Esports

In Japan, revenue in the Esports market is projected to reach US$162.1m in 2024.
Revenue in this sector is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 5.81%, resulting in a projected market volume of US$215.0m by 2029.
The largest market within the Esports market in Japan is Esports Betting, with a market volume of US$123.1m in 2024.
Although most revenue is generated the United States, Japan's Esports market is also significant, with a projected market volume of US$1.1bn 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 US$8.62.
Japan's esports market is increasingly embracing mobile gaming, reflecting a cultural shift towards more accessible and on-the-go competitive experiences.

Definition:

Esports, short for electronic sports, refers to competitive video gaming where professional players or teams compete in various multiplayer video games. These competitions are often organized into leagues, tournaments, and events, attracting both online and offline audiences. Esports has grown into a global industry, with players, sponsors, and spectators contributing to its popularity and economic significance.

Structure:

The Esports market can be divided into 6 different parts. First, Sponsorship & Advertising, which refers to revenues made from sponsorship deals and advertising for events and tournaments. Merchandise & Ticketing refers to the revenues generated mainly from tournament tickets and the merchandise that comes with it. Additionally, Streaming, Media Rights and Publisher Fees, which all refers to the revenue that is associated with broadcasting Esports events accross various channels. Lastly, Esports Betting includes the betting on outcomes of Esport events.

Additional information:

The market comprises revenues, ad spendings, users, average revenue per user, and penetration rates. Revenues are generated through advertising spending and consumer spending. Sales channel data shows both online and offline revenues. Information on Esports betting can also be found in the Digital Market Insights. All monetary figures refer to the annual gross revenue.
Key players of the market include companies or teams such as FaZe, Cloud9 or TSM.
For more information on the data displayed, use the info button right next to the boxes.

Professional and semi-professional gaming competitions, such as Semi-Pro League
Tournaments and leagues, such as Dota 2 The International
Sponsorship deals and advertising, such as FaZe and Steelseries
Merchandise and ticketing for Esport tournaments
Streaming of tournaments, such as streaming on Twitch

Amateur competitions, such as Amateur Esports League
Streaming revenues of non-organized competitive gaming, such as casual gaming on Twitch
Digital and physical sales from video games, such as sales of Call of Duty
Digital tools associated with revenues from Esports, such as Teamspeak or Discord

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.

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.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

The rapidly growing phenomenon surrounding eSports continues to gather steam. The intersection of gaming and sports offers an innovative wave of branding opportunities, engaging content and activations for millions across the world. It therefore comes as no surprise that the size of the global eSports market is expected to increase more than fivefold between 2023 and 2032, reaching a value of over 10 billion U.S. dollars within the next ten years.