According to the state gride corporation ""11th Five-Year Plan" Network planning and 2020 vision report, the 330KV transmission lines will increase by 60,000meters during the "11th Five-Year Plan" period, 300 million KVA transforming capacity, and 900 million investment. The power shortage problem has stimulated investment in power, and the the effect of driving transmission equipment industry will last to 2008. The annual demand of transformer is about 360 million to 400 million KVA. By 2010, cross-regional power transmission capacity will reach 40 million kilowatts, and electricity tranmission will reach1,800 billion kilowatt-hours.

State Grid Corporation invest 180 million yuan every year during "11th Five-Year Plan", and south power grid company is 1/3-1/4 of state grid , so the toal investment of the two grid can reach 225 billion yuan, increased by 90% than "15". The electrical equipment and power transmission equipment industry has a relatively bright future.

According to some experts, China's transformer industry has two main development directions: one is high-pressure, UHP direction, especially 750KV and 1100KVA. The other is energy conservation, miniaturization direction. The former are mainly used in long-distance transmission lies, the latter are mainly used in urban power transmission lines.

the market capacity of distribution transformer is larger yet because of the low technical barriers, and small-scale enterprise, lowe industry concentration, fierce market competetion, the development of distribution industry has a lot of difficulties.