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Cloud Gaming - Japan

Japan

In Japan, revenue in the Cloud Gaming market market is projected to reach €522.90m in 2024.
The revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 28.20%, leading to a projected market volume of €1,811.00m by 2029.
Within the Cloud Gaming market market in Japan, the number of readers is anticipated to amount to 25.2m users by 2029.
User penetration in Japan will be 15.7% in 2024 and is expected to increase to 21.2% by 2029.
The average revenue per user (ARPU) in Japan is expected to amount to €27.21.
In a global context, the majority of revenue will be generated the United States, with €1,797.00m projected for 2024.
In Japan, the cloud gaming market is rapidly evolving, driven by increased mobile connectivity and a growing appetite for immersive gaming experiences.

Key regions: China, Japan, Germany, France, United Kingdom

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Analyst Opinion

Cloud gaming is a rapidly growing market in Japan, driven by the increasing demand for convenient and accessible gaming experiences.

Customer preferences: Japanese gamers have always been known for their passion for gaming, and cloud gaming provides them with a convenient way to access a wide range of games without the need for expensive gaming hardware. The convenience of being able to play games on multiple devices, such as smartphones, tablets, and smart TVs, is particularly appealing to the tech-savvy Japanese population. Additionally, the ability to instantly stream games without the need for lengthy downloads or updates is highly valued by Japanese gamers who value efficiency and convenience.

Trends in the market: One of the key trends in the cloud gaming market in Japan is the increasing adoption of subscription-based models. Japanese gamers are increasingly subscribing to cloud gaming platforms that offer a wide selection of games for a monthly fee. This trend is driven by the desire for variety and the cost-effectiveness of subscribing to a service rather than purchasing individual games. As a result, cloud gaming platforms are expanding their game libraries to cater to the diverse preferences of Japanese gamers. Another trend in the market is the growing popularity of mobile cloud gaming. With the widespread availability of high-speed internet and the increasing processing power of smartphones, more and more Japanese gamers are opting to play games on their mobile devices. This trend is further fueled by the availability of cloud gaming platforms that are specifically designed for mobile gaming, offering a seamless and immersive gaming experience on the go.

Local special circumstances: Japan has a strong gaming culture and a highly competitive gaming industry. The country is home to some of the world's leading gaming companies and has a large pool of talented game developers. This local expertise and infrastructure have played a significant role in the development of the cloud gaming market in Japan. Japanese gamers have high expectations when it comes to game quality and performance, and local game developers are well-positioned to meet these demands, creating a favorable environment for the growth of cloud gaming in the country.

Underlying macroeconomic factors: Japan has a highly developed and technologically advanced economy, with a high level of internet penetration and a strong infrastructure to support cloud gaming. The country also has a large population of gamers, making it an attractive market for cloud gaming providers. Additionally, the increasing availability of high-speed internet and advancements in cloud technology have made it easier for Japanese gamers to access and enjoy cloud gaming services. These underlying macroeconomic factors have contributed to the rapid growth of the cloud gaming market in Japan.

Methodology

Data coverage:

Figures are based on subscription spending, consumer spending, 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, research companies. Next we use relevant key market indicators and data from country-specific associations such as GDP, consumer spending, internet penetration and cloud revenues. 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.