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2026
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04
China’s Power Distribution Equipment Industry Sees Strong Growth in 2025
Source:
The power distribution equipment industry is the core foundation of power infrastructure development. Fueled by the accelerated construction of new power systems, accelerated distribution network renovation, and booming demand for new energy integration, the whole industry has maintained a strong upward momentum throughout 2025.
According to official data from the China Electrical Equipment Industry Association and State Grid of China, the overall scale of China’s distribution equipment market is expected to exceed 650 billion RMB in 2025, a year-on-year increase of 13% compared with 2024.
In terms of market segments, power transformers account for 180 billion RMB, switchgears and circuit breakers 160 billion RMB, distribution automation systems 120 billion RMB, and power cables & accessories 190 billion RMB.
Benefiting from a complete industrial chain and outstanding cost advantages, Chinese manufacturers are accelerating global layout. The export value of domestic power distribution equipment is estimated to reach 9.2 billion US dollars in 2025, with a 16% year-on-year growth. The Middle East, Southeast Asia and Latin America remain the core overseas markets, while transformers and switchgears are the top exported products.
Domestically, the market is mainly driven by centralized procurement of State Grid and China Southern Power Grid. Leading enterprises including TBEA, China XD Electric, XJ Electric and Sifang Electric have delivered continuous order growth, and industrial concentration keeps rising steadily.
Key Industry News & Milestones
1. TBEA Lands Major UHV Contract in Saudi Arabia
In the first quarter of 2026, TBEA successively won multiple ultra-high voltage power transmission and transformation projects in Saudi Arabia, covering NEOM New City construction and Riyadh power grid expansion. The total contract value exceeds 2.5 billion RMB, setting a new record for its single-quarter overseas performance.
Driven by energy transformation and large-scale power infrastructure investment in the Middle East, leading Chinese transformer manufacturers gain stable overseas orders. At present, TBEA’s overseas revenue proportion has exceeded 35%.
2. Domestic First ±1100kV UHV Converter Transformer Realizes Mass Production
Baobian Electric, in cooperation with Xi’an Jiaotong University, has achieved fully localized mass production of China’s first ±1100kV UHV converter transformer. All core components such as key insulating materials, bushings and voltage regulating devices are independently developed and supplied domestically.
This landmark achievement lifts the localization rate of core UHV transformer parts above 95%, replacing over 800 million RMB of imported equipment annually. It marks that China has stepped from a follower to a global leader in the UHV power equipment sector.
3. Chinese Switchgear Brands Accelerate Penetration in Southeast Asia
Spurred by surging power demand in Southeast Asia and supporting construction of Chinese-funded infrastructure projects, local competition with international brands like ABB and Schneider continues to intensify.
In Q1 2026, major domestic players including XJ Electric, Pinggao Electric and Siyuan Electric secured around 900 million RMB of new contracts for switchgear and distribution automation projects in Southeast Asia, with a year-on-year increase of 52%.
The business model of “equipment supply + localized after-sales service” has become the mainstream overseas development strategy, with local operation and maintenance teams under rapid expansion.
4. AI Technology Empowers Intelligent Distribution Network Upgrade
State Grid is actively promoting AI-based distribution automation systems integrated with big data, edge computing and intelligent sensors. The new solution realizes millisecond-level fault location and automatic self-healing isolation for distribution networks.
In pilot cities, the average power outage duration has dropped by 65%, and power supply reliability has reached 99.999%. Supported by software-defined power distribution technology, enterprises such as Sifang Electric and Jicheng Electronics have gained obvious advantages, with their shipment of distribution automation terminals surging 38% year-on-year in 2025.
Core Industry Growth Drivers
Fast progress of new power system construction and rural & urban grid upgrading
Rising new energy consumption demands driving smart grid renovation
Expanding overseas market demand and continuous export growth
Deep integration of AI, digital technology and power distribution equipment
With the continuous global energy transition and booming cross-border infrastructure cooperation, China’s power distribution equipment industry will maintain long-term high-quality growth, and Chinese intelligent power equipment will further enhance global competitiveness and market influence.
Power distribution equipment,Power grid equipment,Electrical distribution system,Power transformer,Switchgear,Circuit breaker
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