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AR Hardware - Japan

Japan

Revenue in the AR Hardware market market in Japan is projected to reach €318.6m in 2024.
Revenue in Japan is expected to show an annual growth rate (CAGR 2024-2029) of 13.64%, resulting in a projected market volume of €603.9m by 2029.
With a projected market volume of €2,096.0m in 2024, most revenue in the AR Hardware market market is generated the United States.
In Japan, the number of users in the AR Hardware market market is expected to amount to 7.8m users by 2029.
User penetration in Japan will be 2.1% in 2024 and is expected to hit 6.6% by 2029.
The average revenue per user (ARPU) in Japan is expected to amount to €125.3.
Japan's AR hardware market is witnessing a surge in innovation, driven by a growing demand for immersive experiences in gaming and education sectors.

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Analyst Opinion

The AR Hardware market in Japan has been experiencing significant growth in recent years, driven by customer preferences for immersive and interactive experiences, as well as advancements in technology.

Customer preferences: Customers in Japan have shown a strong interest in AR Hardware due to its ability to enhance their gaming and entertainment experiences. The popularity of AR games such as Pokemon Go has contributed to the increased demand for AR Hardware, as consumers seek to immerse themselves in virtual worlds. Additionally, there is a growing interest in using AR Hardware for educational and training purposes, as it provides a more engaging and interactive learning experience.

Trends in the market: One of the key trends in the AR Hardware market in Japan is the increasing adoption of AR glasses. These lightweight and portable devices allow users to overlay digital information onto the real world, providing a seamless augmented reality experience. With advancements in technology, AR glasses have become more affordable and accessible to a wider range of consumers. As a result, there has been a surge in the number of AR glasses available in the market, offering various features and functionalities to cater to different customer needs. Another trend in the market is the integration of AR technology into other devices, such as smartphones and gaming consoles. This allows users to experience augmented reality without the need for separate AR Hardware, making it more convenient and cost-effective. As smartphone penetration continues to increase in Japan, the demand for AR-enabled smartphones is also on the rise.

Local special circumstances: Japan has a strong gaming and entertainment culture, which has contributed to the growth of the AR Hardware market. The country is known for its innovative and immersive gaming experiences, and AR technology has provided a new dimension to these experiences. Additionally, Japan has a highly developed technology sector, with many companies investing in research and development of AR Hardware. This has led to the creation of cutting-edge products that cater to the specific needs and preferences of Japanese consumers.

Underlying macroeconomic factors: The growth of the AR Hardware market in Japan can be attributed to several macroeconomic factors. Firstly, the country has a high disposable income and a strong consumer market, which allows for greater spending on entertainment and technology products. Secondly, Japan has a highly developed infrastructure, including widespread internet connectivity and advanced telecommunications networks, which enables the seamless integration of AR Hardware into daily life. Finally, the government has also been supportive of the AR industry, providing incentives and funding for research and development, as well as promoting the adoption of AR technology in various sectors. In conclusion, the AR Hardware market in Japan is experiencing significant growth due to customer preferences for immersive experiences, advancements in technology, and the country's unique gaming and entertainment culture. The increasing adoption of AR glasses and the integration of AR technology into other devices are key trends in the market. With a strong consumer market, advanced technology infrastructure, and government support, Japan is well-positioned to continue driving the growth of the AR Hardware market in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR hardware revenue, which includes digital spending on hardware (headsets and glasses) that enables consumers to experience augmented reality.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports 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 consumer spending, internet penetration, 4G coverage, and historical developments.

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 level of digitalization, adoption of technology, GDP per capita, and internet penetration.

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 and the Russia-Ukraine war are considered at a country-specific level. 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).