China's transformer industry is highly competitive, with foreign multinational companies seizing a large market share, and the number of domestic transformer manufacturers is also growing rapidly. There is fierce competition in the low-end transformer market. There are more than 20 enterprises with 220KV transformer production capacity and more than 100 enterprises with 110KV transformer production capacity. However, enterprises producing transformers above 500KV level have built high barriers to entry through technology and production capacity, and the market pattern tends to be stable.
In recent years, China's power demand has grown rapidly, and the high-speed construction and investment of power grid have driven the market demand for power transmission and transformation equipment. The huge investment in power construction has brought opportunities and challenges to the transformer industry, which has promoted the rapid development of the transformer industry. It is expected that the growth rate of China's transformer market will remain around 10% during the "12th Five-Year Plan" period.
According to the investment objectives of rural power grid transformation disclosed by the State Grid and China Southern Power Grid, the total investment of the two major power grid companies during the "12th Five-Year Plan" period will exceed 500 billion yuan, of which the State Grid is expected to invest nearly 400 billion yuan and China Southern Power Grid is expected to invest 111.6 billion yuan. In recent years, the global market demand for power transmission and distribution equipment has shown an overall upward trend. In recent years, the construction of projects such as power transmission from the west to the east, mutual supply from the north to the south, and cross-regional networking has accelerated the rapid development of China's power transmission and distribution equipment industry. From the current market development, the transformer manufacturing industry will usher in a continuous and stable development period.
The upgrading and transformation of traditional transformers will give rise to a large market share. The elimination of backward products can promote the effective implementation of the bidding work, and the huge economic benefits will be revealed. The R&D, manufacturing, sales, use and maintenance of energy-saving and intelligent transformers will become the mainstream, and new products will inevitably bring new development opportunities to the industry. Transformer is the key electrical equipment for power transmission. Due to its large number, the power consumption of transformer itself is also considerable. According to relevant data, at present, the power consumption of all transformers in China accounts for 3% - 10% of the national power generation. In the distribution network loss, transformer loss accounts for 40% - 60%, with huge energy saving potential.