Japan turns to dual-use technologies
Japan's military is turning to civilian innovation – from AI and advanced materials to cybersecurity and space systems.
Since the signing of the Treaty on Comprehensive Strategic Partnership between North Korea and Russia in July 2024, there have been increased fears about the destabilisation of Northeast Asia’s security landscape.
This has led to a critical need for the convergence of civilian and military technology to rapidly strengthen Japan’s modern defence capabilities and bolster national security, a need that has resulted in the country’s cabinet approving a record JPY8.7 trillion (USD55.1 billion) defence budget for fiscal year 2025 – a 9.4% year-on-year increase.
This decision forms part of the broader five-year defence programme through fiscal 2027, with total defence-related spending targeted at JPY43 trillion. It represents continued progress towards Japan's goal of reaching 2% of GDP by fiscal 2027.
Dual-use innovation driving military capability development
Non-traditional defence technology (NDT) is at the forefront of modern military capability development. With origins in civilian applications, such innovation has proven adaptable to defence needs. While traditional military research and development (R&D) follows established paths, commercial technology often moves at a swifter pace. This makes it particularly advantageous for militaries as it can meet the rapidly changing demands of the battlefield.
The cybersecurity sector is an example of this synergy. Solutions initially crafted to defend civilian infrastructure have found a natural home in military networks. Today's interconnected defence systems demand robust protection, and commercial innovations – from network security to cloud computing and digital forensics – are meeting this need.
For the Japan Ground Self-Defense Force, which is currently expanding its cyber capabilities, this presents a clear opportunity for firms with proven expertise in these domains.
Across the Indo-Pacific, countries are embracing this technology and increasing their defence budgets, from Australia to South Korea, providing opportunities for businesses across the region. Australia’s 2025 defence budget is AUD55.7 billion (USD36.8 billion), while South Korea has allocated KRW61.6 trillion (USD46.3 billion). Each country brings its own priorities and requirements, yet all share an interest in proven dual-use technologies.
Indo-Pacific defence ministries are increasingly seeking dual-use uncrewed aerial vehicles for surveillance. Indonesia, for example, is acquiring 12 Anka drones from Turkish Aerospace Industries to bolster its maritime security, while South Korea’s strategic partnership with defence company LIG Nex1 reflects a focus on AI-driven hypersonic guidance and navigation systems.
In addition, Australia is prioritising AI and quantum computing through the AUKUS Pillar II effort, while India trials loyal wingman drones for border security.
Civilian innovation supports military capability
AI and machine learning are key areas where civilian innovation is supporting military capability. Commercial developments in predictive maintenance are being applied to military vehicles and aircraft while AI-driven surveillance systems are enhancing security operations. Initially developed for business applications, natural language processing is finding new purpose in intelligence analysis and communication systems.
Japan’s commercial space sector is a particularly vibrant dual-use environment, with firms like Mitsubishi Electric and startups such as Terra Labo helping to reduce launch costs through reusable rocket research and development for the military. Their satellite constellation technologies are being leveraged for hypersonic missile tracking under the 2025 Defense Buildup Program, while collaboration with SpaceX’s Falcon 9 ensures cost-effective launch of Japan Self-Defense Forces payloads.
Similarly, the space domain awareness sector encompasses a broad range of dual-use companies, offering valuable opportunities for companies as Japan strengthens its capabilities in this area.
Advanced materials and manufacturing technologies mark another significant area of crossover. Civilian sector developments in composite materials, smart textiles and advanced manufacturing processes are finding defence applications in personnel protection, equipment maintenance and logistics support. The adoption of 3D printing technology is changing spare parts management and rapid prototyping in both civilian and military contexts.
DSEI Japan
DSEI Japan 2025 offers a direct route to understanding this complex landscape. Attendee numbers from the 2023 event reflect this: 57% of attendees were industry representatives while 26% were military personnel, creating an environment where innovation converged with military expertise.
Notably, small and medium-sized enterprises made up 48% of company attendees, highlighting how the event has become a crucial platform for innovative firms seeking to navigate the defence sector. At DSEI Japan, you'll receive essential knowledge about export controls, security requirements and certification standards, required to be competitive within defence.
The presence of prime contractors and Tier one-three enterprises at DSEI Japan offers valuable opportunities for dual-use technology providers to integrate into broader supply chains. The 2023 event brought together 291 exhibiting companies and attracted 8,432 attendees from 78 countries, creating an unparalleled networking environment in the Indo-Pacific region.