Japan Virtual Reality Market Expected to Reach USD 8.7 Billion by 2033 - IMARC Group

February 10, 2025 | Technology & Media

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Japan Virtual Reality Market Statistics, Outlook and Regional Analysis 2025-2033

The Japan virtual reality market size was valued at USD 2.2 Billion in 2024, and it is expected to reach USD 8.7 Billion by 2033, exhibiting a growth rate (CAGR) of 16.4% from 2025 to 2033.

Japan Virtual Reality Market

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The Japan virtual reality market is largely propelled by the ongoing technological innovations, the widespread product utilization in the medical sector, and the increasing popularity of engaging gaming experiences. For example, in January 2024, Sony Corporation (Tokyo) introduced an XR head-mounted display fortified with high-quality video see-through features and controllers optimized for an in-built interface with 3D objects and accurate pointing. Besides this, virtual reality provides engaging educational experiences, enabling students to explore historical sites or visualize complex concepts. This, in turn, is positively influencing the market across the country. Additionally, the continuous innovation in software development, electronics, and hardware design by major players, is also bolstering the market for virtual reality. For instance, in June 2024, Apple launched its virtual reality (VR) headset in Japan.

Moreover, the expanding gaming and entertainment industry in Japan and the rising number of VR arcades are propelling the market growth forward. For example, in September 2023, Dentsu Group Inc. unveiled its updated metaverse infrastructure system xambr for use in the virtual venue “TOKYO GAME SHOW VR 2023”. Furthermore, the increasing need for VR in the healthcare sector for various purposes like therapy, medical training, and pain management is also catalyzing the market expansion. For instance, in August 2023, Asteria Corporation announced an investment of around ¥ 60 Million in Tokyo-based startup Holoeyes, Inc., which is a developer and benefactor of medical virtual reality software service.

Japan Virtual Reality Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include the Kanto region, Kinki region, Central/ Chubu region, Kyushu-Okinawa region, Tohoku region, Chugoku region, Hokkaido region, and Shikoku region. The continuous technological advances in the country and the high usage of virtual reality in education and medical industries are fueling the market in Japan.

Kanto Region Virtual Reality Market Trends:

Kanto holds the largest share of the Japan virtual reality market. Tokyo provides a significant demand for VR technology, on account of its inflating disposable income levels, large consumer base, and high concentration of businesses. The region’s economic growth supports investments in VR hardware, software, and content development.

Kinki Region Virtual Reality Market Trends:

The virtual reality market in the Kinki region is concentrated in key cities like Osaka, Kobe, and Kyoto, allowing individuals to experience digital environments, including virtual tours of landmarks or simulations of local activities. VR technology makes the Kinki region accessible to people without the physical need of being there.

Central/Chubu Region Virtual Reality Market Trends:

The virtual reality technology in the Central/Chubu region of Japan, particularly in Nagoya, Gifu, and Hamamatsu cities, showcases the culture, sights, and landmarks of the Chubu region. These include a virtual walk-through of Nagoya Castle grounds, a 360-degree view of the Japanese Alps, interactive tours of local art galleries and museums, etc.

Kyushu-Okinawa Region Virtual Reality Market Trends:

The Kyushu-Okinawa region of Japan is home to numerous technology hubs, mainly in Fukuoka, which promotes itself as a tech innovation center. In line with this, VR technology is widely used in the automotive sector in Kyushu by leading players like Toyota and Nissan to design and manufacture cars.

Tohoku Region Virtual Reality Market Trends:

Tohoku University, one of Japan's best research institutions, is largely contributing to the market growth of virtual reality in this region. Given the strong industrial base in the area, VR technology is extensively adopted for training and simulation purposes. Moreover, in the Tohoku region, the healthcare sector is leveraging virtual reality for therapeutic uses, such as rehabilitation for stroke patients and remedies for mental health issues.

Chugoku Region Virtual Reality Market Trends:

The Chugoku region’s robust industrial sectors, including energy and manufacturing, mainly in Hiroshima and Okayama, are major users of VR technology. Additionally, educational institutions and universities in the region are utilizing virtual reality to offer students an immersive learning experience.

Hokkaido Region Virtual Reality Market Trends:

Virtual reality is largely being employed to enhance tourism in the Hokkaido region. Simulated tours showcase wildlife encounters, seasonal landscapes, and cultural festivals, providing prospective visitors with interesting previews. For instance, VR can transport individuals to the Sapporo Snow Festival. Moreover, the construction and real estate industry in Hokkaido uses VR technology for property showings and architectural visualizations.

Shikoku Region Virtual Reality Market Trends:

VR technology is mainly utilized to preserve and promote the unique cultural and artistic heritage of the Shikoku region. This contains virtual exhibitions of traditional crafts and performances. Furthermore, Japan’s government is supporting the adoption of VR technology via policy initiatives and funding.

Top Companies Leading in the Japan Virtual Reality Industry

Several companies are encompassing the virtual reality market in Japan. For instance, in October 2024, Sandbox VR, the leader in virtual reality gaming, announced a collaboration with Bokksu to provide an immersive VR adventure. Besides this, HIKKY, a VR development solutions provider, in October 2023, introduced a project intending to make Para-real Cities easily accessible to anyone.

Japan Virtual Reality Market Segmentation Coverage

Based on the device type, the market has been segmented into the head-mounted display, gesture-tracking device, and projectors and display wall. Head-mounted display projects images directly in front of the user’s eyes. A gesture-tracking device uses infrared sensors or cameras to detect movements, while the projector projects images onto a large, flat surface known as the display wall.
Based on the technology, the market has been categorized into semi and fully immersive and non-immersive. In semi-immersive VR users interact with the virtual environment but are aware of their physical surroundings, while in fully immersive VR, individuals are completely engaged in the online world. Non-immersive experience is basic without a dedicated VR headset.
Based on the component, the market has been divided into hardware and software. VR hardware components encompass input devices, headsets, and simulation systems. On the other hand, the software instruments in VR include a content management system, VR engine, and software development kit (SDK).
Based on the application, the market has been separated into aerospace and defense, consumer, commercial, enterprise, healthcare, and others. Virtual reality in aerospace and defense is used for training purposes and assisting with situational awareness. Consumers utilize VR for gaming experiences. The commercial sector employs virtual reality in navigation systems and for research and operations. In enterprises, VR is used for practicing complex skills in a simulated environment, while in healthcare, virtual reality helps in surgical training, medical education, mental health treatment, etc.

Report Features	Details
Market Size in 2024	USD 2.2 Billion
Market Forecast in 2033	USD 8.7 Billion
Market Growth Rate 2025-2033	16.4%
Units	Billion USD
Scope of the Report	Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment: Device Type Technology Component Application Region
Device Types Covered	Head-Mounted Display, Gesture-Tracking Device, Projectors and Display Wall
Technologies Covered	Semi and Fully Immersive, Non-Immersive
Components Covered	Hardware, Software
Applications Covered	Aerospace and Defense, Consumer, Commercial, Enterprise, Healthcare, Others
Regions Covered	Kanto Region, Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, Shikoku Region
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

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Japan Virtual Reality Market Expected to Reach USD 8.7 Billion by 2033 - IMARC Group

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