IC-AJCC 2023
International Conference on ASEAN-JAPAN Cybersecurity Community

The Current State ofthe Cybersecurity Market in Japan〜and related activities for it’s growth〜
Itsuro Nishimoto
President and Representative Director
LAC Co,.Ltd.
2023.10.06© 2021 LAC Co., Ltd.

Profile

Itsuro Nishimoto
President,CEO LAC Co., Ltd.
CISSP

Joined LAC Corporation in 1986. He served as a programmer, responsible for thedevelopment and planning of numerous information and communications systems.
In 2000, he moved into the security business, building and launching JSOC, one of thelargest security centers in Japan. In April 2017, he assumed the role of Representative
Director and President of the company. He has lectured on information security
measures at government offices, universities, public corporations, companies, IT
events, seminars, etc., he also works as a commentator on newspapers and web
medias, TV news programs, etc.
- External Activities
Outside Director, BroadBand Tower Corp.
Director and Secretary General, Japan Smartphone Security Association (JSSEC)
Director, Security Camp Council, a general incorporated association
Director, Japan Cyber Crime Center (JC3)
Representative Director, Cyber Security Career Support Association (JTAG)
Advisor, National Liaison Committee for Grassroots Cyber Security (Grafsec)
Served as a member of Cabinet Secretariat, Information Security Policy Council,
Awareness and Human Resource Development Specialist Committee
Served as a member of the Ministry of Internal Affairs and Communications,
Smartphone Cloud Security Study Group
Served as a member of the Ministry of Economy, Trade and Industry, Cyber Securityand Economic Research Group
Served as a member of the National Police Agency, General Security Council- Achievements
Commendation from the Director-General of the International Information andCommunications Strategy Bureau, Ministry of Internal Affairs andCommunications, Information Security Culture Award 2013- Author"The truth of cyber war that countries, companies and media never talk about"(KADOKAWA Publishing)"Cyber self-defense starting right now: how to prevent identity theft,
unauthorized access...? (Nikkei e-Shinsho)Company Outline
Our Purpose
Company Name

Building A Trusted Society With Reliable Technology

LAC Co., Ltd.

Business

Cyber Security Services
System Integration Services
Sales and service of information system relatedproducts

Head Office

Hirakawa-cho Mori Tower
2-16-2 Hirakawa-cho,Chiyoda-ku
Tokyo 102-0093

Local OfficeToyocho Office
Nagoya Office
Fukuoka Office
LAC Techno Center Kitakyushu
LAC Techno Center Akihabara
LAC Techno Center Asahikawa
Singapore Branch

Number ofEmployees
Establishment

2,172 (as of April 2023）

Hirakawa-cho
Head Quarter

Security Services
As of45%

19.38 billion yen

March 2023
2007 October 1 (Founded in Sep 1986)

Capital2,848,075,000 yen

Sales

42.6 billion yen（as of Mar 2023）© 2023 LAC Co., Ltd.

Singapore

42.66
Billion yen

System Integration Services

55% 23.28 billion yen

Security Services
With our industry-leading technological capabilities, we provide advanced security services
to various major companies and government agencies
Abundant security personnelSecurity Consulting

Number of Security
Service Employee

Emargency
Operation

Comprehensive
Security
Services

SurveillanceManaged Service© 2023 LAC Co., Ltd.

728
169

Registered Information
Security Specialist

Knowledge of the latest cyberattacks
Number of cyberincidents handled（FY2022）

Security Diagnosis

Approx

Education & Training

Approx500

Cloud Security Managed Servicewith AI Technology

Cyber Security Market in Japan© 2021 LAC Co., Ltd.

NPO Japan Network Security Association
https://www.jnsa.org/en/aboutus/

Established as a a voluntary association at Apr 2000. 268 Companies joined (as of Sep 2023)
They conduct a wide range activities related to Cyber Security and published some research reports in English.

SecBoK 2021(Education Committee)<SecBoK 2021 -Security Body of Knowledge>

Survey Report of Information
Security Incident

NPO Japan Network Security Association
https://www.jnsa.org/en/aboutus/

JNSA Security MarketSurvey Report 2022

NPO Japan Network Security Association
https://www.jnsa.org/en/aboutus/

Domestic Security Market Survey Report 2022
https://www.jnsa.org/result/surv_mrk/2023/2022_securitymarket.pdf

NPO Japan Network Security Association
https://www.jnsa.org/en/aboutus/

JNSA Security Market Survey Report 2022
https://www.jnsa.org/result/surv_mrk/2023/2022_securitymarket.pdf<Outline>
Unique Survey Activity by JNSA member･2004 Start survey as a government project (METI)･2010 Changed JNSA original survey from 2010
･2020 reviced survey items and market classification
Security market research by JNSA members, for JNSA members• Continuously monitor the security market and security industry.
• Have the survey results be useful for the business of JNSA member companies.
• Leaning research methods from each other through research activities.

NPO Japan Network Security Association
https://www.jnsa.org/en/aboutus/Market Segmentation
Med category

Security Tools

Endpoint Protection/Management

AV, EDR, Policy･Setting･Operation Monitoring

Network Protection & Detection/Perimeter Defense

FW,VPN,IDS/IPS, WAF,UTM,Security Info,Physical Security

Contents Security

DLP, Encryption, Mail Security, URL Filtering, Vulneravirity

Identity / Access Control

Authentication,Biometric Auth, ID Management, PKI …etc

Med category

Security Services

Business Type

Small category

Small category

Consulting/Diagnosis Service

Consulting, Audit/Evaluation/Diagnosis, Standards certification

Managed / Operation Service

SOC, Incident response, Forensic, Threats Intelligence

Other Services

Electronic Certificate, PK Type Auth,Education,Inurance

Overseas manufacturers
Domestic manufacturer
Trading Company, Distributor (1st Tier Retailer)
2nd/3rd Tire Retailer with SI/NI Capabilities

Major SI
Consulting firm
Security service provider
Others (cyber insurance/other industries)

NPO Japan Network Security Association
https://www.jnsa.org/en/aboutus/

Market Size of Tools and Services
In recent years, demand has increased
due to the progress of digitaltransformation, the increase in cyberattacks, and the spread of telework.

20192020
Security Tool Market

2021
Security Service Market

2022

AI and machine learning are being
incorporated as advanced and continuous
countermeasures, and tools and services
have appeared to improve the speed ofincident discovery and recovery.
Cloud security market is also expanding.

Security Tool Market

Security Service Market

From 2022 onwards, as the tool market
expands, the service market is also
expected to expand.

NPO Japan Network Security Association
https://www.jnsa.org/en/aboutus/

Market Trends of Security Tools
FY 2021¥ 768.6 Billion
Contents
Security

Identity Access
Management

4.8% Increased

FY2020¥ 733.5 Billion
Security Tool Market

EndpointProtection

The shift from perimeter defense to zero trust
has begun, and the introduction of EDR hasprogressed.
The expansion of cloud services and teleworkhas created demand not only for zero trust but
also for stronger perimeter defense products.
Cloud shift has increased demand for identity
management and logon management.

Security Service Market

Contents Security
Network Defense Detection
Perimeter defense
Endpoint Protection
Identity/Access
Management

2019
Consulting/Diagnosis

2020
Network Defense Detection
Perimeter Defense

2021
Contents Security

2022
Identity/Accrss Management

NPO Japan Network Security Association
https://www.jnsa.org/en/aboutus/

Market Trends of Security Services
FY 2021¥ 563.6 Billion

Demand for consulting services is increasing.

Surrounding
ServicesManaged･Oparation
Services

5.9% Increased

Consulting/Diagnosis
Services

In the education and qualification market, bothface-to-face training and training throughonline meetings are on a growth trend as
Covid-19 has subsided.

FY2020¥ 532.2 Billion
2019

2020

2021

Security Tool Market

Security Service Market

Security Tool Market

Security Service Market

Incident response and forensics are alsoseeing high growth rates.

2022

Consulting/Diagnosis
ServicesManaged･Oparation
Services
Surrounding
Services

Consulting/Diagnosis

Managed･Oparation

SurroundingServices and Tools1. There is some entry into the service market from overseas,
but domestic services are also doing quite well.
2. Many of the tools are made in Europe and America.
Recently, it has become common to see Singaporean capitalin ventures in places like Israel.
I hope that the ASEAN countries, including Japan, will havemore opportunities to mutually advance into each other basedon tools.

In Addition

What can be seen from thecharacteristics of security tools (devices)Deterioration of quality over time (personal image)
General Hardware

General Security Software

Quality

Quality

Time LapsedThe quality of general hardware
deteriorates over time.

General Software

Time Lapsed

The quality of general security software tends todeteriorate rapidly as new threats appear frequently.

Quality

This is Why new products are coming out
one after another.
Time Lapsed

The quality of general software
improves with updates.

It will be a huge opportunity for companies
entering cyber security market in the future.
16Performance degradation due to the emergenceof new threats is the fate of security software.
On the other hand, I think there are opportunities
to develop new markets with each trend.

Introducing Various Activities
For Security Market in Japan

Security Camp
What is Security Camp?
・Business Start : 2004~
・Hosted by : Security Camp Council,IPA(Information-technology Promotion Agency, Japan)
METI (Ministry of Economy, Trade and Industry)
Security Camp Committee is organization that aims to identify and develop young, world-class information
security personnel from Japan who will lead the next generation.
We are holding national conference annually, local conference about 10 times a year, and some
additional (very exciting) events.
https://www.security-camp.or.jp/19

National Conference of Security Camp20National Conference of Security Camp

21

Point of Security Camp・Lecturer is a high-level technician / researcher
・Advanced lectures / exercises
・Provide programs importance to train of legal
knowledge, morals and ethics too.
・4 learning event : National convention, Next Camp,Mini Camp and GCC

22

GCC (Global Cybersecurity Camp)
GCC started as part of this Security Camp.

1. GCC Seoul - Global Cybersecurity Camp 20182019.1.21 – 1.25
2. GCC Tokyo - Global Cybersecurity Camp
2020.2.10 – 2.14
3. GCC 2021 Online - Global Cybersecurity Camp
2021.1.16 – 2.7
4. GCC 2022 Taiwan - Global Cybersecurity Camp
2022.1.8 – 1.23
5. GCC 2023 Singapore - Global Cybersecurity Camp 2023.2.13 – 2.17••••

4 Countries
8 Countries
8 Countries
8 Countries
8 Countries

One-week training camp for young people once a year.
5-7 person attend from each country in Asia.
Offering a variety training by hight level selected instructors.
Developing the next generation of global leaders through English
communication + security.
• Cross-national friendships fostered here will contribute to the developmentof the countries involved.
23

Global Cybersecurity Camp• Building trust by learning together, thinking
together, eating and sleeping together for a week(or a month) during youth period• Helping to create peace in the future throughfuture business cooperation and exchange ofinformation in case of emergencies.

Furthermore, we began to establish
ACSC and challenge for ICC.

25

Human Resource development through international collaboration (2)ICC: International Cybersecurity Challenge --- Worldwide CTF Competirion (ENISA)ACSC: Asian Cyber Security Challenge --- ICC Asian Qualifies. 9 Asian countries.
ACSC Qualifies
5: NorthAmerica/Canada
2023.Feb.25-26@online
https://acsc.asia/

1. Japan
2. Korea
3. Taiwan
4. Singapore
5. Malaysia
6. Thailand
7. Vietnam

1:Europe
6:North America

8. India
9. Mongol
10.Indonesia

3:Asia:ACSC
2:Aflica

7:Sough America
ICC Final
2023.Aug@United States
https://ic3.games/

4:Oceania
Purpose of ACSC/ICC• Strengthening inter-organizational collaboration and personal connections• Improving cybersecurity capabilities• Finding excellent human resources and providing various opportunities
26

Result of ICC
1st Team Europe
2nd Team Oceania
3rd Team Asia (*Team Adia won “Attack & Defense” at Day 2)

I would like to ask for Your Support
in the management of ACSC
and in the ICC challenge.

29

Activities related to Smartphone Security--- Devices that have become familiar to us ---JSSEC (Japan Smartphone Security Association)
LAC supported the establishment of JSSEC and serves as the administrative office.

31

Android Application Secure Design Secure cording Guidebook
LAC supported to publish Secure Coding Guidebook.

32

Today I Introduced

Security Camp

But there are still many activities for development
and growth of the Security Market in Japan.

33

Let’s Grow Together in ASEAN and Japan
G to GA to A
B to BO to O

Government
AcademicBusiness
Organization (Non-Profit base)

Deepen GABO to GABO communication!!
34

Thank You

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© 2021 LAC Co., Ltd.