Global AI computing power construction is currently experiencing a period of explosive growth, making high-power, high-stability power supply systems the lifeline of computing clusters. Within this context, power equipment transformers are becoming a core component of computing infrastructure. An industry expert commented that the global transformer market is shifting from a supply-demand balance to a state of shortage, reflecting both the industry's high vitality and the core demands of the energy support system in the AI computing era. As a critical link in the new power system, transformers have become essential for the stable operation of AI computing power. The fundamental reason for the supply tightness is a mismatch between the pace of computing power expansion and the upgrade of power infrastructure, potentially presenting development opportunities for related listed companies.
Data indicates that China's transformer export value is projected to reach 64.6 billion yuan by 2025, representing a growth of nearly 36% compared to 2024. The domestic transformer market size in 2025 is expected to see a year-on-year increase of over 20%, with orders for high-end products related to AI computing and ultra-high voltage accounting for more than 35%, making them the core engine of industrial growth. Notably, structural supply-demand imbalances are particularly pronounced globally. The delivery cycle for transformers in the US market has extended from 50 weeks to 127 weeks. In Chinese provinces like Guangdong and Jiangsu, many transformer factories are operating at full capacity, with some orders for data center businesses scheduled as far out as 2027.
According to another expert, the explosion of emerging global industries such as AI, data centers, and new energy vehicles is continuously increasing pressure on power grids. The enormous electricity consumption of large model training, coupled with the construction of data centers and photovoltaic power stations, and the widespread adoption of new energy vehicles, are significantly driving transformer demand and expanding the market. A different industry researcher pointed out that high-end specialized products suitable for AI computing centers are even more scarce, and this structural imbalance further widens the market gap. AI supercomputing clusters require extremely high power quality, making standard transformers unsuitable and creating core market demand for high-power, high-stability, low-loss premium transformers.
From the supply perspective, rigid capacity constraints and technical barriers are cited as the core reasons why the global transformer market gap is difficult to close quickly. A chief consultant noted that commissioning new transformer production capacity takes one to two years, and training senior technicians requires a cycle of over five years, meaning capacity growth lags far behind demand expansion. China possesses the world's most complete and mature power equipment manufacturing system, giving it advantages in cost control, delivery stability, and responsiveness to large-scale orders.
Looking ahead, as AI computing power penetrates into higher density and broader scenarios, the strategic importance of transformers will continue to rise, driving iteration towards higher efficiency, greater intelligence, and enhanced sustainability.
Faced with the widening supply-demand gap and growing AI computing demands, listed companies are accelerating product technological innovation. A representative from Jinbei Electric Co., Ltd. stated that the company views the strategic opportunities arising from global AIDC expansion and subsequent power demand growth with high importance for its product market development. Its products are already being applied in the AIDC transformer sectors in North America, Europe, and domestically.
Hainan Jinpan Smart Technology Co., Ltd. indicated in its investor relations activity records that upon completion, its "Data Center Power Module and High-Efficiency Energy-Saving Power Equipment Intelligent Manufacturing Project" will expand production capacity for complete series of products like data center power modules. It aims to provide stable supplies of these products to the data center sector, especially Artificial Intelligence Data Centers (AIDC), and increase sales scale of high-efficiency, energy-saving VPI transformer products while achieving a digital transformation in VPI transformer manufacturing.
Xinhua Du Special Electric Co., Ltd. announced on an investor interaction platform that a key breakthrough has been made in the medium-voltage high-frequency transformer, a critical core component of its Solid-State Transformer (SST). This medium-voltage high-frequency transformer is fully adaptable for use in SSTs, DC transformers, and fast-charging equipment and is currently in the sample testing phase.
Finally, an expert from a research institute emphasized that competition in the transformer industry has evolved into a contest of comprehensive solutions centered on high reliability, high energy efficiency, and intelligence. Companies in the industrial chain should focus more on technological innovation, prioritize expanding production of high-power, liquid-cooled, low-loss premium transformers, and invest in next-generation technologies like solid-state transformers to capture the high-end market.
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