This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 9/6/2019
Overview
As Japan prepares for the 2020 Tokyo Olympic and Paralympic Games, cybersecurity has been given increased attention in response to a rise in 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.

While the 2020 Tokyo Olympics and Paralympic Games present Japan with particular vulnerabilities and challenges on the cyber-defense front, they also represent a potential opportunity for U.S. exporters and service providers. 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 in this field, and 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 2016 report by Japan’s Ministry of Economy, Trade and Industry (METI) identified a shortage of IT professionals at 132,060, which is expected to increase to 193,010 in 2020. This shortage of capable engineers, cyber experts, and security managers have provided an opportunity for American firms that can offer a turn-key cybersecurity solution for small-and-medium-sized enterprises in Japan.  

All market research indicates a very strong and rapid increase of sales in the Japanese cyber security market. International Data Corporation (IDC) Japan announced in 2018 that the domestic information security market in 2017 was $2.7 billion and will increase by 25% to an estimated $3.3 billion by 2022—$2.2 billion for security-related software and $0.6 million for hardware., NPO Japan Network Security Association announced in May 2018 that the size of the Japanese information security market was $9.8 billion in 2017 and is estimated to be $10.2 billion in 2018, and would reach $10.7 billion in 2018.
 
In April 2018, the leading political party in Japan, the Liberal Democratic Party of Japan (LDP) announced an Emergency Proposal for Reinforcement of Cyber Security Measures. This 119-page report identified issues and measures in all 13 Critical Infrastructure sectors, and an additional three: national security, self-driving vehicles, and quantum computing. The report urged systematic action by all levels of Japanese society to reinforce cyber security measures, and advised the Japanese Government to implement systematic measures for all critical infrastructure sectors.
 
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. Additionally, NISC guides all Central Government agencies in establishing and implementing cyber security policies and measures. NISC announced its National Strategy for Cyber Security 2019. The new strategy identifies an urgent need for reinforcing cybersecurity measures in all levels of Japanese society and in all aspects of technological development.
 
The collaborative relationship between Japan and the United States in the areas of cyber-physical systems, cloud, and network security has been a positive influence on market access. The National Institute of Standards and Technology (NIST) continues to engage Japan’s METI and Japan’s Information Technology Protection Agency (IPA) in an ongoing dialogue. The sixth annual U.S.-Japanese Cyber-Security Dialogue conference was held in Washington, D.C. in July 2018. The purpose of this Dialogue is to exchange cyber-security information, align international cyber-security policies, compare national cyber-security strategies, cooperate on planning efforts to protect critical infrastructure, and discuss cooperation in the areas of cyber-security and national defense.
 
From a military perspective, the U.S.-Japanese Cyber Defense Policy Working Group (CDPWG), established in October 2013 by the Japanese Ministry of Defense and the U.S. Department of Defense, continues to promote cyber-security cooperation between both countries.

Leading Sub-Sectors
Due to the underdeveloped framework of digital security in Japan, many Critical Infrastructure industry sectors have been identified and include:
  • Information and Communication Services
  • Financial 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
Cyber Security Conference, Cyber Security Center at Keio University
Semi-Annual in Spring and Fall

CEATEC Information Technology Trade Show, Tokyo
October 15-18, 2019
U.S. Department of Commerce Certified Trade Fair
U.S.A Showcase and Pavilion organized by U.S. Commercial Service Japan
Cyber Security World at RISCON Safety and Security Trade Expo)
October 2-4, 2019

Web 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

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Japan Cybersecurity Trade Development and Promotion