Japan’s machine tool orders from around the world reached ¥193.09 billion (US$1,257.60 million) in July 2026, according to the Japan Machine Tool Builders’ Association (JMTBA). Orders increased 50.4% year on year, marking the 13th consecutive month of growth, although they declined 5.1% from June.

Total orders remained above ¥120 billion for the 17th consecutive month and ranked as the third-highest level since records began, reflecting continued strong demand for capital investment in machine tools across the industrial sector.

Domestic Orders Rise 50.2%

Domestic machine tool orders totaled ¥53.24 billion (US$346.73 million) in July, down 8.2% from June but up 50.2% year on year.

By Major Industry (MoM comparison):

• Automotive: Down 39.3%
• Industrial machinery: Down 0.3%
• Electronics & precision machinery: Down 15.5%
• Aerospace, shipbuilding & transport equipment: Up 15.7%

The strong growth in automotive and aerospace-related sectors highlights ongoing investment in advanced manufacturing and the increasing demand for machine tools capable of producing highly complex and precision-engineered components.

📖 Read more: Precision Manufacturing: A Key to Competitive Advantage in Modern Manufacturing

Overseas Orders Remain a Key Growth Driver

Overseas orders totaled ¥139.85 billion (US$2,083.20 million), down 3.8% from June but up 50.5% from July 2025, marking the 22nd consecutive month of year-on-year growth. Overseas orders also reached their third-highest level since records began.

By Region:

Asia

Orders totaled ¥74.68 billion (US$486.08 million), down 8.3% from the previous month but up 57.1% year on year.

• China: ¥48.63 billion (US$316.70 million), down 13.9% month on month
• India: ¥7.28 billion (US$47.44 million), down 20.4% month on month
• Thailand: ¥1.80 billion (US$11.73 million), down 3.6% month on month

​Europe

Orders totaled ¥23.13 billion (US$150.55 million), up 9.5% from June and 40.7% year on year.

North America

Orders totaled ¥40.44 billion (US$263.22 million), down 0.5% from the previous month but up 51.4% year on year.

• United States: Orders totaled ¥37.11 billion (US$241.72 million), up 3.1% from the previous month.

AI and Robotics Support Machine Tool Investment

JMTBA said demand for investment in machinery and production equipment is expected to continue expanding. Domestic demand remains supported by government policies, while overseas demand is expected to benefit from the growth of sectors related to AI and robotics.

These factors could help reduce uncertainty stemming from the international situation, although the industrial sector continues to face inflation risks that could affect investment decisions for machinery and production equipment.

From January to July 2026, total machine tool orders reached ¥1.248 trillion, up 37.8% year on year. Domestic orders totaled ¥326.13 billion, up 26.5%, while overseas orders reached ¥922.10 billion, up 42.3%. The figures highlight the continued importance of overseas markets as the main driver of Japanese machine tool orders.
 

(1 JPY = 0.0065 USD)

Read more: Japan Machine Tool Orders: June 2026