Japan Cybersecurity Market Insights Forecasts to 2032

• The Japan Cybersecurity Market Size was valued at USD 7.35 Billion in 2022.
• The Market is Growing at a CAGR of 13.6% from 2022 to 2032.
• The Japan Cybersecurity Market Size is expected to reach USD 26.8 Billion by 2032.

The Japan Cybersecurity Market Size is expected to reach USD 26.8 Billion by 2032, at a CAGR of 13.6% during the forecast period 2022 to 2032.

Market Overview

The cybersecurity landscape in Japan is critical to the country's technological and industrial economy. As a technologically advanced country with extensive cyberspace and a significant worldwide commercial footprint, Japan places a premium on cybersecurity. Japan has been pursuing cybersecurity for a long time, but the significance of a complete plan has emerged in recent years, particularly in the context of the growing global cyber threat. The 2020 Tokyo Olympics added to the necessity of strengthening the nation's cybersecurity infrastructure. Threats such as ransomware assaults, data breaches, and advanced persistent threats (APT) have been on an upward trend as the world has become more digital. To improve the country's cybersecurity capabilities, the government is aggressively collaborating with the private sector. Many Japanese tech companies are playing important roles in the development of advanced cybersecurity solutions. In addition, Japan regularly interacts with international organizations and other states to share data, and efficient procedures, and cooperate on global cybersecurity concerns.

Report Coverage

This research report categorizes the market for Japan Cybersecurity Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan Cybersecurity Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan Cybersecurity Market.

Driving Factors

Japan's cybersecurity market is expanding as a result of increasing government spending, a surge in the amount of data breaches across the country, and worsening international relations with China. Demand for cybersecurity solutions in Japan is being driven by higher levels of digitalization across industries, a boom in online transactions, the growing number of IoT devices, cloud usage, and the necessity to protect critical infrastructure. With the introduction of POS and AI technologies, the country's retail industry is also experiencing significant expansion, which is expected to increase demand for cybersecurity products, strengthening the ongoing development of the Japan cybersecurity market. Additionally, an increasing number of government-sponsored efforts aimed at incorporating the use of cloud computing into their business processes will fuel the expansion of cloud security over the forecast period, propelling the expansion of Japan's cybersecurity market. Furthermore, the advent of technologies such as 5G, AI, and increased IoT applications are going to require enhanced cybersecurity solutions. Moreover, Japan's commitment to technological advancement, as well as its viewpoint toward data privacy and security, are projected to strengthen the country's cybersecurity industry over the projection period.

Market Segment

• In 2022, the software segment is witnessing a higher growth rate over the forecast period. 

Based on the offering, the Japan Cybersecurity Market is segmented into hardware, software, and services. Among these, the software segment is witnessing a higher growth rate over the forecast period. Because of the diversity, flexibility, and scalability of software solutions, as well as the shifting nature of cyber threats, this market has become crucial for enterprises of all levels. This subsection includes a variety of software solutions intended for protecting systems and networks from cyber-attacks. With the rise of cloud computing and mobile devices, there has been an increase in demand for cloud security and endpoint safety measures. In addition, Japan is seeing an increase in interest in solutions that provide AI-driven threat detection and automated reaction mechanisms. The constantly evolving cyber threat landscape drives regular updates and advancements in cybersecurity software, which contribute to its dominance.

• In 2022, the cloud segment accounted for the largest revenue share of more than 42.8% over the forecast period.

On the basis of deployment mode, the Japan Cybersecurity Market is segmented into cloud and on-premises. Among these, the cloud segment is dominating the market with the largest revenue share of 42.8% over the forecast period. This category includes cloud-based cybersecurity solutions, which means that the infrastructure is delivered off-site, often by a third-party supplier. The drive towards the adoption of digital technologies, combined with the positive aspects of cloud solutions' scalability, cost-effectiveness, and flexibility, have rendered it an ideal option for many Japanese enterprises. The growing popularity and transition to cloud computing in numerous sectors in Japan have increased the demand for cloud-based cybersecurity solutions. Furthermore, cloud solutions frequently enable enterprises to cut upfront infrastructure setup and maintenance expenses.

• In 2022, the network security segment is witnessing highest CAGR growth over the forecast period.

On the basis of application, the Japan Cybersecurity Market is segmented into network security, endpoint security, application security, cloud security, infrastructure protection, data security, and others. Among these, the network security segment is witnessing highest CAGR growth over the forecasted period, considering that network attacks are among the most prevalent and can have far-reaching consequences. This includes protocols and techniques to prevent unwanted access, improper use, and exploitation of networks and network-accessible resources. The basis of any cybersecurity plan is network security, as defending the network perimeter and tracking the flow of data is critical in preventing cyber threats from accessing an organization's ecosystem. With the expansion of the Internet of Things (IoT) gadgets and smart infrastructure, it is critical to ensure network security to avoid broad breaches. With complex cyber-attacks on the rise, network security solutions that can identify and mitigate zero-day vulnerabilities strikes are in high demand.

• In 2022, the banking, financial services & insurance (BFSI) segment accounted for the largest revenue share of more than 31.7% over the forecast period.

On the basis of end-users, the Japan Cybersecurity Market is segmented into aerospace and defense, government, banking, financial services & insurance (BFSI), IT & telecommunication, healthcare, retail, manufacturing, and others. Among these, the banking, financial services & insurance (BFSI), segment is dominating the market with the largest revenue share of 31.7% over the forecast period. Because of the personal and financial information that it maintains, the BFSI industry is a priority target, and given the possible ramifications of a breach, organizations in this sector invest extensively in cybersecurity measures. The financial sector in Japan is overseen by strict rules, necessitating comprehensive cybersecurity safeguards. In general, advanced analytics and AI-driven systems are used to detect and prevent fraudulent transactions in real-time.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan Cybersecurity Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. 

List of Key Companies: Cyber Security Cloud Inc., Internet Initiative Japan Inc., SCSK Corporation, Sumo Logic Inc., Digital Arts Inc., Secureworks Inc., Cisco Systems Inc., NEC Corporation, Underwriters Laboratories, LLC, Flatt Security, Keychain, Bankguard, GMO GlobalSign Inc., IBM Corporation, Dell Technologies Inc. Fortinet Inc., F5 Networks Inc. and Among Others. 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• On August 2023, Japan's KDDI Corporation, KDDI Research, Inc., Fujitsu Limited, NEC Corporation, and Mitsubishi Research Institute, Inc. (MRI) announced a series of trials aimed at strengthening cybersecurity by introducing Software Bill of Materials (SBOM) (1), a list of programs that comprise software, into the communications field, including 5G and LTE network equipment. The five companies intend to create a framework to govern this project and launch a survey to solve various technical and operational challenges related to the use of SBOM.

• On April 2023, OPSWAT, the global leader in Critical Infrastructure Protection (CIP) cybersecurity solutions, announces continuous commercial expansion and operational success in Japan due to rising demand for zero-trust cybersecurity solutions that secure critical infrastructure. OPSWAT attributes this increase to its strategic relationship with Net One Partners K.K. in advancing the company's IT and OT cybersecurity market penetration across Japan.

• On July 2022, Kawasaki Kisen Kaisha, Ltd. (K Line) has announced the launch of an AI-powered cyber security platform. To increase cyber security ship-shore communication in the ships managed by the organization, the corporation installed Cybereason, a product of Cybereason Japan Corp., and adopted the company's monitoring and analysis service, Cybereason MDR (Managed Detection & Response).

Market Segment

This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the Japan Cybersecurity Market based on the below-mentioned segments:

Japan Cybersecurity Market, By Offering

• Hardware
• Software
• Services  

Japan Cybersecurity Market, By Deployment Mode

• Cloud
• On-Premises

Japan Cybersecurity Market, By Application

• Network Security
• Endpoint Security
• Application Security
• Cloud Security
• Infrastructure Protection
• Data Security
• Others

Japan Cybersecurity Market, By End-Users

• Aerospace and Defense
• Government
• Banking, Financial Services & Insurance (BFSI)
• IT & Telecommunication
• Healthcare
• Retail
• Manufacturing
• Others