Japan - Country Commercial Guide
Cybersecurity

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2022-01-07

Overview

Cybersecurity in Japan has been given increased attention in response to a rise in the frequency and sophistication of cyber-attacks. Such attacks create major concern for the safety of infrastructure sectors such as railways and the data- dependent Internet of Things (IoT) networks and systems.  The Japanese government is increasingly aware of the scope of the potential threats it faces and the lag in its capabilities vis-a-vis the United States and other nations so has taken steps to address this disparity.

In recent years, CS Japan has observed the rapid rise of American cybersecurity companies doing business in Japan, which indicates the United States has an advantageous position against foreign and domestic competitors. A 2018 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 have provided an opportunity for American firms that can offer turn-key cybersecurity solutions for small-and-medium-sized enterprises in Japan.

Recent market research indicates a very strong and rapid increase of sales in the Japanese cyber security market and a small decrease in on-premises software and security appliances due to the increase of public cloud services. International Data Corporation (IDC) Japan announced in 2020 that the domestic security software market in 2019 was $2.5 billion and will increase by 16% to an estimated $2.9 billion by 2024, while security appliance market is $509 million in 2019 and expected to decrease to $493 million in 2024. The non-profit organization, Japan Network Security Association, assessed in June 2020 that the size of the Japanese information security market was $10.5 billion in 2019 and $10.4 billion in 2020.

Japan’s National Center for Incident Readiness and Strategy for Cybersecurity (NISC) is the leading agency in the Central Government in forming the national cybersecurity strategy. NISC guides all central government agencies in establishing and implementing cyber security policies and measures. NISC announced its Cybersecurity Strategy in September 2021.

The strategy identifies an urgent need for reinforcing cybersecurity measures in all levels of Japanese society and in all aspects of technological development.

Leading Sub-Sectors

Due to the underdeveloped framework of digital security in Japan, many Critical Infrastructure industry sectors have been identified and include:

  • Financial Services
  • Information and Communication Services
  • Aviation Services
  • Railway Services
  • Electric Power Supply Services
  • Gas Supply Services
  • Government and Administrative Services (including municipal government)
  • Medical Services
  • Water Services
  • Logistics Services
  • Chemical Industries
  • Credit Card Services
  • Petroleum Industries

Opportunities

Security Days (https://f2ff.jp/session/secd-2021-02-tokyo will be updated in January 2022, Japanese only)

Date:  March 9-11, 2022

Venue: JP Tower Hall & Conference (Kitte), Tokyo

Organizer: NANO OPT Media

Description: Security Days is a cybersecurity exhibition and conference to showcase the latest technologies and trends about the cyber attacks.

 

Interop Tokyo

Date: June 15 – 17, 2022

Venue: Makuhari Messe

Organizer: Interop Tokyo Steering Committee

Description: A leading global technology fair that offers exhibitors the opportunity to present audience in-depth and comprehensive information about the latest developments and trends in various areas.

 

Cybersecurity World at RISCON Safety and Security (www.kikikanri.biz/english/ )

Date: October 5-7, 2022

Venue: Tokyo Big Sight

Description: One of the largest risk management shows in Japan.

 

Resources

The American Chamber of Commerce in Japan and its ACCJ Digital Economy Committee actively advocates on important policy issues.

 

CS Japan Contact

Ms. Yasue Morimoto, Commercial Assistant Yasue.Morimoto@trade.gov