Japan Cybersecurity Market Research Report: Forecast (2025-2030)

Market Definition

Cybersecurity is the process of protecting devices, networks, and online stored data from unauthorized digital attacks and a safeguard to many organizations, like cloud service providers, offices, healthcare, finance, etc.

Market Insights & Analysis: Japan Cybersecurity Market (2025-30):

The Japan Cybersecurity Market size was valued at around USD 2.09 billion in 2024 & is estimated to reach USD 4.17 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. The market growth is stimulated by several factors, including the rising cases of cyberattacks and data breaches in different sectors such as healthcare, fintech, telecom, etc., increasing acceptance of digitalization, government support, incentives and investments, the integration of Artificial Intelligence, and Internet of Things etc. One of the leading factors is the rapidly increasing cloud-based platforms backed by government support due to large data collection and storage for the same.

Additionally, the Japanese government is actively supporting cybersecurity in the country by substantially investing and drafting policies such as the Active Cyber Defense Law (ACD), the Act on the Protection of Personal Information, the Strategy for Vitalization of the Cybersecurity Industry, etc. Also, the government is robustly investing to improve the digital industry, including cloud computing infrastructure. For instance, the country’s government has allocated more than USD3 billion to upgrade the data center's infrastructure, which is further providing robust opportunities for the cybersecurity market to rapidly grow in Japan.

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Moreover, the banking and financial services in the country are at the highest risk for cyberattacks, which is leading to the highest demand for strong cybersecurity systems to protect private and sensitive information stored. Furthermore, the integration of the latest technologies, such as AI and machine learning, into these systems is gaining popularity in the Japanese Cybersecurity Market. For instance, several companies such as Microsoft, Google, etc. are significantly investing in the AI infrastructure development in the country, which is actively being used by the cybersecurity systems, thus contributing to the market growth. However, the unawareness of these systems and the lack of cybersecurity professionals in the country are hindering the market’s growth.

Japan Cybersecurity Market Driver:

Increasing Cases of Cyberattacks – The growth is driven by the rising cases of data breaches and cyberattacks due to the rise in digitalization in the country. Japan is one of the leading countries in digital technology adoption globally. Recently, Japan has witnessed many ransomware attacks, which have increased the demand for cybersecurity services in the japan. For instance, in 2024, the company Kodokawa and its subsidiary company Niconico faced a ransomware attack in which about 2,50,000 users’ personal information was leaked. Additionally, Iseto Corp. has experienced a data breach of over 9,00,000 individuals’ data in the same year.

Also, Japan Airlines faced a cyberattack in 2024, which resulted in almost 20 flight delays in Japan. Apart from that, entertainment hubs, game data centers, and digital healthcare records are also not safe, thus creating a huge demand for strong cybersecurity systems to be installed in every digital sector of the country.

Japan Cybersecurity Market Opportunity:

Legal & Financial Assistance to Increase Cybersecurity – The Japanese government is actively launching various schemes and policies to reduce the pervasive threats of cyberattacks in Japan. For instance, the national government has enacted an Active Cyber Defense Law (ACD) that aims to reduce the prevalence of data breaches and cyberattacks in the country and mandate victimized operators to report cyberattack cases, thus providing a vast opportunity for market growth.

Additionally, the National Center of Incident Readiness and Strategy for Cybersecurity (NISC) of Japan is increasing international collaboration with other countries to encounter global cyber risks under the National Cybersecurity Strategy (2025). Also, the Japanese government has increased the cybersecurity budget by about 50% for the next three consecutive years to protect the sensitive information of the country’s economy. For instance, the government has allocated over USD10 billion just for the enhancement of cybersecurity in the country. These policies are increasing the potential growth of Japan’s Cybersecurity Industry.

Japan Cybersecurity Market Challenge:

Less Awareness Among SMEs & Lack of Skilled Professionals – Many surveys have been done under the Ministry of Economy, Trade and Industry (METI) regarding the awareness of cybersecurity in small and medium enterprises, and more than 50% of them were unaware of that, and had misconceptions, including that attackers only target large companies. Such SMEs do not opt for the latest cybersecurity options available in the country, thus restraining the market’s growth.

Additionally, the country is lacking cybersecurity experts to manage the protection of data and information from being stolen. As per the Japanese news and companies like Cyber Future Today (2025), the country has a shortage of almost 1,00,000 cybersecurity professionals to increase the cybersecurity practices in Japan, thus hindering the growth of the Japan Cybersecurity Market. 

Japan Cybersecurity Market Trend:

Integration of AI & IT Technologies in Cybersecurity Systems – The latest systems for cybersecurity are equipped with Artificial Intelligence and Information Technology to increase their efficiency and further shape the cybersecurity industry in Japan. Several Japanese companies, such as Fujitsu, Trend Micro, IBM, Cybertrust, etc., are providing these advanced systems to reduce cyber threat events in Japan. Fujitsu (2025) has launched a new Generative AI platform to protect critical data by providing continuous monitoring and rapid response to cyberattacks.

Additionally, IBM’s Watson AI is offering advanced cybersecurity in Japan. Moreover, Trend Micro has incorporated AI in one of its platforms called One Vision to increase automated threat detection and rapid response to those threats. Furthermore, Cisco’s AI-driven Extended Detection and Response has widespread acceptance in Japan. These integrations are proactively transforming Japan’s Cybersecurity Industry.

Japan Cybersecurity Market (2025-30): Segmentation Analysis

The Japan Cybersecurity Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Deployment Mode:

• On-Premises
• Cloud-Based
• Hybrid

Out of these, the Cloud-Based segment is dominating Japan’s Cybersecurity Market and accounts for more than 40% of the market share. This segment is leading because cloud-based services provide more flexibility and scalability and reduce latency in the flow of information. The robust shift of data storage onto cloud platforms like AWS, Google Cloud, etc. is creating a huge demand for advancement in cybersecurity. Thus, cybersecurity is mainly deployed using cloud-based services in Japan.

Moreover, several companies like Micro Trend, Fujitsu, NEC Corporation, etc. are actively using cloud-based cybersecurity systems in Japan. For instance, Cloud-based Web Application Firewalls (WAF) such as Cyber Security Cloud’s Shadankun, Kloudle, etc., are widely used in Japan, providing AI-powered protection for websites and applications, thus augmenting the revenue growth of this segment.

Based on End-User:

• BFSI
• Government & Defense
• IT & Telecom
• Manufacturing
• Healthcare
• Retail & E-Commerce
• Energy & Utilities
• Others

The BFSI sector holds the largest market share of more than 35%. The dominance is due to the largest threat of cyberattacks in BFSI as compared to the other sectors, due to the rising inclination of financial and banking services towards digitalization. These attacks have increased the demand for robust cybersecurity installations in this sector to protect sensitive financial data.

Many banks, such as Japan Post Bank, SMBC, Seen Bank, etc., have faced data breaches and cyberattacks in the past five years (2020-2025). In 2020, Japan experienced over 350 unauthorized money transfer cases due to credential thefts in the country. Moreover, the Japanese Credit Bureau has recently experienced a malware attack in 2023, which has led to a tight cybersecurity adoption in this firm, thus contributing to the segment’s revenue growth.

Japan Cybersecurity Industry Recent Development:

• 2025: Fujitsu Limited introduced a secure generative AI platform tailored for enterprise data management. This platform aims to help companies streamline workflows, enhance security, and ensure compliance, reinforcing Japan’s position in AI-driven enterprise solutions.
• 2024: Trend Micro Incorporated partnered with GMI Cloud, a Japanese AI-native GPU cloud provider, to enhance security for AI and machine learning workloads. This collaboration focuses on securing high-performance computing environments and ensuring data protection in AI applications, addressing the growing need for robust cybersecurity in AI-driven infrastructures.

Gain a Competitive Edge with Our Japan Cybersecurity Market Report

1. Japan Cybersecurity Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Japan Cybersecurity Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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