How fast is the machine-tool industry growing?

  • In the first half of 2026, China’s machine-tool industry recorded revenue of 530.9 billion yuan, up 7.6% year on year; total profit was 19.6 billion yuan, up 110.8% year on year.
  • Growth continued through July: industry revenue rose 7.1% year on year from month 1 through July of 2026, with the metal-cutting machine-tool subsector growing 17.4%, faster than the industry overall.

How are AI and robots driving machine-tool demand?

  • Orient Securities believes the machine-tool industry’s business cycle is no longer dependent solely on replacement of existing equipment and a recovery in traditional manufacturing. As humanoid robots enter mass production and global AI computing infrastructure expands, capacity construction for downstream precision components is expected to drive machine-tool orders.
  • PCB equipment provides an example of how demand is transmitted: growing demand for high-end PCBs in AI is prompting equipment companies to expand capacity on related production lines. One company interviewed in Suzhou said its output of advanced-series equipment in the first half of 2026 had already exceeded twice its full-year output for 2025, with orders booked through the second quarter of 2027.

Which manufacturers could benefit?

  • Xiangcai Securities believes growing demand in areas such as data centers and humanoid robots could boost the performance of machine-tool manufacturers capable of providing industry-specific customization. The extent of any benefit depends on whether manufacturers can meet downstream equipment requirements.
  • Huazhong CNC provides CNC systems and services to CNC machine-tool companies and other users, and participates in the development of intelligent CNC machine tools; VEICHI Electric’s servo drives can be used in equipment including CNC machine tools. The two companies serve different supporting roles in the industrial supply chain.