Japan Cybersecurity Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.03 Billion |
| Market Size (2029) | USD 3.55 Billion |
| CAGR (2024 - 2029) | 11.89 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Cybersecurity Market Analysis
The Japan Cybersecurity Market size is estimated at USD 2.03 billion in 2024, and is expected to reach USD 3.55 billion by 2029, growing at a CAGR of 11.89% during the forecast period (2024-2029).
With the outbreak of Covid-19 companies in Japan had to tackle an unprecedented spike in ransomware attacks, which suspended business operations and disabled computer and email systems just as Japanese companies shifted to teleworking as a countermeasure against COVID-19 since the start of 2020. Businesses, especially those who own or are related to critical infrastructure, are realizing that the threats posed by cybersecurity and are investing and working with the government to safeguard their models.
- Cybersecurity is rapidly gaining interest from the Japanese government and enterprises. The increase in cyberattacks on Japanese organizations is prompting the government to establish new legislation, strategies, and facilities.
- According to the National Institute of Information and Communication Technology, there has been a significant increase in the number of cyberattacks on IoT devices. The widespread use of smartphones and the increasing connection of various electrical devices to the Internet have made life more convenient and exposes people to the daily risk of computer viruses and information theft.
- Japan is seeking bilateral cooperation with countries to operationalize its cybersecurity priorities, such as the agreement with the US Department of Homeland Security, to improve and collaborate on curbing cyber threats faced by the governments.
- Further, in July 2021, the Japanese government compiled a new cybersecurity strategy for the next three years stating for the suspected involvement of the Chinese and Russian governments in cyberattacks and calling for enhanced deterrence. Japan's Government stated that China is believed to be conducting cyberattacks to steal information from firms linked to the military and others with advanced technologies, while Russia is suspected of carrying them out for military and political purposes.
- Additionally, a report by Japan's Ministry of Economy, Trade and Industry (METI) identified a shortage of IT professionals at 220,000, which is expected to increase to 360,000 in 2025. This shortage of capable engineers, cyber experts, and security managers has led to an increase in demand of security managers to provide turn-key cybersecurity solutions for small-and-medium-sized enterprises in Japan.
Japan Cybersecurity Market Trends
This section covers the major market trends shaping the Japan Cybersecurity Market according to our research experts:
Data Security Expected to Witness Significant Market Share
- The financial sector has been recognized as a prime adopter of regulatory frameworks to implement adequate information and data security standards. These ensure a reliable provision of products and services, safe processing of data by its systems, and responsible use of personal data.
- Data Security helps reduce risks associated with protecting sensitive data from threats and help organizations maintain compliance. The data security platform provides data risk analytics, data monitoring and protection solutions, and protects the organization's data from database vulnerability, etc.
- An increase in government mandates and norms regarding data security, by using cybersecurity solutions and installing software, such as antivirus and antispyware programs, is anticipated to generate lucrative opportunities for cyber solutions in the coming years.
- Further, compliance is expected to be the key driver of Data Loss Prevention solutions. However, an enterprise's digital transformation strategies, most notably, cloud adoption, Big Data analytics, and IoT enablement, are also driving enterprise security teams in the region to adopt these products in order to identify and classify crucial data throughout the organization, andreallocate data security controls primarily based on the criticality of the information.
BFSI Expected to Witness Significant Market Share
- The BFSI industry is one of the critical infrastructure segments that face multiple data breaches and cyber-attacks, owing to the massive customer base that the sector serves and the financial information that is at stake.
- Being a highly lucrative operation model that has phenomenal returns along with the added upside of relatively low risk and detectability, cybercriminals are optimizing a plethora of diabolical cyberattacks to immobilize the financial sector. These attacks' threat landscape ranges from Trojans, malware, ATM malware, ransomware, mobile banking malware, data-breaches, institutional invasion, data thefts, fiscal breaches, etc.
- With a strategy to secure their IT processes and systems, secure customer critical data, and comply with government regulations, both public and private banking institutes are focusing on implementing the latest technology to prevent cyber attacks. Besides, with greater customer expectations, rising technological capabilities, and regulatory requirements, banking institutions are pushed to adopt a proactive security approach.
- With the growing technological penetration, coupled with the digital channels, such as internet banking, mobile banking, etc., online banking has become the preferred choice of customers for banking services. There is a significant need for banks to leverage advanced authentication and access control processes.
Japan Cybersecurity Industry Overview
The Japan Cybersecurity Market is moderately competitive, with a considerable number of regional and global players. Key players include IBM Corporation, Cisco Systems Inc., Dell Technologies Inc., Intel Security (Intel Corporation) among others
- July 2022 - Kawasaki Kisen Kaisha, Ltd. (K Line) announced an AI-based cyber security platform. The company installed Cybereason, a product of Cybereason Japan Corp., and adopted the company's monitoring and analysis service, Cybereason MDR (Managed Detection & Response), to improve the cyber security ship-shore communication in the ships that the organization manages.
- May 2022 - By identifying cloud services as a priority for economic security, Japan aims to decrease its dependency on big cloud service providers. The country expects that the program will support the development of domestic suppliers in a market dominated by international firms.
Japan Cybersecurity Market Leaders
IBM Corporation
Cisco Systems Inc
Dell Technologies Inc.
Fortinet Inc.
F5 Networks, Inc.
*Disclaimer: Major Players sorted in no particular order
Japan Cybersecurity Market News
- January 2022 - The Ministry of Internal Affairs and Communications of Japan announced to modify its instructions to telecoms businesses on data protection measures. The updated recommendations include changes to those for pseudonymized data, breach reporting, and data transfers.
Japan Cybersecurity Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Value Chain Analysis
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Covid-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Digitalization and Scalable IT Infrastructure
5.1.2 Need to tackle risks from various trends such as third-party vendor risks, the evolution of MSSPs, and adoption of cloud-first strategy
5.2 Market Restraints
5.2.1 Lack of Cybersecurity Professionals
5.2.2 High Reliance on Traditional Authentication Methods and Low Preparedness
5.3 Trends Analysis
5.3.1 Organizations in Thailand increasingly leveraging AI to enhance their cyber security strategy
5.3.2 Exponential Growth to be Witnessed in Cloud Security owing to Shift toward Cloud-based Delivery Model.
6. MARKET SEGMENTATION
6.1 By Offering
6.1.1 Security Type
6.1.1.1 Cloud Security
6.1.1.2 Data Security
6.1.1.3 Identity Access Management
6.1.1.4 Network Security
6.1.1.5 Consumer Security
6.1.1.6 Infrastructure Protection
6.1.1.7 Other Types
6.1.2 Services
6.2 By Deployment
6.2.1 Cloud
6.2.2 On-premise
6.3 By End User
6.3.1 BFSI
6.3.2 Healthcare
6.3.3 Manufacturing
6.3.4 Government & Defense
6.3.5 IT and Telecommunication
6.3.6 Other End Users
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 Cisco Systems Inc
7.1.3 Dell Technologies Inc.
7.1.4 Fortinet Inc.
7.1.5 Intel Security (Intel Corporation)
7.1.6 F5 Networks, Inc.
7.1.7 AVG Technologies
7.1.8 FireEye Inc.
7.1.9 Fujitsu
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Japan Cybersecurity Industry Segmentation
The study analyzes the current market scenario and growth trends related to cyber security technology in the Japan, which has emerged as one of the major hotspots for investments, aided by strong M&A activity, partnerships and supportive governmental policies. The study tracks the country-level market dynamics and major implementation use cases for cybersecurity.
Major trends, such as AI in cybersecurity, changing regulatory framework across countries, and convergence of IT and OT across end-user industries, are also captured in the study.
The competitive landscape has been taken to calculate the cybersecurity penetration and how players involve themselves in organic and inorganic growth strategies. Furthermore, the market study has also focused on the impact of the COVID-19 pandemic on the market ecosystem.
| By Offering | |||||||||
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| Services |
| By Deployment | |
| Cloud | |
| On-premise |
| By End User | |
| BFSI | |
| Healthcare | |
| Manufacturing | |
| Government & Defense | |
| IT and Telecommunication | |
| Other End Users |
Japan Cybersecurity Market Research FAQs
How big is the Japan Cybersecurity Market?
The Japan Cybersecurity Market size is expected to reach USD 2.03 billion in 2024 and grow at a CAGR of 11.89% to reach USD 3.55 billion by 2029.
What is the current Japan Cybersecurity Market size?
In 2024, the Japan Cybersecurity Market size is expected to reach USD 2.03 billion.
Who are the key players in Japan Cybersecurity Market?
IBM Corporation, Cisco Systems Inc, Dell Technologies Inc., Fortinet Inc. and F5 Networks, Inc. are the major companies operating in the Japan Cybersecurity Market.
What years does this Japan Cybersecurity Market cover, and what was the market size in 2023?
In 2023, the Japan Cybersecurity Market size was estimated at USD 1.81 billion. The report covers the Japan Cybersecurity Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Cybersecurity Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Cybersecurity Industry Report
Statistics for the 2024 Japan Cybersecurity market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Cybersecurity analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
