In October 2024, the transformer sector witnessed high market concentration and increased demand as China continued to construct a high - voltage transmission project.
The transformer is a key device for high - voltage direct current transmission and plays an important role in relevant projects. Its industrial chain includes raw material supply, manufacturing, product sales and services. The quality of the products of upstream raw material suppliers has a direct impact on the transformer's performance and lifespan.
The reverse distribution of energy resources and the electric load favors the development of ultra - high - voltage transmission. In the 14th Five - Year Plan, the national grid has made extensive plans for ultra - high - voltage transmission lines. From January to May 2024, the investment in national grid projects increased by 21.6% year - on - year. The construction of ultra - high - voltage transmission provides opportunities for the transformer industry. In 2023, the bid - winning amount of the national grid's ultra - high - voltage projects increased significantly, and the proportion of transformers was 35%. In June 2024, the National Energy Administration promoted the development of new energy projects and required an increase in the proportion of new energy in transmission channels. During the national grid's procurement in June, the proportion of converter transformers was 61%.
From the perspective of the competitive market pattern, the sector is highly concentrated, and enterprises such as XD Electric, NARI Group, and Pinggao Electric have clear advantages. They have performed well in research and development, product quality, production capacity scale, and market share. For example, in 2023, the production and sales of transformers by XD Electric achieved double - digit growth, while TBEA made certain progress in the research and development of ultra - high - voltage direct - current transformers.
However, the sector also faces challenges such as rapid technological updates, significant design and manufacturing difficulties, volatility in raw material prices, and strict environmental protection regulations. But the future trend is positive. The market demand for expanding power transmission projects in the construction sector continues to grow, and investment in R & D and industry is expected to increase to coordinate the upstream and downstream industries of technological innovation, industrial modernization, and the business value chain.
The data and information are from relevant reports published by CRI Research. CRI Research aims to provide enterprises with specialized industrial advisory services in policy monitoring, industry data, and other aspects.