Japan machine tool orders reach JPY 158.6 billion in December; 2025 total tops JPY 1.6 trillion

January 28, 2026

December marks year’s highest monthly orders

The Japan Machine Tool Builders’ Association (JMTBA) announced the final machine tool order figures for December 2025. Total orders reached JPY 158.6 billion, exceeding JPY 150 billion for the first time in nine months and marking the highest level for 2025. Month-on-month (MoM) orders increased for the first time in two months, while year-on-year (YoY) orders rose for the sixth consecutive month. While December typically sees year-end and quarter-end effects, particularly in Europe and North America, substantial orders accumulated across various markets and demand sectors, surpassing prior expectations.

Domestic demand shows signs of activity

Domestic orders totaled JPY 39.9 billion, up 24.8% MoM. This marked the first MoM increase in three months and the first time in three months that domestic orders exceeded JPY 39 billion. Capital investment was active in data center-related, aircraft, and shipbuilding sectors, with movement also evident in automotive-related areas. However, on a YoY basis, orders remained roughly flat, indicating the market continues in a sideways trend.

Foreign demand reaches a monthly record, surpassing JPY 110 billion

Foreign orders totaled JPY 118.7 billion, up 13.1% MoM. MoM orders increased for the first time in two months, while YoY orders rose for the 15th consecutive month. Orders exceeded JPY 100 billion for the third consecutive month and surpassed JPY 110 billion for the first time.

By region, Asia exceeded JPY 50 billion for the third consecutive month, driven by sustained equipment demand in China and India. Europe surpassed JPY 22 billion for the first time in 50 months, led by aircraft-related demand in France. North America recorded strong growth, exceeding JPY 40 billion for the first time, with multiple large orders in automotive and aerospace sectors.

2025 annual total reaches fourth-highest on record

As a result, total 2025 calendar year orders increased for the first time in three years, exceeding JPY 1.6 trillion for the first time in three years and ranking fourth-highest on record.

Domestic demand declined for the third consecutive year and fell below JPY 450 billion for the second consecutive year. While the aircraft/shipbuilding/transport equipment sector recorded its highest level ever, investment in major demand sectors such as automotive and semiconductor equipment remained sluggish.

In contrast, foreign demand exceeded JPY 1.1 trillion for the first time in three years, reaching a record high. The foreign demand ratio reached a record 72.5% of total orders. Asia surpassed JPY 500 billion for the second consecutive year and reached a record high for the first time in three years. Europe increased for the first time in two years, showing signs of recovery in Q4 despite continued stagnation from 2024. North America exceeded JPY 300 billion for the fourth consecutive year and reached a record high, driven by robust demand in aircraft, automotive, energy, and construction machinery sectors, despite concerns about the impact of successive tariff measures announced by the U.S.

Detailed analysis of calendar year 2025 orders will be provided in future articles.

December Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	158,643	115.8	110.9
Domestic total	39,905	124.8	100.0
Industrial Machinery	15,837	121.8	105.1
Motor Vehicles	9,055	134.7	104.7
Electrical & Precision Machinery	3,924	112.4	80.9
Aircraft/Shipbuilding/Transport equipment	2,989	92.1	103.0
Foreign total	118,738	113.1	115.1
Asia	52,544	96.8	102.4
Europe	22,215	122.5	135.7
North America	41,455	140.9	129.6

2025 Summary

	Amount (million yen)	YoY change (%)
Total Orders	1,604,319	108.0
Domestic total	440,862	99.8
Industrial Machinery	175,881	97.1
Motor Vehicles	87,073	95.7
Electrical & Precision Machinery	52,526	96.0
Aircraft/Shipbuilding/Transport equipment	35,318	145.8
Foreign total	1,163,457	111.5
Asia	580,191	112.2
Europe	197,375	104.5
North America	360,002	117.6