This study offers an in-depth analysis of the Chinese grid systems from the transformer market and smart grid market perspective. The traditional market is represented by the transformer market. This traditional market is estimated to keep growing stimulated by the emerging smart grid market for the next five years. The smart grid market comprises three segments: power transmission, distribution grid management and power consumption markets. The study also discusses market engineering measurements, industry challenges, market drivers and restraints, market forecasts, competitive structure, and market share analysis.