Data Center Physical Security Market - Global Outlook and Forecast 2020-2025

INDUSTRY INSIGHTS

The global data center physical security market size to cross USD 1 billion by 2025, growing at a CAGR of 4% during the forecast period. The global physical security market is expected to witness significant investments from hyperscale service providers. 

The increased preference for multi-layer safety, especially five-layer ones due to the increasing demand for colocation services, is a major driver for the market's growth. The market also observes high growing demand for multi-factor authentication and CCTV monitoring solutions along with perimeter fence, 24/7 onsite security guards, mantraps, CCTV surveillance, card readers, and biometric authentication. The US is expected to emerge as a major contributor to the global market, followed by China and the UK. In 2019, India, Japan, Thailand, Kenya, Nigeria, and Indonesia witnessed multiple new entrants investing in building large facilities. The implementation of 5G has commenced in multiple countries across the globe, which will have a major impact on the market, with telecommunication providers partnering data center service providers in establishing edge facilities.

SNIPPETS

• Western Europe witnessed investments in over 100 data center projects, with Germany leading the list. Increased investments are likely to accelerate the adoption of physical security systems.
• The emergence of edge facilities is expected to be a major boost to the market growth after 2022.
• North America is likely to dominate the physical security market with investments in 50 hyperscale development projects across the US and Canada.
• China and India are likely to attract investment, which is likely to boost the demand for key cards, ID verification, retina scanning, badge readers, and biometric access during the forecast period.

DATA CENTER PHYSICAL SECURITY MARKET SEGMENTATION

This research report includes a detailed segmentation by:

• Products
• Security Layers
• End-users
• Geography

INSIGHTS BY PRODUCTS

Video surveillance systems are expected to reach revenue of over $373 million by 2025. As network-based video surveillance systems reduce running costs, increase flexibility, offer video analytics, and provide high-quality pictures, their adoption is likely to grow globally. North America is a major market for physical security devices; with hyperscale operators opting for six-layer protection covers to prevent unauthorized accesses, the segment is likely to observe growth.

The demand for access control security systems is growing due to increased investments in data centers. They have installed access control systems with additional features. The demand for multiple physical security solutions is growing in the market.  Denmark is witnessing an increase in access barriers with mantraps, contactless key cards, and biometric readers. Similarly, the adoption of intelligent solutions in Norway will continue to grow, thereby influencing the market growth.

INSIGHTS BY SECURITY LAYERS

With the growth of data centers at rural locations due to land unavailability in urban locations, most facilities are installing high-security perimeter fence. Most data center perimeter fences are installed with continuous monitoring devices such as video surveillance, sensors, and motion detectors. Hence, with the increased investments YOY, the adoption of the perimeter fence is growing.  Building security includes mantraps, biometric scans, kay cards, and PIN access. The segment is expected to grow on account of increased innovations. Several facilities are installing the retina scan with the multi-factor authentication system in their server and monitoring rooms. In Western Europe, the increased hyperscale facility development in Belgium and the Netherlands are likely to increase building security devices. Most facilities are installing additional access systems such as biometric to prevent physical intrusions and breaches. The increased installation of racks in the existing data centers is increasing the adoption of cabinet security solutions.

INSIGHTS BY END-USERS

With the opening of cloud solutions among leading cloud service providers, the need for wholesale colocation space is growing. These service providers are either constructing their own data centers or are working with colocation providers to build a “built-to-suit” facility for their operational requirements. These factors are likely to affect the growth of the colocation segment. Moreover, several leading financial, healthcare, and IT software service providers are colocating wholesale colocation space as the demand is soaring for these services.

Enterprise services are witnessing a surge on account of the increased hyperscale development. Educational institutions, BFSI firms, and healthcare providers construct their own facilities close to their business operations or across geographically distributed locations in the region. The majority of the investments in physical security solutions among enterprise facilities will be through hyperscale self-built facilities and on-premise containerized data center development in developing countries. The number of enterprise-owned data centers is higher than colocation facilities; however, service providers face challenges in managing these facilities over the past decade. Therefore, they are shifting to colocation services for managed hosting and cloud services.

INSIGHTS BY GEOGRAPHY

North America is the major contributor to the global data center physical security market share. Several facilities have installed five or six-layered systems to protect data stored. Hyperscale operators such as Google cloud data centers are installed with six encryption layers to prevent unauthorized access. The company has installed vehicle barriers, perimeter defense systems, wide-ranging CCTV surveillance, biometric authentication, and 24/7 guard staff. Virginia, Texas, California, Oregon, New York, Michigan, Arizona, Toronto, Montreal, and Illinois are the major markets for data center operations.

INSIGHTS BY VENDORS

The global data center physical security market dynamics is highly dependent on the construction of new facilities, especially greenfield properties by colocation and enterprise operators. Over the past two years, the market has been driven by key players, colocation providers, as several enterprises have considered expanding their offerings worldwide. The market is also aided by the increasing construction of modular and prefabricated spaces inside the office environment. The concept of edge computing is likely to emerge as a strong growth enabler for the market. However, vendor partnership with the modular service provider is key for their revenue growth.

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

Market Segmentation by Product

• Video surveillance
• Access controls
• Other products

By Security Layer

• Perimeter         
• Building
• Data Hall
• Cabinets

By End-users

• Colocation Data Centers
• Enterprise data centers

By Geography

• APAC
  • China & Hong Kong
  • Australia & New Zealand
  • India
  • Japan
  • Rest of APAC
• Western Europe
  • UK
  • Germany
  • France
  • Netherlands
  • Ireland
• Central Eastern Europe
  • Russia & Czech Republic
  • Poland & Austria
  • Others
• North America
  • US
  • Canada
• Southeast Asia
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Others

• Nordic
  • Denmark
  • Norway
  • Sweden
  • Finland & Iceland
  • Others
• Middle East
  • GCC
  • Others
• Africa
  • South Africa
  • Others
• Latin America
  • Brazil
  • Others