Analysis of market size, competition pattern and development prospects of China's transformer industry in 2021

As an important basic equipment for urban power transmission and transformation, transformers have been promulgated many times in my country to promote the development of the transformer industry. As far as the current development is concerned, my country's transformer output is relatively high and its export proportion ranks among the top in the world. It has developed well and is expected to usher in further development in the next few years.
From the perspective of the transformer enterprise echelon, the domestic and foreign transformer echelon has basically taken shape. From the perspective of transformer enterprises, my country's transformer enterprises are in good development. It is expected that the transformer industry will continue to increase investment in research and development to achieve development goals such as environmental protection and miniaturization.
Main listed companies in the transformer industry: At present, the main listed companies in China's transformer industry include TBEA (600089), Baobian Electric (600550), Xuji Electric (000400), and Sanbian Technology (002112).
The core data of this article: transformer output scale, market share, and market concentration.
Transformer is a device that uses the principle of electromagnetic induction to change the AC voltage. The main functions are: voltage transformation, current transformation, impedance transformation, isolation, voltage regulation (magnetic saturation transformer), etc. Transformers are the basic equipment for power transmission and distribution, and are widely used in industry, agriculture, transportation, urban communities and other fields. There are about 17 million transformers operating on the grid in my country, with a total capacity of about 11 billion kVA. Transformer losses account for about 40% of power losses in transmission and distribution, and have great energy-saving potential.
The output scale of China's transformer industry has rebounded in recent years
From 2016 to 2018, affected by the decline in transmission and distribution prices and serious product waste, the output of transformers decreased slightly with the relative saturation of market demand and transformation. In 2019, the total output scale of transformers in my country has rebounded, and the overall scale has reached 1,756 million kA, a year-on-year increase of 20.6%. In 2020, due to the impact of the new crown epidemic, the total output of transformers in my country decreased slightly to 1,736.012 million kA, but it has rebounded from the previous year.
China's transformer export ratio ranks higher
From the perspective of the proportion of global transformer exports, since transformers are a technology-intensive industry with high market concentration, most of the companies producing various types of transformers are concentrated in Mexico, Canada and other countries, and the top five countries account for more than half of the export value. Because my country's transformer products accounted for the second largest in my country, reaching 10.99%. The top five countries are Mexico, Turkey, Canada and the United States, accounting for 18.59%, 8.38%, 6.86% and 6% respectively.
Due to the high output of transformers and excess capacity in my country, the industry has developed well. From 2017 to 2020, the export value of my country's transformers basically maintained a steady growth trend. In the first quarter of 2021, the export value increased by 11.9% year-on-year as the impact of the global COVID-19 epidemic waned. At the same time, my country will issue the "Transformer Energy Efficiency Improvement Plan (2021-2023)" in 2021. It is expected that the production capacity of transformers will be further improved, the export amount is expected to increase accordingly, and the export ratio will further increase.
The competitive echelon of the transformer industry at home and abroad is basically mature
On the whole, the competition in China's transformer industry is fierce, foreign multinational companies have seized a large market share, and the number of domestic transformer manufacturers is also growing rapidly. The low-end and mid-end transformer market is highly competitive. Chinese transformer companies can be divided into four camps:
ABB, AREVA, Siemens, Toshiba and other major multinational group companies have formed the first camp with technical and management advantages, occupying 20%-30% of the market share;
Baobian, Tebian, Xibian and other large domestic enterprises have formed the second camp by improving the technical level and grade of products, occupying 30%-40% of the market share;
Manufacturing enterprises represented by Jiangsu Huapeng Transformer Co., Ltd., Qingdao Qingbo Transformer Co., Ltd., Shunte Electric Co., Ltd., Shandong Dachi Electric Co., Ltd., and Hangzhou Qianjiang Electric Group Co., Ltd. formed the third camp;
Many private enterprises have formed a certain market share due to their flexible operating mechanism and no unproductive burden, forming the fourth camp.
From the perspective of the domestic enterprise echelon division, the domestic power transformer industry enterprises can be roughly divided into three echelons. The first echelon mainly includes listed companies such as TBEA; the second echelon includes leading power transformer companies, such as Xuzhou Pengcheng Transformer, Rui Electric, etc. The third echelon is mainly composed of other private power transformer manufacturing enterprises.
From the perspective of the sales revenue of transformers in my country's transformer enterprises accounting for the total sales revenue of transformers, in my country's power transformer industry, large-scale, intensive, and large-scale group backbone enterprises such as TBEA, China Xidian, Baobian, occupy a market share close to 10%. Among them, TBEA has a market share of 4.09%, taking the lead.
China's transformer industry enterprises are mainly concentrated in coastal areas
From the perspective of regional distribution, my country's power transformer enterprises are mainly concentrated in coastal areas. Among them, there are more than 1,000 enterprises in Guangdong, Jiangsu, Zhejiang, Shandong, Hebei and Liaoning. The main enterprises include Tianwei Baobian Electric, Taian Keying Electric, Hengwei Power Equipment, Wujiang Transformer, and CLP Electric; , There are more than 500 power transformer manufacturing enterprises in Shaanxi; the number of power transformer enterprises in other regions is less than 500.
TBEA has strong business competitiveness among Chinese transformer companies
Judging from the total production capacity of transformer enterprises in my country, TBEA, Baobian Electric, and Huapeng transformers are among the top three in terms of total production capacity, 26,000Kv, 17,000Kv and 12,000Kv respectively, showing strong corporate competitiveness. Judging from the sales revenue of transformer business announced in the annual report of listed transformer companies, only TBEA's sales revenue exceeds 10 billion yuan, and its business competitiveness is strong.​​
At the same time, by comparing the regional layout of major enterprises, it can be found that most of the transformer business in China is distributed in North China and South China. The main enterprises include TBEA, Dachi Electric, Jinpan Technology, etc.
The output of China's transformer industry will fluctuate and rise
Since 2020, with the successive implementation of UHV projects in various parts of my country, it is expected that in the next few years, my country's power transformer market will show a new growth trend in stages. It is expected that the national transformer output will continue to maintain a growth momentum of 2.5%. In 2026, my country's transformer output scale will exceed 2 billion kVA.
China's transformers will develop in the direction of environmental protection and miniaturization
In recent years, China has experienced rapid economic development and increasing demand for electricity. At the same time, China has also introduced various policies to speed up the construction of projects such as west-to-east power transmission, north-south mutual supply, and cross-regional networking, which has driven China's power transmission and distribution equipment. rapid development of the industry. Judging from the current market development, in the next few years, my country's transformer manufacturing industry will usher in a period of continuous and stable development.
At the same time, with the continuous deepening of China's "energy saving and consumption reduction" policy, the state encourages the development of energy-saving, low-noise and intelligent distribution transformer products. Some high-energy-consumption distribution transformers running on the grid are no longer in line with the development trend of the industry, and are facing the need for technological upgrades and replacements. In the future, they will be gradually replaced by energy-saving, material-saving, environmentally friendly and low-noise transformers.