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Author: Prithu Chawla, Senior Research Analyst
June 10, 2025
Market Overview: The formation of the esports market in Japan is not simple, because of the rapid development of digital communication, interest of younger generation and popularity of competitive game among IP gadgets, consoles and mobile devices.
Regional Hub – Kanto: The esports ecosystem is led by the Kanto region, and particularly by Tokyo with its massive number of teams, publishers, venues, and the tech infrastructure.
Top Segments: Advertising and Sponsorships lead the market, with Media Rights and Merchandise in second place, as well as interests in brands to access up to gaming audiences.
Platform Focus: The fastest-growing segment is Mobile and Tablets, considering the great smartphone penetration level due to the launch of 5G and mobile esports games’ prevalence.
According to a new report by UnivDatos, the Japan E-sports Market is expected to reach USD million in 2033 by growing at a CAGR of 11.3% during the forecast period (2025- 2033F). 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. Esports is seen as a structured form of competitive gaming and involves professional tournaments, platforms for streaming, assembly of teams, and the community of esports fans down to each other. The old gaming culture of Japan, which was the brainchild of such legendary games as Street Fighter and Pokémon, offers a great environment for esports evolution. The active position of the government, including the activities aimed at developing esports as a legal sphere as well, promotes such growth even further. And not only that, but invoking esports in the sphere of educational institutions, where the universities are educating about esports management, is a change in society that indicates the fact that esports is a career.
The burgeoning esports landscape in Japan has catalyzed a series of strategic partnerships, investments, and the emergence of innovative startups. In November 2024, ITOCHU Corporation announced a capital and business alliance with REJECT Inc., a leading Japanese esports team known for its significant prize winnings. This partnership aims to leverage ITOCHU's global network to enhance REJECT's brand presence both domestically and internationally. On the investment front, Japanese esports content provider PlayBrain has announced a $6 million Series A financing round led by Bitkraft Esports Ventures. With the investment, PlayBrain plans to expand into other esports and entertainment properties, grow its footprint, and increase support for the League of Legends Japan League.
In the future, the Japanese esports market is set for further development, with some of its segments experiencing a specific fast pace of development. Sponsorship has become the biggest revenue-generating segment in line with the increase in brands that are looking forward to penetrating the separate esports audience. Media rights are also growing at a fast pace, as a result of the increase in live streaming and consumption of content. During the first half of 2024, streams from Japan accumulated more than 2.17 billion hours watched, representing a 39.4% growth against the first half of 2023. This surge is a reflection of an increasing demand for esports content and monetization opportunities integrated into the said content. Furthermore, the emergence and proliferation of virtual influencers, or VTubers, is restructuring the content scene, with streams of Japanese VTubers racking up more than 513 million hours watched in the first half of 2024.
Access sample report (including graphs, charts, and figures): https://univdatos.com/reports/japan-esports-market?popup=report-enquiry
Based on Revenue Model, the market is segmented into Media Rights, Advertising and Sponsorships, Merchandise and Tickets, and Others. Among these, the Advertising and Sponsorships segment is leading the market. In the Advertising and Sponsorships segment of Japan’s esports market, the growth of the audience and the highly engaged gaming audience is the main stimulator, which creates a promising opportunity for brands in need of reaching a specific range of consumers. As the viewership of esports has been growing, in particular, among the Gen Z and millennial demographics, esports investment has been rising among companies in a variety of industries, including consumer electronics, apparel, food and beverages, and automotive. Big Japanese publishers such as Capcom and big foreign players such as Riot Games are actively arranging high-calibre tournaments, which are creating premium sponsorship inventory. Also, YouTube, Twitch, and Mildom provide focused spaces for adverts during broadcasts of esports, enhancing brand auspiciousness. The emergence of influencer marketing (particularly esports streamers and VTubers) also helped this category to grow, so that advertisers can now connect with niche, loyal groups in more authentic ways.
According to the report, the impact of Japan E-sports has been identified to be high for the Kanto area:
The Kanto region (Tokyo and other great urban centres such as Yokohama and Chiba) happens to be the heart of Japan’s esports ecosystem. The dominance of this country comes from a large presence of professional teams and event organizers, and tech that supports competitive gaming. The largest events in esports take place in Tokyo specifically, for example, the RED° Tokyo Tower and esports cafes of Akihabara hold regular tournaments and meetups for fans. The region has also benefited from the existence of top universities and digital infrastructure that has made it possible for the emergence of collegiate esports programs and startup accelerators in the region as well. Furthermore, numerous game developers and media companies are based in Kanto, making it easier to harmonize the sponsorship arrangements, media rights, and the releases of content. The region is the driving force of the esports market due to vibrant culture, a huge gamer population, and support for digital innovation from the government.
Market Size, Trends, & Forecast by Revenue | 2025−2033.
Market Dynamics – Leading Trends, Growth Drivers, Restraints, and Investment Opportunities
Market Segmentation – A detailed analysis by Revenue Model, by Platform, by Games, by Region
Competitive Landscape – Top Key Vendors and Other Prominent Vendors
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