Japan Fertility Services Market Assessment, By Cause of Infertility, By Procedure, By Service, By Provider, By Region, Opportunities and Forecast, FY2018-FY2032F

Japan fertility services market is projected to witness a CAGR of 6.50% during the forecast period FY2025-FY2032, growing from USD 3.05 billion in FY2024 to USD 5.04 billion in FY2032. The market's growth is propelled by the rising cases of infertility, increasing government measures to boost population growth, rapid technological advancements, and rising social acceptance of fertility technologies.

Due to the rapid population decline in Japan, the demand for fertility services is significantly increasing. According to the estimates of the Carnegie Endowment for International Peace, by 2050 various Japanese prefectures would lose about 42% of their population. The population of the Akita Prefecture was 960,000 in 2020 and is estimated to fall to 560,000 by 2050. In order to combat the various challenges faced by the country due to the declining population growth, the reliance on fertility services is significantly increasing. These challenges include a reduced working population, a shrinking economy, and increasing dependency on the healthcare sector.

Meanwhile, the growing cases of infertility and increasing social acceptance of fertility services are also augmenting the expansion of the Japan fertility services market. Historically, infertility was stigmatized in Japan. However, rising educational campaigns and increasing awareness have transformed the public perception of such treatments and increased their adoption in Japan. The cultural shift towards alternative family building options including surrogacy and in-vitro fertilization (IVF) is further propelling the expansion and growth of the fertility services market in Japan. Moreover, advancements in reproductive technologies enhance the efficacy and effectiveness of fertility services, further encouraging their adoption.

Supportive Government Initiatives Boost Market Expansion

In order to improve the country's fertility rate, the government is taking various measures and introducing new policies and incentives, supporting the expansion of the Japan fertility services market. For instance, in 2022, six new surgical codes (K-codes) were introduced by the country's national health service for infertility treatments. The additional fertilization procedures included testicular sperm extraction, IVF, embryo culture, transfer and freezing, and intracytoplasmic sperm injection (ICSI). Moreover, the government discussion regarding public health insurance covering normal births, i.e., births without complications are being slated for 2026. Such efforts can be attributed to the country's low fertility rate and the significant demographic challenges faced by Japan, such as reduced workforce and expansion of the aging population. Government initiatives and support aim to alleviate the financial burdens associated with fertility services, thus promoting increased birth rates.

Rapid Expansion of the Aging Population Bolsters Market's Demand

The rapid expansion of the country's aging population is one of the major factors propelling the requirement for fertility services in Japan. Due to the significant growth of the population over the age of sixty-five, the country is facing various demographic challenges that include increased healthcare costs and a shrinking workforce. In order to mitigate such challenges, the Japanese government is focusing on developing policies and introducing initiatives that support family planning, providing lucrative growth opportunities for the market. This increased focus on fertility support includes the provision of funding for different assisted reproductive technologies (ART), including IVF, whose requirement is becoming more prevalent in the country as the population delays marriage and childbirth to focus on professional growth and development. Therefore, the reliance on fertility services is significantly increasing in Japan.

Rising Requirement for Fertility Preservation Services Boost Market Expansion

The increasing reliance on fertility preservation services can be attributed to the growing cases of infertility, delayed pregnancies due to the increasing participation of women in the workforce, and rising awareness and acceptance of such treatments. Thus, the government is also focusing on introducing various programs and schemes to support the population in their fertility preservation efforts. As of January 2024, more than 7,000 women have registered for information sessions for Tokyo's fertility subsidy program, which offers up to USD 2,023 (300,000 yen) for egg freezing and was launched in 2022. Egg freezing is one of the most preferred services opted by women for extending their fertility, the cost of which usually runs from USD 1,974 to USD 3,949, with some running up to USD 6,582. Preserving younger eggs is preferred by a large number of working women to increase their chances of conception, thus augmenting the requirement for fertility preservation services and providing lucrative growth opportunities for the market.

Fertility Clinics Account for Significant Market Share

The growth of fertility clinics can be attributed to the presence of skilled professionals and advanced technologies across these facilities. Moreover, the growing adoption of smart devices and novel technologies and services across these facilities also supports the segment's growth. Additionally, fertility clinics offer personalized treatment plans and services that cater to the individual requirements of the patient population, enhancing the effectiveness of the treatments. The increasing acceptance and awareness about fertility services along with the rising cases of both male and female infertility in Japan are also contributing to the growth and expansion of fertility clinics in the country.

Future Market Scenario (FY2025 - FY2032F)

According to the Japan fertility services market analysis, the market is expected to observe significant growth over the forecast period due to increasing government efforts to bolster population growth, increasing incidences of infertility, technological advancements in fertility technologies, and rising awareness about the various treatment options available.

The rising income levels are also supporting the market's growth in the country. As per the estimates of the Statistics Bureau of Japan, the average monthly income per household for 2024 was USD 7771.29 (1,179,259 yen), up by 2.9% in real terms and 7.2% in nominal terms from the previous year.

Increasing efforts of the Japanese government to incentivize childbirth are also expected to bolster the market's expansion. The government is considering covering all expenses for childbirth under the public medical insurance system in the coming years to combat the declining birthrates.

Key Players Landscape and Outlook

Many startups are stepping up to address the soaring demand for fertility services in Japan. Startups such as ARCH, Inc. focus on enhancing clinical efficiency and addressing the various challenges faced by the patient population undergoing fertility treatments. Additionally, various policies and technologies are being introduced to address the fertility crisis faced by the country that are also supporting the expansion of such startups. Government initiatives, along with increasing societal acceptance of fertility treatments, are allowing the growth of fertility startups in Japan.

Additionally, Japanese pharmaceutical giants are investing in advanced treatments and technologies in order to improve treatment outcomes and provide lucrative growth opportunities for the market. For instance, in August 2024, Rohto Pharmaceutical Co., Ltd. joined BAIBYS Fertility Ltd.'s Series A funding round. The system developed by the latter examines sperm samples and selects the specimen that is most ideal as per the criteria of the WHO. The automated approach adopted by the company ensures the affordability and accessibility of advanced fertility treatments and addresses the inefficiencies of traditional methods.