Market Insights Advertising & Media Esports

Esports Betting - Japan

Japan

In Japan, revenue in the Esports Betting market market is projected to reach €114.2m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.05%, resulting in a projected market volume of €153.2m by 2029.
While most revenue is generated the United States with a projected market volume of €668.8m in 2024, in Japan is also witnessing growth in this sector.
The average revenue per user (ARPU) in Japan is expected to amount to €33.0.
In Japan, the esports betting market is experiencing a surge in popularity, driven by increasing youth engagement and a growing acceptance of competitive gaming.

Key regions: India, Sweden, United Kingdom, Asia, Germany

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Analyst Opinion

The Esports Betting Market in Japan is facing subdued growth, influenced by factors such as limited regulations and cultural barriers. Despite this, it is experiencing steady growth due to increasing interest in esports and innovative online betting platforms.

Customer preferences: With the growing popularity of esports in Japan, there has been a corresponding increase in demand for esports betting. This trend is driven by a younger demographic who are avid gamers and are also interested in the potential financial gains of betting. Additionally, the cultural practice of gambling in Japan, particularly on popular sports events, has also extended to the esports scene. This has led to the emergence of specialized esports betting platforms and services, catering to this niche market segment. As the esports industry continues to grow and gain mainstream recognition in Japan, the demand for esports betting is expected to further increase, creating new opportunities for growth in the market.

Trends in the market: In Japan, there is a growing interest in the Esports Betting Market within the eSports Market, as more and more traditional sports fans are starting to embrace the competitive gaming scene. This trend is expected to continue with the rise of mobile gaming and the increasing popularity of Esports tournaments in the country. This trajectory is significant for industry stakeholders, as it opens up new opportunities for partnerships and sponsorships. However, it also poses challenges in terms of regulation and responsible gambling measures. Overall, the growth of the Esports Betting Market in Japan has the potential to greatly impact the gaming and betting industries in the country.

Local special circumstances: In Japan, the Esports Betting Market within the eSports Market is heavily influenced by the country's deep-rooted gaming culture and the popularity of traditional sports like baseball and sumo wrestling. The market also faces strict regulations, such as restrictions on certain forms of gambling, which have limited its growth. However, with the recent legalization of certain forms of online gambling, the market is expected to grow in the coming years. Additionally, Japan's advanced technological infrastructure and high internet penetration have created a favorable environment for Esports Betting, making it a lucrative market for both local and international companies.

Underlying macroeconomic factors: The Esports Betting Market within the eSports Market is greatly impacted by macroeconomic factors such as the overall economic climate, government policies, and investment opportunities. Countries with strong economic growth and supportive regulations for the esports industry are experiencing a rapid rise in the popularity of esports betting. On the other hand, regions with economic challenges and limited support for esports are seeing slower market growth. Additionally, the increasing interest in esports among younger generations and the growing global audience for esports events are also contributing to the growth of the esports betting market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Esports betting market, which comprises revenues from online betting on Esports events. All figures are based on net revenues and exclude agency commissions, rebates, and production costs.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.