Study: Japanese Esports Market Tipped For Strong Growth

The Japanese esports market grew by 9% in 2020 and is set to continue its rise in the coming years, according to figures released by the gaming information firm Famitsu.

The study also reveals the number of esports fans attending esports events also jumped by 42% to nearly 6.9 million people last year. Famitsu is projecting a steeper growth curve, with esports revenues increasing by nearly 30% year-on-year until the middle of the decade.

The reports says size of Japan’s esports market is poised to grow from 6.1 billion yen (US$55.6 million) in 2019 to 5.3 billion (US$139.5 million) in 2023, driven by greater use of 5G services and more game providers diving into the industry.

In 2020, sponsorship fees and advertising expenses accounted for the lion’s share of the industry’s revenues, accounting for over 67% of all revenues, with broadcast rights also showing strong growth.

Last year, the Japanese government announced plans to collaborate with gaming companies and legal experts to formulate guidelines to promote esports in the country. The initiative plans to organise large-scale tournaments as well as deal with legal issues concerning the intellectual property of game developers.

To capture the potential of the esports market in Asia, Japan’s Nikko Asset Management launched an e-gaming exchange-traded fund (ETF) in Hong Kong in 2020.

The fund invests in a range of companies that are benefitting from the growth of the esports industry. This includes game developers, gaming hardware and software applications, and high-speed telecom and streaming infrastructure providers.