China is one of the fastest growing markets and has become the second largest market in the world. Especially in the recent period, the construction of projects such as power transmission from west to east, mutual power supply from north to south, and cross regional networking has accelerated the rapid development of China's power transmission and distribution equipment industry. The insiders believe that from the current market development, China's transformer manufacturing industry will usher in a continuous and stable development period in the next few years.

In the next few years, driven by the construction of smart grid, ultra-high voltage construction, power grid transformation and the development of power industry, it is expected that the growth rate of power transformers will remain around 10% during the 12th Five Year Plan period.

During the 12th Five Year Plan period, the State Grid Corporation of China will invest more than 300 billion yuan in AC ultra-high voltage construction. In 2015, the Sanhua AC ultra-high voltage synchronous power grid will be formed, with the three vertical and three horizontal as the core. 38 ultra-high voltage substations will be added, with a capacity of 260 million KVA, and 26000 kilometers of ultra-high voltage AC lines will be built; 15 DC projects have been developed, with a total converter capacity of 230 million kilowatts and a total length of 25000 kilometers.

The transformation of domestic rural power grid has provided a strong impetus for the increase of transformer market demand. A new round of rural power grid transformation and upgrading in China has achieved positive results. As of November 2013, two major power grid enterprises have completed a new round of rural power grid transformation and upgrading and invested 276.18 billion yuan in power construction in areas without electricity. According to the investment targets for rural power grid transformation disclosed by the State Grid and China Southern Power Grid, the total investment of the two major power grid companies during the 12th Five Year Plan period will exceed 500 billion yuan, with China Grid expected to invest nearly 400 billion yuan, and China Southern Power expected to invest 111.6 billion yuan. The transformation of rural power grid will directly increase the investment in power grid construction, increase the share of the power equipment manufacturing industry, and the transformer industry will usher in a new period of development opportunities.

New energy power generation brings new opportunities for transformers. From the perspective of some new energy power generation industries in China, the installed capacity of wind power, photovoltaic power generation, garbage power generation, waste heat power generation and other power generation has kept growing. By the end of 2012, the country's cumulative installed capacity of wind power was 60.83 million kilowatts, with a year-on-year growth rate of 35%. The cumulative installed capacity of photovoltaic power generation was close to 5000 megawatts, and the additional installed capacity of waste heat power generation was about 800 megawatts.

As a necessary transmission and distribution equipment in the power generation industry, the demand for transformers is closely related to the investment scale of the electric power network. In recent years, the rapid development of new energy power generation industry has brought better development space for transformers, and has become an important direction for transformer manufacturers to seize the market segment and expand their business scope. At the same time, it also promotes the optimization of transformer product structure and technical innovation.

At present, the smart grid has entered an important stage of comprehensive construction. The intelligent construction of urban and rural distribution networks will be fully launched, and the smart grid and intelligent complete equipment, intelligent distribution and control systems will usher in a golden period of development. This undoubtedly provides a good growth space for the transformer manufacturing industry.