Japan Cyber Security Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Japan Cyber Security Market Growth

In 2022, malware accounted for 26% of all cyberattacks in Japan. It was closely followed by phishing (12%), password attacks (10%), cross-site scripting (10%), DDoS (8%), and man-in-the-middle (8%). The wide-ranging impacts of cyberattacks were evident in numerous businesses, as they suffered substantial data losses. Moreover, reputational losses (30%), IP theft (28%), business disruption (28%), monetary losses (24%), fines (18%), and ransom payments (8%) also impacted their financial performance. Between Q1 and Q2 2022, incidences of ransomware attacks rose by over 87% year-on-year. They hit nearly 52% of all small and medium-sized enterprises and targeted 4% of all Japanese hospitals.

In March 2022, 80% of all Japanese companies were targeted by cyberattacks. Nearly 54% of all attacks in 2021-22 were targeted towards small and medium-sized enterprises. Ransomware is a major cause of concern for nearly 36.1% of all Japanese companies. Between September 2021 and 2022, over 33% of all companies witnessed cyberattacks through emails. In 2021, 146 cases of ransomware attacks were reported to the Japanese police, one-third of which were reported by the manufacturing industry and five by hospitals. The rising incidence of cyberattacks on critical public infrastructure and private businesses is expected to raise the demand for effective cybersecurity solutions that can tackle emerging challenges and the evolving nature of complexities in the domain.

Key Trends and Developments

Rising incidences of cyberattacks; increase in remote work; favourable government initiatives; and the expanding IoT are favouring the Japan cyber security market expansion

March 2024

Google announced the opening of a new cyberdefence hub in Tokyo, Japan, amid the increasing digital security threats from China. Through this, the company aims to connect researchers, specialists, and partners from countries like South Korea, India, and Australia to jointly measures to combat cyberattacks.

December 2023

PILLSANG Co.,Ltd. launched a new security solution, AllCatcher, to prevent phishing in Japan by using artificial intelligence to block malicious URLs in real time.

December 2023

RSA announced strategic investments to support Japanese private and public organisations to adapt to emerging cybersecurity threats and accelerate the growth of identity-as-a-service in the country.

August 2023

KDDI Research, Inc., Fujitsu Limited, KDDI Corporation, NEC Corporation, and Mitsubishi Research Institute, Inc. announced the launch of trials exploring the introduction of a Software Bill of Materials and strengthening cybersecurity amid rising cyber threats in the telecommunication sector in Japan.

Rising Numbers of Cyberattacks

The number of cyberattacks in the country is significantly rising due to its weak cyber-defence practices and the old practice of outsourcing the management and development of security systems to outside vendors. This is driving the adoption of cybersecurity solutions among businesses in Japan.

Increase in Remote Work

The shift to remote work is surging incidences of malware, phishing, breaches, identity thefts, and ransomware attacks, boosting the demand for robust cybersecurity solutions.

Favourable Government Initiatives

Amid the rising incidences of cyberattacks, the Japanese government is establishing active cyber defence strategies to better monitor suspicious activities, improve information sharing with the private sector, and partner with domestic communication companies for better monitoring of suspicious activities.

Evolution of the Internet of things (IoT)

The evolution of the Internet of things (IoT) and the growing number of IoT devices are necessitating the implementation of robust cybersecurity measures to reduce the risk of network attacks and data breaches.

Japan Cyber Security Market Trends

There is rising adoption of smart devices and IoT gadgets in different end-use sectors, ranging from transportation to healthcare, among others. Organisations are also leveraging the Internet of things (IoT) technology to facilitate predictive maintenance and remote monitoring as well as reduce their operational complexity.

The expansion of IoT ecosystems opens up the risk of security threats such as malicious software, DDoS attacks, and insecure communication pathways, leading to compromised data and widespread disruption. This is prompting organisations to strengthen IoT cybersecurity through strategies such as regular updates, strong encryption and authorisation, and network segmentation and monitoring, among others.

Japan Cyber Security Industry Segmentation

Japan Cyber Security Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Offering

• Solutions
  • Identity and Access Management
  • Antivirus/Antimalware
  • Encryption and Tokenisation
  • Compliance and Policy Management
  • Firewall
  • Others
• Services

Market Breakup by Deployment Mode

• On-Premises
• Cloud

Market Breakup by Organisation Size

• Large Enterprises
• Small and Medium Enterprise (SMEs)

Market Breakup by Security

• Network Security
• Cloud Security
• End Point and IOT Security
• Application Security

Market Breakup by Industry Vertical

• BFSI
• Government
• Healthcare and Life Sciences
• Aerospace and Defence
• Manufacturing
• Others

Japan Cyber Security Market Share

Based on industry vertical, the market is segmented into BFSI, government, healthcare and life sciences, aerospace and defence, and manufacturing, among others. The BFSI sector dominated the market, representing 26% of the overall market share in 2023. Over the forecast period of 2024-2032, it is estimated to grow at a CAGR of 8.6% to ensure enhanced customer safety and confidence in public banking institutions.

Leading Companies in the Japan Cyber Security Market

Cyber resilience is expected to emerge as a key priority for major companies as they seek to maintain continuity of operations even in case of data breaches. By developing capabilities for data recovery and minimising data loss, companies are expected to boost their competitiveness and contribute to the market growth.

• IBM Corporation
• Microsoft Corp.
• Cisco Systems Inc.
• Amazon Web Services, Inc.
• CMC Corporation
• Fujitsu Ltd.
• Intel Corp.
• Dell Inc.
• Fortinet Inc
• F5 Inc.
• Others

The comprehensive report looks into the macro and micro aspects of the market. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.