Japan 5G Network Security Market - Forecasts From 2025 To 2030

Description

The Japan 5G Network Security Market is forecast to advance at a CAGR of 7.12%, attaining USD 326.35904 million in 2030 from USD 231.43536 million in 2025.

Japan 5G Network Security Market Key Highlights

• The accelerated commercial deployment of Local 5G networks for enterprises and local governments drives direct demand for specialized, dedicated network encryption and security analytics solutions, shifting the market focus from public to private industrial security.
• Government regulations, particularly the Ministry of Internal Affairs and Communications' (MIC) push for 5G coverage expansion, mandate higher standards for network resilience, creating an immediate demand for advanced security architectures in both Radio Access Network (RAN) and Transport layers.
• Major Japanese telecom operators actively internalize and scale security expertise, exemplified by KDDI's acquisition and subsequent global rollout of managed security services, which directly increases the market penetration of integrated, end-to-end security offerings.
• The strategic adoption of Open RAN architecture, supported by the Japanese government, fundamentally changes the threat landscape by increasing vendor diversity and interface points, thereby fueling a demand surge for advanced security testing, compliance, and multi-vendor threat protection solutions.

The rapid and ubiquitous deployment of fifth-generation (5G) wireless technology in Japan represents a paradigm shift from traditional mobile connectivity to a foundational digital infrastructure for society and industry. This transformation, catalyzed by the government's strategic push to achieve high national 5G coverage, creates an entirely new security imperative. Unlike its predecessors, 5G is characterized by network slicing, massive machine-type communications (mMTC), and ultra-reliable low-latency communications (URLLC), features that expose new attack surfaces at the network edge, core, and transport layers. The confluence of increased critical infrastructure reliance on 5G, particularly in manufacturing and autonomous systems, and the inherent architectural complexities of disaggregated networks necessitates a sophisticated, security-by-design approach. Consequently, the Japanese 5G Network Security Market has transitioned from a supporting function to an indispensable component of the nation's digital transformation agenda. The market's trajectory is thus inextricably linked to the pace of 5G rollout and the regulatory mandate for national cybersecurity resilience.

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Japan 5G Network Security Market Analysis

Growth Drivers

The imperative for Ultra-Reliable Low Latency Communications (URLLC) in sectors like autonomous driving and factory automation is a primary market catalyst. This technological requirement creates direct demand for security solutions—specifically Edge/MEC Security—that must perform threat detection and mitigation with near-zero latency to prevent disruption of mission-critical functions. Furthermore, the Ministry of Internal Affairs and Communications' (MIC) aggressive push for 'Local 5G' licensing for regional entities and enterprises significantly expands the addressable market. These new, non-traditional network operators require complete, turnkey Managed Security Services (MSS) and Consulting & Integration to secure their proprietary network slices, which directly propels the services segment of the market. The fundamental need for secure network slicing to segregate traffic for different enterprise applications is a foundational driver for Network Encryption & VPNs demand.

Challenges and Opportunities

A key constraint is the domestic shortage of specialized cybersecurity personnel capable of managing complex, disaggregated 5G security architectures, particularly those involving Open RAN. This skills gap acts as a headwind against the adoption of sophisticated in-house security solutions, but it simultaneously creates an immense opportunity for third-party Managed Security Services (MSS). Operators and enterprises face an operational hurdle in securing multi-vendor environments inherent to Open RAN, a design actively promoted by the government. This complexity compels companies to outsource security operations, boosting the demand for integrated Security Analytics & Monitoring platforms that provide a unified view across disparate network elements. The opportunity lies in providing AI-driven automation within security platforms to mitigate the high operational costs and dependency on scarce human expertise.

Supply Chain Analysis

The Japanese 5G Network Security Market, while focused on software and services, is critically dependent on the global supply chain for underlying hardware components. Key production hubs for hardware security modules, network processing units, and specialized server infrastructure for security analytics platforms are largely concentrated in North America, Taiwan, and South Korea. This global dependency introduces logistical complexities and geopolitical risk, impacting the cost and lead time for deploying physical appliances such as advanced Firewalls & Threat Protection systems. Japanese technology players, including Fujitsu and NEC, are strategically promoting Open RAN, which necessitates a shift from reliance on proprietary end-to-end vendor systems to a more complex, multi-vendor supply chain for software and hardware integration, increasing the need for robust supply chain risk management services.

Government Regulations

In-Depth Segment Analysis

By Technology: Edge/MEC Security

Edge/MEC (Multi-access Edge Computing) Security is experiencing a disproportionate surge in growth driven by the functional promise of 5G—ultra-low latency applications. As enterprises deploy private and local 5G networks to support real-time processes like remote-controlled robotics, augmented reality in manufacturing, and automated logistics, the compute resources and application data are migrating to the network edge, closer to the end-user device. This localized data processing bypasses traditional centralized security perimeters, creating a critical vulnerability. The imperative for securing this decentralized architecture directly fuels demand for specialized security solutions that are deployed at the edge, capable of micro-segmentation, securing virtualized functions, and performing real-time, low-latency threat inspection (e.g., next-generation firewalls tailored for containerized environments). The growth driver is not merely 5G adoption itself, but the specific deployment model of compute and applications on the network edge, making Edge/MEC Security a distinct, high-growth security category. This segment is indispensable for any enterprise leveraging 5G for mission-critical industrial use cases where a fractional delay in security processing could translate to catastrophic operational failure.

By End-User: Enterprise 5G Networks

The Enterprise 5G Networks end-user segment's growth is highly segmented and driven by a necessity for operational sovereignty and customization unavailable in public 5G networks. Unlike the Telecom Operators segment, which focuses on mass market infrastructure security, the enterprise segment's requirement is for tailored, vertically-specific security. Manufacturing, logistics, and healthcare enterprises utilizing Local 5G require a complete security stack—from DDoS Protection at the ingress point to robust Identity & Access Management (IAM) for the massive number of IoT/OT devices connecting to the network. The principal growth driver is the convergence of IT (Information Technology) and OT (Operational Technology) networks within the enterprise 5G environment. Securing this converged environment is a non-negotiable requirement for regulatory compliance and business continuity. This necessity is satisfied through both on-premise dedicated hardware (for maximum control and data residency) and specialized, private-slice-oriented Managed Security Services (MSS), which offload the complexity of securing a multi-vendor, software-defined network.

Competitive Environment and Analysis

The Japanese 5G Network Security market is characterized by a high degree of integration between domestic telecom operators, who act as both consumers and providers of security, and international security vendors. Domestic hardware and integration specialists like Fujitsu and NEC are leveraging their deep relationship with the country's operators, while pure-play security firms such as Trend Micro and Akamai Technologies focus on distinct security layers (e.g., endpoint or cloud security). The competitive dynamic is shifting from product sales to comprehensive service delivery, placing a premium on managed security and advanced analytics capabilities.

NTT Communications

NTT Communications, as part of the massive NTT Group, maintains a formidable strategic position by offering end-to-end solutions, leveraging its deep experience as a network operator with its robust global data center and cloud presence. Their strategy centers on delivering a full-stack security portfolio, integrating their own network infrastructure with security offerings. NTT DATA, a subsidiary, focuses on providing fully managed Private 5G solutions globally, which include a dedicated, closed-loop system for security and seamless cloud integration, thereby delivering a holistic product to enterprises. This integrated approach ensures that security is 'by design' from the deployment phase of the 5G network.

NEC Corporation

NEC Corporation's strategic positioning is focused on providing intelligent, AI-enabled security solutions specifically for Communications Service Providers (CSPs) within the 5G ecosystem. NEC emphasizes an agile security platform that utilizes machine learning to detect and mitigate unknown threats, offering automated security orchestration tailored for 5G digital business transformation. Their solutions focus on leveraging expertise in virtualization and orchestration to realize end-to-end network security management, aligning perfectly with the shift towards software-defined and cloud-native 5G core networks. Their portfolio spans RAN, Transport, and Core security elements, positioning them as a key domestic partner for operators pursuing Open RAN initiatives.

Recent Market Developments

July 2025: LAC and KDDI to Begin Full-Fledged Global Rollout of Security Solutions

KDDI Corporation and LAC Co., Ltd., a wholly owned subsidiary of KDDI since February 2025, announced the full-fledged global deployment of security solutions to counter cyber-attacks. By combining LAC's expertise in security monitoring and operations through one of Japan's largest Security Operations Centers (JSOC) with KDDI's global business footprint, the initiative focuses on protecting critical information assets and infrastructure for Japanese companies with overseas sites. This development represents a strategic capacity addition in the Managed Security Services (MSS) segment, particularly enhancing global governance for enterprise customers.

February 2025: NTT DATA and Palo Alto Networks Enhance Private 5G Security for Industrial Deployments

NTT DATA announced a new managed security service in collaboration with Palo Alto Networks. This offering integrates Palo Alto Networks' Next-Generation Firewall (NGFW) and OT/IoT subscriptions with NTT DATA's Private 5G architecture, empowering clients with enhanced visibility, access control, and automated threat detection in industrial and operational technology (OT) environments. The launch of this turnkey managed service directly addresses the security visibility gap in private 5G deployments for the enterprise sector.

Japan 5G Network Security Market Segmentation

• BY SOLUTIONS/SERVICES
  • Solutions
    • Firewalls & Threat Protection
    • DDoS Protection
    • Identity & Access Management (IAM)
    • Network Encryption & VPNs
    • Security Analytics & Monitoring
    • Cloud Security & Virtualization Security
  • Services
    • Managed Security Services (MSS)
    • Consulting & Integration
    • Security Testing & Compliance
• BY DEPLOYMENT
  • On-Premise
  • Cloud-Based
• BY NETWORK ARCHITECTURE
  • 5G Security
  • RAN Security
  • Edge/MEC Security
  • Transport Network Security
• BY END USER
  • Telecom Operators
  • Government & Defense Networks
  • Enterprise 5G Networks

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter's Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. JAPAN 5G NETWORK SECURITY MARKET BY SOLUTIONS/SERVICES

5.1. Introduction

5.2. Solutions

5.2.1. Firewalls & Threat Protection

5.2.2. DDoS Protection

5.2.3. Identity & Access Management (IAM)

5.2.4. Network Encryption & VPNs

5.2.5. Security Analytics & Monitoring

5.2.6. Cloud Security & Virtualization Security

5.3. Services

5.3.1. Managed Security Services (MSS)

5.3.2. Consulting & Integration

5.3.3. Security Testing & Compliance

6. JAPAN 5G NETWORK SECURITY MARKET BY DEPLOYMENT

6.1. Introduction

6.2. On-Premise

6.3. Cloud-Based

7. JAPAN 5G NETWORK SECURITY MARKET BY NETWORK ARCHITECTURE

7.1. Introduction

7.2. 5G Security

7.3. RAN Security

7.4. Edge/MEC Security

7.5. Transport Network Security

8. JAPAN 5G NETWORK SECURITY MARKET BY END USER

8.1. Introduction

8.2. Telecom Operators

8.3. Government & Defense Networks

8.4. Enterprise 5G Networks

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. NTT Communications

10.2. KDDI Corporation

10.3. SoftBank Corp.

10.4. Fujitsu Limited

10.5. NEC Corporation

10.6. Internet Initiative Japan (IIJ)

10.7. A10 Networks

10.8. Trend Micro

10.9. Akamai Technologies

10.10. Ericsson

10.11. Samsung Electronics

11. RESEARCH METHODOLOGY

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

NTT Communications

KDDI Corporation

SoftBank Corp.

Fujitsu Limited

NEC Corporation

Internet Initiative Japan (IIJ)

A10 Networks

Trend Micro

Akamai Technologies

Ericsson

Samsung Electronics

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