Japan’s Machine Tool Orders to Grow for the First Time in Three Years in 2025

Data released by the Japan Machine Tool Builders’ Association (JMTBA) on January 14th shows that machine tool orders (preliminary figures) for 2025 will reach 1.6039 trillion yen, an 8% year-on-year increase. Overseas orders increased in the second half of the year, marking the first overall positive growth in three years. Domestic orders, however, remained stagnant.

Overseas machine tool orders increased by 12% year-on-year, reaching 1.1634 trillion yen, maintaining positive growth for the second consecutive year. Orders from the North American aerospace and automotive industries performed steadily, reflecting that the market has accepted the price increases brought about by US tariffs. In China, investment in semiconductors and data centers boosted demand.

Domestic orders in Japan decreased by 0.3% year-on-year, reaching only 440.4 billion yen, marking the third consecutive year-on-year decline. Although orders for the aerospace and shipbuilding industries increased significantly, investment by automotive companies, major users of machine tools, remained weak. Therefore, overseas orders accounted for 73% of the total order value in 2025.

The JMTBA had previously predicted an annual order value of 1.6 trillion yen for 2025. The final results were largely in line with expectations.

The order value for December 2025, also announced, reached 158.2 billion yen, an increase of 11% year-on-year. Overseas orders increased by 15% year-on-year to 118.7 billion yen, a record high for a single month. Domestic orders in Japan decreased by 1% year-on-year to 39.4 billion yen.