xTool, the Shenzhen-based digital fabrication brand best known for its laser engravers and cutters, is preparing to launch an embroidery machine that will directly compete with Poolin, the fast-rising brand that has carved out a significant niche in the home and small-business embroidery segment.
The move marks xTool’s latest expansion beyond its laser-cutting core—a strategy that has already seen the brand venture into UV printing, DTF apparel printing, and most recently, the groundbreaking xTool O1 Omni Printer, a 4-in-1 desktop fabrication system. Now, with embroidery, xTool is targeting one of the fastest-growing corners of the creative tools market.
A Market on the Rise
The global embroidery machinery market is experiencing robust growth. According to Fact.MR, the market was valued at USD 1.7 billion in 2025 and is projected to reach USD 2.8 billion by 2035, expanding at a CAGR of 5.1%. Other estimates place the market at roughly USD 1.5 billion in 2025, with expectations to reach USD 2.0 billion by 2032.
Particularly noteworthy is the household embroidery machines segment, which is growing even faster. This segment was valued at USD 1.5 billion in 2024 and is projected to reach USD 3.2 billion by 2034, registering a CAGR of 8.1%. The growth is being driven by the rising popularity of DIY crafts, increasing demand for personalized products, and significant technological advancements that have made embroidery machines more accessible than ever.
“The market is no longer defined by manual needles but by IoT-integrated, cloud-connected systems that allow brands to pivot from mass production to ‘mass individualization,'” notes a lead analyst at Fact.MR. Computerized machinery has already claimed a dominant 66% market share.
The Hobbyist and Small-Business Boom
Perhaps the most significant trend driving xTool’s entry is the explosive growth of the hobbyist and home-based business segment. While industrial users still deliver roughly 65.55% of the embroidery machine market share, home and hobbyist buyers are expanding at a much faster CAGR of 7.05%.
According to the Craft and Hobby Association, approximately 63% of U.S. households engage in some form of crafting, with embroidery ranking among the most popular activities. Younger demographics—particularly millennials and Gen Z—are increasingly seeking creative outlets, driving demand for user-friendly, tech-savvy machines.
The rise of home-based “Etsy-style” businesses has sparked a surge in domestic and single-needle machines, providing an affordable entry point for entrepreneurs looking to tap into the personalized gift market. Buyers, ranging from hobbyists to small-scale decorators, are seeking tools that offer high precision, minimal learning curves, and scalable customization.
The Poolin Factor
Poolin has emerged as a formidable player in this space, particularly with its EOC series of computerized embroidery machines. The Poolin EOC06, for instance, features a 7-inch touchscreen, 7.9″ x 11″ embroidery area, 200 built-in designs, and USB and wireless connectivity. Customer reviews frequently praise its ease of use and beginner-friendly interface. Poolin machines are positioned as accessible entry points for hobbyists and small business owners alike.
However, Poolin is not without its challenges. Industry observers note that the brand is less established than legacy players like Brother, raising questions about resale value and long-term parts availability. This is precisely the kind of gap xTool—with its established brand presence, sophisticated software ecosystem, and reputation for innovation—is positioned to exploit.
xTool’s Strategic Play
xTool’s entry into embroidery is not a sudden pivot but a logical extension of its broader strategy. The company has been systematically building a comprehensive creative tools ecosystem. Its xTool Creative Space software, powered by AI, already supports design generation, image restoration, and layout optimization. The xTool O1 Omni Printer, launched in July 2026, already includes a “Desktop 3D Embroidery Workflow” that natively bridges DTG printing with an innovative embroidery kit.
The company has also been actively engaging with the maker community. In May 2026, xTool exhibited at the 50th Japan Hobby Show in Tokyo, showcasing new products including the xTool M2 multi-function craft laser. In July, it had a large booth at HandMade In Japan Fes’ 2026. These events demonstrate xTool’s commitment to the same hobbyist and creator demographics that represent the fastest-growing segment of the embroidery market.
What to Expect
While specific details about xTool’s dedicated embroidery machine remain under wraps, the company’s track record suggests a product that will emphasize:
Software integration: xTool has invested heavily in its AI-powered Creative Space software, which could offer significant advantages in design creation and workflow automation.
Connectivity: Modern embroidery machines are increasingly becoming “smart” devices with USB, Wi-Fi, and cloud connectivity. xTool’s experience with connected devices positions it well in this area.
Ease of use: With the hobbyist segment growing at 7.05% CAGR, user-friendliness will be paramount. xTool’s existing products are known for balancing professional capabilities with accessible interfaces.
Ecosystem compatibility: Given xTool’s multi-product strategy, the embroidery machine is likely to integrate seamlessly with other xTool devices, creating a unified desktop fabrication workflow.
The Competitive Landscape
xTool will be entering a market dominated by established players. Brother Industries, Barudan, Tajima, Bernina, and ZSK Stickmaschinen are the leading names. However, these companies have traditionally focused on industrial and commercial segments. The home and hobbyist space—where Poolin has found success—remains relatively less saturated by premium brands.
This creates an opening for xTool. The brand’s reputation for innovation, combined with its growing ecosystem of complementary products, could allow it to carve out a distinctive position: offering professional-grade capabilities in a desktop-friendly, hobbyist-accessible package.
A Maturing Market
The embroidery machine market is undergoing a digital transformation. Key trends include the adoption of compact and portable professional machines, which allow boutique designers and “home-preneurs” to produce industrial-quality embroidery in limited spaces. Sustainability is also becoming a focal point, with consumers increasingly prioritizing energy-efficient and eco-friendly equipment.
“The future of the global embroidery machinery market looks promising with opportunities in the domestic and commercial markets,” according to industry analysts. For xTool, the question is not whether there is room in the market—there clearly is—but whether it can execute a product that meets the exacting standards of a community that values precision, creativity, and reliability above all else.
Conclusion
xTool’s entry into the embroidery machine market represents a significant moment for the industry. A brand known for disrupting the laser engraving space is now setting its sights on embroidery—a craft with centuries of tradition that is simultaneously undergoing a digital renaissance.
For Poolin and other incumbent players in the home embroidery segment, the arrival of a well-funded, technologically sophisticated competitor will undoubtedly raise the stakes. For consumers and creators, however, increased competition promises more innovation, better features, and—potentially—more accessible pricing.
As one industry observer put it: “We are entering an era of ‘Smart Stitching.’ Modern embroidery machines are becoming peripheral devices to the digital workspace”. xTool, with its deep expertise in digital fabrication and software integration, appears determined to be at the forefront of that transformation.
