Driven by both the "dual-carbon" strategy and the construction of a new power system, China's power equipment industry is undergoing an unprecedented technological revolution and industrial restructuring. As the core support for energy transition, the power equipment industry not only shoulders the mission of ensuring national energy security but also has become an important position for cultivating new productive forces.
I. Analysis of the Current Market Situation of the Power Equipment Industry
The current power equipment industry presents the "three-ization" characteristics: high-end technology, diversified scenarios, and digitalized operations. In 2023, the total output value of the industry reached 5.2 trillion yuan, a year-on-year increase of 8.6%, with the growth rate 2.1 percentage points higher than that in 2022. Among them, the proportion of new energy power generation equipment exceeded 40% for the first time, reaching 2.1 trillion yuan, while the growth rate of emerging fields such as UHV equipment and energy storage systems all exceeded 20%. This structural change reflects the trend of the industry's transformation from traditional power grids to new power systems.
The market competition pattern shows a "dual-wheel drive" situation. Traditional giants such as TBEA and China XD Electric occupy 35% of the market share relying on technical accumulation, and their market share of products such as UHV transformers and converter valves exceeds 50%; new energy enterprises such as CATL and Sungrow Power have risen through innovation-driven development. CATL's energy storage system shipments rank first in the world, with a market share of 28%. Emerging forces such as Huawei Digital Energy and BYD Electronics have entered the market through the integration mode of "digital technology + power electronics", with the annual growth rate of contract value exceeding 40%.
Technological innovation has become the key to breaking the deadlock. The "±1100kV UHV DC transmission technology" developed by TBEA realizes 3000-kilometer-level power transmission with the loss reduced to 3.5%; the "313Ah energy storage dedicated cell" launched by CATL has an energy density of 185Wh/kg and a cycle life of over 12,000 times. Such dual breakthroughs in materials and processes have promoted domestic power equipment to leap from "following" to "leading".
II. Analysis of the Market Size of the Power Equipment Industry
The market size of China's power equipment industry jumped from 3.8 trillion yuan in 2020 to 6.3 trillion yuan in 2024, with a compound annual growth rate of 13.4%. Behind this set of data is the synergy of three demand engines:
The new energy revolution drives equipment upgrading. In 2024, the market size of photovoltaic inverters reached 82 billion yuan, a year-on-year increase of 37%; the growth rate of wind power main control systems exceeded 25%. The 5MW and above offshore wind turbines launched by Goldwind Science & Technology have a single unit value of over 20 million yuan. The intellectualization of power grids gives birth to new product categories. Under the "14th Five-Year Plan" power grid investment plan, the bidding volume of smart meters reached 120 million in 2024, a year-on-year increase of 28%; the market size of digital twin substations exceeded 5 billion yuan. The Zhangbei flexible DC power grid project undertaken by NARI Group has a digitalization rate of 95%.
The explosion of energy storage has restructured the industrial ecology. In 2024, the installed capacity of new energy storage reached 45GWh, a year-on-year increase of 62%; BYD's "Blade Battery" has a penetration rate of 35% in the industrial and commercial energy storage field, and the system cost has dropped to 1.3 yuan/Wh. Regional development presents new characteristics. Relying on the advantages of industrial clusters, the output value of power equipment in the Yangtze River Delta region accounts for 38% of the country. Suzhou, Wuxi and other places have formed a complete industrial chain of "silicon material - battery chip - component"; the Chengdu-Chongqing region has driven the local demand for transformers and GIS equipment to exceed 20 billion yuan through the "Sichuan-Chongqing UHV" project; the potential of the county market has been released. In 2024, the purchase amount of distributed photovoltaic equipment increased by 55% year-on-year. The "household photovoltaic solution" developed by Chint Aneng has a single household investment return rate of 12%.
III. Forecast of the Future Development Trend of the Power Equipment Industry
Looking forward to 2027, China's power equipment industry will show the "three-ization" development trends: flexibility, intelligence, and globalization. This requires enterprises to complete the "three transformations":
Technological revolution: the leap from mechanical equipment to digital twin. The "virtual power plant control system" developed by NARI Group aggregates distributed energy through AI algorithms, with a response speed of milliseconds; the "environmentally friendly GIS" developed by Pinggao Electric uses dry air insulation, reducing greenhouse gas emissions by 99%. Such technological breakthroughs will promote the industry to leap from "equipment manufacturing" to "system services".
Scenario innovation: extending from power transmission to comprehensive energy. The "photovoltaic-storage-charging integration" solution created by Huawei Digital Energy has built more than 300 parks around the world, with an energy-saving rate of 30%; the "mobile substation" launched by TBEA can be quickly deployed in emergency scenarios, and the income from the leasing model accounts for more than 25%. This service closed-loop will restructure the business model and promote the industry to evolve towards "full life cycle management".
Value reconstruction: extending from commercial success to social responsibility. The "zero-carbon park" plan initiated by Sungrow Power has provided carbon neutrality solutions for 200 industrial parks, with an emission reduction of 5 million tons; the overall ESG rating of the industry has improved, and the green power utilization rate of leading enterprises has reached 85%. This value upgrading will promote the industry to transform from "energy suppliers" to "ecological builders". In terms of digital transformation, the industry is building a new model of "cloud, big data, Internet of Things, mobile Internet, and artificial intelligence". The "new energy cloud platform" built by State Grid has connected 5 million power stations, realizing second-level prediction of power generation; the "charging network ecosystem" built by TGOOD integrates data of vehicles, piles, and networks, with user stickiness reaching 65%.
Conclusion
China's power equipment industry is standing at the critical point of industrial transformation. In the short term, the industry needs to cope with challenges such as fluctuations in raw material prices, homogeneous competition, and stricter policies: copper prices rose by 23% year-on-year in 2024, putting pressure on corporate gross profit margins; small and medium-sized enterprises have insufficient investment in digital transformation and face the risk of being eliminated. However, in the long run, the triple driving forces of energy revolution, digital infrastructure, and domestic substitution will promote the industry to develop towards "two-level extension" - evolving towards high-end and intelligent on the one hand, and consolidating the basic market through large-scale production on the other hand.
