Search
Sales teams at Chinese automation machinery companies have been busy since early 2026. Order books are filling up faster than many expected.
Image Source: 699pic.com
According to MIR data cited by Dongwu Securities, the OEM market for industrial automation grew 6.6 percent in the first quarter of 2026, while the project-based market edged up 0.7 percent . The numbers may not look dramatic, but industry insiders say the shift in momentum is real. After more than three years of downturn, the automation sector is climbing back.
Lithium battery, AI hardware, 3C electronics, machine tools, and logistics are leading the recovery . One distribution manager in Shenzhen told me his warehouse inventory is at its lowest level in two years. “Customers are calling for delivery within weeks, not months,” he said.
Domestic automation machinery manufacturers are the main beneficiaries. Orders at leading Chinese companies reportedly grew more than 40 percent in April 2026 compared to the same month last year . Analysts expect year-on-year growth to stay above 40 percent for the coming quarters, with some forecasts reaching 50 percent.
What is driving this surge? Three things, according to industry reports.
First, 2026 is the start of China’s 15th Five-Year Plan period. Large infrastructure and industrial projects are rolling out, creating demand for servos, medium-to-large PLCs, and high-voltage drives .
Second, global energy security concerns are boosting renewable energy investments. Solar, wind, and energy storage projects need automation equipment, and demand is expected to stay strong for years .
Third, AI-related capital spending is heating up. Liquid cooling systems, precision machine tools, and semiconductor equipment all require automation components . One factory manager in Jiangsu said his shop floor is running three shifts to keep up with orders for AI server cooling plates.
The broader market numbers tell the same story. China’s smart manufacturing equipment industry reached approximately 4.79 trillion yuan in 2025, continuing its run as the world’s largest market for manufacturing equipment . Growth is coming from electric vehicles, electronics, and new energy sectors, all of which are automating production lines at a rapid pace.
Domestic brands are capturing more of this market. In industrial robotics, Chinese manufacturers now hold 57 percent of the domestic market share, up from around 40 percent just a few years ago . Export data from China Customs shows the trend extends beyond China’s borders. In April 2026 alone, China exported 25,375 industrial robots, an 89.2 percent increase compared to April 2025 . For the first four months of 2026, cumulative robot exports reached 66,666 units, up 35.1 percent year-on-year.
A sourcing manager at a Thai auto parts plant told a Chinese supplier last month that his company switched from a Japanese brand to a Chinese one. “The performance difference is small now, but the price gap is still meaningful,” he was quoted as saying in an industry newsletter.
Not everyone is celebrating. The machine tool segment tells a different story. China exported 890,000 machine tools in April 2026, down 26.2 percent from a year earlier . The cumulative export figure for January to April fell 29.9 percent. This suggests that while complete automation systems and robots are selling well, traditional standalone machine tools face headwinds.
The high end of automation machinery remains a challenge for Chinese manufacturers. Foreign brands like Siemens, ABB, and Schneider still dominate in complex applications requiring high precision and reliability. A production director at an aerospace components plant in Xi’an said his team still buys German CNC systems for five-axis machining. “For critical parts, we cannot take risks,” he explained.
But the gap is closing. At the CIMES 2026 Beijing Machine Tool Exhibition held in late May, Chinese manufacturers showcased five-axis machining centers, AI-equipped precision grinders, and domestically developed CNC systems . The show gathered more than 1,300 companies from 28 countries across 120,000 square meters of exhibition space . Visitors noted that the gap between domestic and imported high-end equipment is narrower than at the previous show two years ago.
Core components are also improving. Harmonic reducer localization reached 58.3 percent by 2025, according to industry tracking . Servo motors, sensors, and other key parts are seeing steady gains in domestic production. This matters because lower component costs reduce the price of finished automation equipment, making it more competitive both at home and abroad.
The export picture for the broader machinery sector is mixed. China’s total electromechanical Products exports reached $849 billion in the first four months of 2026, up 21.1 percent year-on-year . Integrated circuit exports more than doubled, computer product exports rose 47.7 percent, and auto exports climbed 44 percent. But general machinery exports actually fell 3.4 percent in April compared to last year . The trend is toward higher-value, more complex products rather than basic machinery.
Looking ahead, industry analysts expect the automation upcycle to last at least through 2027 . The drivers appear durable: government support for manufacturing upgrades, global energy transition spending, and AI infrastructure buildout. A report from China’s Automation Market Research Conference in March projected that new productivity sectors could drive automation market growth of 350 billion to 450 billion yuan over the next five years, with annual growth exceeding 15 percent .
For procurement managers, the key question is whether domestic automation machinery can deliver the reliability and service support needed for critical applications. For Chinese manufacturers, the challenge is moving beyond price competition to win on performance and long-term trust.