Japan Critical Infrastructure Protection Market Overview, 2029

The market in Japan is majorly driven by the increasing recognition of the importance of critical infrastructures in a nation's well-being. In line with this, the escalating frequency and sophistication of cyber threats is significantly contributing to the market growth. As critical infrastructures become increasingly connected through digital systems, the vulnerability to cyber-attacks grows, necessitating robust protection measures to safeguard against potential disruptions and ensure the integrity of vital operations. Besides, the rise of smart cities and the integration of Internet of Things (IoT) technologies into critical infrastructure demand enhanced protection mechanisms. The interconnectivity of various systems in smart cities increases the attack surface, making CIP solutions crucial for detecting and mitigating cyber threats that could compromise public safety, transportation, and energy grids. Additionally, the growing instances of natural disasters and the impact of climate change underscore the need for resilient and adaptive critical infrastructures. CIP solutions, encompassing physical security measures and disaster recovery strategies, become essential for minimizing the potential damage from natural disasters and ensuring the rapid restoration of critical services. This, in turn, is creating a positive outlook for the market. Moreover, stringent regulatory frameworks and compliance requirements contribute to the market growth of CIP. The government imposes stringent regulations mandating robust security measures to protect critical infrastructure. This regulatory environment encourages investment in CIP solutions to meet compliance standards, further driving market expansion. The growing awareness of the economic repercussions of infrastructure disruptions fuels the demand for CIP solutions. Businesses and governments recognize the substantial financial and operational losses incurred due to disruptions in critical services, motivating them to invest in comprehensive protection measures.

According to the research report, "Japan Critical Infrastructure Protection Market Outlook, 2029," published by Bonafide Research, the Japan critical infrastructure protection market is anticipated to add to more than USD 1000 Million by 2024–29. In Japan, besides the mechanism responsible to notify the government, which functions as a bridge for communication between it and all those outside of it, the mechanism of information sharing and notification is also established among industries to provide each with a channel for information exchange and consultation. In 2001, Japan established the Telecom Information Sharing and Analysis Center Japan (Telecom-ISAC Japan). In addition to real-time inspection for computer intrusion incidents and conducting information collection and analysis, the Telecom-ISAC Japan proposes to e-government many suggestions related with the Transact-SQL issue as well. The reasons for launching the Telecom-ISAC are to instantaneously detect a computer intrusion incident, and to instantaneously gather and analyze its information, and then exchange this with other telecom carriers and offer them relevant countermeasures for precaution, so that in can reach the goal of ensuring telecom security since it is an important infrastructure concerning social economy. Collaboration between the public and private sectors is crucial for driving innovation and improving the effectiveness of CIP strategies. Partnerships with international firms can facilitate knowledge transfer and access to advanced technologies, enabling local companies to develop tailored solutions. As digital transformation accelerates across various sectors, Japan faces increasing cyber threats targeting critical infrastructure. High-profile incidents have underscored the need for robust cybersecurity measures to protect essential services such as energy, transportation, and healthcare.

The biggest share contributors in Japan's critical infrastructure protection market are from the Physical Security & Safety segment. This has been driven by the need to protect open spaces, essential services, and key assets from physical threats, natural disasters, and terrorist activities in Japan. The reason for this can be attributed to many factors included the maturity of traditional physical security markets, a very strict regulatory framework, and early adoption of new technologies such as AI and IoT for surveillance, access control, and perimeter security. Its large population density, frequent natural disasters, and the need to host large events like the Olympics also underpinned the urgency of implementation in regard to an effective tight physical security framework. The country has been very proactive in the rollout of smart city solutions that integrate physical security elements to improve public safety and emergency response capabilities. The Cybersecurity segment is seeing fast growth, impelled by increasing digitalization of critical infrastructure and an enhanced frequency and complexity of cyber threats. With Japan's quest for implementing Industry 4.0 and embracing digital transformation, there comes the critical need to safeguard critical infrastructure from cyber-attacks. The Japanese government has always been serious about formulating policies and guidelines to help improve cybersecurity. Some of these policies include the Cybersecurity Strategy and developing a National Center of Incident Readiness and Strategy for Cybersecurity, or NISC. It also looks into research and development to create new and more advanced cybersecurity technologies and promotes public-private partnerships among them in terms of threat intelligence and best practice sharing.

The Energy & Power segment leads in the Japanese critical infrastructure protection market at the moment. This could be because Japan relies heavily on energy imports and has a strategic focus toward developing energy security. Being the world's largest importer of liquefied natural gas and third-biggest net importer of oil, Japan has been placing premium attention on safeguarding its energy infrastructure to ensure continuous supply and reduce vulnerabilities. Underlining more the prerequisite of robust security measures in this sector is the transformity of the present day to renewable sources of energy and power generation decentralization. This was again brought to the forefront by the Fukushima Daiichi nuclear disaster in 2011, which underlined the least criticality of energy infrastructure protection, and huge investments were made in this very arena. On the other hand, the BFSI sector is undergoing rapid development. This could be attributed to the rapid digitalization of financial services that brought along enhanced vulnerability and a wider threat space to the concerned sector. It means, therefore, that the need to accord protection to digital financial infrastructure increases with any move towards a cashless society, especially as Japan is set to host major international events. For example, there will be increased demand for secure and efficient financial services following the next World Expo, slated to take place in Osaka, thereby fueling continued growth in the sector. Another critical area is the IT & Telecommunications segment, which acts as a backbone for many other sectors of infrastructure. In this sense, protecting the IT & Telecommunications sector means ensuring that communication networks are uninterrupted, safe, and available, while data is intact and available for access. The Government & Defence segment is another key sector with its focus on national security interests and public services. Transport & Logistics is the area related to the smooth flow of goods and people, security here serves not to allow disruptions and to provide safety in operations. The Oil & Gas segment is important, although it is often rolled out together under the rubric of a broader Energy & Power category, in which infrastructures and security needs have a tendency to blend.

The Solutions segment is the leading segment in this market in Japan. The Solutions segment encompasses a wide scope of advanced technologies and systems focused on the efficient mitigation of risks, identification of threats, and response to any kind of incident with security. Thus, high demand for advanced security hardware and software in the form of surveillance systems, access control technologies, intrusion detection systems, and cybersecurity has widely enhanced the share of the Solutions segment. Japan, with its strong technological prowess and point of view regarding innovation, has been driving the adoption of such solutions through large investments in both its public and private sectors to protect the critical infrastructure against the changing threats. Increased share and higher growth in the Services segment happen due to the rise in the complexity of security challenges and to the need for highly specialized expertise in handling and maintaining constantly growing security systems. Professional security services are increasing their demand with the growing risk of cyber threats, caused by increased interconnection and digitization of critical infrastructures that employ sophisticated services like managed security services, incident response, security consulting, and training. The other challenge that is increasing security services is the need for services to comply with the tight demands of regulation and compliance. This segment is also further buoyed by the trend of outsourcing security functions to special providers. This has been practically realized through the current emergence of such enhanced outsourced security functions for implementing organizations to focus on their core competence.



Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Critical Infrastructure Protection market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Security Type
• Physical Security & Safety
• Cybersecurity

By Vertical
• Energy & Power
• BFSI
• IT & Telecommunications
• Government & Defence
• Transport & Logistics
• Oil & Gas
• Other Verticals

By Offering
• Solutions
• Service

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Critical Infrastructure Protection industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.