Japan Esports Market Size, Share, and COVID-19 Impact Analysis, By Revenue Source (Sponsorship, Advertising, Merchandise & Tickets, Media Rights), By Streaming (On-demand, Live Streaming), and Japan Esports Market Insights, Industry Trend, Forecasts to 2035

Japan Esports Market Insights Forecasts to 2035

• The Japan Esports Market Size Was Estimated at USD 68.3 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 27.39% from 2025 to 2035
• The Japan Esports Market Size is Expected to Reach USD 979.4 Million by 2035

According to a research report published by Spherical Insights & Consulting, the Japan Esports Market Size is Anticipated to reach USD 979.4 Million by 2035, growing at a CAGR of 27.39% from 2025 to 2035.  Japan's esports market has been witnessing significant growth due to several reasons, such as the culturalization of gaming, the advancement of technology, and the enhancement in institutional support.

Market Overview

The Esports Market exists as the business sector that comprises every aspect of competitive video gaming, including professional teams and tournaments, leagues, streaming services, sponsorships, and associated merchandise. The market experiences rapid expansion because online gaming and competitive esports events have gained widespread fame. The market grows because of the increasing live streaming popularity, expanding audience base with engagement strategies and the development of league tournament facilities. The rising popularity of mobile gaming together with the availability of high-speed internet connections has led to significant increases in both esports player participation and viewing audiences. The Japanese esports industry will gain momentum as game developers build strategic alliances with esports organizations and as cloud gaming platforms become more popular among players. Event management and corporate sponsorships provide main players within the Japanese e-sports industry with plenty business opportunities.

The growing popularity of large-scale gaming tournaments and events has created opportunities for players to demonstrate their talents while businesses seek ways to connect with this passionate audience. As a future opportunity, Japanese video game developers with established reputations for quality production may decide to invest in esports games to produce distinct products that appeal to their market. The Japanese government, together with industry partners, actively drives the development of esports markets in the country. The Japanese government supports the sport through legal prize money leniency and initiatives that connect esports to tourism and regional development projects because it sees the economic and social advantages of the sport. The market expansion of esports has been driven by game developers, sponsors, and event organizers' partnerships that create professional leagues and major tournaments while developing competitive gaming facilities.

Report Coverage

This research report categorizes the market for the Japan esports market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan esports market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan esports market.

Driving Factors

The E-sports Market in Japan functions through increased government support and favorable regulatory frameworks that primarily promote industry development. The Japanese government has established digital economy development as its main priority, which positions E-sports at the core of this strategy. The development strategy includes financial support for infrastructure development, regulatory system enhancements, and partnerships with the Japan E-sports Union and other local organizations for building a thriving E-sports community. The rising number of E-sports events has generated an optimal setting for Japanese and international E-sports businesses to establish their market foothold in Japan. The advancement of technology, specifically in internet connectivity and gaming hardware, stands as the main driver for the expanding Japanese e-sports market. Online gameplay and streaming became easier through technological advancements, which attracted more players to the esports arena. The Japanese companies Sony and Nintendo continue to develop innovative gaming consoles and software solutions that deliver advanced player experiences to sustain their presence in competitive gaming. The growing popularity of mobile gaming in Japan stems from increased smartphone adoption, which opens up esports participation to a broader audience, thus driving both player numbers and spectator numbers higher. Through social media platforms and influencer marketing strategies, esports has gained essential promotion, which has expanded its audience reach to both digital spectators and physical tournament attendees throughout Japan.

Restraining Factors

The growth of esports in Japan faces significant limitations because of health-related issues and gaming addiction problems during the forecast period. Gamers face major health risks because of light-emitting diode computer monitors that trigger metabolic disorders, gambling addiction, and social behavior disorders that lead to psychological issues. The market faces increased volatility because it depends on ongoing technological developments and shifting consumer preferences, which hinder market growth. The combination of market instability with regulatory complexities forces sector companies to find new paths for success. The absence of standard guidelines for tournament administration, alongside the lack of professional standards, hinders the market expansion and player advancement. The different regulations that govern gaming, broadcasting, and monetization across Japanese regions create obstacles for hosting international events.

Market Segmentation

The Japan esports market share is classified into revenue source and streaming.

• The sponsorship segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan esports market is segmented by revenue source into sponsorship, advertising, merchandise & tickets, and media rights. Among these, the sponsorship segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The increasing investments by brands, together with rising viewership and strategic partnerships, drive segmental development. The industry holds substantial power in sponsorship because it draws technological youth audiences who represent a significant demographic. Brands now select esports and gaming sponsorships to establish themselves through authentic and distinct approaches because the sponsorship industry faces growing competition. Leading companies in Japan choose sponsorship investments to reach their engaged audience, while advertising during events or streams creates broad brand visibility. The mutually beneficial system promotes professional growth of esports in Japan, together with industry profit expansion.

• The live streaming segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan esports market is segmented by streaming into on-demand, live streaming. Among these, the live streaming segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. Real-time esports content popularity, along with enhanced viewer interaction and substantial streaming infrastructure investments, drive the growth. The segment's market growth receives strong support from its extensive use of Twitch and YouTube platforms, combined with growing audience engagement and platform accessibility.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan esports market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Aiming
• Gree
• Riot Games
• Colopl
• NEC
• CyberAgent
• Koei Tecmo
• CAPCOM
• DMM.com
• Sony
• Others

Recent Developments:

• In November 2024, LIGHTSPEED STUDIOS has unveiled LightSpeed Japan Studio, which will focus on developing new AAA action game franchises. The new studio establishment represents a major step forward in LIGHTSPEED STUDIOS' plan to grow its worldwide operations. The well-known game director Hideaki Itsuno will serve as the head of LightSpeed Japan Studio.

• In June 2024, the Japan Esports Union has secured associate membership status with the Japanese Olympic Committee, which enables teams to officially represent Japan through March 31, 2027, in international esports competitions. The rising popularity of esports has led to the establishment of educational institutions that deliver professional gaming instruction because of its increasing importance. The organization received approval to help esports athletes compete in the 20th Asian Games, which will occur in 2026 in Nagoya, Aichi, Japan.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan Esports Market based on the below-mentioned segments:

Japan Esports Market, By Revenue Source

• Sponsorship
• Advertising
• Merchandise & Tickets
• Media Rights

Japan Esports Market, By Streaming

• On-demand
• Live Streaming