Market Insights Advertising & Media AR & VR

AR Software

Japan

In Japan, revenue in the AR Software market market is projected to reach €0.7bn in 2024.
Revenue in this market is expected to show an annual growth rate (CAGR 2024-2029) of 6.58%, resulting in a projected market volume of €1.0bn by 2029.
While most revenue is generated the United States, the AR Software market market in Japan is also expected to grow significantly.
The number of users in Japan's AR Software market market is anticipated to amount to 71.3m users by 2029.
User penetration in Japan will be 55.0% in 2024 and is expected to reach 59.8% by 2029.
The average revenue per user (ARPU) in Japan is expected to amount to €10.7.
Japan's AR software market is rapidly evolving, driven by increased investments in entertainment and gaming, reflecting the nation's strong cultural affinity for immersive technology.

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Analyst Opinion

The AR Software market in Japan has been experiencing significant growth in recent years.

Customer preferences: Customers in Japan have shown a strong interest in AR software, particularly in industries such as gaming, entertainment, and retail. The Japanese market is known for its love of technology and innovation, and AR software provides a unique and immersive experience for users. Additionally, Japanese consumers have a high level of disposable income and are willing to invest in new and exciting technologies.

Trends in the market: One of the key trends in the AR Software market in Japan is the increasing adoption of AR in the gaming industry. Japanese game developers have been quick to embrace AR technology, creating innovative and immersive gaming experiences that have captured the attention of consumers. This trend is expected to continue as more game developers incorporate AR into their products. Another trend in the market is the use of AR in the entertainment industry. AR has been used in various forms of entertainment, including concerts, theme parks, and museums, to enhance the overall experience for visitors. Japanese consumers have shown a strong interest in these types of experiences, leading to the growth of AR software in the entertainment sector. Furthermore, the retail industry in Japan has also been utilizing AR technology to enhance the shopping experience. AR allows customers to virtually try on clothes, visualize furniture in their homes, and even see how products will look on them before making a purchase. This has not only increased customer engagement but also improved the overall shopping experience.

Local special circumstances: Japan has a highly developed technology infrastructure, which has contributed to the growth of the AR Software market. The country is known for its advanced technology and innovation, and this has created a favorable environment for the development and adoption of AR software. Additionally, the Japanese government has been supportive of the AR industry, providing funding and incentives for companies to invest in research and development.

Underlying macroeconomic factors: The growth of the AR Software market in Japan can also be attributed to the overall economic conditions in the country. Japan has a strong and stable economy, with a high level of consumer spending. This has created a favorable environment for companies in the AR software industry to thrive and expand their operations. Additionally, Japan has a large population and a high level of smartphone penetration, which has further contributed to the growth of the AR Software market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on AR software revenue, which includes revenues related to in-app purchases as well as revenues from the purchase of social media, gaming, and eCommerce apps.

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).