China's transformer exports have sustained rapid growth momentum throughout 2026. Customs data cited by industry research shows that China's transformer export value reached approximately RMB 217.7 billion from January to April 2026, representing a year-on-year surge of 27%.
Breakdown by product category reveals stark divergence in growth rates: exports of large transformers jumped 53% year-on-year, far outpacing medium transformers (15%) and small transformers (6%). Meanwhile, overseas transformer markets are grappling with severe supply constraints, particularly in North America. Lead times for large power transformers commonly stretch 36 to 48 months, with delivery schedules for certain projects booked more than five years in advance. Domestic production capacity in the United States remains constrained, capable of meeting merely 20% of its domestic demand for large power transformers; the remainder must be covered by imports.
The current upswing in global transformer demand is driven by simultaneous accelerated investment in data center construction and power grid upgrades. On the demand side, the total IT load capacity of U.S. data centers is projected to climb from roughly 80 gigawatts in 2025 to around 150 gigawatts by 2028. In terms of grid investment, major U.S. utility companies plan to allocate USD 237.5 billion to capital expenditure in 2026, a 24% year-on-year increase. Within this total, power generation investment will rise by 36%, while transmission investment is set to grow 25%.
On the supply side, transformer capacity expansion worldwide faces prolonged timelines. Shortages of skilled technical labor, tight supplies of core raw materials such as grain-oriented silicon steel, and lengthy manufacturing cycles have slowed new capacity rollouts for overseas manufacturers, with some newly built production lines not expected to come online until 2027–2028.
China's cumulative exports of oil-immersed transformers recorded a year-on-year increase of over 30% in the January–May 2026 period, with May shipments to North America skyrocketing more than 250% year-on-year. Market share data underscores China's rising global footprint: Chinese brands now account for approximately 8% of U.S. transformer imports, up from a mere 2–3% previously, while Chinese suppliers capture 40–50% of the EU market.
Industry surveys further indicate that export markets, especially high-end European and American markets, deliver healthier profit margins than the domestic Chinese market, with gross profit margins for export businesses at least 10 percentage points higher than domestic sales.