Since 2026, China’s transformer industry has catered to diversified demands including new power system construction, AI computing infrastructure, new energy grid integration and overseas energy infrastructure. Breakthroughs have been achieved in three major dimensions: technological innovation, energy efficiency upgrading and global market expansion, lifting the overall prosperity of the industry.
With the continuous implementation of the mandatory standard Limits and Energy Efficiency Grades for Power Transformers (GB 20052—2024), high-loss outdated transformers are being phased out at an accelerated pace. High-efficiency oil-immersed and dry-type distribution transformers such as S20 and SCB14 and above have become mainstream products in the market. Renovation of existing power grids, upgrading of industrial and commercial parks, as well as supporting projects for wind power, photovoltaic and energy storage systems keep fueling market demand for energy-saving transformers.
In the cutting-edge technology track, 2026 is regarded by the industry as the first year for the industrialization of Solid-State Transformers (SST). Different from traditional power-frequency transformers, solid-state transformers adopt wide-bandgap semiconductor technology, featuring compact size, high efficiency, power quality management and bidirectional power flow. They are applicable to AI computing hubs, zero-carbon industrial parks and high-power photovoltaic & energy storage charging stations. Many leading domestic enterprises have rolled out megawatt-level prototypes, and demonstration projects have been launched at multiple computing hubs. Industry institutions forecast that the solid-state transformer sector is expected to grow into a 100-billion-level emerging market in the long run.
Investment in major power grid construction continues to increase, UHV projects progress in an orderly manner, sustaining steady demand for large-capacity extra-high voltage transformers. The overseas market is also picking up momentum. Benefiting from a complete industrial chain and reliable delivery capacity, Chinese-made transformers enjoy robust global sales. Export data of the industry maintained steady growth in the first half of 2026, with products exported to Southeast Asia, Africa, Europe and other regions.
Nevertheless, the industry is also facing challenges. High-proportion grid integration of renewable energy brings harmonic interference and voltage fluctuation issues, raising higher requirements for transformers in anti-disturbance performance and intelligent online monitoring capabilities. Many overseas countries have tightened regulations on transformer energy efficiency and low-carbon standards, forcing manufacturers to continuously improve product efficiency and optimize low-carbon supply chains.
Industry experts point out that the transformer sector will evolve along four key directions: high efficiency & energy saving, intelligence, compact design and green low-carbon development. Traditional transformer manufacturers should continuously advance the iteration of materials and manufacturing processes, develop integrated intelligent monitoring and operation & maintenance solutions. Meanwhile, enterprises need to proactively conduct research and development on cutting-edge technologies such as solid-state transformers to seize long-term opportunities brought by computing infrastructure and new energy industries, and facilitate the high-quality development of China’s new power system.
About Jiangsu Hualai Electrical Technology Co., Ltd.
Jiangsu Hualai Electrical Technology Co., Ltd. is a professional manufacturer engaged in the R&D, production and sales of power transformers and distribution electrical equipment. We keep track of the latest industry trends and commit to supplying high-efficiency, reliable and eco-friendly transformer solutions for global clients. Website: https://www.hualaipower.com/ E-mail: hualaipower@gmail.com WhatsApp: +86 18852130008 / +86 18914882008
