In the first half of 2026, the textile machinery industry delivered a 'mixed bag' performance: industrial value-added for above-scale enterprises saw double-digit growth, while the average growth for the entire textile sector was only 3.3%. This contrast indicates that the sector's recovery is not broad-based but driven by structural engines such as intelligent and green equipment. For buyers and manufacturers, understanding this divergence is more valuable than focusing on the overall figure.
Background
The equipment renewal policies at the start of the '15th Five-Year Plan' injected policy dividends into the industry. Accelerated digital transformation in the domestic textile sector, coupled with the gradient transfer of production capacity to central and western regions, has generated significant demand for new production lines. Meanwhile, eastern coastal areas are phasing out high-energy-consuming old equipment, triggering a new cycle of stock replacement. These two forces have enabled the textile machinery sector to stand out within the broader textile industry, becoming one of the few sub-sectors to achieve double-digit growth.
Segment-wise, spinning machinery performed most strongly. Orders for intelligent complete sets such as ring spinning, air-jet spinning, and rotor spinning surged, driven by the intelligent upgrade wave among domestic cotton mills and the continuous expansion of industrial clusters in Xinjiang and other central-western regions. Weaving machinery, however, showed polarization: high-end air-jet looms and special-fiber weaving equipment were favored, while demand for conventional general-purpose models declined. Chemical fiber, knitting, and printing & dyeing finishing equipment remain in a slow recovery phase, with downstream investment cautious and the sector's rebound clearly lagging.
Industry Impact
The structural divergence has notable ripple effects across the supply chain. For equipment manufacturers, those betting on intelligent, high-speed, and energy-efficient directions are enjoying order dividends, while those relying on conventional models face shrinking demand and price wars. Fluctuating raw material costs for steel and motors continue to raise manufacturing expenses, and homogenized competition in the low-end segment further compresses profit margins, leaving the foundation of earnings recovery fragile.
The foreign trade arena has become a key growth pole. Amid global supply chain restructuring, domestic textile machinery has gained more orders in emerging markets such as Southeast Asia, Central Asia, the Middle East, and Africa, thanks to cost-performance advantages. Exports of spinning and weaving equipment have been particularly strong. Leading enterprises are accelerating overseas expansion, with technology export and localized service models maturing. The overseas market is transitioning from a 'supplement' to a 'pillar'. However, for SMEs, overseas service systems and brand premium remain weak links, and a purely low-price export model is unsustainable.
Notably, the industry's value chain is shifting. More companies are moving beyond merely selling hardware to offering integrated 'equipment + software + O&M' solutions, with technical service revenue accounting for an increasing share. Innovative products such as intelligent spinning lines, AGV warehousing and transfer systems, AI online quality inspection, and low-energy dyeing equipment are accelerating adoption, while localization of core components progresses steadily. For downstream mills, this means procurement decisions are no longer just about choosing equipment but about selecting an entire production capability and long-term service. Total lifecycle cost matters more than the initial quote.
Practical Recommendations
For Buyers - Prioritize equipment with intelligent features and data interface compatibility to avoid future 'islands' in digital transformation. - Pay attention to energy consumption indicators and low-carbon certifications; high-energy models risk elimination under medium- and long-term carbon constraints. - Evaluate suppliers' technical service capability and spare parts response time, especially ensuring localized support for overseas purchases.
For Foreign Trade Enterprises - Deepen presence in emerging markets like Southeast Asia and Central Asia, offering localized installation, commissioning, and remote maintenance to enhance customer stickiness. - Avoid low-end price wars; build competitive barriers through differentiated features such as flexible production lines for small-batch, quick-response orders. - Monitor policy standards in target markets (e.g., energy labels, safety certifications) and complete compliance preparations in advance.
In the second half, as the autumn/winter peak season approaches, textile machinery orders are expected to continue recovering, but a broad-based rally is unlikely. Market resources will further concentrate among leading enterprises with independent R&D capabilities, complete solution offerings, and global service networks. For SMEs, identifying niche segments, strengthening technical collaboration, or deepening regional focus may be more pragmatic survival strategies than comprehensive expansion.