The Power Transformer Industry Will Have A Market Size Of More Than 400 Billion Yuan In 2023

A power transformer is a stationary electrical device that is used to convert a certain value of an AC voltage into a voltage of another or several different values of the same frequency. In recent years, China's electric power construction has achieved rapid development with remarkable achievements. The huge amount of investment in power construction has brought opportunities and challenges to the transformer industry, and the related industries have maintained a good momentum of development.

China has a large population, rapid urbanization, and rising living standards, and the demand for electricity is also increasing day by day. Transformer as a key transmission equipment, market demand will continue to grow with the socio-economic. The forward-looking network report predicts that by 2023, the sales revenue of China's power transformer manufacturing industry will reach 447.785 billion yuan.

Statistics from the National Bureau of Statistics show that in 2016, there were 1,069 large-scale enterprises in China's power transformer manufacturing industry, with sales revenue of 272.675 billion yuan, a year-on-year increase of 12.24%. The considerable market performance also shows that the power transformer industry is thriving.

The power transformer industry is a typical investment promotion industry. From the macro-environmental point of view, the national environmental protection laws and regulations have been continuously improved, people’s awareness of environmental protection has been increasing day by day, and the construction of new energy power plants has been accelerated. All these have put forward higher requirements for power transformer products, which has stimulated the demand of the power transformer market to some extent.

Starting from the micro level, with the ever-increasing competition in the industry of power transformers, products tend to develop in the direction of large capacity, high voltage, high reliability, and technological innovation. Energy-saving, environmental protection, and miniaturized power transformers will become the favored choice for urban power grid construction.

From the perspective of market structure, the transformer industry presents a pyramidal structure. The higher the voltage level, the fewer manufacturers, and the higher the degree of monopoly. In recent years, large foreign multinational corporations have stepped up efforts to expand the Chinese market and strive to expand their market share. As the world's largest transformer manufacturer and service provider, ABB has introduced the world's first power transformer integrated with digital solutions – ABB Ability digital power transformers to promote the transformation of the transformer industry.

Throughout China's power transformer market, small and medium-sized transformer manufacturing enterprises account for more than 80% of the total number of enterprises. Most small businesses lack technology, market, and product quality. In the face of fierce market competition, domestic power transformer manufacturers are also actively exploring and seizing market share.

With the continuous application of new materials and new processes, and the increasingly stringent requirements for the development of the electric power industry, the power transformer industry is expected to usher in a new wave of development. For companies in the industry, only continuous innovation in the development and development of transformers in various structural forms can meet the changing needs of the market.