The first-half 2026 performance of the textile machinery industry surprised many. According to data from the China National Textile and Apparel Council, industrial value-added for enterprises above designated size achieved double-digit growth, while the average growth for the entire textile industry was only 3.3%. This contrast signals that the textile machinery sector has become the most dynamic link in the textile value chain, with recovery strength far exceeding downstream demand.
Background
The strong recovery is primarily attributed to the policy dividend of the 15th Five-Year Plan. The accelerated pace of equipment renewal and digital transformation in the domestic textile industry has opened new market space for equipment manufacturers. In terms of industry operations, the operating rate of textile machinery enterprises steadily increased in H1, with leading enterprises enjoying full order books and improved delivery efficiency both domestically and internationally. However, it is worth noting that this is not a broad-based rise; significant structural divergence has emerged across sub-sectors.
Spinning machinery became the biggest winner of this recovery. Demand for intelligent complete equipment such as ring spinning, air-jet spinning, and rotor spinning surged, driven by two factors: domestic cotton spinning enterprises launched a wave of intelligent upgrades, and textile clusters in central and western regions like Xinjiang continued to expand production, directly boosting new line equipment procurement. In contrast, the weaving machinery sector showed polarization—high-end air-jet looms and special fiber weaving equipment were favored, while demand for traditional general models declined. Chemical fiber machinery, knitting machinery, and printing and dyeing finishing equipment are still in a slow repair phase, with downstream investment attitudes conservative and recovery pace relatively flat.
Industry Impact
Export performance provided another pillar of support. With the restructuring of global textile supply chains, domestic equipment gained more orders in emerging markets such as Southeast Asia, Central Asia, the Middle East, and Africa, thanks to cost-effectiveness. Exports of spinning and weaving equipment were particularly strong. Some leading enterprises accelerated overseas expansion, with technology export and localized service models maturing, making overseas markets a new growth pole. Trade data confirms this trend: export growth of textile machinery significantly outpaced domestic sales, and the share of emerging markets continued to rise.
However, pressure on profitability persists. Fluctuations in raw material prices such as steel and motors directly increased manufacturing costs; homogeneous competition in low-end segments triggered price wars, squeezing profit margins; and downstream textile enterprises have limited willingness for large-scale expansion, making investment decisions more cautious. These factors imply that the foundation of the industry's recovery is not yet solid, and enterprises need to balance cost control and differentiated competition.
Facing opportunities and challenges, technological innovation has become the key to breaking through. R&D focus is shifting toward high-speed and high-efficiency production, digital control systems, low-carbon and energy-saving technologies, and flexible equipment suited for "small-order, quick-response" models. Innovative products such as intelligent spinning lines, AGV warehousing and transfer systems, AI online quality inspection equipment, and low-energy dyeing and finishing equipment are accelerating deployment, while localization of core components is steadily advancing. More importantly, many enterprises have moved beyond selling hardware alone, transitioning to provide complete process solutions, with the share of technical service revenue rising. This drives industry value from "equipment manufacturing" to an integrated "equipment + software + O&M" service model.
The gradient transfer of the domestic textile industry is also releasing stock equipment renewal demand. Production capacity is migrating to central and western regions, driving procurement for new lines; eastern coastal enterprises are accelerating the elimination of high-energy-consuming old equipment, ushering in a new renewal cycle. The shift from old to new drivers paves a long-term growth track for the textile machinery industry.