Metaverse

The Metaverse market in Japan is projected to reach a value of US$3.9bn by 2024.
It is expected to exhibit a strong annual growth rate (CAGR 2024-2030) of 38.55%, resulting in a projected market volume of US$27.4bn by 2030.
In 2024, the market volume is estimated to be US$23.0bn, with the majority of the value generated United States.
Furthermore, the number of users in the Metaverse market is expected to reach 60.1m users by 2030.
The user penetration rate is anticipated to be 17.1% in 2024 and is projected to increase to 50.7% by 2030.
The average value per user (ARPU) is expected to amount to US$184.2.
Japan is at the forefront of the Metaverse market, with a vibrant ecosystem of virtual reality experiences and a strong focus on integrating traditional cultural elements.

Definition:

The term metaverse refers to a virtual world or collection of virtual worlds that exist in a shared digital space and can be accessed by users through the internet. It typically includes virtual reality, augmented reality, and other immersive technologies. Its scope encompasses a wide range of possibilities and opportunities in education, entertainment, health and fitness, and even remote work, but it is commonly associated with eCommerce and gaming.

Structure:

The Metaverse market covers the markets eCommerce, Gaming, and Education. The eCommerce market covers all goods that can be purchased and distributed within and throughout the metaverse. Gaming encompasses all games that are either directly involved in classified metaverse apps or collaborative open-world games. Education covers the range of possibilities for consumers to experience courses, classes, field trips, and more in the metaverse. For a more detailed explanation of all the markets, see the respective market page.

Additional Notes:

The market comprises market sizes, users, average revenue per user, and penetration rates. Market sizes are generated through in-app purchases, advertising spending, and consumer spending on apps, games, items, products, and hardware such as headsets or glasses. Sales channel data shows both online and offline market sizes. Information on gaming, eCommerce, virtual assets, digital media, digital health, digital advertising, and education can also be found in the Digital Market Insights. Information on AR & VR hardware can also be found in the Advertising & Media Insights. Key players of the market include companies such as Meta, Roblox, Epic Games, and Decentraland.

Open-world games with social interaction, such as Fortnite
Ecommerce marketplaces, such as NIKELAND in Roblox
Virtual Assets used to buy goods in the metaverse, such as Ethereum
Education in form of online classes or certificates in the metaverse, such as Decentraland University

Non-related open-world games, such as World of Warcraft
Physical goods, service and products bought with cryptocurrencies, such as Fashion
Non-fungible Tokens bought as personal collectable, such as non-metaverse selection on OpenSea

The Metaverse market in Japan has been experiencing significant growth and development in recent years.

Customer preferences: Japanese consumers have shown a strong interest in virtual reality (VR) and augmented reality (AR) technologies, making them early adopters of Metaverse platforms. They are drawn to the immersive and interactive experiences offered by the Metaverse, which allows them to escape from the constraints of the physical world and explore virtual realms. Additionally, the Japanese culture's affinity for gaming and anime has further fueled the demand for Metaverse experiences.

Trends in the market: One of the key trends in the Metaverse market in Japan is the integration of Metaverse platforms with existing industries. Companies in sectors such as entertainment, retail, and real estate are leveraging the Metaverse to enhance customer experiences and drive business growth. For example, virtual shopping malls and virtual showrooms are becoming increasingly popular, allowing consumers to browse and purchase products in a virtual environment. This trend is expected to continue as more businesses recognize the potential of the Metaverse to engage customers in new and innovative ways. Another trend is the emergence of social Metaverse platforms. Japanese consumers are seeking social interactions and connections in the virtual world, leading to the rise of platforms that enable users to socialize, attend virtual events, and collaborate with others. These platforms provide a sense of community and foster a shared experience among users, making the Metaverse a social space for Japanese consumers.

Local special circumstances: Japan's advanced technological infrastructure and its reputation as a global leader in innovation have contributed to the growth of the Metaverse market. The country has a strong gaming industry and a vibrant tech startup ecosystem, which has facilitated the development of Metaverse platforms and content. Additionally, the high smartphone penetration rate in Japan has made Metaverse experiences easily accessible to a large number of consumers.

Underlying macroeconomic factors: The Metaverse market in Japan is also influenced by macroeconomic factors. The country's aging population and declining birth rate have led to a shrinking workforce and a need for new economic drivers. The Metaverse presents opportunities for job creation and economic growth, as it requires skilled professionals in areas such as virtual reality development, content creation, and platform management. The Japanese government has recognized the potential of the Metaverse and has been actively supporting its development through initiatives and funding. In conclusion, the Metaverse market in Japan is experiencing growth and development due to customer preferences for immersive experiences, the integration of Metaverse platforms with existing industries, the emergence of social Metaverse platforms, Japan's advanced technological infrastructure, and underlying macroeconomic factors. The future of the Metaverse in Japan looks promising, as it continues to evolve and offer new possibilities for businesses and consumers alike.

Data coverage:

Figures are based on advertising spending, in-app spending, in-game spending, online and offline sales, consumer spending, app downloads, and investment and funding data.

Modeling approach / Market size:

Market sizes are determined by a top-down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use reports, third-party studies, and research companies. Next we use relevant key market indicators and data from country-specific associations such as GDP, consumer spending, and internet penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are consumer spending per capita, level of digitalization, and cloud revenues.

Additional Notes:

The market is updated twice per year in case market dynamics change. Consumer Insights data is unbiased for representativeness.

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

Regarded as the next iteration of the internet, the metaverse is where the physical and digital worlds come together. As an evolution of social technologies, the metaverse allows digital representations of people, avatars, to interact with each other in a variety of settings. Whether it be at work, in an office, going to concerts or sports events, or even trying on clothes, the metaverse provides a space for endless, interconnected virtual communities using virtual reality (VR) headsets, augmented reality (AR) glasses, smartphone apps, or other devices.