Japan aims to triple its cybersecurity market size
Japan's Ministry of Economy, Trade, and Industry (METI) has launched a new plan to boost the country's cybersecurity market. They aim to grow this sector from about 900 billion yen (around 8.8 trillion won) to 3 trillion yen (about 39.3 trillion won) in the next ten years. Currently, foreign companies control 57% of this market, which presents opportunities for Korean firms. Recent data from METI shows that cyberattacks in Japan have surged significantly. In 2023, there were approximately 619.7 billion cyberattack packets, a drastic increase from 2015. High-profile attacks, like the DDoS incident affecting Japan Airlines and a ransomware attack on Kadokawa Group, emphasize the need for stronger cybersecurity. The new strategy emphasizes the development of domestic cybersecurity products and services. It also aims to support startups and technology innovation, enhance skilled workforce training, and strengthen international cooperation in the field. Japan wants to triple its market size to better protect against cyber threats. While some foreign firms are concerned about Japan's preference for local solutions, experts say this may not hinder Korean companies. A representative from KOTRA highlighted that Japan's need for diverse security solutions could benefit Korean firms with advanced technologies. However, the Japanese cybersecurity market has high entry barriers, often requiring established track records for procurement. Foreign companies already present in Japan are solidifying their positions. Despite these challenges, some Korean firms are finding success. PioLink, for example, has been operating in Japan since 2004 and recently launched a product to enhance zero-trust security measures. RaonSecure is also expanding its biometric authentication services, showing growing user numbers. Experts believe that as Japan further embraces digital transformation and enacts new cybersecurity laws, demand for cybersecurity solutions will rise. They advise Korean companies to build strong local partnerships and consider working with Japanese startups or pursuing mergers and acquisitions to enter the market effectively.