Global Data Center Physical Security Market Grows Steadily at a CAGR of 7.22%

Introduction

Globally, data centers are designed and built as mission-critical facilities. They are used to analyze data produced by consumers and enterprise end-users. Data centers are shielded from both logical and physical security threats. All modern data centers employ at least four security layers to prevent unauthorized access.

Storage devices and servers are components of a data center. The physical security of these components includes protection from external threats and intrusions that could disrupt business operations. Access control systems, camera-based video surveillance, and perimeter security are also included.

Market Dynamics

Increasing Construction of Hyperscale Data Centers Drives the Global Market

Hyperscale data centers are typically constructed on vast tracts of land, with many exceeding 100,000 square feet. The physical security of such hyperscale data centers must be extensive, with video surveillance, access controls, and the presence of data center technicians all contributing to the data center's safety from physical threats. In 2020, the global hyperscale market saw investments in approximately 120 hyperscale initiatives with a power capacity of over 15 MW.

Additionally, investments were made in the United States for around 47 hyperscale data center ventures in North America. The largest contributor was Facebook, which is developing 16 hyperscale data centers nationwide with an estimated total investment of USD 6.20 billion and a total power capacity of about 950 MW. As a result, the factors above are anticipated to increase market size.

Use of Anti-Climb Perimeter Security Creates Tremendous Opportunities

Data center operators have begun to acquire efficient and effective infrastructure, such as anti-climb fencing, as opposed to simple chain link fencing. With additional security that detects intruders close to or smashing through the fence, anti-climb perimeter security systems operate tactilely and visually. The demand for anti-climb perimeter fencing is soaring as data center investments increase yearly.

The security of all data centers must come first, and areas where terrorist attacks have occurred in the past require the installation of anti-climb perimeter protection systems. For instance, Teraco Data Environments, Reliance Jio Infocomm, N+ONE, and Africa Data Centres have outfitted their data centers with various types of perimeter fencing. It is anticipated that during the forecast period, an increasing number of data center operators will adopt perimeter fencing to ensure the security of user data, creating opportunities for market expansion.

Regional Analysis

North America is the most significant global data centeecurity r physical smarket shareholder and is estimated to exhibit a CAGR of 6.37% during the forecast period. The market for physical security in North America is expanding because of the rapid expansion of data centers. With early availability and adoption of cutting-edge technology and investments from colocation service providers, hyperscale data center operators, businesses, and government organizations, the North American data center market is propelling growth throughout the entire data center industry. All new technological advancements in the field of data centers must first pass through this region, which functions as an incumbent.

In 2020, the North American market witnessed the development and expansion of approximately 145 data center facilities, of which over 130 are in the United States and 13 are in Canada. Canada is also a developing market for data centers. The region also sees increased investments in constructing hyperscale facilities with power capacities exceeding 20 MW. With a combined power capacity of over 20 MW, over 50 hyperscale data centers were operational in North America in 2020.

Key Highlights

• The global data center physical security market was valued at USD 782.65 million in 2022. It is estimated to reach USD 1,465.71 million by 2031, growing at a CAGR of 7.22% during the forecast period (2023–2031).
• Based on the product, the global data center physical security market is bifurcated into video surveillance, access control, and other physical security. The video surveillance segment dominates the global market and is predicted to exhibit a CAGR of 5.82% during the forecast period.
• Based on physical security layers, the global data center physical security market is segmented into perimeter security, building security, data hall security, and cabinet security. The building security segment is the highest contributor to the market and is projected to grow at a CAGR of 6.90% over the forecast period.
• Based on end-users, the global data center physical security market is segmented into colocation data centers and enterprise data centers. The colocation data centers segment is the largest contributor to the market and is projected to exhibit a CAGR of 7.44% throughout the forecast period.
• North America is the most significant global data center physical security market shareholder and is estimated to exhibit a CAGR of 6.37% during the forecast period.

Competitive Players

1. Axis Communication
2. Assa Abloy
3. ABB
4. BioConnect
5. Bosch Security
6. Cisco Systems
7. Honeywell International Inc.
8. Johnson Controls International plc
9. Schneider Electric
10. Siemens AG
11. Tyco International
12. Hikvision Digital Technology Co., Ltd.
13. Genetec Inc.
14. Pelco
15. Avigilon

Recent Developments

• April 2024-Vertiv introduced SmartAisle 3, an AI-powered micro modular data center system, enhancing operational efficiency and energy savings. Available in Southeast Asia, Australia, and New Zealand, it optimizes data center operations with AI functionality, self-learning capabilities, and streamlined setup, catering to the Global Data Center Physical Security Market's demand for advanced, efficient solutions.
• December 2023- The UK government is proposing new data center security regulations to enhance security and resilience in data infrastructure, including data centers. The regulations aim to make minimum security requirements mandatory for data center operators, ensuring appropriate steps are taken to boost physical and cyber security, aligning with the Global Data Center Physical Security Market's focus on stringent security measures.

Segmentation

1. By Product
   1. Video Surveillance
   2. Access Control
   3. Other Physical Security
2. By Physical Security Layers
   1. Perimeter Security
   2. Building Security
   3. Data Hall Security
   4. Cabinet Security
3. By End-Users
   1. Colocation Data Centers
   2. Enterprise Data Centers