NSK and NTN Agree on Bearing Business Integration to Strengthen Global Competitiveness

NSK and NTN Move Toward Bearing Business Integration to Compete in the EV, China, and Physical AI Era

Latest Update June 23, 2026

Japan's bearing industry is entering a pivotal phase as NSK (Nippon Seiko) and NTN, two of the country's leading bearing manufacturers, have reached a basic agreement to integrate their businesses. If approved by regulatory authorities, the merger would create a new global-scale bearing company capable of competing with industry leaders such as SKF of Sweden and Schaeffler of Germany.

However, the objective extends beyond achieving greater scale. Both companies are seeking to build a more resilient and sustainable business foundation amid slowing automotive growth, accelerating EV adoption, and rising competition from Chinese manufacturers.

Automotive Industry Transformation Drives Consolidation

According to NTN President Eiichi Ukai, the global bearing market has already undergone significant consolidation, while Japan continues to have several major domestic players competing against each other.

NSK President Akitoshi Ichii believes that restructuring within Japan is necessary to maintain the long-term competitiveness of the country's manufacturing sector.

NTN is particularly exposed to the automotive industry, which accounts for approximately 65% of its revenue. Its key products include hub bearings and drive shafts, while both NSK and NTN hold significant positions in global bearing markets.

The slowdown in automotive production, combined with uncertainty surrounding EV adoption, has become one of the main factors driving the renewed push for business integration.

Growing Pressure from Chinese Competitors

The competitive landscape has also changed significantly as Chinese bearing manufacturers continue to improve both production capacity and product quality.

According to Daiwa Securities analyst Kosuke Tai, Chinese manufacturers are increasingly expanding beyond their domestic market and targeting global customers across multiple industrial sectors, including bearings.

Industry executives acknowledge that Chinese suppliers are becoming more competitive than ever before, creating additional pressure on established Japanese manufacturers.

Robotics and Physical AI as the Next Growth Engine

One of the most strategic aspects of the integration is the shared focus on robotics and Physical AI.

Both companies view robotics as a major growth sector beyond automotive applications. Physical AI—AI systems that enable robots to operate autonomously in real-world environments—is expected to drive demand for advanced motion-control components, precision bearings, and actuator technologies.

NSK and NTN believe their combined expertise in bearings, linear motion systems, miniaturization, and precision engineering can create new opportunities in next-generation robotics markets.

A constant velocity joint (CVJ), one of NTN's core products. A drive shaft transmits power by connecting a sliding CVJ on the powertrain side to a fixed CVJ on the wheel side

Expanding the Aftermarket Business

Another key priority is the aftermarket segment, including replacement bearings, maintenance services, and spare parts distribution.

NTN aims to increase the share of aftermarket revenue from 18.6% to 40% by 2035, with SKF serving as a benchmark for global service capabilities.

The company believes rapid delivery networks, inventory management, and customer support services will become increasingly important competitive advantages alongside product performance.

A Defining Moment for Japan's Manufacturing Industry

Analysts view the proposed NSK-NTN integration as one of the most significant restructuring moves in Japan's industrial components sector in recent decades.

Beyond cost synergies and manufacturing optimization, the merger could strengthen Japan's position in future growth markets such as robotics, factory automation, and Physical AI.

While regulatory approvals remain a key hurdle, the transaction reflects a broader trend of industrial transformation as Japanese manufacturers adapt to an increasingly competitive and technology-driven global landscape.

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