December 2024 Japan machine tool orders – total JPY 143 billion

January 29, 2025

The Japan Machine Tool Builders’ Association (JMTBA) has released the confirmed figures for Japan’s machine tool orders in December 2024. The total orders amounted to JPY 143 billion, the first month-on-month increase in three months and the third consecutive year-on-year increase. It was also the first time in 21 months that the total exceeded JPY 140 billion. The increase was mainly driven by several large-scale orders from overseas.

Domestic demand

Domestic orders increased both year-on-year and month-on-month for the second consecutive month, reaching JPY 39.9 billion. Although slightly below the JPY 40 billion mark, it was the first time in three months that domestic orders exceeded JPY 35 billion.

Among 11 industry sectors, eight recorded increases both from the previous month and from the same period last year. In particular, Aircraft/Shipbuilding/Transport Equipment exceeded JPY 2.5 billion for the first time in six months, with aircraft-related orders reaching their highest level in 2024. Industrial Machinery, however, declined month-on-month, with its average annual order value falling below the level of 2021, which was hit hard by the pandemic. Meanwhile, orders from the automotive sector continued to struggle, remaining below JPY 10 billion, and the overall recovery has remained sluggish.

Foreign demand

Foreign orders surged to JPY 103.1 billion, up for the third consecutive month year-on-year and up for the first time in two months month-on-month. Several large orders from China and the U.S. played a key role in pushing foreign orders above JPY 100 billion for the first time in 31 months. This was the seventh-highest order level on record.

Asia: Large orders from key industries in China boosted the overall Asian market. In addition, Vietnam and India saw strong demand, bringing total orders from Asia to over JPY 50 billion, the highest level in 30 months.

Europe: Orders from the UK and Turkey were strong, pushing the total above JPY 15 billion for the first time in two months. However, orders from key EU markets remained sluggish, resulting in limited overall growth.

North America: Large orders from the aerospace industry in the United States and Canada, as well as increased demand for Industrial Machinery in the United States, pushed North American orders above JPY 28 billion for the first time in 15 months, making it the fifth-largest monthly order total in history.

December Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	143,094	119.9	112.6
Domestic total	39,923	116.3	104.4
Industrial Machinery	15,074	93.5	106.4
Motor Vehicles	8,647	155.5	86.9
Electrical & Precision Machinery	4,851	119.4	96.4
Aircraft/Shipbuilding/Transport equipment	2,902	272.2	108.9
Foreign total	103,171	121.4	116.1
Asia	51,312	120.9	132.0
Europe	16,366	113.5	83.7
North America	31,977	121.9	114.7

2024 full-year machine tool orders

For the full year 2024, cumulative machine tool orders totaled JPY 1,4851 billion, marking the second consecutive year of decline. Although the total remained below JPY 1.5 trillion for the second year in a row, it remained close to the previous year’s level and was the eighth-highest annual order total in history.

Domestic demand: Despite high expectations, semiconductor and electric vehicle-related demand did not recover in 2024. Orders from Industrial Machinery and other domestic sectors remained sluggish, resulting in a second consecutive year of decline. In addition, total domestic orders fell below 450 billion yen for the first time in four years.

Foreign demand: While demand from Europe remained weak, Asia saw a solid performance from India and China showed resilience. In the latter half of the year, large orders for electric vehicles and IT-related equipment further boosted demand, pushing total orders from Asia to the fourth-highest level on record. North America also remained strong, particularly in aerospace and Industrial Machinery, and posted its fourth-highest level of foreign orders on record. Overall, foreign demand grew for the first time in two years, exceeding JPY 1 trillion for the fourth consecutive year and reaching the third-highest annual order total in history.

2024 full-year Summary

	Amount (million yen)	YoY change (%)
Total Orders	1,485,109	99.9
Domestic total	441,538	92.6
Industrial Machinery	181,041	88.9
Motor Vehicles	91,025	90.5
Electrical & Precision Machinery	54,733	94.9
Aircraft/Shipbuilding/Transport equipment	24,218	120.1
Foreign total	1,043,571	103.4
Asia	517,216	121.0
Europe	188,865	80.9
North America	306,242	95.5