Sponsorship & Advertising - Japan

Japan

Highlights

In Japan, revenue in the Sponsorship & Advertising market market is projected to reach US$6.9m in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 5.56%, resulting in a projected market volume of US$9.0m by 2029.
While in Japan has a significant market presence, most revenue is generated China, with a projected market volume of US$288.9m in 2024.
The average revenue per user (ARPU) in Japan is expected to amount to US$0.1.
In Japan, the eSports sponsorship and advertising market is experiencing a surge as brands increasingly recognize the youth engagement potential within competitive gaming.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The eSports market in Japan is seeing minimal growth due to factors such as limited sponsorship and advertising opportunities and a lack of government support. Despite the rising popularity of eSports, the market is struggling to attract significant investments. This can be attributed to the relatively small size of the Japanese market compared to other regions and the traditional focus on physical sports. As a result, the growth rate of the sponsorship and advertising market within the eSports industry in Japan is slow.

Customer preferences: As eSports continues to gain popularity in Japan, there is a growing trend towards incorporating virtual advertising and sponsorships within gaming events and tournaments. This is in line with the country's strong digital culture and increasing use of technology in daily life. Additionally, with a younger and tech-savvy demographic driving the eSports market, brands are placing a greater emphasis on immersive and interactive forms of advertising to effectively engage with this audience. This shift towards digital and experiential advertising reflects the changing preferences of consumers and their desire for more personalized and engaging experiences.

Trends in the market: In Japan, the Sponsorship & Advertising Market within the eSports Market is experiencing a surge in partnerships between eSports teams and traditional sports organizations. This trend is significant as it not only brings in new revenue streams for the eSports industry, but also increases its mainstream appeal. Additionally, there is a growing trend of brands and companies sponsoring individual players, leveraging their social media presence and loyal fan base. This trend is expected to continue, with potential implications for industry stakeholders such as increased competition for sponsorships and the need for effective marketing strategies to target the growing eSports audience.

Local special circumstances: In Japan, the eSports market has been gaining popularity due to the country's strong gaming culture and technological advancements. This has led to a rise in sponsorships and advertising opportunities, particularly in the mobile gaming sector. Additionally, the country's strict regulations on gambling have made eSports a viable alternative for companies looking to enter the gaming industry. The unique combination of traditional gaming culture and strict regulatory measures have created a unique market for sponsorships and advertising in Japan's eSports industry.

Underlying macroeconomic factors: The Sponsorship & Advertising Market within the eSports Market in Japan is heavily influenced by macroeconomic factors such as technological advancements, consumer spending, and government policies. Japan, being a technologically advanced country, provides a fertile ground for the growth of the eSports market. Additionally, the country's strong economy and high consumer spending power make it an attractive market for sponsorship and advertising opportunities. Moreover, the government's support for the development of the eSports industry, through initiatives such as hosting major tournaments and providing tax incentives, further drives the growth of the market. Furthermore, the increasing popularity of eSports among the younger population in Japan also contributes to the market's growth.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Sponsorship & Advertising market, which comprises revenues of teams and organizers via sponsorship deals. 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.