The market demand for conventional power transformers is experiencing structural growth, driven primarily by global power grid upgrades, the explosive growth of AI computing power, and the integration of renewable energy into the grid. China's exports reached a record high of 64.6 billion yuan in 2025.
1. AI Computing Power Drives a Surge in High-End Demand
The power load of AI data centers is growing exponentially, with single-rack power jumping from 5–10kW to 50–100kW, placing higher demands on power supply stability. This directly creates an urgent need for highly reliable, low-loss, and intelligent conventional power transformers. For example, Anke Smart Power's independently developed transformers have been successfully exported to North America and applied to large data centers, with contracts totaling $8.983 million. Jinpan Technology also customizes solid-state transformers (SST) for AI data centers, supporting high-voltage DC power supply architectures.
2. Aging Global Power Grids Spur Replacement Wave
Many distribution transformers in developed countries such as Europe and the United States have been in service for over 40 years, far exceeding their design lifespan. In the United States, 60%–70% of transmission and distribution equipment has exceeded its service life, leading to a 70% surge in failure rates over the past decade. Wood Mackenzie predicts that North America will face a 30% power transformer supply shortage, which will persist into the 2030s. This rigid replacement demand is rapidly being released, forming a trillion-dollar existing market.
3. Grid Connection of New Energy Sources Opens Up Structural Growth: The grid connection of intermittent power sources such as wind and solar power requires supporting step-up transformers, and the widespread adoption of energy storage systems is further driving the development of integrated photovoltaic, energy storage, and charging scenarios. By 2025, China's cumulative installed capacity of new energy sources will reach 1.84 billion kilowatts, accounting for over 50% of the total installed capacity, directly boosting transformer demand. The domestic charging pile capacity expansion market alone reached 11 billion yuan in 2024.
