Chinese Transformers See Global Explosion in Orders

Chinese Transformers See Global Explosion in Orders: Opportunities for Amorphous & Nanocrystalline Soft Magnetic Materials

Global orders for Chinese transformers are surging!

 

Amorphous/nanocrystalline soft magnetic materials embrace a five-year golden dividend period

Recently, China's transformer export data has hit new highs, with its global market share surpassing 60%, and overseas orders scheduled through 2027! This global order boom not only demonstrates the strength of China's equipment manufacturing industry but also brings direct and medium-to-long-term definite dividends to the amorphous/nanocrystalline soft magnetic materials sector-doubled demand, structural upgrading, accelerated domestic substitution. The period from 2025 to 2030 will be a golden window for industry development.

 

I. Demand Side: Volume and Price Rise Simultaneously, Order Backlogs Exceed 18 Months

China's global competitiveness in transformers has directly translated into rigid demand for amorphous and nanocrystalline materials, driving an all-out boom in two major segments:

Amorphous Materials: The "Energy-Saving Core" of Distribution Transformers

Driven by overseas power grid aging renovation and domestic energy efficiency upgrading policies, the penetration rate of amorphous transformers is rising rapidly.

In China, the proportion of amorphous transformers in State Grid tenders has jumped from 30% to 50% (2030 target), with annual demand surging from 170,000 tons to over 200,000 tons.

In overseas markets, surging demand for low-loss transformers in Europe, America, and Southeast Asia has doubled orders for amorphous alloy strips, with prices rising 15%–30% year-on-year.

Nanocrystalline Materials: The "King of Substitution" for High-Frequency Applications

Emerging sectors such as AI computing centers, photovoltaic energy storage, EV charging piles, and UHV power grids are pushing transformers toward higher frequency, higher efficiency, and miniaturization.

With advantages of 50% smaller size and over 60% lower loss, nanocrystalline materials are rapidly replacing traditional ferrites and silicon steel. Demand is exploding in power electronic transformers, and these materials are going global alongside Chinese transformers, directly benefiting from the "overseas expansion dividend".

Core data confirms market heat:

Order backlogs at leading material enterprises generally exceed 18 months, and the tight supply-demand balance in the industry will persist until 2028.

 

II. Structural Upgrading: High-End Materials Become the Main Growth Driver

Technological iteration in the transformer industry is forcing amorphous and nanocrystalline materials to shift toward high-end and customized solutions:

Amorphous Materials

Expanding from conventional distribution fields to large-capacity (10MVA+), dry-type, and smart grid scenarios. High-grade, wide-width (213–250mm), and ultra-thin (18μm) strips boast significant premium space due to superior performance.

Nanocrystalline Materials

Shifting from consumer electronics to high-power high-frequency applications (PV inverters, energy storage converters, etc.). Ultra-thin (10–20μm), high magnetic induction, and low-loss (0.15W/kg) products have become mainstream. Fourth-generation nanocrystalline materials have achieved mass production breakthroughs.

In short:

Over the next three years, high-end materials will increase their market share from 35% to 60%, becoming the core profit source for enterprises.

 

III. Challenges & Breakthroughs: 3 Keys to Seizing the Dividend

Behind the opportunities, the industry still faces short-term pressures requiring targeted solutions:

Address capacity gaps: Prioritize high-end capacity expansion and avoid low-end homogeneous competition.

Offset cost pressures: Reduce reliance on upstream raw materials such as iron, boron, and silicon through economies of scale and process optimization.

Break through technical barriers: Focus on core indicators including wide strip, ultra-thinness, and low loss to build differentiated competitiveness.