The Yano Economic Research Institute announced on April 28, 2025, a forecast predicting that the VTuber market size for fiscal year 2025 will reach 126 billion yen, representing a remarkable 120.0% increase compared to the previous fiscal year. This forecast was derived from a comprehensive market survey conducted from November 2024 to March 2025, targeting VTuber offices and companies operating projects within Japan.
This extensive survey explored various market segments, including merchandise, live streaming, BtoB (tie-up advertising, IP licensing-based copyright and merchandising rights), and events. It also examined trends among participating companies and provided insights into the future prospects of VTubers.
The forecast for the 2025 VTuber market size was included in the Yano Economic Research Institute's report titled "2025 VTuber Market Thorough Research ~Market Survey Edition~," which was released on March 28, 2025, and is priced at 198,000 yen. A shorter report is also available for 1,100 yen.
Yano Economic Research Institute characterizes VTubers as a new form of expression that emerged following the debut of Kizuna AI in 2016. The institute attributes the rapid growth of the market to increased demand for video content consumption at home during the COVID-19 pandemic, when movement restrictions were in place.
In fiscal year 2023, the VTuber market expanded significantly to 80 billion yen, marking a staggering 153.8% increase from the previous year. A breakdown of the market segments reveals that merchandise accounted for a substantial portion, with sales reaching 44.5 billion yen, which represents 55.6% of the total market. Live streaming followed with 16 billion yen (20.0%), BtoB with 13.1 billion yen (16.4%), and events with 6.4 billion yen (8.0%).
Although the growth rate has moderated compared to the explosive expansion seen in earlier years, the VTuber market continues to trend upward. For fiscal year 2024, the market is projected to reach 105 billion yen, and for 2025, the forecast remains at 126 billion yen, reflecting a consistent growth trajectory.
The Yano Economic Research Institute highlights that VTubers possess two key characteristics: they are both intellectual property (IP) and influencers. This dual nature distinguishes them from traditional content creators like YouTubers and voice actors. VTubers often engage in IP licensing businesses, selling merchandise featuring their character designs and appearing in various media such as games and anime.
However, VTubers are not mere animated characters. They are performers who interact with their audience in real-time, discussing personal topics and showcasing their unique personalities. This blend of character design and personal engagement creates a new character archetype that resonates with viewers.
Collaborations between VTubers and companies that align with their preferences are particularly effective, as they tend to foster empathy among fans and achieve high levels of engagement. VTubers have firmly established themselves as a distinct genre in Japan, evolving from a reliance on live streaming revenue to a more diversified revenue model that includes merchandise sales and BtoB partnerships.
As many VTuber agencies begin to offer services aimed at international markets, the movement to capture overseas fans is gaining momentum. There is also a noticeable trend of establishing VTuber agencies outside Japan, further expanding the global reach of this unique entertainment form.
With the increasing number of fans and the expanding scope of monetization opportunities, the Yano Economic Research Institute concludes that the VTuber market is poised for further growth. The combination of a dedicated fanbase and diverse revenue streams positions VTubers to continue thriving in the evolving landscape of digital entertainment.
In summary, the VTuber phenomenon, which began with Kizuna AI, has transformed into a significant cultural and economic force in Japan. As the market continues to expand, VTubers are set to play an increasingly vital role in the entertainment industry, both domestically and internationally.
