Introduction: Transformers have always been the main equipment for modern power network construction. With the growth of investment in power facility construction in recent years, the transformer market has also been activated. At the same time, the demand for smart grid project construction is also driving a series of power equipment such as transformers to start the upgrade.

The work focus and development strategy of the State Grid have a significant impact on the entire power industry. The implementation of distribution network automation and rural power grid transformation will drive the rapid development of the power distribution field. Industry insiders said that the total market demand for transformers and the number of bids will increase significantly, the global transformer market will gradually tilt towards China, and the application of cutting-edge products is expected to achieve better results in China.

The transformer market size will exceed 100 billion in 2020

Transformers have always been the main equipment for modern power network construction. With the growth of investment in power facility construction in recent years, the transformer market has also been activated. At the same time, the demand for smart grid project construction is also driving a series of power equipment such as transformers to start the upgrade.

In recent years, the global market demand for power transmission and distribution equipment has generally shown an upward trend. According to the forecast of relevant research institutions, the expansion of power stations in emerging countries, economic growth and electricity demand will drive the global power transformer market from US$10.3 billion in 2013 to US$19.7 billion (about RMB 119.1 billion) in 2020, with a compound annual growth rate of 9.6%.

Some experts believe that the growth of electricity demand in China, India and the Middle East has become the main growth driver of the global power transformer market growth expectations. In addition, the demand for replacing and upgrading old transformers in North America and Europe has also become a major driving force for the market. The British power grid is already very backward, and only by replacing and upgrading the power grid can the country avoid power outages. Similarly, in other European countries, such as Germany, the power grid and electronics are being continuously renovated to achieve a stable power supply, some analysts said.

There are two factors that have a strong growth momentum in the global transformer market. On the one hand, the upgrading and transformation of traditional transformers will generate a large market share, and the elimination of backward products can promote the effective implementation of bidding, and huge economic benefits will be apparent. On the other hand, the research and development, manufacturing, sales, use and maintenance of energy-saving and intelligent transformers will become the mainstream, and the new products will inevitably bring new development opportunities to the industry.

In fact, the transformer manufacturing industry relies on the investment of downstream power supply, power grid, metallurgy, petrochemical, railway, urban construction and other industries. In recent years, benefiting from the rapid development of the national economy, the construction investment of power supply and power grid has continued to increase, and the market demand for power transmission and distribution equipment has increased significantly. It is expected that the market demand for power transmission and distribution equipment such as transformers in China will remain at a high level for a long time.

The domestic transformer market ushered in stable development

China is one of the fastest growing markets and has now become the second largest market in the world. Especially in recent times, the acceleration of the construction of projects such as west-to-east power transmission, north-south mutual supply, and cross-regional networking has driven the rapid development of China's power transmission and distribution equipment industry. Industry insiders believe that from the current market development, in the next few years, my country's transformer manufacturing industry will usher in a period of sustained and stable development.

In the next few years, driven by the construction of smart grids, UHV construction and grid transformation, as well as the development of the power industry, it is expected that the growth rate of power transformers will remain at around 10% during the 12th Five-Year Plan period.

During the 12th Five-Year Plan period, State Grid Corporation of China will invest more than 300 billion yuan in AC UHV construction. In 2015, a three-vertical and three-horizontal AC UHV synchronous power grid will be formed, with 38 new UHV substations and a transformer capacity of 260 million kilovolt-amperes, and 26,000 kilometers of new UHV AC lines; 15 DC projects will be developed, with a total conversion capacity of 230 million kilowatts and a total line length of 25,000 kilometers.

The domestic rural power grid transformation has provided a strong impetus for the increase in transformer market demand. my country's new round of rural power grid transformation and upgrading has achieved positive results. As of November 2013, the two major power grid companies have completed a new round of rural power grid transformation and upgrading and power construction in areas without electricity with a total investment of 276.18 billion yuan. According to the investment targets for rural power grid transformation disclosed by State Grid and China Southern Power Grid, the two power grid companies will invest a total of more than 500 billion yuan during the 12th Five-Year Plan period, of which State Grid is expected to invest nearly 400 billion yuan and China Southern Power Grid is expected to invest 111.6 billion yuan. Rural power grid transformation will directly increase investment in power grid construction, expand the share of the pie for the power equipment manufacturing industry, and the transformer industry will usher in a new period of development opportunities.

New energy power generation brings new opportunities for transformers. From the perspective of some new energy power generation industries in my country, the installed capacity of wind power, photovoltaic power generation, garbage power generation, and waste heat power generation has maintained growth. As of the end of 2012, the total installed capacity of wind power in the country was 60.83 million kilowatts, a year-on-year growth rate of 35%, the total installed capacity of photovoltaic power generation was close to 5,000 megawatts, and the newly added installed capacity of waste heat power generation was about 800 megawatts.

As a necessary power transmission and distribution equipment for the power generation industry, the demand for transformers is closely related to the scale of investment in the power grid. In recent years, the rapid development of the new energy power generation industry has brought better development space for transformers, and has also become an important direction for transformer manufacturers to seize market segments and expand their business scope. At the same time, it has also promoted the optimization of transformer product structure and technological innovation.

At present, the smart grid has entered an important stage of comprehensive construction, and the intelligent construction of urban and rural distribution networks will be fully launched. Smart grids and smart complete sets of equipment, smart power distribution, and control systems will usher in a golden period of development. This undoubtedly provides a good growth space for the transformer manufacturing industry.

(China Electric Power Equipment Information Network)