A quick look at the industry dynamics of oil-immersed distribution transformers
Jun 28,2025
1. Energy efficiency upgrades accelerate, and new environmentally friendly oils attract attention
With the tightening of global energy efficiency standards (such as China's newly revised GB 20052-2024 ), Class 1 energy-efficient oil-immersed transformers market share continues to grow.
Bio-based insulating oil (such as FR3 natural ester) is clearly replacing mineral oil, with many European countries mandating its use in sensitive locations such as hospitals and schools, and an increase in domestic pilot projects.
2. Soaring demand for intelligent upgrades
State Grid and Southern Grid are promoting "digital substations" projects, requiring transformers to integrate online monitoring (DGA, temperature, load) and edge computing functions, with companies like Huawei and Cisco providing cross-border IoT solutions.
Typical case: An industrial park in Zhejiang deployed 200 intelligent oil-immersed transformers, reducing fault response time by 70%.
3. Raw material fluctuations affect the supply chain
The price of grain-oriented silicon steel (B18R060) has increased by 12% year-on-year, and some manufacturers are switching to amorphous alloy iron core technology to reduce costs, but capacity is limited.
Copper prices are fluctuating at high levels, promoting the return of aluminum winding transformers in low-load scenarios.
4. New trends in overseas markets
India has launched rural power grid upgrades, tendering for 500,000 10kV oil-immersed transformers (including a 5-year maintenance contract).
The European Union plans to restrict transformers containing PFAS (per- and polyfluoroalkyl substances) from 2027, forcing the development of alternative technologies.
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