Japan opens up for German machine tools

Japan is one of the 15 most important customer countries for the German machine tool industry. With its own production of over 8.9 billion euros (2021), the country is the second largest producer of machine tools, just ahead of Germany. A large part of this is exported abroad. Nevertheless, Japan's degree of self-sufficiency is very high. For imports, the Japanese rely on machine tools Made in Germany. Germany is the second most important import partner.

In 2022, the German machine tool industry exported machines (including parts and services) worth more than 175 million euros to Japan. This represents an increase of 36 percent in export value compared to the same period of the previous year.

The relative importance as a customer country has increased. While Japan was still in 17th place among the most important export markets in 2021, it already occupied 15th place in 2022.

Exactly two percent of all German machine tool exports went to the Far Eastern country last year.

In 2022, the German machine tool industry exported machines (including parts and services) worth more than 175 million euros to Japan. This represents an increase of 36 percent in export value compared to the same period of the previous year. The relative importance as a customer country has increased. While Japan was still in 17th place among the most important export markets in 2021, it already occupied 15th place in 2022. Exactly two percent of all German machine tool exports went to the Far Eastern country last year.

Production

Japan is one of the world's most important production locations for machine tools. The country produced machines with a total value of 8.9 billion euros in 2021 (up 11 percent on the previous year). This put it in second place by production volume, just ahead of Germany. The year before, German manufacturers were still ahead. For many years, the two countries have been in a neck-and-neck race for second place behind China. Japan's share of global production (2021: 71.1 billion euros) was 12.6 percent. Every eighth machine tool in the world is produced in Japan.

The Japanese are particularly strong in the manufacture of metal-cutting and metal-removing machine tools. This technology sector accounts for 86 percent of production value (7.7 billion euros). The remaining 14 percent (approx. 1.2 billion euros) is accounted for by forming technology.

Export

The Japanese machine tool industry has a very strong foreign trade orientation. The export volume in 2021 amounted to approx. 7.1 billion euros (up 21 percent on the previous year). This meant that more than 80 percent of domestic production was destined for sale abroad. The main target countries for exports were China (2.3 billion euros, share: 32 percent), the USA (1.5 billion euros, 21 percent) and South Korea (400 million euros, 6 percent).

Import

In turn, the Japanese themselves imported machine tools worth a total of 1.1 billion euros in 2021 (up 10 percent from the previous year). In terms of imports, Germany, with a share of 13 percent, is the second most important trading partner behind China (34 percent). Other important supplier countries are the Taiwan region (13 percent), Thailand (10 percent) and South Korea (9 percent).

Market volume

The total volume of the Japanese machine tool market in 2021 was around 2.9 billion euros, which was lower than in the previous year (minus 8 percent). In terms of individual machine groups, the market for lathes and turning centers (approx. 715 million euros) was the largest, followed by laser machines (approx. 581 million euros) and presses (approx. 467 million euros).