Mobile & Smart Phone Apps.
and its related Market
in Japan
Masaaki Yoshikawa
Director General
Osaka Innovation Hub
Osaka City Government
Japan
http://www.innovation-osaka.jp
Global Innovation Osaka
Topic
•
•
•
•
Osaka Innovation Hub
Japanese Market Profile
Trend observed from Financial market
Internet Of Things
Osaka Innovation Hub
• Founded: by Osaka City Gov.
• Goal : To Build an Innovation Ecosystem, and
to become a gateway to and from the World
• Regional Organizer of the Contest (2014)
Mono-App. Hackerthon
-ICT x Hardware• Gadget Hackerthon,
“Mono App. Hackerthon”
– Smart Toy by MOFF
• Sharp
– SmartPhone x TV
• Sony
– Xperia Wearable
• Docomo
– Hardware Devices
Moff: a company born from the Mono
App. Hackerthon
Japanese Market Profile
Mobile Phone OS Share
-Shifting to SmartphonesMobile Phone Contracts: 129.13Million (2012.Dec.)*
*Telecommunications Carriers Association (TCA)
Mobile Phone OS Share**
80%
Declining, but
…still large
70%
61.8%
60%
50%
Feature Phone
40%
Android
Apple
30%
24.6%
20%
Others
13.2%
10%
0.4%
0%
2012.8
2013.8
**Source: comScore MobiLiens
Smartphone Penetration (2013)
-International Comparison73%
63%
72%
57%
56%
51%
47%
35%
25%
39%
31%
20%
14%
Source: Google Our Mobile Planet
Mobile content & the related market in Japan,
2012
- USD 23.5 Bill (Unit: USD Million )
Market
Mobile Content Market
Mobile Commerce
Market
Mobile Content related
market
2009
5,525
2010
6,465
2011
7,345
Year-onYear
114%
2012
8,510
Year-onYear
116%
9,681
10,085
11,716
116%
14,997
128%
15,206
16,550
19,061
115%
23,507
123%
Source: Ministry of Internal Affairs and Communications“ Results of Survey on Actual Status of Industrial Structure
of Mobile Contents in 2012” with Mobile Content Forum survey in 2012
Mobile content and commerce market in Japan
23,507
25,000
“Mobile”: Feature Phone and Smartphone
19,061
20,000
15,206
16,550
15,000
Mobile Commerce Market
Mobile Content Market
10,000
•
•
5,000
0
2009
2010
2011
2012
Commerce Market: Shopping, Services, Transaction
Content Market: Paid digital content, i.e. games, music
The mobile content market in 2012
-Feature phone & Smartphone: 8.5Bill(Unit: USD Million )
2009
5,525
*35
5,525
Feature phone market
Smartphone market
Mobile content market
2010
6,465
*123
6,465
2011
6,539
806
7,345
Year-onYear
101%
655%
114%
2012
4,793
3,717
8,510
Year-onYear
73%
461%
116%
Note: * are reference values.
Source: Ministry of Internal Affairs and Communications" Results of Survey on Actual Status of Industrial Structure of Mobile
Contents in 2012" with Mobile Content Forum Survey
Mobile Content Market
-Feature phone and Smartphone9,000
8,510
8,000
6,465
7,000
6,000
7,345
5,525
5,000
Smartphone market
4,000
Feature phone market
3,000
2,000
1,000
0
2009
2010
2011
2012
Feature Phone
market remarkably
declined in 2012,
transiting to Smart
Phone.
Feature Phone/Content Market Segments
-Japan has well cultivated markets since i-Mode ( Unit: USD Mill.)
Ringtone
Chaku-uta
Mobile game
Decoration mail
E-Book
Ring-back tone
Fortune telling
Standby
Kisekae
Weather/News
Traffic information
Life information
Scocial game
Video dedicated
Arts and entertaiment
Media / Information
Others
Feature phone market
2009
2010
2011
2012
Year On Year
402
1,201
884
228
500
115
191
226
99
97
241
121
447
112
241
66
354
5,525
335
1,133
822
243
516
130
185
214
117
127
267
170
1,389
162
242
62
351
6,465
287
942
570
213
489
118
180
172
103
140
217
168
2,078
176
242
54
390
6,539
200
554
398
128
320
94
122
108
54
120
160
159
1,888
93
103
37
255
4,793
70%
59%
70%
70%
65%
80%
68%
63%
52%
86%
74%
95%
91%
53%
43%
69%
65%
73%
Source: Ministry of Internal Affairs and Communications" Results of Survey on Actual Status of Industrial Structure of Mobile Contents in 2012
" with Mobile Content Forum Survey
Smartphone Content market segment
( Unit: USD Million )
2011
481
325
806
Game and social game
Music content market
Video and movie
Others
Smartphone market
2012
2,607
198
262
650
3,717
Year on Year
542%
461%
4,000
3,500
650
3,000
GAME: 70%!
262
198
2,500
2,000
1,500
2,607
1,000
500
Source: Ministry of Internal Affairs and
Communications" Results of Survey on
Actual Status of Industrial Structure of
Mobile Contents in 2012" with Mobile
Content Forum Survey
325
0
481
0
2011
Game and social game
2012
Music content market
Video and movie
Others
Killer Applications on SmartPhone
• Puzzle & Dragons
– Lunched in Feb. 2012
– USD 70MIl/Month (Only this app)
– #1 Revenued App in Google Play
in the world (Distimo 2013.Sept)
• Line
© GungHo Online Entertainment, Inc.
– Lunched in June, 2011
– Users: 400Mil
– #3 Revenued APP in Google
Play : LINE Pokopang (Distimo
2013.sept)
©LINE Corpration
Number of Paid Apps installed (2013)
- Japan Pays Apps more than 2 X -
18
14
7
2
3
3
5
4
6
8
Source: Google Our Mobile Planet
8
4
8
Revenue of Apps. at Google Play
in Japan: #1 in the world
• “The only major country where Google vies with
iOS on equal revenue terms” (App Annie
Intelligence)
500
450
400
Google Play revenue
in the world: Japan is
#1.( Data Source:Distimo)
470
350
Other
300
250
US
200
Korea
150
Japan
100100
50
0
2012.Sept.
2013.sept
Japan becomes the #1 revenue
market for Smartphone in 2013.
App.Store & Google Play (Combined)
Monthly Indexed Revenue
400
Indexed Revenue
350
300
250
JAPAN
USA
200
Korea
UK
150
100
50
0
Oct.2012
Oct.2013
Source: App Annie Intelligence
The mobile commerce market (2012)
( Unit: USD Million )
2009
4,284
3,891
1,542
9,717
Shopping
Services
Transaction
Total
2010
4,392
4,109
1,584
10,085
2011
5,839
4,249
1,628
11,716
2012 Year on
6,878
6,281
1,838
14,997
Year
118%
148%
113%
128%
16,000
14,000
12,000
10,000
Transaction
8,000
Services
6,000
Shopping
4,000
2,000
0
2009
2010
2011
2012
Source: Ministry of Internal Affairs
and Communications" Results of
Survey on Actual Status of
Industrial Structure of Mobile
Contents in 2012" with Mobile
Content Forum Survey
Advertising Market
- Internet (UNIT: USD Million)
Total Amount of AD.
Mass media (TV, Radio, News Paper,
Magazine)
Satellite related
Internet
Promotional media
2,011
57,098
2,012
58,913
2,013
59,662
27,018
891
8,062
21,127
27,796
1,013
8,680
21,424
27,825
1,110
9,281
21,446
Advertisement per category (2013)
Mass media (TV,Radio,
News Paper, Magazine)
36%
47%
Satellite related
Internet
Promotional media
15%
2%
Source: Dentsu ; Feb.20, 2014,
http://dentsu-ho.com/articles/789
Smartphone Advertising Market
-Forecast(Unit: USD Million)
SmartPhone AD.
Market
2011
2012
2013
2014*
2015*
2016*
249
856
1,652
2,304
2,758
3,056
3,056
2,758
2,304
1,652
856
249
2011
2012
2013
2014*
2015*
2016*
*Forecasted
Source: Cyber Agents based on Seed Planning data
Trend observed from
the Financial Market
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•
•
•
•
Fin. Tech
Commerce
Edu. Tech
Social & Crowd & Curation
Hardware (Internet Of Thing)
Source: Sun Bridge Global Ventures Inc.,
A member of Super Producers of Osaka Innovation Hub
Fin.Tech
• Personal Accounting
– Money Forward :
Funded $5M
• B2B Accounting
– Accounting Free :
Funded $10.7M
• Square-like payment
gadget
– Coiney:
Funded $8M
Source: Sun Bridge Global Ventures Inc.,
A member of Super Producers of Osaka Innovation Hub
Commerce
• Shopify-like online shop
platform
– Stores: Acquired by
StartToday $6M
– BASE: Funded $2M
• Delivery Mall
– Gochi-Kuru: Funded $10M
• Second-Hand C2C EC
– Sumally: Funded $1.5M
– Mercari:Funded $14.5M
Source: Sun Bridge Global Ventures Inc.,
A member of Super Producers of Osaka Innovation Hub
Edu.Tech
• Online tutoring
– RareJob: funded
$3.3M
• Massive open online
course (Mooc)
– Schoo web-campus:
funded $1.5M
• Game/app education
– Quipper : funded $5M
Source: Sun Bridge Global Ventures Inc.,
A member of Super Producers of Osaka Innovation Hub
Social & Crowd & Curation
• News App
– SmartNews: Funded $4.2M
– Gunosy: Funded $12M
– Antenna: Funded $20M
• Yelp-like social rating
– Retty: Funded $3.3
• Crowd sourcing
– CrowdWoks: Funded $11M
– Gengo: Funded $12M
• Event
– PeaTix: Funded $3M
Source: Sun Bridge Global Ventures Inc.,
A member of Super Producers of Osaka Innovation Hub
Hardware (Internet of Thing)
• Wearable
– Moff: raised $79k on
– Ring: raised $890k on
Source: Sun Bridge Global Ventures Inc.,
A member of Super Producers of Osaka Innovation Hub
Internet of Thing
- Business Pitch Contest• HackOsaka 2014
– Key note speakers:
• Eric Migicovsky, Pebble
Technology CEO, (USA)
• Matt Webb, BERG CEO (UK)
– International Pitch Contests:
• From Taiwan, Singapore,
Indonesia, Australia, UK, ..
HackOsaka 2015 : February 10th, 2015
WELCOME to Pitch your Smartphone Apps..
Conclusion
• The Mobile content market is USD 8.5 Bill. Its related
market, Mobile commerce market is USD 15 BilL. (Acc.to
Mobile Content Forum Survey)
• Some portion of the Advertisement market on Internet
and Promotional media (USD 30 Bill.) should be
additionally considered to the Mobile content market.
• The Japanese mobile content market is one of biggest in
the world, and has been commercially well cultivated
since the “i-mode” created the market in 1999.
• According to Anny App Intelligence, Japanese revenued
market on Smartphone has become #1 in the world in
2013.
Conclusion (2)
• The transition to Smartphone from Feature phone has
been remarkably taking place since 2012.
• Trends in Japan for Mobile apps are, we see from the
financial market, , 5 categories:
1)Fin.Tech, 2)Commerce, 3)Edu.Tech, 4)Social &
Crowd & Curation, 5)Hardware (Internet of Thing)
• Osaka Innovation Hub will hold a International Pitch
Contest, called “HackOsaka” in 2015; Registrations on
Smartphone Apps, including IOT( Internet of Things)
are to be welcomed!