Mobile Games - Japan

Japan

Highlights

In Japan, revenue in the Mobile Games market market is projected to reach US$20.31bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.39%, leading to a projected market volume of US$22.86bn by 2029.
In the Mobile Games market market withJapan, the number of users is anticipated to amount to 40.2m users by 2029.
User penetration in Japan will be 28.6% in 2024 and is expected to increase to 33.8% by 2029.
In a global context, most revenue will be generated United States, with a projection of US$34.30bn in 2024.
The average revenue per user (ARPU) in Japan's Mobile Games market market is projected to amount to US$579.00 in 2024.
Japan's mobile games market is increasingly dominated by innovative storytelling and immersive experiences, reflecting a cultural preference for narrative depth and engagement.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Mobile Games market in Japan has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Japanese consumers have shown a strong preference for mobile games, with a significant portion of the population regularly engaging in gaming activities on their smartphones. This can be attributed to several factors, including the convenience and portability of mobile devices, as well as the wide variety of game genres available. Additionally, the popularity of multiplayer and social gaming experiences has contributed to the growth of the mobile games market in Japan.

Trends in the market: One key trend in the Japanese mobile games market is the rise of in-app purchases and microtransactions. Many game developers have adopted a free-to-play model, where the initial download of the game is free, but players can make in-app purchases to enhance their gaming experience or unlock additional content. This has proven to be a successful monetization strategy, as Japanese consumers are willing to spend on virtual items and upgrades. Another trend in the market is the increasing popularity of mobile esports. Esports, or competitive video gaming, has gained a significant following in Japan, with mobile games such as "PUBG Mobile" and "Arena of Valor" becoming popular choices for esports tournaments. This trend has led to the development of dedicated esports leagues and events, further driving the growth of the mobile games market.

Local special circumstances: Japan has a strong gaming culture, with a long history of console and arcade gaming. This cultural background has influenced the preferences of Japanese consumers, who have embraced mobile gaming as an extension of their gaming habits. Additionally, the high smartphone penetration rate in Japan has contributed to the growth of the mobile games market, as more people have access to gaming on their mobile devices.

Underlying macroeconomic factors: The Japanese economy has been relatively stable in recent years, with a strong emphasis on technology and innovation. This has created a favorable environment for the development of the mobile games market, as game developers have access to advanced technology and a skilled workforce. Furthermore, the government has implemented policies to support the growth of the digital entertainment industry, including tax incentives and funding programs. These factors have contributed to the overall growth and success of the mobile games market in Japan.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Video Games market. Digital video games are defined as fee-based video games distributed over the internet. These include online games, download games, mobile games, and gaming networks. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

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.