“Strategy for Vitalization of the Cybersecurity Industry” Compiled

1. Background and purpose

As cyber risks have been increasing in recent years, more and more industry leaders have been facing the growing need and demand for cybersecurity measures. Against this backdrop, the vitalization of the cybersecurity industry in Japan is essential in securing a sufficient supply to satisfy the growing demand. In particular, as many companies in Japan use cybersecurity products made overseas, it is important for Japan not only to help Japanese companies to choose appropriate cybersecurity products from a wide variety of options but also to encourage companies to develop products and services that are tailored to the peculiar cyberattacks that Japan faces from the perspectives of both ensuring Japan’s security and of removing the growing deficit of digital technology that companies face.

Meanwhile, in the cybersecurity market in Japan, user companies and SIers, which play a central role in commercial distribution, tend to place weight on companies’ utilization results and prices when choosing products. METI found that this causes startups with products that lack a track record to face difficulty in expanding sales channels. This situation also causes such startups to enter a vicious cycle which hampers investment in business expansion leading to lower competitiveness in products and services which rely on such expansion.

Based on awareness of this problem, METI launched “Working Group 3 under the Study Group for Industrial Cybersecurity: Study Group on a Virtuous Circle of Strengthening Cybersecurity Measures for Industrial Players and Vitalizing the Cybersecurity Industry (Tentative Topic)” in July 2024. In response, the study group held seven meetings with experts and personnel with experience in practical matters in the cybersecurity industry and advanced discussions. Moreover, in September 2024, METI opened a one-month call for public comments and received 25 opinions, while advancing individual interviews with major startups in the cybersecurity industry.

As an outcome of the discussions by the study group, METI compiled the Strategy for Vitalization of the Cybersecurity Industry as a comprehensive policy package to fortify Japan’s cybersecurity industry and related technological foundation.

2. Overview of the strategy

The strategy explains the significance of vitalizing Japan’s cybersecurity industry and the current situation of the industry, and, based on this, presents comprehensive policy responses to overcome the vicious cycle described above.

Major policy responses upheld in the strategy are as follows.

(1) Efforts for helping startups to smoothly achieve results and receive recognition about their promising products and services

• Utilizing the framework of the System for Assessing Startups’ Proposals for Technology to encourage government organizations to make use of promising startups’ products and services in a trial manner
• Aggregating and listing information on promising products, services, and companies to convey the information to government organizations; and working with industrial associations to conduct examinations and award commendations

(2) Efforts for helping companies to smoothly create and cultivate products and services with promising technology and competitiveness

• Conducting a contest-type project with prizes to cultivate technology and business that may contribute to solving technical and social challenges related to cybersecurity
• Promoting research and development projects of about 30 billion yen and encouraging the social implementation of the achievements
• Creating business matching opportunities between SIers, which play a central role in commercial distribution in Japan, and vendors of domestic products and services

(3) Efforts for helping companies to secure sufficient highly-skilled human resources to support them in increasing their supply capacity and to enter international markets as a natural course of action

• Enhancing programs for developing highly-skilled human resources; and both improving and communicating the attractiveness of a career in cybersecurity
• Supporting companies in developing business overseas; promoting strategies for standardization; and facilitating exchanges between companies and human resources with relevant countries

The strategy provides a future roadmap showing expected results of these policy responses (a picture of future prospects in three years, five years, and ten years after the first year of specifying certain efforts), and upholds the goals of ensuring security and achieving contributions to overcoming the deficit involving digital technology in ten years and a target KPI in which Japan should increase the domestic sales figures from the current value of about 0.9 trillion yen to three times the amount, i.e., over 3 trillion yen.

3. Comments from leading players in the cybersecurity industry

METI has received high expectations for the strategy from major stakeholders in the cybersecurity industry, which are the targets of the strategy, as shown below. METI will continue to work with stakeholders in the industry to promote the enhancement of the supply capacity of the cybersecurity industry by determining and implementing the specifics of the measures presented in the strategy.

Mr. Ukai Yuji, President, FFRI Security, Inc. (member of the study group)

FFRI Security, Inc. shows support for the Strategy for Vitalization of Cybersecurity Industry. As the environment surrounding cybersecurity has been becoming increasingly severe, the enhancement of cybersecurity measures in Japan is a very important issue in promoting a digital society. From the perspectives of security and the peculiar nature of cyberattacks against Japan, it is essential to not only collaborate with overseas companies but also to independently accumulate and analyze necessary information on threats domestically in addition to advancing the research and development and provision of products and services based on such information. I believe that this initiative is perfectly suited to greatly accelerating cybersecurity measures in Japan. FFRI Security, Inc. will continue to contribute to the promotion of cybersecurity in Japan as a participant of the initiative.

Mr. Aoyagi Shiro, President and CEO, Global Security Experts Inc.

On behalf of the cybersecurity industry, Global Security Experts Inc. shows support for the initiative of the Strategy for Vitalization of the Cybersecurity Industry. We expect METI to provide support for encouraging domestic companies to take cybersecurity measures and vitalizing the cybersecurity industry, including promoting the procurement of products and formulation of new systems. In addition, the Japan Cybersecurity Fund, in which we are participating, has not only been investing in cybersecurity companies but also been uniting the efforts of cybersecurity companies to support the target companies of investment, thereby contributing to encouraging domestic companies to improve their cybersecurity competence and vitalizing the cybersecurity industry.

Related Materials

• Appendix 1: Strategy for Vitalization of the Cybersecurity Industry (summary)(PDF:558KB)
• Appendix 2: Strategy for Vitalization of the Cybersecurity Industry (full text)(PDF:3,733KB)
• Appendix 3: Comments from leading players in the cybersecurity industry(PDF:537KB)

Related Links

• Reference 1: Working Group 3 under the Study Group for Industrial Cybersecurity: Study Group on a Virtuous Circle of Strengthening Cybersecurity Measures for Industrial Players and Vitalizing the Cybersecurity Industry (Tentative Topic)
• Reference 2: Call for opinions and information involving the vitalization of the cybersecurity business

Division in Charge

Cybersecurity Division, Commerce and Information Policy Bureau