Transformer is a kind of equipment that converts voltage or current proportionally. Its function is mainly to convert high voltage or high current proportionally into standard low voltage (100V) or standard small current (5A or 1A, both refer to rated value), so as to realize the standardization and miniaturization of measuring instruments, protection equipment and automatic control equipment. At the same time, the transformer can also be used to separate the high voltage system to ensure the safety of personnel and equipment. Transformers are divided into voltage transformers and current transformers according to the type, and are divided into electromagnetic transformers and photoelectric transformers according to the principle. Transformer is widely used in electric power, metallurgy, petrochemical and other industries, is an indispensable component in the power system.

1. global transformer industry market size

According to data from the Champ Consulting Group,In 2018, the global transformer market size was about $7.64 billion, and combined with the development of the global transformer industry, the global transformer market size is about $8.32 billion in 2020. The global transformer market was hit by the new crown epidemic in 2021, but with the progress of vaccination and economic recovery, the global transformer market size returned to $8.47 billion in 2021.In 2022, the size of the global transformer market is close to $8.9 billion,In the future, the global transformer market will maintain steady growth, and the global transformer market is expected to reach $9.4 billion billion in 2023.

Market Size of China Transformer Industry in 2.

China is one of the world's largest producers and consumers of transformers, with numerous transformer companies and products. In recent years, China's transformer industry has benefited from the growth of domestic and foreign market demand. In particular, the State Grid Corporation has increased its investment in the construction and transformation of transmission and distribution networks, and promoted the implementation of smart substations, smart distribution networks and other projects. Provides a broad application space.According to data from Shangpu Consulting Group, the market size of China's transformer industry is 10.242 billion yuan in 2018 and 12.036 billion yuan in 2020. In 2021, due to the impact of the new crown epidemic, the market growth rate of China's transformer industry will slow down, and the market size is expected to be 12.337 billion billion yuan.In 2022,The market size of China's transformer industry has reached 13.306 billion yuan,The market of China's transformer industry has resumed rapid growth. It is estimated that the market size of China's transformer industry will reach 15 billion billion yuan in 2023, accounting for 15.6 percent of the global market.

3. Global and Regional Pattern of China Transformer Industry

From the perspective of regional markets, the global transformer market is mainly concentrated in Europe, North America and the Asia-Pacific region. According to data from the Champ Consulting Group,In 2022, the European transformer market is $3.05 billion, accounting for 35.6 percent of the global market; the North American transformer market is $2.21 billion, accounting for 25.8 percent of the global market; and the Asia-Pacific transformer market is $2.34 billion, accounting for 27.3 percent of the global market. Among them, the Asia-Pacific region is the fastest growing region in the global transformer market, mainly benefiting from the growth of power demand in emerging markets such as China and India, smart grid construction, and technological innovation. It is estimated that in 2023, the transformer market in the Asia-Pacific region will reach 2.65 billion billion US dollars, accounting for 29.4 per cent of the global market.

From the perspective of China's transformer industry,According to data from the Champ Consulting Group,In 2022, China's transformer industry is mainly distributed in East China, South China and North China. Among them, East China is still the largest transformer production and consumption base in China, with well-known enterprises such as Jiangsu Siyuan Hertz and Shanghai Electric. In 2022, the output of transformers in East China will be 14 million, accounting for about 40% of the national output.South China is the second largest transformer production and consumption base in China, with well-known enterprises such as Guangdong Weisheng and Guangzhou Keli. In 2022, the output of transformers in South China will be 9 million units, accounting for 25.7 of the national output.North China is the third largest transformer production and consumption base in China, with well-known enterprises such as Baoding Tianwei Baotou and Hebei Jinniu. In 2022, the output of transformers in North China will be 7 million, accounting for 20% of the national output.。

4. global and Chinese transformer industry trends

(1) Growth in electricity demand will drive growth in demand for transformers

Electricity is one of the indispensable energy in modern society. With the growth of population, urbanization, industrialization and the improvement of living standards, the global demand for electricity will continue to grow.According to data from the Champ Consulting Group, global electricity demand will grow at an annual rate of 1.5 per cent between 2022 and 2030, reaching 27,000 TWh by 2030. Among them, emerging economies will become the main driving force of electricity demand growth, especially in countries such as China and India. With the growth of power demand, the power system also needs to expand and transform to improve the reliability and efficiency of power supply. This will provide a huge market space for the transformer, because the transformer is one of the essential components in the power system.

(2) Smart grid construction will promote transformer technology innovation

Smart grid is a modern power grid that uses advanced information and communication technology and control technology to realize power grid automation, intelligence and high efficiency. Smart grid can realize the effective integration of power demand side management, distributed generation, energy storage equipment, electric vehicles, etc., and improve the safety, reliability, economy and environmental friendliness of the power grid. Smart grid construction is the development direction of the global power industry and an important part of China's power system reform and upgrading. According to the "Electric Power Development Plan for the 14th Five-Year Plan" issued by the National Development and Reform Commission, by 2025, China will build a smart grid system covering the whole country, covering all kinds of power sources and loads, and covering all kinds of users, so as to achieve efficient operation of the power grid., Optimized configuration, interactive coordination, safety and controllability. The construction of smart grid puts forward higher requirements for the transformer, which requires the transformer to have the characteristics of high precision, high frequency response, high stability and high anti-interference to meet the measurement and control requirements of the smart grid. This will promote the innovation and development of transformer technology, especially the application of new transformers such as photoelectric transformers.

(3) Emerging markets and application areas will bring new opportunities for transformers.

In addition to the traditional power industry, there are many emerging markets and applications for transformers, such as renewable energy, rail transit, industrial automation, and medical equipment. These areas have different characteristics and requirements for the demand and quality of transformers, which provide new growth points and challenges for transformers. For example, in the field of renewable energy, transformers need to be able to adapt to different types of power generation equipment such as wind turbines and solar photovoltaic systems, as well as grid-connected or off-grid operation modes with the grid; in the field of rail transit, transformers need to be able to withstand high voltage, high temperature, high humidity, strong vibration and other harsh environments, as well as coordination with traction transformers, traction converters and other equipment; in the field of industrial automation, transformers are required to achieve accurate measurement and control of industrial equipment and processes to improve production efficiency and quality; in the field of medical equipment, transformers are required to ensure the safety and accuracy of medical instruments to protect the health of patients. These emerging markets and application areas will bring new opportunities for transformers, and will also promote transformer companies to expand their product lines and service ranges.

5. global and Chinese transformer industry investment opportunities

According to the above analysis, Shangpu Consulting believes that the global and Chinese transformer industry has good development prospects and investment opportunities. On the one hand, with the growth of power demand and the advancement of smart grid construction, the traditional power industry will continue to provide stable market demand for transformers; on the other hand, with the development of emerging markets and application fields, transformers will face more Market opportunities and technical challenges. Therefore, Shangpu Consulting recommends that transformer companies adopt the following strategies:

(1) Strengthen technological research and development and innovation to improve product quality and performance

Technology is one of the core competitiveness of transformer enterprises. Only by continuously improving product quality and performance can we meet the needs of different customers and markets and win market share and reputation. Transformer companies should increase investment in technology research and development and innovation, and develop transformer products with high precision, high frequency response, high stability, and high anti-interference characteristics to meet the measurement and control needs of smart grids and emerging fields. At the same time, transformer enterprises should strengthen the research and development of new transformers, especially photoelectric transformers, in order to seize the opportunity of technology and market.

(2) Expand emerging markets and application areas to increase market share and profit margins.

In addition to the traditional power industry, there are many emerging markets and application fields for transformers. These fields have different characteristics and requirements for the demand and quality of transformers, which provide new growth points and challenges for transformers. Transformer companies should actively expand these emerging markets and application areas, and provide customized transformer products and services according to the needs of different customers and scenarios to increase market share and profit margins. At the same time, transformer companies should strengthen cooperation with renewable energy, rail transit, industrial automation, medical equipment and other industries, and establish a stable supply chain and customer relationships to enhance market competitiveness.

(3) Enhance brand influence and competitiveness, enhance market awareness and loyalty

Brand is one of the important assets of transformer enterprises, which can enhance market awareness and loyalty, and improve product added value and premium capacity. Transformer companies should strengthen brand building and promotion, and enhance brand influence and competitiveness by participating in industry exhibitions, publishing industry reports, and carrying out public welfare activities. At the same time, transformer enterprises should pay attention to the maintenance of brand image and reputation, establish good customer relations and enhance customer satisfaction and loyalty by providing high-quality products and services.

In short, the global and Chinese transformer industry will face both opportunities and challenges in 2023. Shangpu Consulting believes that only through continuous technological innovation, market expansion, brand promotion and other ways, transformer enterprises can stand out in the fierce competition and achieve sustainable development. Shangpu Consulting will continue to pay attention to the dynamic changes of the global and Chinese transformer industry, and provide professional, comprehensive and timely consulting services for our customers. Thank you for reading!