Increasing Cases of Cyberattacks Driving Japan Cybersecurity Market at a CAGR of 11.98% During 2025-30

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The Japan Cybersecurity Market size was valued at around USD2.09 billion in 2024 and is estimated to reach USD4.17 billion by 2030. Along with this, the market is projected to grow at a CAGR of around 11.98% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. The market expansion is pushed with the aid of a few foremost elements which include the excessive incidence of cyberattacks & data breaches and cyber threat events in fields like financial companies, economic corporations, Information Technology & Telecom, etc., the rapid shift towards digitalization, growing help by way of the authorities through numerous policies, projects, and funding, the combination of latest technology consisting of AI, IoT, Machine Learning, etc. Additionally, an extensive amount of funding from the Japanese authorities is rapidly increasing in the nation under various policies to increase the cybersecurity systems and services in Japan, which is creating a high potential growth of the cybersecurity industry.

Moreover, the BSFI industry is experiencing a high number of attacks as compared to other end-users, including healthcare, IT Telecom, etc., which is contributing to the high demand for strict cybersecurity facilities to reduce increased cyberattacks in the country. Furthermore, the incorporation of AI and machine learning into these systems is gaining traction in the Japanese Cybersecurity Market. However, small and medium-sized enterprises are not fully aware of the latest cybersecurity services, and facing a scarcity of cybersecurity professionals in the country, which is hindering the market’s growth, further states the research report, “Japan Cybersecurity Market Analysis, 2025.”

Japan Cybersecurity Market Segmentation Analysis

Cloud-Based Segment Holds the Largest Market Share

Based on the deployment mode, the market is further bifurcated into on-premises, cloud-based, and Hybrid. The cloud-based segment is leading Japan’s Cybersecurity Market and holds more than 40% of the market share. The benefits of cloud computing, including more flexibility, scalability, and less latency, are the prime reasons for the segment’s growth. Most of the services have been shifted to cloud computing platforms such as AWS, Google Cloud, etc., creating a huge requirement for advancement in cybersecurity systems. Thus, cybersecurity is mainly deployed using cloud-based services in Japan.

Moreover, a large number of Japan-based companies like NEC Corporation, Fujitsu, etc., are actively using cloud-based cybersecurity systems in Japan to protect sensitive personal information from being leaked. As a result, the cloud-based cybersecurity systems are leading Japan’s Cybersecurity Industry.

BFSI Sector is the Primary End-User of the Japanese Cybersecurity Industry

BFSI is creating massive demand for Japan’s Cybersecurity Market and holds over 35% of the market share. The reason for its dominance is the high frequency of cyberattacks in the fintech department, including financial and banking services, as compared to other cybersecurity end-users. These facilities are rapidly shifting towards digitalization, thus creating a high demand for their data to be protected from hackers.

In Japan, there are a substantial number of banking and financial firms that have reported a significant number of data breaches and cyberattacks to the regulatory authorities. Additionally, there are a million unauthorized thefts of money from Japanese banks. It led to the more rigorous cybersecurity adoption by these firms, which has uplifted overall market growth in the country.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Trend Micro Incorporated, NEC Corporation, Fujitsu Limited, NTT Security (NTT Ltd.), Hitachi Systems, Ltd., Cybertrust Japan Co., Ltd., LAC Co., Ltd., Kaspersky (Japan), IBM Japan, Cisco Systems G.K., and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & service adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?