Latin America Data Center Physical Security Market - Industry Outlook and Forecast 2022-2027

MARKET OVERVIEW

Latin America data center physical security market was valued at USD 12.7 Million in 2021 and is expected to reach USD 24.1 Million in 2027 growing at a CAGR of 11.27%. Physical security layers are installed in data centers to prevent unwanted entry and threats. The Latin America data center market is witnessing strong growth and is dominated by colocation providers, followed by internet and cloud service providers. Companies are increasingly working toward ensuring that customer data is protected, by installing physical security measures at the perimeter, building, data hall, and cabinet level. For instance, Equinix’s MX2 data center facility is equipped with card readers, biometric access, mantraps, metal detector points, CCTV surveillance, and 24x7 on-site security.

KEY HIGHLIGHTS OF THE LATIN AMERICA DATA CENTER PHYSICAL SECURITY MARKET

• Increased deployment of the cloud-based and edge data center facilities will increase the demand for physical security solutions such as video surveillance and access control systems.
• Many data centers use Building Management System (BMS) to manage the physical security of their data centers (as part of the overall management of the building), including CCTV cameras, access controls, and even rodent repellent systems.
• In 2021, Brazil and Mexico significantly contributed to the Latin America data center physical security market. In terms of Product, Video Surveillance is the major contributor to the Latin America data center physical security market.
• The rise in data center facilities deployed across the region, mainly in Brazil and Mexico, will increase the demand for physical security solutions such as video surveillance and access control systems.
• There have been advancements in video surveillance systems connected to cloud systems, which provide services such as recording, image captures, analytics, and notification services. These cloud-based video cameras upload constantly and need a reliable connection since they do not come with local storage. Cloud-based video analytics has become the latest trend in data center physical security.
• Cloud computing and edge processing will drive the adoption of advanced video content analytics in the coming years. IoT-based sensors are also increasingly being deployed along with camera-based surveillance solutions.
• Augmented reality (A.R.) is also being tested in data centers for training purposes for technicians. Remote monitoring using Artificial Intelligence (A.I.) is increasingly being done to ensure advanced security on the premises.
• Multi-Factor Authentication (MFA) is the primary security solution in data centers. With the integration of Artificial Intelligence, MFA has become more advanced. For instance, Ascenty’s Queretaro, Mexico 1 facility is equipped with 24/7 monitoring using CCTV cameras, high-definition automatic movement detection, and dual authentication for access control using biometric and magnetic cards.
• The demand for video surveillance systems is rising as data center investments increase YOY. The Latin America video surveillance security market will reach USD 9 million in 2027.
• Installing racks in existing data centers boosts the adoption of cabinet security solutions. The Latin America cabinet security market will grow at a CAGR of 14.04% by 2027.

SEGMENTAL ANALYSIS

The data center physical security market is commonly divided into four layers – Perimeter Security, Building Security, Data Hall Security, and Cabinet Security.

Perimeter Security Layer

In the perimeter security layer, a perimeter fence is installed with continuous monitoring devices such as video surveillance, sensors, and motion detectors. The height of the security fence in most data centers is 3 meters high, with some going up to 5 meters, depending on the facility location. Sensors installed near the perimeter fence detect intrusion and are integrated with video surveillance systems, intrusion alarms, and motion detection security systems. Security systems near the fence respond to intrusion and immediately access network systems. Video surveillance is the most responsive to security breaches and captures H.D. images of threats and intruders; video analytics can identify objects and tactics to spot threats easily.

Building Security

Building security features many procedures to go through before entering the building. They are installed with mantraps, multi-factor authentication comprising biometric scans, key cards, PIN access, and video surveillance to verify the identity of the person entering access points by swiping an access card. These access points prevent tailgating, and video content analytics count the number of people going through the doorway. These access cards and biometrics are used inside the building to access the server and monitoring rooms. Modern data centers include a retina scanner as part of their multi-factor authentication systems.

Data Hall Security

The data hall is the most sensitive area of the data center and has security systems such as CCTV surveillance, biometrics, PIN, and key cards. Data halls are secured through multiple forms of verification and monitor authorized access. Access to the data hall is restricted to a few individuals. Anyone entering the data hall must carry the right key card or token and enter their biometrics, iris scans, and vascular patterns. CCTVs are monitored continuously in the data hall.

Cabinet Security

Cabinet security is equipped with PIN access, biometric scanning, and key cards, and some feature mechanical lock systems. Each rack is monitored by video surveillance, and the data center provides insights, such as which rack is accessed by whom and when these details are recorded, for security purposes.

The Latin America physical security data center market in terms of end-users is divided into Enterprise data centers and Colocation data centers.

Colocation Data Centers

Service providers offer customized colocation solutions with the increased construction of colocation spaces. Pre-leased customers can work with the service provider to design and develop the facility according to the customer’s I.T. infrastructure’s operational requirements. The Latin America data center physical security market by colocation end-users is expected to grow at a CAGR of 10.39%.

Enterprise data centers

Across Latin America, the number of enterprise-owned data centers is still higher than that of colocation facilities. Over the past decade, enterprises have faced difficulties building, operating, and managing their data centers. As a result, they are moving to colocation, managed hosting, and cloud services providers for their operational business needs. Enterprises prefer colocation facilities because of budget constraints, scalability, faster market time, interconnectivity, and cloud connectivity.

GEOGRAPHY AND VENDOR ANALYSIS

• In 2021, Brazil and Mexico were significant contributors to the Latin America data center physical security market, wherein Mexico alone contributed to more than 36% of investment within the market.
• The increase in the data center investments across countries such as Chile, Peru, and Colombia is likely to increase the investments in physical security in these countries over some time.
• Major Physical Security service providers in Latin America include ASSA ABLOY, Axis Communication, ABB, Bosch Security Systems, Cisco Systems, Johnson Controls, Legrand, Siemens, and Schneider Electric.
• The deployment of 5G services, the opening of cloud regions by major operators such as Google, Microsoft, AWS, and Alibaba Cloud, and increasing colocation investment by operators such as Equinix, Ascenty (Digital Realty), ODATA, HostDime, Scala Data Centers and others will be a significant revenue booster for the players operating in the market.