Japan IoT Security Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Japan IoT security market size reached around USD 802.65 Million in 2024. The market is projected to grow at a CAGR of 12.80% between 2025 and 2034 to reach nearly USD 2676.81 Million by 2034.

Japan IoT Security Market Growth

The global production of IT solutions such as cloud has grown annually at a rate of 4%-26% since 2010, with personal digital assistants exhibiting a growth of 6%-20% annually. Japanese organisations, which account for a global share of nearly 6%-7% in the production of IT solutions, besides smart communication equipment, are expected to experience significant growth due to the expansion of AI-based tools, wearable technology, and wireless modules. Japan’s technical expertise in smart sensor production makes it a leading manufacturer of image sensors (69%), temperature sensors (67%), and inertial sensors (34%), among others. This is expected to accelerate the Japan IoT security market development over the forecast period.

As per the International Telecoms Union, nearly 99.5% of all Japanese individuals aged between 15-24 years are referred to as “digital natives”, who have consistently used digital technology for work. Japanese organisations are also focusing on improving internal employee training and creating a more attractive work culture for skilled people to join their organisation. Japan is only behind South Korea, where 99.6% of the working professionals are digital natives. With the greater adoption of digital tools, online training events and workshops are expected to gain traction, thereby increasing the Japan IoT security market value over the forecast period.

Key Trends and Developments

Increasing adoption of IoT devices; rising threat of cyberattacks; growth of telemedicine; and rapid economic digitalisation are factors favouring the Japan IoT security market growth.

Aug 2, 2024

The subsidiary of Kansai Electric Power Company OPTAGE entered a collaboration with Israel-based NanoLock Security to provide managed cybersecurity services to Japanese businesses and individuals.

May 15, 2024

Global Platform released a new ‘Secure Channel Protocol’ to enhance the security and enable remote management of IoT devices running on low-power, constrained networks.

April 3, 2024

Infostealers like Quakbot and botnets like Mirai made a significant impact on retail stores by compromising vulnerable IoT devices (such as CCTV cameras) to amplify the effect of a distributed denial of service (DDoS) attack. This is expected to increase the Japan IoT security market value over the forecast period.

Feb. 14, 2024

IoT security has emerged as a key concern for businesses as cybercriminals are increasingly focusing on unsecure IoT endpoints to compromise sensitive data.

Development of new IoT protocols

The introduction of new IoT protocols that can remotely patch/ update constrained NB-IoT (NarrowBand IoT) devices without SMS support are driving market expansion.

Increasing risk from outdated legacy vulnerabilities

Outdated legacy systems pose a significant threat to data security due to the absence of adequate protective measures. This is expected to increase the Japan IoT security market revenue.

Expansion of the retail industry

Rising consumer disposable incomes have increased the demand for unique shopping experiences, thereby driving growth of the retail sector.

Increasing cross-border collaboration

Japanese companies are entering into partnerships with leading cybersecurity companies to enhance the resilience of their IoT infrastructure, thereby driving market growth.

Japan IoT Security Market Trends

OPTAGE is engaged in providing data centre services and network security solutions to a wide range of companies. As a renowned cyber company, NanoLock brings an innovative technology to ensure high-level protection of IoT devices managed by OPTAGE, ensuring regular version upgrades, device alerts, and threat monitoring. This is expected to reduce operational costs for original equipment manufacturers, utilities, and device makers, across Japan, thereby driving Japan IoT security market value.

Japan IoT Security Industry Segmentation

The EMR’s report titled “Japan IoT Security Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Component:

• Solutions

  

Identity and Access Management

  

Device Management

  

Data Encryption and Tokenization

  

Unified Threat Management (UTM)

  

Security analytics

  

Others

• Services

Market Breakup by Deployment Mode:

• On-Premises
• Cloud

Market Breakup by Organization Size:

• Large Enterprises
• Small and Medium Enterprise (SMEs)

Market Breakup by Security:

• Network Security
• Cloud Security
• End Point Security
• Application Security
• Others

Market Breakup by Industry Vertical:

• BFSI
• Government
• Healthcare and Life Sciences
• Energy and Power
• Manufacturing
• Others

Japan IoT Security Market Share

Based on industry vertical, the market is segmented into BFSI, government, healthcare and life sciences, energy and power, and manufacturing, among others. The manufacturing industry is projected to dominate the market, representing 19.8% of the overall market share. Over the forecast period, the demand for IoT security solutions in the energy and power sector is expected to grow at a CAGR of 15.3% because of the shift towards clean energy sources and increasing need to ensure grid stability.

Leading Companies in the Japan IoT Security Market

Major players are providing enhanced IoT security management services to retail store owners for optimising their daily operations and increasing consumer footfall, thereby driving Japan IoT security market expansion.

Broadcom Inc.

Broadcom Inc. was founded in the 1960s and is headquartered in California, United States. It is a semiconductor manufacturing company which specialises in providing Bluetooth solutions, knowledge-based processors, network infrastructure, and software, among other technological solutions.

AT&T Inc.

AT&T Inc. was formed in 2005 and is headquartered in Texas, United States. As per Japan IoT security market analysis, it is a leading telecommunications company that specialises in the providing wireless services and enterprise applications.

Thales S.A. (Gemalto)

Thales S.A. (Gemalto) was founded in June 2006 and is headquartered in Paris, France. It is a leading provider of technological solutions to businesses operating in the defence, aeronautics, and cyber security industry.

Palo Alto Networks Inc.

Palo Alto Networks Inc. was founded in March 2005 and is headquartered in California, United States. It is a leading provider of cyber security solutions, offering SaaS security, cloud security, and threat intelligence solutions to businesses worldwide.

Other players included in the Japan IoT security market report are IBM Corporation, Cisco Systems Inc., Intel Corp., HP Inc., Trend Micro Inc., Infineon Technologies AG, and Sophos Ltd., among others.
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