Global Main Transformer Dynamics

The global main transformer market (power transformers, especially 110kV and above) is currently experiencing a supply-demand imbalance, longer delivery cycles, and accelerated technology and capacity expansion. China has a significant advantage in ultra-high voltage (UHV) and export sectors, while demand in Europe, America, and Asia is strong but the market structure is diverging.

Supply and Demand & Delivery: Global Shortage of Transformers

Demand Explosion Driven by a Triple Impact: Aging grid replacement, renewable energy grid connection, and the explosive growth of AI computing power and data centers. In the US, over 70% of main transformers are beyond their service life, and in Europe, 40% of distribution network equipment is over 40 years old. Renewable energy installations in emerging markets such as India and Brazil are driving demand.

Severe Supply Shortage: Global main transformer capacity is saturated. Expansion by companies like Hitachi Energy and Siemens Energy will require 3-4 years to achieve effective supply. Delivery cycles for large main transformers are 2.3-4 years, with an average delivery cycle of 115-130 weeks. This shortage is expected to continue until at least the end of 2026.

Orders and Prices: China, the United States, India, Germany, and Brazil are the top five demand countries, collectively accounting for approximately 60% of global orders in 2025. China’s main transformer exports reached RMB 29.711 billion in the first eight months of 2025. European customers are willing to pay a 20% premium to ensure supply, with an average export price of approximately US$20,800 per unit.

Technology and Trends:

Technological Upgrades: Environmentally friendly (low noise, low loss, biodegradable insulating oil) and intelligent (online monitoring, digital twins, condition-based maintenance) technologies are becoming mainstream. Demand for ultra-high voltage and large-capacity main transformers is increasing, adapting to new energy grid connection and long-distance power transmission.

Market Size: The global main transformer-related market size was US$57.85 billion in 2024 and is projected to reach US$103 billion by 2031, with a ten-year CAGR of 6.1%. Distribution main transformers are growing even faster (Europe’s CAGR is 9.1%).

Challenges and opportunities: Fluctuations in raw material (copper, silicon steel) prices, geopolitical and trade barriers (such as the US 25% tariff) drive up costs; Chinese companies break through by adopting a model of localized production, component export + local assembly, and consolidating their global competitiveness.