In short, yes.
Okinowan Martial Arts were eventually popularized by Gichin Funakoshi, who developed the Shotokan karate style. He took his style of martial arts on tour throughout the country of Japan, demonstrating them at colleges and other community hubs. Eventually many school adopted karate as a part of their physical fitness programs and many colleges have Karate clubs. It wasn't until after the second World War that karate spread out of Japan into western countries. By then it was "all the rage" throughout Japan.
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According to World Bank the population of Japan in 2011 was 127,817,277.
One site estimates the world population of karate practitioners (those that have taken more than one class) is at 23 million, others say 50 or even as high as 200 million martial artists, which means more that just karate.
There are 6 billion people in the world. Using the largest figure, that works out to one person in every 200. The lower number would be one in every 2,000. With the growing popularity of martial arts outside of Asia, and the general movement away from physical activity, the percentage is dropping.
Karate is everywhere in japan, however it is not seen as karate, its a martial art, its a way of life.
Some would consider it so. however true Karate is not a sport and never will be, its an art and a way of life.
The primary style of Karate in Japan is Shotokan, but there are a number of others that are found there. Okinawa is now a part of Japan and is the origin of all styles of karate.
You mean used for? Civilian self-defence, and later physical exercise as part of the Okinawan school system.
Karate originated in Japan, therefore, it is reasonable to think that Japanese people would practice Karate.