The recovery of the textile machinery industry is not a broad-based rebound. In the first half of 2026, industrial value-added of large-scale textile machinery enterprises achieved double-digit growth, while the average growth of the entire textile industry was only 3.3%. This contrast implies that investment enthusiasm on the equipment side far exceeds the pace of terminal consumption recovery, and the urgency of industrial upgrading is replacing simple demand replenishment.
Background
As the opening year of the 15th Five-Year Plan, 2026 has seen accelerated equipment renewal and digital transformation in the domestic textile industry. According to the report released by the China National Textile and Apparel Council, the textile machinery industry's prosperity continued to recover, with leading enterprises' order schedules full and delivery efficiency improved. However, segment performance varied significantly: spinning machinery became the biggest highlight, with strong demand for intelligent complete equipment such as ring spinning, air-jet vortex spinning, and rotor spinning, driven by the intelligent upgrade wave of domestic cotton spinning enterprises and the continuous capacity expansion of clusters in Xinjiang and other central-western regions.
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-purpose models declined. Chemical fiber machinery, knitting machinery, and dyeing and finishing equipment remained in a slow recovery phase, with downstream investment attitudes conservative. This structural divergence indicates that capital is flowing toward products that can directly improve efficiency or align with industrial transfer directions, rather than universal equipment.
Industry Impact
In foreign trade, domestic textile machinery, leveraging cost-performance advantages, has secured more orders in emerging markets such as Southeast Asia, Central Asia, the Middle East, and Africa, with spinning and weaving equipment exports performing prominently. Leading enterprises have shifted from simple equipment sales to technology export and localized supporting services, meaning overseas markets have become a sustainable growth pole rather than a temporary channel for inventory clearance.
However, pressure on profitability cannot be ignored. Fluctuations in raw material prices such as steel and motors have pushed up manufacturing costs, and price wars in the low-end segment are frequent. Coupled with limited willingness of downstream to expand capacity, the industry's overall efficiency is recovering, but the foundation is not yet solid. For enterprises, relying solely on scale expansion is no longer viable; they must offset cost and competition pressures through technological innovation.
R&D efforts are focusing on high-speed and efficient production, digital control systems, low-carbon and energy-saving technologies, and flexible equipment suitable for small-batch, quick-response models. 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. Some enterprises have shifted from selling hardware to providing integrated solutions of "equipment + software + operation and maintenance," with a rising share of technical service revenue, marking the industry's value extending from manufacturing to services.
The gradient transfer of the domestic textile industry is also releasing considerable demand for equipment renewal. New capacity in central and western regions brings procurement for new production lines, while eastern coastal areas accelerate the elimination of old high-energy-consuming equipment, ushering in a new renewal cycle. This shift between old and new drivers paves a long-term growth track for the textile machinery industry, but a broad-based rally is unlikely in the second half; resources will further concentrate on leading enterprises with independent R&D capabilities, complete solution offerings, and global service networks.