The Japan Machine Tool Builders' Association (JMTBA) reported that total machine tool orders in December 2024 reached 143.09 billion yen (approximately U$942.13 million), marking a 19.9% increase from November. This was the first month-on-month growth in three months. Additionally, the figure represented a 12.6% year-on-year increase, marking the third consecutive month of annual growth.

Total orders exceeded 140 billion yen for the first time in 21 months, driven by strong demand from overseas, which reached the highest level of the year. However, the situation remained uneven across different regions.

Although December’s order volume remained high, exceeding 140 billion yen, it is still necessary to monitor future trends closely to determine whether this signals a recovery.

Domestic orders in Japan for December 2024 reached 39.92 billion yen (approximately U$262.85 million), reflecting a 16.3% month-on-month increase—marking the second consecutive month of growth. Year-on-year, domestic orders grew 4.4%, continuing a two-month trend of annual increases.

By industry sector, compared to November; the automotive industry experienced a significant 55.5% increase, while the machinery industry saw a 6.5% decrease. The electronics and precision equipment saw a 19.4% increase, and the aerospace, shipbuilding, and transportation equipment industry experienced a significant 172.2% increase.

Overseas orders in December 2024 reached 103.17 billion yen (approximately U$679.28 million), marking a 21.4% increase from November. This was the first month-on-month increase in two months. Year-on-year, foreign orders grew 16.1%, marking the third consecutive month of annual growth. Regional breakdowns are as follows:

• Asia: 51.31 billion yen (+20.9% MoM, +32.0% YoY)
  • China: 36.25 billion yen (+23.6% MoM)
  • India: 2.52 billion yen (-2.1% MoM)
  • Thailand: 1.27 billion yen (+9.6% MoM)
• Europe: 16.37 billion yen (+13.5% MoM, -16.3% YoY)
• North America: 31.98 billion yen (+21.9% MoM, +14.7% YoY)
  • United States: 28.94 billion yen (+22.7% MoM)

Full-Year 2024 Machine Tool Orders

Total machine tool orders for 2024 amounted to 1,485.11 billion yen, reflecting a slight 0.1% decline from the previous year. This marked the second consecutive year of annual decline and the second straight year where total orders remained below 1.5 trillion yen.

• Domestic orders: 441.54 billion yen, down 7.4% from 2023.
• Foreign orders: 1,043.57 billion yen, up 3.4% from 2023.

Despite strong foreign demand, the uneven recovery suggests continued uncertainty in the industry’s outlook for 2025.

Read more: Japan Machine Tool Orders: October 2024