How Japan’s longevity economy is creating new opportunities

As life expectancies rise and populations age, societies must address mounting challenges in healthcare and long-term care. At the same time, the demographic change is unlocking new market opportunities.

At the global forefront of ageing is Japan, the world's most rapidly ageing country. According to Japan's Ministry of Internal Affairs and Communications, as of 2024, the country had a record 36.25 million people aged 65 and over, accounting for 29.3% of the total population. This share is projected to rise to 34.8% in 2040 and 36.3% in 2045. Japan’s proportion of elderly residents is already far higher than second-ranked Martinique (25.3%), making it the world’s most aged society.

The longevity economy in Japan is emerging as a market of considerable scale. It is expected to expand from JPY 96 trillion ($652.5 billion) in 2023 to JPY 115 trillion ($780 billion) by 2040. By sector, the elderly market in 2023 included JPY 29 trillion ($195 billion) in healthcare, JPY 11.7 trillion ($79 billion) in nursing care and JPY 55.7 trillion ($378 billion) in lifestyle-related industries, highlighting the diverse ecosystem supporting seniors’ daily lives.

Analyses show that Japan’s elderly population has become “five years younger” in terms of health status and employment rates over the past 15 years. Looking ahead, the number of seniors with higher disposable incomes, particularly those unmarried or without children, is projected to increase by 2040. These shifts are fuelling demand not only in healthcare and nursing care, but also in lifestyle-related industries, driving further market growth.

In June 2024, the Ministry of Health, Labour and Welfare revised its “Priority Fields in the Use of Robot Technology for Long-term Care,” renaming it “Priority Fields in the Use of Technologies for Long-term Care.” The updated framework added three new focus areas: functional exercise support, assistance for eating and nutrition management, and daily support and long-term care support for people with dementia. To accelerate adoption, the government allocated nearly JPY 30 billion ($203.5 million) in subsidies in the 2025 budget.

One notable example of the use of technology is “care robots”. At Expo 2025 Osaka, Kansai, the humanoid robot AIREC, developed by Waseda University and others, was showcased. Equipped with AI, it can autonomously assist with daily tasks considered challenging such as putting on socks. The roadmap envisions commercialization of robots capable of household tasks and low-risk caregiving duties by 2030, expanding to hospitality, household chores, caregiving, nursing and some medical procedures by 2040. By 2050, these robots are expected to evolve into “companions” for the elderly, capable of communication through both language and touch.

Beyond healthcare and nursing care, lifestyle-related industries for seniors are rapidly expanding. One of the fast-growing segments is “conversation partner services.” According to the Ministry of Health, the number of single-person households aged 65 and older surpassed 9 million for the first time in 2024. Among these, 61.7% were comprised of individuals aged 75 and above. Seniors living alone face heightened risks, including delayed detection of illness and increased dementia risk due to reduced social interaction. Reflecting these challenges, the conversation partner service market is projected to exceed JPY 100 billion ($670 million).

These services range from casual daily companions to trained senior communicators. Regular interaction not only provides reassurance but also helps monitor seniors’ well-being. New AI-driven senior-focused matching platforms are also emerging. One example is Hahalol, a service for users aged 50 and above. Leveraging artificial intelligence (AI), it analyses profiles and matches users with potential partners, whether romantic or platonic. The company has raised JPY 560 million ($3.8 million) in funding, underscoring growing investor interest.

The World Economic Forum’s Longevity Economy Principles: The Foundation for a Financially Resilient Future highlights maintaining health and ensuring social connections as essential in longevity societies or precisely the areas where senior-focused markets are growing.

Japan’s experience as the world’s most aged society illustrates the potential for innovation and the creation of new services within the longevity economy. It also offers valuable insights for countries facing rapid aging, providing guidance for building a sustainable and resilient future.