Why are transformers hot-selling overseas

People’s Daily (March 13, 2026, Issue No. 08)

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

Why are transformers selling well overseas? Looking at the direct reasons, strong global demand has provided a favorable wind for the industry: power grid infrastructure in developed countries such as Europe and the US is entering a renewal and upgrade cycle; emerging markets are experiencing increased electricity consumption and a higher proportion of clean energy generation, accelerating grid investment and planning; overseas data centers and computing infrastructure are advancing rapidly. The convergence of multiple demands is driving export growth.

Going one step further, under the market’s opportunities and challenges, with multiple countries’ enterprises competing on the same stage, why has China been able to stand out and remain the world’s largest transformer producer? It’s worth examining three key words. From these, you can understand not only the reasons for the hot sales but also the deeper logic of how “Made in China” confidently ventures into the world.

First is “speed,” which stems from an interconnected, tightly linked industrial chain.

Product competitiveness depends not only on the product itself but also on the supporting industrial chain behind it. From raw materials like copper and aluminum to key components such as iron cores and tap changers, China has established the most complete transformer manufacturing system in the world, with capacity accounting for about 60% of global output. It is precisely the close integration and autonomous control of upstream and downstream that enable Chinese companies to respond swiftly to market changes, with delivery cycles far shorter than Europe and the US, which typically take 18 months to two years.

The product competitiveness brought by a complete industrial system is not unique to transformers. For example, in high-precision reducers, high-performance servo systems, and intelligent controllers, the supporting industrial ecosystem for robotics is becoming increasingly mature. Robots made in the Yangtze River Delta region, in particular, have achieved 100% localization of core components and reduced costs by 40%; in 2025, China’s robot exports first surpassed imports.

Industrial competition cannot be fought alone. Relying on scale and supporting advantages, building a safe and efficient industrial chain and supply chain is the foundation of confidence for companies to lead in international markets and the solid base for China’s manufacturing to stay at the forefront.

Second is “fit,” which comes from precise understanding and fulfillment of market needs.

Innovation is reflected not only in technological upgrades but also in how products dynamically adapt to market demands. To meet Europe and the US’s environmental requirements, companies developed vegetable oil transformers; to suit data center needs, they created compact, high-efficiency solid-state transformers… Whatever the market demands, Chinese companies break through barriers. Through customized production and specialization, China’s transformer industry rapidly grows by solving customer pain points.

Foreign businessmen praise Chinese merchants as having “a very sharp nose.” “Wherever there is a market opportunity, you will quickly see their presence.” In small appliances, multi-purpose warmers that can heat tea from the top and provide heating from all sides are popular in Japan and South Korea; in large machinery, cranes equipped with desert tires and Mars fire extinguishers are favored in the Middle East. All these confirm one principle: following the market and centering on demand opens broader space for Chinese manufacturing.

Third is “reliability,” which benefits from domestic market scenario empowerment.

Scenarios are an important and scarce resource for innovation. Domestic projects like grid upgrades and infrastructure construction have provided “training grounds” for transformer companies to overcome technical challenges. During the “14th Five-Year Plan,” the State Grid Corporation of China completed and put into operation the “Eight AC and Eight DC” ultra-high-voltage projects, helping China gain technological discourse power in ultra-high-voltage and smart transformer fields.

Diverse scenarios such as urban governance and logistics support the growth of low-altitude economy; complex environments like high altitudes, deserts, saline-alkali lands, and low wind speeds push wind power companies to develop tailored solutions. China’s large-scale domestic market and rich application scenarios allow Chinese manufacturing to fully verify reliability and practicality at home before going global.

Looking back at the hot sales of transformers overseas, amid the rapid and uncertain external environment, it is precisely the industry’s foundation, innovation drive, and scenario advantages that give Chinese companies ample confidence to participate in international competition. This also reminds us that no matter how market headwinds shift, as long as we strengthen internal capabilities, continuously grow our strength, and promote industry development toward new heights and better quality, we can always remain invincible.