Japan-NATO partnership deepens bringing significant opportunities for industry
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Japan is looking for partners, including from NATO, to help modernise its defence capabilities, with significant opportunities in cyber and emerging and disruptive technology.
Japan is accelerating its defence transformation, an approach that’s driven by growing security challenges from North Korea's nuclear programme and China's military expansion in East Asia.
In December 2022, Japan approved three crucial security policy documents – the National Security Strategy, the National Defense Strategy and the Defense Buildup Program – which outline plans to substantially increase defence spending and develop new military capabilities across seven critical areas. (Read more here.)
This is in response to regional tensions and represents the country’s commitment to supporting allies, particularly in scenarios involving Taiwan and South Korea.
Collaborating with NATO
Understanding that any major conflict would impact both Europe and the Indo-Pacific, Japan is working to develop shared defence capabilities and resource-sharing frameworks with partners from NATO. This partnership has become closer in recent years, with Japan participating in a NATO Defence Ministers’ meeting for the first time in October 2024.
Key areas on which both parties are cooperating include cyber defence, maritime security, and emerging and disruptive technology.
Some of their key areas of collaboration include:
- In cybersecurity, Japan is actively participating in NATO exercises such as Cyber Coalition and Locked Shields, while maintaining a presence at NATO's Cooperative Cyber Defence Centre of Excellence in Estonia.
- On the technology front, Japan is partnering with NATO's Science & Technology Organisation, focusing particularly on counterterrorism and explosive-detection capabilities.
- Maritime cooperation forms the third component. As part of this, the Japanese Maritime Self-Defense Force (JMSDF) has conducted joint training exercises with NATO vessels in the Mediterranean and Baltic Sea to improve integration and interoperability. Under the 2023–2026 NATO-Japan Individually Tailored Partnership Programme established in July 2023, the JMSDF is committed to participating in future NATO maritime exercises, though no specific dates have been confirmed.
Japan is also strengthening its intelligence-sharing framework with NATO through new initiatives for classified information sharing and personnel exchange. These efforts gained formal structure through the Individually Tailored Partnership Programme.
Priority areas for collaboration
In an effort to strengthen Japan's defence industrial base, the country is prioritising strategic engagement with major players globally, including from NATO countries, rather than solely focusing on its prime contractors.
As part of this, the Japan Ministry of Defense is encouraging start-ups and small and medium-sized enterprises to enter the defence business, and is promoting sourcing materials, components and manufacturing from allies in critical sectors like the semiconductor industry.
Uncrewed systems
Uncrewed systems are a priority area for collaboration. With Japan facing demographic challenges that impact military recruitment, it has become increasingly important for the country to develop autonomous and semi-autonomous systems, including:
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Maritime surveillance drones for monitoring vast ocean territories
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Tactical uncrewed ground vehicles for dangerous operations
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AI-enabled systems for improved decision-making and threat detection
The country has already acquired a range of uncrewed systems from NATO members, such as Estonia and the US, to meet these demands.
Integrated air and missile defence
Integrated air and missile defence is another area that offers significant opportunities for collaboration. This encompasses not only traditional missile defence systems, but extends to counter-hypersonic technologies and advanced radar systems.
International expertise in these areas is particularly valuable as Japan seeks to build a multilayered defence architecture that can address evolving regional threats.
Cyber and electromagnetic domains
The cyber and electromagnetic domains represent another crucial area for collaboration. Japan's defence establishment has coined the term USADEN – an acronym for uchu (space), saibah (cyber) and denjiha (the electromagnetic spectrum) – to describe the integration of space, cyber and electromagnetic capabilities.
Opportunities for international companies include contributing to the development of Japan’s new airborne electronic warfare (EW) system the P-1 EW, which is based on the Kawasaki P-1 maritime patrol aircraft and is estimated to need JPY41.4B/USD287M in funding. Described by the Acquisition, Technology & Logistics Agency as a multisensory platform, the P-1 EW will be able to neutralise enemy radar and communications through its enhanced electromagnetic wave detection.
Sustainability and resilience
Finally, sustainability and resilience have emerged as key focus areas as Japan aims to enhance its domestic ammunition production capacity, strengthen military infrastructure against various threats, and improve its ability to sustain operations during prolonged conflicts.
International partners with expertise in infrastructure hardening facilities, logistics management and supply chain resilience will find significant opportunities for collaboration.
Explore potential partnerships at DSEI Japan 2025
DSEI Japan 2025 is the forum where international companies can understand Japan's evolving defence posture, build relationships with key stakeholders and develop informed strategies for supporting Japan's defence modernisation efforts.
With a large percentage of attendees coming from the Indo-Pacific region and strong representation from Japanese small and medium enterprises (48% of industry attendees), DSEI Japan 2025 provides an ideal environment for exploring potential industrial partnerships and understanding the local defence industrial base.
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