Japan Metaverse Market

Japan Metaverse Market Insights Forecasts to 2035

• The Japan Metaverse Market Size Was Estimated at USD 7.3 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of Around 30.2% from 2025 to 2035
• The Japan Metaverse Market Size is Expected to Reach USD 131 Billion by 2035

According to a research report published by decision advisor & Consulting, the Japan Metaverse Market size is anticipated to reach USD 131 billion by 2035, growing at a CAGR of 30.2% from 2025 to 2035. The Japan metaverse market is driven by rapid advancements in virtual reality and augmented reality technologies, increasing adoption of digital platforms by businesses and consumers, and strong government and corporate investments in metaverse-related infrastructure and innovation.

Market Overview

The Japan metaverse market is currently experiencing a dynamic evolution, driven by advancements in technology and increasing consumer interest. As digital interactions become more prevalent, various sectors are exploring the potential of immersive environments. This market is characterized by a blend of virtual reality, augmented reality, and blockchain technologies, which together create unique experiences for users. Companies are investing in innovative solutions to enhance user engagement, suggesting a promising trajectory for growth.

Furthermore, the Japan government is actively supporting initiatives that promote digital transformation, which may further stimulate the metaverse market. In addition, the cultural landscape of Japan plays a crucial role in shaping the metaverse market. The integration of traditional elements with modern technology appears to resonate well with consumers. This fusion not only attracts local users but also has the potential to appeal to international audiences. As the market continues to mature, collaboration between tech firms and content creators is likely to foster a rich ecosystem that enhances the overall user experience. The future of the metaverse market in Japan seems bright, with ongoing developments indicating a robust and innovative environment.

Report Coverage

This research report categorizes the market for the Japan metaverse market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan metaverse market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan metaverse market.

Driving Factors

The metaverse markets in Japan are driven by experiencing a significant expansion of e-commerce into virtual spaces, as businesses recognize the potential for enhanced customer engagement. Retailers are increasingly establishing virtual storefronts within the metaverse, allowing consumers to browse and purchase products in immersive environments.

In November 2025, the virtual retail market in Japan is projected to grow by 40% annually, driven by the desire for unique shopping experiences. This shift is likely to transform the metaverse market, as companies adapt their strategies to leverage the benefits of virtual commerce and meet the evolving expectations of consumers.

Restraining Factors

The metaverse market in Japan is restrained by the high initial cost of advanced cleaning machines, limited awareness and adoption among small businesses, and maintenance and operational challenges associated with automated or high-tech cleaning solutions.

Market Segmentation

The Japan metaverse market share is categorized by component, technology and application. 

• The software segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Japan metaverse market is segmented by component into software and hardware. Among these, the software segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is driven by increasing demand for automation and digitalization, rising adoption of cloud-based solutions, and the need for efficient data management and analytics across industries.

• The virtual & augmented reality segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.  

The Japan metaverse market is segmented by technology into blockchain, virtual & augmented reality, mixed reality, and others. Among these, the virtual & augmented reality segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. The growth of the segment is due to growing demand for immersive experiences, advancements in virtual & augmented reality hardware and software, and increasing adoption across gaming, education, healthcare, and enterprise applications.

• The content creation segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.  

The Japan metaverse market is segmented by application into online shopping, content creation, gaming, social media, others. Among these, the, content creation segment accounted for the largest revenue share in 2024 and is expected to grow at a significant CAGR during the forecast period. The growth of the segment is due increasing demand for digital and interactive media, rising adoption of social media and online platforms, and advancements in AI-powered tools and software for efficient and innovative content production.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan metaverse market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Sony Group Corporation
• NTT DOCOMO
• Bandai Namco Entertainment Inc
• Toyota Motor Corporation
• Soft Bank Corp
• Cluster Inc
• HIKKY Co.Ltd
• Styly  Inc
• Metaps Inc
• Synamon Inc
• Others

Key Target Audience                           

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments              

• In January 2024, Sony Corporation introduced an immersive three-dimensional content conception system. The system features a head-mounted XR display with OLED 4K resolution micro displays and a see-through video function. It includes optimized controllers for precision pointing and intuitive interaction with 3D objects. Sony plans to collaborate with three-dimensional software developers from the industrial design and entertainment sectors. Siemens will exclusively partner with Sony to introduce a new solution for immersive design and collaborative product engineering.
• In October 2023, HIKKY introduced the Para-real World Project, intending to make Para-real Cities freely accessible to anyone. HIKKY, a VR development solutions provider, including the VR event Virtual Market, plans to develop a metaverse consisting of 100 cities globally within five years.

Market Segment

This study forecasts revenue at the Japan, regional, and country levels from 2020 to 2035. decision advisor has segmented the Japan Metaverse Market based on the below-mentioned segments:

Japan Metaverse Market, By Component

• Software
• Hardware
• Others

Japan Metaverse Market, By Technology

• Blockchain
• Virtual & Augmented Reality
• Mixed Reality
• Others

Japan Metaverse Market, By Application

• Online Shopping
• Content Creation
• Gaming
• Social Media
• Others

FAQ’s                           

Q: What was the size of the Japan metaverse market in 2024?

A: The market was estimated at USD 7.3 billion in 2024.

Q: What is the expected CAGR of the Japan metaverse market from 2025 to 2035?

A: The market is expected to grow at a CAGR of 30.2%.

Q: Which segment accounted for the largest revenue share in 2024?

A: The software segment accounted for the largest revenue share.

Q: What are the key factors driving the Japan metaverse market?

A: Rapid advancements in virtual & augmented reality technologies, increasing adoption of digital platforms, and strong government and corporate investments.