With the sustained, healthy and high-speed development of China's economy, power demand continues to grow rapidly. In 2011, China's total electricity consumption was 4.69 trillion kwh, an increase of 11.7% over the previous year, and consumer demand is still strong. The per capita electricity consumption was 3483 kwh, an increase of 351 kwh over the previous year, exceeding the world average. The rapid development of China's power construction has driven the development of China's transformer manufacturing industry. In 2011, the output of transformers in China reached 1.43 billion KVA, a year-on-year increase of 6.86%. In 2011, there were 1461 large-scale (main business income over 20 million yuan) enterprises in China's transformer manufacturing industry; The company realized sales volume of 290.140 billion yuan, total profit of 16.608 billion yuan, asset scale of 263.84 billion yuan and product sales profit of 33.972 billion yuan. With the fierce competition in China's transformer industry, foreign multinational companies have seized a large market share, and the number of domestic transformer manufacturing enterprises is also growing rapidly. For example, Shandong Yongcheng transformer has fierce competition in the middle and low-end transformer market. There are more than 20 enterprises with 220kV transformer production capacity and more than 100 enterprises with 110kV transformer production capacity. However, the enterprises that produce 500kV or above transformers have built high barriers to entry through technology and production capacity, and the market pattern tends to be stable. In recent years, China's power demand is growing rapidly, and the high-speed construction of power grid drives the market demand of power transmission and transformation equipment. As the key electrical equipment of power transmission, the market demand of transformer has also maintained a steady growth. According to the analysis report on market demand forecast and investment strategic planning of China's transformer manufacturing industry released by foresight Industry Research Institute, the sales revenue of China's transformer industry in 2013 was 368.034 billion yuan, with a year-on-year growth of 16.07%, and the compound growth rate of the industry from 2005 to 2013 was 20.76%. The number of enterprises in China's transformer industry is very large. In 2013, there were 1650 enterprises in the whole industry, including 1303 small enterprises, accounting for nearly 80%. Most small enterprises are weak in technology and can only produce low-end products below 110, which leads to serious overcapacity in the low-end transformer market. According to statistics, the capacity utilization rate of domestic transformer is only 50%. According to the plan, the State Grid will invest about 2.55 trillion yuan in power grid construction during the 12th Five Year Plan period, which is 68% higher than the 1.5 trillion yuan during the 11th Five Year Plan period. Subdivided into 2.55 trillion, 500 billion will be used for UHV power grid investment, 500 billion will be used for distribution network investment, and about 1.55 trillion will be used for grid line investment of other voltage levels. In the investment of UHV power grid, the investment of UHV AC is about 68.3 billion yuan.