DATA CENTER PHYSICAL SECURITY MARKET OUTLOOK

The global data center physical security market is expected to grow at a compound annual growth rate (CAGR) of 7.42% over the forecast period to reach a market size of USD 1045.9 million in 2026 from USD 680.4 billion in 2020.

The data center market is witnessing strong growth in the development of multiple large facilities. The data center market is mainly dominated by colocation providers, followed by internet and cloud service providers. With the increasing development of sophisticated technology and vast amounts of data, the data center security market is becoming essential for operators. Companies are increasingly working towards ensuring that customer data is protected by installing physical security measures. For instance, SIFY Technologies is investing in facilities across India equipped with physical security systems such as video surveillance, motion detection, and multi-level access control along with physical security guards. 

KEY HIGHLIGHTS

• Many data center service providers and telecommunication service providers have announced investments in edge facilities, accelerating the growth of the data center physical security market share.  
• The development of data centers has skyrocketed in recent times and is creating significant opportunities for vendors to offer security solutions for the facilities.
• Around 50 percent of key decision-makers have identified the physical security of data centers as one of their top three concerns in data center operations.
• The US, APAC, and Western Europe regions were the major contributors to the data center security market in 2020.
• China and India are attracting new entrants in hyperscale data center investments. These countries will give a significant boost to the physical security market in upcoming years.

COVID-19 IMPACT ON GLOBAL DATA CENTER SECURITY MARKET

The local and global vendors manufacturing and supplying security infrastructure faced a significant challenge during the pandemic. During COVID-19, several lockdowns were imposed by the government across the globe. As in some of the region data centers were considered essential services, the working continued with 50% of employee capacity. The threat of cyber-attacks was high, and vendors started to provide high-security solutions to data center operators. Some vendors such as Honeywell International, Johnson Controls, Legrand, Siemens, Bosch Security Systems, Hangzhou Hikvision Digital Technology, and Secure I.T. Environments provide several advanced physical security infrastructures for the data centers.

DATA CENTER PHYSICAL SECURITY MARKET SEGMENTATION

This research report includes a detailed segmentation by

• Product
• Security Layers
• End-users
• Geography

MARKET TRENDS AND SEGMENTS

• An increase in the number of edge data center facilities deployed will increase the demand for physical security solutions such as video surveillance and access control systems.
• With advances in video surveillance, cloud provider security, and high-quality cameras are capturing and collecting vast amounts of data. Cloud-based video analytics has become the latest trend in physical security.
• Cloud computing and edge processing will drive the adoption of advanced video content analytics in the coming years.
• Many hyperscale operators have adopted significant physical security measures to ensure the safety of their facilities.
• Remote monitoring using Artificial Intelligence (AI) is increasingly being done to ensure advanced security on the premises.
• The demand for video surveillance systems is on the rise as data center investments are increasing YOY. The global video surveillance security market is expected to reach $338.7 million in 2026. 
• The installation of racks in existing data centers is boosting the adoption of cabinet security solutions. The global cabinet security market will grow at a CAGR of 7.36% by 2026. 
• Most investments in physical security solutions among enterprise data centers will be through hyperscale self-built facilities and on-premise containerized data center developments in developing countries.

GEOGRAPHICAL ANALYSIS

North America is a significant location for investments in the data center physical security market. The region is a crucial driver and acts as an incumbent for any new technological innovation in the data center arena. The US is one of the most developed markets that will increase the investment in physical security systems in facilities across the region. The data center physical security market in the US is expected to reach USD 429.3 million by 2026. Over 50 hyperscale facilities were active in North America in 2020, which operate at a power capacity of over 20 MW and will create growth opportunities for the vendors in the region.

COMPETITIVE LANDSCAPE

Rapidly developing technologies and innovation in the market are compelling several vendors to offer more innovative solutions to the data center industry. Vendor partnerships with modular service providers are essential for their revenue growth. Some global providers provide solutions that will give them an edge over others in winning data center security installation and commissioning projects. The data center physical security market share is likely to grow in developing regions with more security threats. It is observed that global vendors are partnering with local vendors to capture the new growing market and generate more revenue till the market gets matured.

The global data center physical security market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:

Product

• Video Surveillance
• Access Control
• Other Physical Security

Security Layers

• Perimeter Security
• Building Security
• Data hall Security
• Cabinet Security

End-Users

• Colocation
• Enterprise

Geography

• North America
  • US
  • Canada
• Latin America
  • Brazil
  • Other Latin America Countries
• Western Europe
  • UK
  • Germany
  • France
  • Netherlands
  • Ireland
  • Other Western European Countries
• Nordics
  • Denmark
  • Norway
  • Sweden
  • Finland & Iceland
• Central & Eastern Europe
  • Russia & Czech Republic
  • Poland & Austria
  • Other Central & Eastern European Countries
• Middle East
  • Gulf Corporation Council (GCC)
  • Other Middle Eastern countries
• Africa
  • South Africa
  • Kenya
  • Other African countries
• APAC
  • China & Hong Kong
  • Australia & New Zealand
  • India
  • Japan
  • Rest of APAC
• Southeast Asia
  • Singapore
  • Indonesia
  • Malaysia
  • Thailand
  • Other Southeast Asian Countries