Japan’s ageing society is transforming its economy, driving demand across healthcare, eldercare, and lifestyle sectors. With 36.25 million residents aged 65 and older—29.3% of the population as of 2024—the country is pioneering what is known as the ‘longevity economy.’ This demographic shift is not only posing challenges but also creating new markets and innovation opportunities. n nThe longevity economy is projected to grow from JPY 96 trillion ($652.5 billion) in 2023 to JPY 115 trillion ($780 billion) by 2040. In 2023, healthcare accounted for JPY 29 trillion ($195 billion), nursing care for JPY 11.7 trillion ($79 billion), and lifestyle-related industries for JPY 55.7 trillion ($378 billion), illustrating the breadth of economic activity centered on older adults. n nRecent trends indicate that Japan’s elderly population is healthier and more economically active than in the past. Over the last 15 years, seniors have effectively become ‘five years younger’ in terms of health and employment. By 2040, the number of older individuals with higher disposable incomes—especially those without spouses or children—is expected to rise, further expanding demand beyond medical needs into leisure, companionship, and daily living support. n nTechnology is playing a central role in addressing care gaps. In 2024, Japan’s Ministry of Health, Labour and Welfare updated its guidelines to promote broader use of assistive technologies in long-term care, adding focus areas such as nutritional support, dementia care, and mobility assistance. The 2025 budget allocated nearly JPY 30 billion ($203.5 million) in subsidies to accelerate adoption. n nOne example is the humanoid robot AIREC, developed by Waseda University and showcased at Expo 2025 Osaka. Equipped with artificial intelligence, it can perform tasks like helping users put on socks. The government aims to commercialize household and low-risk caregiving robots by 2030, with broader applications in hospitality, medicine, and personal assistance by 2040. By mid-century, such devices may evolve into interactive companions capable of verbal and tactile communication. n nAnother emerging sector is ‘conversation partner services,’ designed to combat loneliness among seniors. In 2024, single-person households among those aged 65 and above exceeded 9 million, with 61.7% aged 75 or older. Social isolation increases risks of undetected illness and cognitive decline. In response, services offering companionship—ranging from casual chats to professionally trained communicators—are gaining traction. The market is expected to surpass JPY 100 billion ($670 million). n nAI-powered platforms like Hahalol, targeting users over 50, use algorithms to match individuals for platonic or romantic relationships. The company has secured JPY 560 million ($3.8 million) in funding, reflecting investor confidence in this niche. n nThe World Economic Forum’s Longevity Economy Principles emphasize health maintenance and social connection as pillars of sustainable ageing societies—areas where Japan is already seeing commercial growth. The nation’s experience offers a model for other countries facing similar demographic shifts, demonstrating how innovation can turn demographic challenges into economic resilience. n— news from The World Economic Forum
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How Japan’s longevity economy is creating new opportunities
Sep 15, 2025 n nJapanese seniors in a park Image: sq lim/Unsplash n nNaoko Tochibayashi n nCommunications Lead, Japan , World Economic Forum n nThis article is part of: Sustainable Development Impact Meetings n nJapan’s rapidly ageing population is fueling demand in healthcare, nursing care and lifestyle industries. n nWith 36.25 million people over 65, technology, including care robots and AI platforms, is expanding senior support and services. n nThe longevity economy drives innovation, investment and resilience, offering lessons for other aging societies. n nAs 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. n nDiscover n nWhat is the World Economic Forum doing to improve healthcare systems? n nThe Global Health and Strategic Outlook 2023 highlighted that there will be an estimated shortage of 10 million healthcare workers worldwide by 2030. n nThe World Economic Forum’s Centre for Health and Healthcare works with governments and businesses to build more resilient, efficient and equitable healthcare systems that embrace new technologies. n nLearn more about our impact: n nGlobal vaccine delivery: Our contribution to COVAX resulted in the delivery of over 1 billion COVID-19 vaccines and our efforts in launching Gavi, the Vaccine Alliance, has helped save more than 13 million lives over the past 20 years. n nDavos Alzheimer’s Collaborative: Through this collaborative initiative, we are working to accelerate progress in the discovery, testing and delivery of interventions for Alzheimer’s – building a cohort of 1 million people living with the disease who provide real-world data to researchers worldwide. n nMental health policy: In partnership with Deloitte, we developed a comprehensive toolkit to assist lawmakers in crafting effective policies related to technology for mental health. n nGlobal Coalition for Value in Healthcare: We are fostering a sustainable and equitable healthcare industry by launching innovative healthcare hubs to address ineffective spending on global health. In the Netherlands, for example, it has provided care for more than 3,000 patients with type 1 diabetes and enrolled 69 healthcare providers who supported 50,000 mothers in Sub-Saharan Africa. n nUHC2030 Private Sector Constituency: This collaboration with 30 diverse stakeholders plays a crucial role in advocating for universal health coverage and emphasizing the private sector’s potential to contribute to achieving this ambitious goal. n nWant to know more about our centre’s impact or get involved? Contact us. n nAt 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. n nThe 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. n nAnalyses 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. n nDiscover n nWhat is the World Economic Forum doing to combat Alzheimer’s? n nAlzheimer’s Diesease, a result of rapid ageing that causes dementia, is a growing concern. Dementia, the seventh leading cause of death worldwide, cost the world $1.25 trillion in 2018, and affected about 50 million people in 2019. Without major breakthroughs, the number of people affected will triple by 2050, to 152 million. n nTo catalyse the fight against Alzheimer’s, the World Economic Forum is partnering with the Global CEO Initiative (CEOi) to form a coalition of public and private stakeholders – including pharmaceutical manufacturers, biotech companies, governments, international organizations, foundations and research agencies. n nLoading… n nThe initiative aims to advance pre-clinical research to advance the understanding of the disease, attract more capital by lowering the risks to investment in biomarkers, develop standing clinical trial platforms, and advance healthcare system readiness in the fields of detection, diagnosis, infrastructure and access. n nThe role of technology n nIn 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. n nOne 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. n nA growing market for conversation partner services n nBeyond 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). n nThese 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. n nAgeing unlocks new market opportunities n nThe 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. n nJapan’s experience as the world’s most aged society illustrates the potential for innovation and the creation of new services within the longevity economy. 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