Why Transformers Are Hot Sellers Overseas

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

Seemingly inconspicuous transformers have now become hot commodities in overseas markets. According to the General Administration of Customs, in 2025, the total export value of transformers exceeded 64.6 billion yuan, a year-on-year increase of nearly 36%; the average export price per transformer reached 205,000 yuan, up about one-third compared to the previous year. Many transformer companies have ample orders on hand, with some orders for data centers already scheduled through 2027.

Why are transformers so popular overseas? From a direct perspective, the booming global demand has given the industry a strong boost: developed countries in Europe and America are entering a renewal cycle for their power grid infrastructure; emerging markets are increasing electricity consumption and raising the proportion of clean energy generation, accelerating grid investment and deployment; overseas data centers and computing infrastructure are rapidly expanding. These multiple demands together drive the growth of transformer exports.

Looking deeper, under the trend, many international companies compete on the same stage. Why has China been able to stand out and remain the world’s largest producer of transformers? Let’s consider three key words. From these, not only can we understand the reasons behind the hot sales, but also the deeper logic of “Made in China” confidently entering the world stage.

First is “speed,” which stems from a tightly integrated supply chain.

Product competitiveness depends not only on the product itself but also on the underlying industrial chain. From raw materials like copper and aluminum to components such as iron cores and tap changers, China has established the most complete transformer manufacturing system in the world, with about 60% of global capacity. The close integration of upstream and downstream sectors and independent control of the supply chain enable Chinese companies to respond quickly to market changes, with delivery cycles much shorter than the 18 months to two years typical of European and American manufacturers.

The product competitiveness brought by a complete industrial system is not unique to transformers. For example, from high-precision gear reducers and high-performance servo systems to intelligent controllers, the robot supporting industry chain is becoming increasingly complete. Robots made in the Yangtze River Delta now achieve 100% localization of core components and reduce costs by 40%. In 2025, China’s industrial robot exports surpassed imports for the first time.

Industrial competition cannot be fought alone. Relying on scale and supporting advantages to build a safe and efficient industrial and supply chain is the foundation for companies to “ride the wave” in international markets and the solid base for China’s manufacturing to lead the trend.

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

Innovation is reflected not only in technological upgrades but also in dynamic adaptation of products to market demands. For example, developing vegetable oil transformers to meet environmental requirements in Europe and America; designing compact, high-efficiency solid-state transformers to suit data center applications… Whatever the market needs, Chinese transformer companies break through accordingly, through customized production and specialization, rapidly growing by solving customer pain points.

Foreign businessmen often comment that Chinese entrepreneurs have “a keen sense of smell”—where there is a market opportunity, they appear quickly. In small appliances, multi-purpose heaters that can warm tea on top and provide heating on all sides are popular in Japan and Korea; in heavy machinery, cranes equipped with desert tires or Mars fire extinguishers are favored in the Middle East. These all confirm a principle: following the market and turning around demand can open broader market space for Chinese manufacturing.

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

Scenes are an important and scarce resource for innovation. Upgrading and transforming China’s power grid and building computing infrastructure provide “training grounds” for transformer companies to overcome technical challenges. During the 14th Five-Year Plan period, the State Grid completed and put into operation the “Eight Crosses and Eight Directs” ultra-high-voltage projects, helping China gain technological dominance in ultra-high voltage and smart transformers.

Diverse scenarios such as urban governance and logistics support the rapid development of low-altitude economy industries; complex environments like high-altitude, desert, and low-wind conditions push wind power companies to develop customized solutions… China’s massive market and rich application scenarios allow Chinese manufacturing to thoroughly verify reliability and practicality before going abroad.

Looking back at the hot overseas sales of transformers, in the face of rapid external environment changes and uncertainties, the industry’s solid foundation, innovative drive, and scenario advantages give Chinese companies ample confidence to participate in international competition. This also reminds us that no matter how trends shift, as long as we strengthen our core capabilities, continuously grow our strength, and promote industry development in new and better directions, we can always remain invincible.