The Japan Machine Tool Builders' Association (JMTBA) reported that total machine tool orders received worldwide by Japanese builders in January 2026 amounted to JPY 145,579 million (USD 926.26 million). This represented a decline of 8.2% compared with December 2025, marking the first month-on-month (MoM) contraction in two months and the first time in two months that total orders fell below JPY 150,000 million.

On a year-on-year (YoY) basis, however, total orders increased 25.3%, extending the growth streak to seven consecutive months and indicating continued strength in overall capital investment trends.

Overview: Overseas Demand Remains the Key Driver

Although both domestic and foreign orders declined compared with the previous month, they expanded on a YoY basis. In particular, overseas demand continued to serve as the primary growth driver for the market.

Looking ahead, despite ongoing uncertainty in the global economy, capital investment in machinery and production capacity remains generally firm. As a result, demand is expected to gradually recover in the coming months.

Domestic Orders: Down MoM, Up YoY

Domestic orders in January totaled JPY 32,624 million (USD 207.57 million), down 18.2% from the previous month but up 2.0% compared with the same month last year.

By Major Industry (MoM comparison)

• Automotive: down 27.4%
• Industrial machinery: down 24.3%
• Electronics & precision machinery: up 33.1%
• Aerospace, shipbuilding & transport equipment: up 14.8%

These figures reflect differing investment dynamics across industries, with electrical and precision-related sectors maintaining positive momentum.

Foreign Orders: Sixteenth Consecutive Month of YoY Growth

Foreign orders in January totaled JPY 112,955 million (USD 718.68 million), down 4.9% from December but up 34.2% YoY, marking the sixteenth consecutive month of year-on-year expansion.

By Region

Asia

Orders reached JPY 61,854 million (USD 393.55 million), up 17.7% MoM and 38.1% YoY.

• China: JPY 43,298 million (USD 275.48 million), up 13.4% MoM
• India: JPY 5,839 million (USD 37.15 million), down 1.0% MoM
• Thailand: JPY 1,832 million (USD 11.66 million), up 13.2% MoM

​Europe

Orders totaled JPY 15,051 million (USD 95.76 million), down 32.2% MoM but up 13.9% YoY.

North America

Orders stood at JPY 34,554 million (USD 219.85 million), down 16.6% MoM but up 43.0% YoY.

• United States: JPY 31,094 million (USD 197.84 million), down 6.7% MoM

​Outlook for Orders

While January data reflected short-term MoM softness, the sustained YoY growth trend—particularly the 16 consecutive months of expansion in foreign orders—suggests that investment in production capacity and machinery remains in an upward cycle.

Key factors to monitor include:

• Global economic conditions
• Geopolitical risks
• Investment trends in the automotive, electrical, and precision industries

If demand from Asia and North America remains resilient, the machine tool market in 2026 is likely to maintain its growth trajectory despite short-term volatility.

(1 JPY = 0.0064 USD)

Read more: Japan Machine Tool Orders: December 2025