Why are transformers hot-selling overseas

《People’s Daily》（March 13, 2026, Edition 08）

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

Why are transformers selling so well overseas? Looking at the direct reasons, strong demand in the global market has given the transformer industry a boost: power grid facilities in developed countries such as Europe and the United States are entering a period of replacement and upgrades; in emerging-market countries, electricity consumption is increasing and the share of clean-energy generation is rising, accelerating the pace of grid investment and deployment; overseas data centers and other compute-power infrastructure are also being built faster. The combined effect of multiple demands is driving growth in transformer exports.

Digging one layer deeper, under the wave of opportunity, companies from many countries are competing on the same stage—so why can China stand out and remain the world’s largest transformer producer? It’s worth observing this through three keywords. From them, you can not only understand the reasons behind the products’ hot sales, but also the deeper logic behind “Made in China” confidently and calmly breaking into the world.

First is “speed,” which comes from every link in the industrial chain being tightly connected.

A product’s competitiveness depends not only on the product itself, but also on the industrial chain behind it. From raw materials such as copper and aluminum, to components such as iron cores and tap changers, China has built the world’s most complete transformer manufacturing system, with production capacity accounting for about 60% of the global total. It is precisely the close “lock-in” between upstream and downstream and the upstream-and-downstream being independent and controllable that enables Chinese companies to respond quickly to changes in market demand, with delivery lead times far shorter than the 18 months to 2 years typical of manufacturers in Europe and the United States.

The product competitiveness enabled 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, supporting robot-industry ecosystems are becoming increasingly mature. Robots made with the “Long Triangle” manufacturing belt have even achieved 100% localization of core components, reducing costs by 40%. In 2025, China’s exports of industrial robots for the first time exceeded imports.

Industrial competition cannot be fought alone. By building a safe and efficient industrial-chain and supply chain based on advantages in scale and supporting systems, companies find the confidence to ride the tide in international markets—and this is also a solid foundation for Chinese manufacturing to stand at the forefront.

Second is “fit,” which comes from accurately capturing and meeting market demand.

Innovation is reflected not only in technical upgrades, but also in the dynamic fit of products to changing market needs. Aiming at the environmental-protection demands of Europe and the United States, companies have developed plant-oil transformers; to fit the application needs of data centers, they have developed solid-state transformers that take up less space and deliver higher efficiency… By breaking through wherever the market needs it—growing quickly by solving customers’ pain points through customized production and doing it with focus and precision—China’s transformer industry is advancing rapidly.

An overseas businessman remarked that Chinese merchants have “a nose that’s too sharp.” “Wherever there is market opportunity, you can see their presence there soon enough.” In small home appliances, multi-directional heaters that can brew hot tea from the top and provide warmth from all sides have gained popularity in the Japanese and Korean markets. In large machinery, cranes equipped with desert tires and Mars fire extinguishers, among other configurations, have been welcomed in the Middle East market. They all confirm a simple truth: moving with the market and turning around demand can open up broader space for Chinese manufacturing in global markets.

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

Scenarios are an important and scarce resource for innovation. Domestic efforts such as power grid upgrade and reconstruction, and the construction of compute-power infrastructure, provide transformer companies with a “training ground” to tackle technical challenges. During the “14th Five-Year Plan” period, the State Grid completed and put into operation the “Eight Connections and Eight Directions” ultra-high-voltage projects, helping China secure the right to speak on technical matters in areas such as ultra-high-voltage and intelligent transformers.

In diverse scenarios such as urban governance and logistics and transportation, the low-altitude economy industry takes off; in complex environments such as high altitudes, “Shagao Huang,” and low wind speeds, these pressures force wind-power enterprises to develop customized solutions… China’s huge domestic market and abundant application scenarios allow Chinese manufacturing to fully verify reliability and practicality at the “front door” before going abroad.

Looking back at the transformer boom overseas, in the face of uncertainty brought by rapidly changing external conditions, it is precisely the industrial foundation, innovation drive, and scenario advantages that give Chinese companies ample confidence to participate in international competition. This also tells us that no matter how the winds of opportunity change, as long as we strengthen our internal capabilities, continuously grow our own strength, and promote the industry toward new and better development, we can always remain invincible.