The national grid’s focus and development strategy for the entire power industry has a significant impact on the implementation of distribution network automation and agricultural network transformation work will drive the rapid development of the field of power conversion and distribution. Industry insiders said, especially the transformer news topics transformer market demand in total, the number of bids will greatly increase, the global transformer market gradually tilted to China, the application of cutting-edge products is expected to achieve better results in China.
　　Transformer has been the main equipment for the construction of modern electric power network. With the growth of investment in the construction of power facilities in recent years, the transformer market has also been activated. At the same time, the demand for smart grid project construction is also pulling transformers and other a series of power equipment to open the upgrade road.
　　In recent years, the global market demand for power transmission and distribution equipment is generally on the rise. According to the relevant research institutions, emerging countries power station expansion, economic growth and electricity demand and other factors will drive the global power transformer market, from $ 10.3 billion in 2013 will increase to $ 19.7 billion in 2020 (about $ 119.1 billion), a compound annual growth rate of 9.6%.

Some experts analyze that China, India and the Middle East power demand growth, become the global power transformer market growth is expected to be the main growth driver. In addition, North America and Europe to replace, upgrade the old transformer demand has become the main driving force of the market. The power grid in the UK is very much outdated and only with the replacement and upgrading work on the grid, the country will not experience power cuts. Similarly, in other countries in Europe, such as Germany, the grid and electronics are undergoing continuous refurbishment so as to achieve a stable supply of electricity from the grid, so said an analyst.

Global transformer market size growth momentum is driven by two factors, on the one hand, the upgrading of traditional transformers will give rise to a large market share, the elimination of backward products can promote the bidding work effectively, the huge economic benefits will be revealed. On the other hand, energy-saving, intelligent transformer research and development, manufacturing, sales, use, maintenance will become the mainstream, the product is bound to bring the development opportunities for the industry.

In fact, the transformer manufacturing industry depends on the downstream power supply, power grids, metallurgy, petrochemical, railway, urban construction and other industries investment. In recent years benefited from the rapid development of the national economy, power supply, power grid construction investment is increasing, the market demand for power transmission and distribution equipment has grown significantly, it is expected that in the longer term China’s domestic market demand for transformers and other power transmission and distribution equipment will remain at a high level.

China is one of the fastest growing markets, has become the second largest market. Especially in recent times, to speed up the construction of the West-East power transmission, North-South interconnection, cross-regional networking and other projects, led to the rapid development of China’s power transmission and distribution equipment industry. Industry insiders believe that, from the current market development, the next few years, China’s transformer manufacturing industry will usher in a sustained and stable development period.

In the next few years in the smart grid construction, ultra-high voltage construction and grid transformation, as well as the development of the power industry, is expected in the Twelfth Five-Year Plan during the growth rate of power transformers will remain at about 10%.

During the Twelfth Five-Year Plan period, the State Grid Corporation will invest more than 300 billion yuan for the construction of AC UHV, 2015 will form a three vertical and three horizontal as the core of the Sanhua AC UHV synchronous grid, 38 new UHV substations, substation capacity of 260 million kVA, 26,000 kilometers of new UHV AC lines; the development of 15 DC projects, with a total converting capacity of 230 million kilowatts, the total length of the lines 25,000 kilometers.

Domestic agricultural network transformation of the transformer market demand increased to provide a strong impetus. China’s new round of agricultural network renovation and upgrading has achieved cumulative results, as of November 2013, the two major power grid enterprises have completed a new round of agricultural network renovation and upgrading and power construction in areas without electricity investment of 276.18 billion yuan. According to the State Grid and the South Grid has disclosed the agricultural network transformation investment target, the two major power grid companies during the 12th Five-Year Plan period will invest a total of more than 500 billion yuan, the Chinese grid is expected to invest nearly 400 billion yuan, the South Grid is expected to invest 111.6 billion yuan. Agricultural network transformation will directly increase investment in grid construction, electric power equipment manufacturing industry to do a large share of the cake, transformer industry will usher in a new period of development opportunities.

New energy generation for the transformer to bring new opportunities. From China’s part of the new energy power generation industry, wind power, photovoltaic power generation, waste power generation, waste heat power generation and other installed power generation capacity are maintained growth. As of the end of 2012, the country’s cumulative wind power installed capacity of 60.83 million kilowatts, a year-on-year growth rate of 35%, photovoltaic power generation cumulative installed capacity of nearly 5,000 megawatts, waste heat power generation of new installed capacity of 800 megawatts or so.