needs of data centers, compact and highly efficient solid-state transformers have been produced… Whatever the market needs, breakthrough innovations are made accordingly. Through customized production and specialization, the Chinese transformer industry has rapidly grown by addressing customer pain points.

Foreign businessmen have remarked that Chinese merchants have a “keen nose,” stating, “Wherever there is a market opportunity, you can quickly see their presence.” In small appliances, versatile heaters that can heat tea from the top and provide warmth from all sides are popular in the Japanese and South Korean markets; in large machinery, cranes equipped with desert tires and Mars fire extinguishers are well-received in the Middle Eastern market. They all confirm a principle: following the market and revolving around demand can open up broader market spaces for Chinese manufacturing.

The third is “reliability,” which benefits from the empowerment of domestic market scenarios.

Scenarios are important and scarce innovative resources. Domestic upgrades and renovations of electrical grids and the construction of computing infrastructure provide transformer companies with a “training ground” to tackle technical challenges. During the 14th Five-Year Plan period, the State Grid launched the operation of the “Eight AC and Eight DC” ultra-high voltage project, helping China gain a technological voice in ultra-high voltage and smart transformers.

Diverse scenarios in urban governance, logistics transportation, and more support the low-altitude economy industry to take flight; complex environments such as high altitudes, deserts, and low wind speeds force wind power companies to develop customized solutions… China’s super-large market and rich application scenarios allow Chinese manufacturing to fully verify reliability and practicality before going global.

Looking back at the strong sales of transformers overseas, it is the foundation of the industry, innovation momentum, and scenario advantages that give Chinese companies ample confidence in participating in international competition amid the rapidly changing uncertainties of the external environment. This also inspires us that no matter how the trends change, as long as we hone our internal skills, continuously strengthen our capabilities, and promote the industry to develop in new and better directions, we can always remain invincible.