Esports - Japan

Japan

In Japan, revenue in the Esports market is projected to reach €150.3m in 2024.
Revenue in this sector is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.04%, resulting in a projected market volume of €201.5m by 2029.
The largest market within the Esports market in Japan is Esports Betting, with a market volume of €114.2m in 2024.
Although most revenue is generated the United States, Japan's Esports market is also significant, with a projected market volume of €992.4m in 2024.
In Japan, the number of users in the Esports market is expected to amount to 22.9m users by 2029.
User penetration in Japan will be 15.3% in 2024 and is anticipated to reach 19.2% by 2029.
The average revenue per user (ARPU) in Japan is expected to amount to €7.99.
Japan's esports market is increasingly embracing mobile gaming, reflecting a cultural shift towards more accessible and on-the-go competitive experiences.

Key regions: China, United States, Asia, Germany, France

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Analyst Opinion

The eSports market in Japan has been witnessing significant growth in recent years, driven by factors such as increasing popularity and awareness among consumers, technological advancements, and the convenience of online platforms. However, the market's growth rate is expected to remain subdued due to various factors, including limited sponsorships and advertising opportunities, strict regulations on betting, and slow adoption of digital technologies by traditional sports organizations. These factors may hinder the overall growth of the eSports market in Japan, but the market is still expected to continue expanding in the coming years.

Customer preferences: With the rise in popularity of eSports in Japan, there has been a noticeable shift in consumer preferences towards more immersive and engaging gaming experiences. This has led to an increase in demand for advanced gaming equipment, such as high-performance gaming PCs and gaming chairs. Furthermore, there has been a growing interest in virtual reality (VR) and augmented reality (AR) technologies, as they offer a more realistic and interactive gaming experience. This trend is driven by the younger generation, who are always seeking new and innovative ways to connect with their favorite games.

Trends in the market: In Japan, the eSports market is experiencing a surge in popularity, with a growing number of companies investing in the industry. This trend is driven by the country's strong gaming culture and the increasing use of mobile devices for gaming. As a result, there is a rise in the development of mobile eSports games and the organization of eSports tournaments. This trajectory is significant as it presents new opportunities for game developers, sponsors, and tournament organizers. It also has implications for the gaming industry as a whole, as the eSports market continues to expand and attract a larger audience. Additionally, this trend is expected to boost the overall gaming market in Japan, with potential growth in revenue and job opportunities.

Local special circumstances: In Japan, the eSports market is heavily influenced by the country's long-standing gaming culture and history. The widespread popularity of gaming in Japan has created a strong foundation for the growth of eSports. Additionally, the country's advanced technology and high internet penetration have made it a favorable environment for competitive gaming. Japan also has strict regulations on gambling, which has led to the rise of eSports as a popular alternative for competitive gaming. Furthermore, the country's unique cultural norms and values, such as discipline and teamwork, have contributed to the success of Japanese eSports teams on the global stage.

Underlying macroeconomic factors: The eSports market in Japan is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in gaming infrastructure. Countries with advanced technological capabilities and supportive government policies are experiencing rapid growth in the eSports market, while those with limited technological capabilities and regulatory challenges are facing slower growth. Furthermore, the growing popularity of eSports among the younger population and the increasing availability of high-speed internet contribute to the overall growth of the market in Japan.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Esports market, which comprises revenues from and users of professional competitive gaming content. This includes any professional and semiprofessional gaming competitions within tournaments or leagues that offer a championship title or prize money. 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.