Japan Managed Detection and Response Market Research Report By Service Type (Threat Intelligence, Incident Management, Monitoring Services, Vulnerability Management), By Deployment Type (Cloud-based, On-premises), By End User (Small and Medium Enterprises, Large Enterprises, Government Agencies, Financial Institutions) and By Industry Vertical (Healthcare, Retail, Manufacturing, Telecommunications, Information Technology)- Forecast to 2035

Japan Managed Detection and Response Market Overview

As per MRFR analysis, the Japan Managed Detection and Response Market Size was estimated at 109.12 (USD Million) in 2023.The Japan Managed Detection and Response Market Industry is expected to grow from 125.62(USD Million) in 2024 to 501.72 (USD Million) by 2035. The Japan Managed Detection and Response Market CAGR (growth rate) is expected to be around 13.415% during the forecast period (2025 - 2035).

Key Japan Managed Detection and Response Market Trends Highlighted

The Japan Managed Detection and Response Market is undergoing substantial growth, which is being driven by the escalating frequency and sophistication of cyber threats. The demand for advanced security solutions has increased in Japan, which is home to a robust digital infrastructure and numerous prominent technology firms. This trend is further fueled by the government's emphasis on improving cybersecurity preparedness, as evidenced by initiatives like the Cybersecurity Strategy, which are designed to strengthen Japan's resilience against potential cyber-attacks. 

The managed detection and response services landscape in Japan is constantly changing, and there are numerous opportunities to capitalize on. The demand for comprehensive security solutions is on the rise as organizations encounter obstacles related to data intrusions and their adherence to regulations like the Act on the Protection of Personal Information (APPI). 

Companies have the opportunity to establish partnerships with local firms in order to offer customized solutions that address the skills gap in cybersecurity talent and cater to the unique requirements of the region. Recent developments in the Japanese market suggest a transition to cloud-based managed detection and response solutions. The flexibility and scalability of these services are fostering an increase in their adoption by organizations, which enables them to respond to security incidents more quickly. 

Furthermore, the integration of artificial intelligence and machine learning into security processes is gaining momentum, enabling teams to proactively respond to anomalies and detect them. The demand for improved managed services is further fueled by the increasing awareness and education of cybersecurity threats among businesses and consumers. Consequently, this is an advantageous time for stakeholders in the Japan Managed Detection and Response Market to innovate and broaden their offerings.

Japan Managed Detection and Response Market Drivers

Increasing Cybersecurity Threats

Japan has been experiencing a significant rise in cybersecurity threats, emphasizing the need for advanced security solutions in the Japan Managed Detection and Response Market Industry. According to the Ministry of Internal Affairs and Communications, reported cyber incidents rose by approximately 12% in the past year alone, with sophisticated attacks targeting critical infrastructure and businesses. 

Organizations such as NTT Security and Trend Micro have called attention to the increasing frequency and complexity of cyberattacks, which encourages businesses across various sectors to adopt Managed Detection and Response services to safeguard their operations.The growing awareness of potential vulnerabilities is likely to drive the demand for these services, as organizations strive to protect sensitive data and maintain regulatory compliance.

Regulatory Compliance Demands

The Japanese government has introduced stringent regulations aimed at enhancing data protection and cybersecurity, significantly impacting the Japan Managed Detection and Response Market Industry. The Act on the Protection of Personal Information (APPI) has been revised to impose stricter regulations on how organizations handle personal information, creating a strong impetus for companies to implement robust cybersecurity measures. 

Organizations like Fujitsu have realized the importance of compliance and are actively investing in Managed Detection and Response solutions to meet these regulations.Failure to comply with these laws could result in heavy fines and reputational damage, further driving businesses towards the adoption of Managed Detection and Response services.

Growing Adoption of Cloud Services

As more businesses in Japan transition to cloud-based solutions, the demand for Managed Detection and Response services is set to rise within the Japan Managed Detection and Response Market Industry. Gartner reports that the public cloud market in Japan is expected to grow by approximately 20% annually, resulting in an increased need for specialized security measures. 

Companies like IBM Japan and Microsoft Japan are offering comprehensive cloud security solutions to protect various industries, including finance and healthcare.As organizations increase their usage of cloud services, the complexity of security management also escalates, propelling the demand for Managed Detection and Response solutions that can monitor and secure these environments effectively.

Japan Managed Detection and Response Market Segment Insights

Managed Detection and Response Market Service Type Insights

The Japan Managed Detection and Response Market is experiencing significant growth and transformation within the Service Type segment, which plays a vital role in enhancing cybersecurity across various industries in the region. As digital threats evolve, organizations are increasingly prioritizing robust security measures, leading to a surge in demand for specialized services to detect, respond to, and manage potential security incidents effectively. Threat Intelligence is a crucial aspect of this segment, as it equips businesses with actionable insights to anticipate and combat cyber threats before they escalate, thus contributing to more proactive security postures.

Incident Management services are another important area within this market, as they focus on identifying, responding to, and mitigating incidents swiftly to minimize the impact on business operations. This is especially significant in Japan, where businesses face unique challenges due to the rapid adoption of technologies and increasing regulatory pressures for data protection and security compliance. Furthermore, Monitoring Services play a pivotal role in maintaining continuous surveillance of network activity, ensuring that organizations can detect anomalies and respond effectively to potential threats in real time. Coupled with Vulnerability Management, which helps organizations identify and remediate weaknesses in their security frameworks, these services collectively contribute to a comprehensive defense strategy.

The Japan Managed Detection and Response Market is characterized by a collaborative approach towards enhancing cybersecurity strategies, where companies leverage a mix of in-house capabilities and outsourced services to maximize their defenses. The growth drivers for this segment include rising cyber attacks, regulatory compliance requirements, and the increasing sophistication of cyber threats. Consequently, organizations are recognizing the importance of investing in integrated solutions that combine various service types, leading to enhanced operational efficiency and stronger overall security postures. 

Japan’s government initiatives also play a critical role in promoting cybersecurity awareness and enhancing infrastructure, further supporting the demand for comprehensive Managed Detection and Response services in the market. Overall, the Service Type segment is crucial for navigating the complex landscape of cybersecurity, ensuring that businesses remain resilient against evolving threats while optimizing their resources and capabilities.

Managed Detection and Response Market Deployment Type Insights

The Deployment Type segment of the Japan Managed Detection and Response Market represents a critical dimension in addressing the cybersecurity needs of businesses across diverse industries. With the increasing frequency of cyber threats and the need for proactive security measures, organizations are turning to advanced solutions. Cloud-based deployment offers flexibility, scalability, and the potential for cost reduction, making it appealing for companies striving to enhance their cybersecurity posture without heavy investments in infrastructure.On the other hand, On-premises solutions provide organizations with more control over their data and security processes, appealing to sectors like finance and healthcare where compliance is paramount. 

Current trends indicate a growing preference for hybrid strategies that combine both deployment types, catering to the specific needs and preferences of enterprises. The Japan Managed Detection and Response Market statistics reflect a robust demand for effective cybersecurity solutions, driven by regulatory standards and the accelerating digital transformation across the region.As organizations increasingly recognize the importance of managed detection and response services, both deployment types stand to play a significant role in shaping the future landscape of cybersecurity in Japan.

Managed Detection and Response Market End User Insights

The Japan Managed Detection and Response Market is shaped significantly by its End User segmentation, which includes Small and Medium Enterprises, Large Enterprises, Government Agencies, and Financial Institutions. Small and Medium Enterprises play a critical role in the Japanese economy, driving innovation and job creation while also facing unique cybersecurity challenges due to limited resources. Large Enterprises, on the other hand, command considerable market influence due to their extensive IT infrastructures and the need for robust security measures to protect sensitive data.Government Agencies in Japan are increasingly prioritizing cybersecurity as national threats rise, contributing to heightened demand for managed detection services. 

Financial Institutions are particularly significant, operating in a highly regulated environment where data protection and compliance with laws is essential. Each of these segments contributes to the overall dynamics of the Japan Managed Detection and Response Market, driven by the increasing complexity of cyber threats, the necessity of regulatory compliance, and the growing recognition of the importance of proactive security measures.Together, they depict a landscape that is not only growing but also evolving rapidly in response to technological advances and emerging threats in cybersecurity.

Managed Detection and Response Market Industry Vertical Insights

The Japan Managed Detection and Response Market is experiencing significant growth across various industry verticals, reflecting the rising need for advanced cybersecurity solutions. Each sector plays a critical role in shaping the landscape of the market. In Healthcare, the importance of protecting sensitive patient data drives the demand for effective managed detection and response solutions, as healthcare organizations face increasing cyber threats. Similarly, the Retail sector, particularly amidst the growth of e-commerce, requires strong cybersecurity measures as it handles vast volumes of customer information and financial transactions.

The Manufacturing industry is increasingly vulnerable to cyber-attacks, leading to greater investment in detection and response services to safeguard operational technology. Telecommunications, being at the heart of connectivity, must address the complexities of securing their networks to ensure uninterrupted service. Information Technology firms are also pivotal, as they often have the resources and expertise to implement robust cybersecurity strategies that benefit their clients. Overall, shifts in regulatory frameworks, along with increased awareness of cyber threats, are fuelling the Japan Managed Detection and Response Market, driving enterprises across these sectors to prioritize investments in comprehensive cybersecurity solutions.

Japan Managed Detection and Response Market Key Players and Competitive Insights

The Japan Managed Detection and Response Market is evolving rapidly, driven by the increasing need for advanced cybersecurity solutions in response to the rising tide of cyber threats. As organizations across various sectors, including finance, healthcare, and manufacturing, face the challenges of digital transformation, the demand for managed detection and response (MDR) services has surged. Companies in this market are competing vigorously to provide comprehensive security solutions that not only detect and respond to threats in real-time but also enhance overall security posture through proactive measures. 

This competitive landscape is characterized by technological advancements, strategic partnerships, and a growing emphasis on delivering tailored solutions that meet the specific needs of Japanese enterprises. With the increasing focus on regulatory compliance and data protection, the market is witnessing the entry of several key players and their ongoing efforts to innovate and differentiate their offerings.SoftBank Technology has established a strong foothold in the Japan Managed Detection and Response Market through its strategic focus on providing integrated security solutions. Leveraging its extensive experience in the technology sector, the company offers a robust suite of services that include threat detection, incident response, and continuous monitoring. SoftBank Technology's ability to harness advanced analytics and machine learning algorithms enhances its service offerings, allowing them to effectively identify and mitigate potential threats. 

Moreover, the company boasts a solid reputation for its commitment to customer satisfaction and has built long-lasting relationships with various organizations seeking to strengthen their cybersecurity posture. This competitive edge, combined with a strong local presence, allows SoftBank Technology to effectively cater to the unique needs of the Japanese market, thereby solidifying its position as a trusted player in the MDR space.CyberAgent has also been making significant strides in the Japan Managed Detection and Response Market, aligning its offerings with the growing demand for enhanced cybersecurity solutions. The company is recognized for its innovative approach to threat detection and incident management, providing clients with tailored services that encompass real-time monitoring, analysis, and response capabilities. 

CyberAgent’s strength lies in its ability to leverage cutting-edge technologies, such as artificial intelligence and big data analytics, to detect potential security breaches and offer timely interventions. The firm has also engaged in strategic partnerships and collaborations to bolster its market presence and enhance its service portfolio. Its ongoing commitment to research and development ensures that CyberAgent remains at the forefront of cybersecurity advancements, with a well-rounded product suite designed to address the specific challenges faced by Japanese organizations.

 Their proactive approach includes not only immediate threat response but also the formulation of long-term security strategies, further amplifying their competitive advantage in the rapidly evolving landscape of managed detection and response services in Japan.

Key Companies in the Japan Managed Detection and Response Market Include:

• SoftBank Technology
• CyberAgent
• Secureworks
• CrowdStrike
• Palo Alto Networks
• NEC
• TIS
• Trend Micro
• Check Point Software
• Rizicom
• Fujitsu
• IBM
• Mitsubishi Electric
• Cybersecurity Factory
• NTT Security

Japan Managed Detection and Response Market Industry Developments

SoftBank Technology (SBT) has expanded its Managed Security Service portfolio by establishing a Global Monitoring Center. This center provides English-supported threat monitoring in collaboration with Trend Micro and Cybereason. This expansion enhances its MDR capabilities for enterprises in Japan and abroad. CrowdStrike is acknowledged as a global champion in MDR and is currently investing in Japan.

CrowdStrike was recognized as a Leader in the Forrester MDR Europe Q4 2023 and Forrester Q1 2025 MDR evaluations, demonstrating exceptional performance in the areas of global strategy, threat detection, and XDR coverage. Local resellers and global partnerships, such as KDDI Europe, are making the Falcon Complete MDR platform more accessible in Japan.In July 2023, NTT Japan launched a cloud-based outsourcing MDR offering that was specifically designed to detect and respond to cyber threats in a timely manner. This offering was a response to the increasing demand from Japanese organizations.

Japan Managed Detection and Response Market Segmentation Insights

Managed Detection and Response Market Service Type Outlook

• • Threat Intelligence
  • Incident Management
  • Monitoring Services
  • Vulnerability Management

Managed Detection and Response Market Deployment Type Outlook

• • Cloud-based
  • On-premises

Managed Detection and Response Market End User Outlook

• • Small and Medium Enterprises
  • Large Enterprises
  • Government Agencies
  • Financial Institutions

Managed Detection and Response Market Industry Vertical Outlook

• • Healthcare
  • Retail
  • Manufacturing
  • Telecommunications
  • Information Technology

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	109.12(USD Million)
MARKET SIZE 2024	125.62(USD Million)
MARKET SIZE 2035	501.72(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)	13.415% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Million
KEY COMPANIES PROFILED	SoftBank Technology, CyberAgent, Secureworks, CrowdStrike, Palo Alto Networks, NEC, TIS, Trend Micro, Check Point Software, Rizicom, Fujitsu, IBM, Mitsubishi Electric, Cybersecurity Factory, NTT Security
SEGMENTS COVERED	Service Type, Deployment Type, End User, Industry Vertical
KEY MARKET OPPORTUNITIES	Growing cybersecurity regulatory frameworks, Increased demand for cloud security solutions, Rising cyber threats among enterprises, Adoption of AI and machine learning, Expansion of remote workforces requiring security
KEY MARKET DYNAMICS	increasing cyber threats, regulatory compliance needs, demand for advanced analytics, cloud adoption growth, rising awareness of cybersecurity
COUNTRIES COVERED	Japan