Market Size of Japan Cybersecurity Industry
| 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.
