Bernstein: Asian Industrial Technology Global Automation — 2026 Asia Automation Tour Takeaways
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Bernstein's 2026 Asia automation tour finds demand recovering, though pace varies significantly by region and sector. The global automation market is projected to grow 5-7% in 2026, with China expanding 8-10% and Japan growing 3-5%. Chinese local automation vendors are gaining share in solar photovoltaic and lithium battery applications, where 2026 investment is expected to grow 20%. Japanese manufacturers maintain dominance in semiconductor equipment but face intensifying competition. Global robot orders increased 12% year-over-year in the first quarter, driven by an 18% surge in China. Semiconductor equipment order growth decelerated to 4%, down from 8% in the fourth quarter of 2025. Channel inventory is normalizing, declining from eight weeks to six weeks. Rising labor costs and manufacturing reshoring trends are propelling automation investment, particularly in Southeast Asia. European automation demand remains sluggish, with only 1-2% growth expected. Japanese automotive automation faces headwinds, with orders down 2% year-over-year. Bernstein anticipates robot orders will grow 10-15% for the full year, while semiconductor equipment may recover in the second half, though uncertainty remains elevated. Risks include geopolitical tensions, supply chain disruption, and demand shortfalls.
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