China's transformer industry is seeing strong demand in 2026, supported by grid upgrades, overseas power infrastructure projects and the rapid expansion of data centers.
According to a recent report by People's Daily, China's transformer exports reached RMB 39.792 billion in the first half of 2026, up 26.78% year on year. Exports of liquid transformers rated above 10 MVA increased by more than 50%, while average export prices also increased.
What is driving transformer demand?
Several factors are contributing to the current growth.
China is increasing investment in domestic power infrastructure, with UHV transmission among the major priorities. At the same time, many overseas markets are upgrading aging grids and adding transmission capacity to support renewable energy and rising electricity demand.
Data center construction is another source of demand. AI computing requires large amounts of electricity and places higher requirements on power infrastructure, including transformers and other distribution equipment.
What does this mean for overseas buyers?
The growth in transformer exports shows that demand is not limited to China's domestic market. Overseas buyers are increasingly sourcing transformers from Chinese manufacturers for industrial equipment, power distribution and customized voltage requirements.
However, transformer selection still depends heavily on the application. A large grid transformer for a utility project is very different from a low-voltage isolation transformer used for industrial or medical equipment.
For equipment applications, buyers need to confirm parameters such as:
- Rated capacity
- Input and output voltage
- Single-phase or three-phase configuration
- Frequency
- Wiring and grounding configuration
- Insulation class
- Cooling method
- Installation environment
Where custom transformers fit in
For industrial equipment, the required voltage does not always match the local utility supply. In these cases, a customized isolation transformer can provide both voltage conversion and galvanic isolation.
TAFENG supplies isolation transformers with customized capacity, input and output voltage, phase configuration, wiring and cooling options. The company also supplies low-frequency UPS systems for applications such as medical imaging equipment.
For overseas projects, the transformer should be specified according to both the local power supply and the electrical requirements of the connected equipment.
