Why are transformers hot-selling overseas

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

At first glance, the transformer looks unremarkable—but it 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, increasing by nearly 36%; the average export price per transformer reached 205,000 yuan, up by about one-third year on year. Many transformer companies have abundant orders on hand, and some orders targeted at data centers have already been scheduled for 2027.

Why are transformers selling strongly overseas? Looking at the direct reasons, the booming global demand has brought a strong tailwind to the transformer industry: in developed countries such as the U.S. and Europe, power grid infrastructure has entered a cycle of renewal and upgrade; in emerging market countries, electricity consumption is increasing and the share of clean-energy generation is rising, accelerating grid investment and deployment; and overseas, the construction of computing-power infrastructure such as data centers is also speeding up. Multiple layers of demand combined have driven growth in transformer exports.

If we think one step deeper, under the updraft, firms from multiple countries are competing on the same stage—so why can China stand out and maintain its position as the world’s No. 1 producer of transformers? Let’s examine it with three keywords. From these, you can not only read the reasons behind the hot sales, but also understand the deeper logic of how “Made in China” can enter the world calmly and confidently.

First is “speed,” which comes from an industrial chain with every link tightly connected.

Product competitiveness lies not only in the product itself, but also in 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 most complete transformer manufacturing system in the world, with production capacity accounting for about 60% of the global total. It is this close “clamping” between upstream and downstream and the ability to keep the industrial chain independently controllable that enables Chinese companies to respond quickly to changes in market demand, with delivery cycles far shorter than the 18 months to 2 years typical of manufacturers in Europe and the U.S.

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 chain for robotics is becoming increasingly mature. Robots made in the “Yangtze River Delta” region have also achieved 100% localization of core components and a 40% reduction in cost, and in 2025 China’s industrial robot exports exceeded imports for the first time.

Competition among industries cannot rely on fighting alone. Building a safe, efficient industrial chain and supply chain based on scale and supporting advantages is the confidence that companies have to “ride the wave” in international markets, and it is also a solid foundation for Chinese manufacturing to stand at the forefront.

Second is “fit,” which comes from the accurate capture and fulfillment of market demand.

Innovation is reflected not only in technology upgrades, but also in the dynamic adaptation of products to market needs. Targeting environmental protection requirements in the U.S. and Europe, companies have developed plant-oil transformers; to match data-center application needs, they have developed solid-state transformers that take up less space and operate with higher efficiency… By breaking through what the market needs—growing quickly in the process of solving customers’ pain points through customized production and specialized focus—China’s transformer industry has advanced rapidly.

Some foreign clients have remarked that Chinese businessmen have “too sharp a nose.” “Where there is market opportunity, you can see their presence very quickly.” In small home appliances, multi-directional heat radiators that can brew hot tea from the top and provide warmth on all sides have gained traction in the Japan and Korea markets; in large machinery, cranes equipped with desert tires and even Mars fire extinguishers have been welcomed in the Middle East market. Together, they prove a point: if you follow the market and turn around demand, you can open up broader space for Chinese manufacturing to expand.

Third is “reliability,” which is empowered by application scenarios in the domestic market.

Scenarios are an important and scarce source of innovation resources. Domestic efforts such as power grid upgrade and renovation, and the construction of computing-power infrastructure, provide transformer companies with a “training ground” to tackle technical challenges. During the “14th Five-Year Plan” period, the State Grid built and put into operation the “eight horizontal and eight vertical” ultra-high-voltage projects, helping China gain a voice and technical discourse power in fields such as ultra-high-voltage and intelligent transformers.

In diverse scenarios such as urban governance and logistics and transportation, the development of the low-altitude economy is given support to take off. In complex environments such as high altitudes, “sand and saline wastelands” (areas characterized by desertification and salinity), and low wind speeds, they force wind-power companies to develop tailored solutions and customized R&D. China’s huge-scale domestic market and plentiful application scenarios enable Chinese manufacturing to fully validate reliability and practicality at the “doorstep” before heading abroad.

Looking back at the strong overseas sales of transformers, amid uncertainty caused by rapid changes in the external environment, it is precisely the solid industrial 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 the wind changes, as long as we build strong internal capabilities, keep strengthening ourselves, and promote industrial development toward innovation and excellence, we can always remain unshakable.