Goldman Sachs Sees AI-Driven Industrial Exports Boosting China’s Power-Equipment ‘Bottleneck Solvers’
China has entered a “Go Global 3.0” era centered on exporting AI-driven, technology-led industrial capabilities, spanning areas from AI data-center power infrastructure to physical AI, including robotics and automation.
China has entered a “Go Global 3.0” era centered on exporting AI-driven, technology-led industrial capabilities, spanning areas from AI data-center power infrastructure to physical AI, including robotics and automation.
Goldman Sachs identifies export opportunities across 11 product categories and groups them into four archetypes. It expects “bottleneck solvers”—including gas turbines, transformers, switchgear and uninterruptible power supplies—to achieve the largest gains in market share and margins during 2026-30E, driven by a strong supply-demand gap. Global ex-China 2030E total addressable markets range from US$12 billion for UPS to US$212 billion for energy storage.
Goldman Sachs rates Siyuan Electric, Kstar, Envicool and Hongfa Technology Buy, while rating Sungrow Neutral. It expects leading Chinese companies to increase their overseas power-equipment market shares by 3 to 11 percentage points over the medium term.
Goldman Sachs’ medium-term preference is for power-equipment “bottleneck solvers” benefiting from AI data-center power shortages. The institution says energy storage and humanoid robots face near-term pressure, although their long-term potential remains unchanged.
Goldman Sachs identifies Siyuan Electric, which makes transformers and switchgear, Kstar, which makes UPS systems, Envicool, which provides data-center thermal-management equipment, and Hongfa Technology, which makes relays, as positive exposures, all with Buy ratings. It also identifies Dongfang Electric, which makes gas turbines, and Megmeet, which makes power-supply units and server-cooling equipment, as positive exposures. Sungrow, which is exposed to energy storage and has a Neutral rating, Estun, which makes industrial robots, and Inovance Technology, which is exposed to industrial automation, are described as Neutral or under near-term pressure.
The extent to which the market has priced in the opportunity is unclear, but Goldman Sachs believes the medium-term opportunity is not yet fully reflected.
Potential catalysts identified by Goldman Sachs are: continued widening of the supply-demand gap in AI data-center power infrastructure; progress by Chinese companies in meeting the demanding operating standards of global utility customers; the establishment of localized after-sales support and full-lifecycle service systems, which the institution describes as a key gap relative to established Western companies; and product-upgrade and replacement demand resulting from the shift to 800VDC architectures.
Goldman Sachs identifies export opportunities across 11 product categories and groups them into four archetypes. It expects “bottleneck solvers”—including gas turbines, transformers, switchgear and uninterruptible power supplies—to achieve the largest gains in market share and margins during 2026-30E, driven by a strong supply-demand gap. Global ex-China 2030E total addressable markets range from US$12 billion for UPS to US$212 billion for energy storage.
Goldman Sachs rates Siyuan Electric, Kstar, Envicool and Hongfa Technology Buy, while rating Sungrow Neutral. It expects leading Chinese companies to increase their overseas power-equipment market shares by 3 to 11 percentage points over the medium term.
Goldman Sachs’ medium-term preference is for power-equipment “bottleneck solvers” benefiting from AI data-center power shortages. The institution says energy storage and humanoid robots face near-term pressure, although their long-term potential remains unchanged.
Goldman Sachs identifies Siyuan Electric, which makes transformers and switchgear, Kstar, which makes UPS systems, Envicool, which provides data-center thermal-management equipment, and Hongfa Technology, which makes relays, as positive exposures, all with Buy ratings. It also identifies Dongfang Electric, which makes gas turbines, and Megmeet, which makes power-supply units and server-cooling equipment, as positive exposures. Sungrow, which is exposed to energy storage and has a Neutral rating, Estun, which makes industrial robots, and Inovance Technology, which is exposed to industrial automation, are described as Neutral or under near-term pressure.
The extent to which the market has priced in the opportunity is unclear, but Goldman Sachs believes the medium-term opportunity is not yet fully reflected.
Potential catalysts identified by Goldman Sachs are: continued widening of the supply-demand gap in AI data-center power infrastructure; progress by Chinese companies in meeting the demanding operating standards of global utility customers; the establishment of localized after-sales support and full-lifecycle service systems, which the institution describes as a key gap relative to established Western companies; and product-upgrade and replacement demand resulting from the shift to 800VDC architectures.