Opportunities rise for UK firms in Northeast Asia's cyber market

The rising demand for cybersecurity solutions in Japan, South Korea, and Taiwan amidst increasing digital transformation is presenting opportunities for UK tech companies, according to a new report.

The report, part of the UK-APAC Tech Growth Programme and commissioned by the UK government, explores the cybersecurity market in Northeast Asia. It has been produced by Intralink, an international business development consultancy, and outlines specific opportunities for UK firms in sectors like manufacturing, automotive, and healthcare.

In Japan, the cybersecurity market, currently ranked as the 16th largest globally, is expected to grow to GBP £6.2 billion by 2027. Challenges such as low investment levels, outdated systems, and a shortage of cybersecurity professionals have led Japanese corporations to depend heavily on international expertise to tackle the increasing number of cyberattacks. The report indicates that the healthcare sector, in particular, has specific needs for encryption tools, advanced threat detection, and access management solutions, while manufacturing requires operational technology cybersecurity solutions due to rising adoption of cloud computing, the Internet of Things, artificial intelligence, and automation.

Similarly, South Korea, known for its digital advancement, is experiencing a rise in cyber threats. The country's Ministry of Science & ICT (MSIT) has initiated a 'Strategy to Secure Global Competitiveness in the Information Security Industry', aiming to expand its cybersecurity market to GBP £6 billion by 2027. While enhancing domestic expertise is a priority, South Korea also seeks international collaboration, particularly in the automotive, manufacturing, and telecommunications sectors.

Taiwan, a crucial player in the global semiconductor industry, views cybersecurity as imperative, with the market expected to reach GBP £785 million by 2027. Although Taiwan has a robust domestic cybersecurity sector, it continues to look for UK expertise in threat intelligence, cybersecurity training, and advanced security systems development.

Sam Leng, Senior Project Manager at Intralink and one of the authors of the report, acknowledged the potential for UK businesses in these markets, stating: "Japan, South Korea and Taiwan present significant opportunities for UK cybersecurity businesses." He further emphasised the requirement for sensitivity to local business cultures when entering these markets. "Each market requires UK expertise and its corporations are seeking commercial collaborations. However, entering these markets necessitates an approach that's sensitive to local business cultures. For instance, in Japan, companies often begin by working with agents and distribution partners before establishing a local presence. And in Korea, navigating the complex regulatory framework is much easier with a well-established partner. Through the UK-APAC Tech Growth Programme, we can help UK businesses understand these market differences and dynamics, ensuring they adopt the most effective entry strategies."

The UK-APAC Tech Growth Programme assists high-growth technology firms in expanding their reach within the Asia Pacific region. The programme offers participating companies access to market entry guidance, business development support, and connections with potential partners and customers across 11 markets, including Japan, South Korea, and Taiwan.