Brazil Data Center Physical Security Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 40.40 Million |
| Market Size (2029) | USD 109.60 Million |
| CAGR (2024 - 2029) | < 21.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Brazil Data Center Physical Security Market Analysis
The Brazil Data Center Physical Security Market size is estimated at USD 40.40 million in 2024, and is expected to reach USD 109.60 million by 2029, growing at a CAGR of less than 21.40% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Brazilian data center physical security market is expected to reach 1,200 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.6 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 231,000 units by 2029. Sao Paulo is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 16 submarine cable systems connecting Brazil, and many are under construction.
An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide and, consequently, the growth of the data center physical security solutions. Several factors contribute to the demand for data centers and their growth within Brazil, reflected by the country's evolving IT landscape, business activities, and technological initiatives. Key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce and digital services, renewable energy and sustainability, and smart cities and IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.
Brazil Data Center Physical Security Market Trends
The IT & Telecommunication Segment Holds the Major Share
- Cloud service providers AWS, Microsoft, Oracle, IBM, Tencent, and Huawei are present in Brazil through cloud regions/availability zones. These companies provide private and public cloud services, primarily for financial companies.
- Major factors driving the demand for data centers in the country include the expansion of cloud computing, penetration of various cloud providers, and increasing investment from domestic players.
- Cloud is an important part of IT infrastructure. In 2021, public cloud spending for Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) was expected to grow by 46.5% to USD 3 billion. The private cloud model generated USD 614 million in revenue from 2022 to 2023. Increasing cloud adoption in most businesses is driven by emerging technologies, such as artificial intelligence, big data, and blockchain, among various end users.
- The COVID-19 pandemic impacted the economic aspect of early entrants in digital transformation by offering digital products and services or using digital processes more than their competitors engaged in digital transformation.
- The telecom segment in Brazil is expanding with the introduction of 5G services. The 5G spectrum winners are expected to meet various buildout obligations, including coverage to 26 capital cities and the federal district by July 2022, coverage to all municipalities with more than 30,000 inhabitants by 2029, and 4G coverage to all towns with more than 600 inhabitants by 2028. Owing to such factors, the demand for data centers from the telecom segment is constantly rising, mirrored by a rapid rise in the infrastructure and resources required for data centers. The manufacturers of data centers are developing cutting-edge, affordable solutions that are scalable and secure to fulfill the rising demand from the telecom industries.
- With the rise of the digital economy and the increasing number of internet users in Brazil, the need for data storage and processing is increasing. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization. Such instances in the market are expected to create more need for data centers, boosting the market studied.
Video Surveillance Holds the Largest Market Share
- Data centers are home to sensitive and vital data, which makes security their highest priority. Data center operators help ensure that security standards and regulations are respected through video surveillance systems, which monitor access, detect unauthorized entry, and maintain compliance.
- Many operators of data centers are using remote video surveillance to keep an eye on their facilities throughout the day. This ensures that all security threats can be quickly addressed, even where staff are not at the site.
- Data protection regulations, such as the Brazilian General Data Protection Law (LGPD), impose strict security and privacy requirements within the country. These regulations must be complied with video surveillance equipment, and, therefore, they are vital for data center operators.
- Brazil was the largest Latin American e-commerce market for remote purchases, totaling USD 79.7 billion in 2020. Since a large portion of the population gained access to the internet for the first time using a smart device rather than a desktop computer or laptop, the increasing penetration of smart devices, particularly smartphones, over the past ten years has been the driving force behind digital inclusion in Brazil. Brazil's high mobile appeal makes it essential that e-commerce solutions are responsive and mobile-friendly.
- The number of people using social media is increasing, along with internet usage. The number of social media users in Brazil increased from 160 million in 2021 to 171.5 million in 2022, equivalent to 79.9% of the total population. Such instances in the market create more need for data storage in the region, which propels the demand for data centers and, consequently, the growth of the data center physical security solutions.
- The key players in the market are focusing on improving data center physical security solutions to meet the market demand. In April 2023, Schneider Electric launched a new service, EcoCare, for Modular Data Center Services membership. Special expertise in maximizing the efficiency of modular data centers by continuously monitoring and maintaining conditions 24 hours a day is available to members of this innovative service plan. The membership provides exclusive support that includes on-site services teams, a dedicated customer success management team, addressing maintenance and infrastructure needs at a system level, and a few other services.
Brazil Data Center Physical Security Industry Overview
The upcoming DC construction projects in the country are expected to boost the Brazilian data center physical security market in the coming years. The market studied is moderately consolidated with some players in the market, including Axis Communications AB, ABB Ltd, Securitas Technology, Bosch Sicherheitssysteme GmbH, and Johnson Controls. These major players, with a prominent market share, focus on expanding their regional customer base.
- In October 2023, Zwipe partnered with Schneider Electric's Security Solutions Group. The France-based multinational Schneider Electric plans to introduce the Zwipe Access fingerprint-scanning smart card to its clientele. This card will be integrated with Schneider Electric's Continuum and Security Expert platforms, serving a client base from airports, transportation, healthcare, data centers, and more.
- In October 2022, Axis Communications announced a new version of the AXIS Optimizer for Milestone XProtect that provides enhanced audio and device management, as well as centralized lists of license plate holders in Milestone XProtect.
Brazil Data Center Physical Security Market Leaders
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Axis Communications AB
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ABB Ltd.
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Bosch Sicherheitssysteme GmbH
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Johnson Controls.
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Honeywell International Inc.
*Disclaimer: Major Players sorted in no particular order
Brazil Data Center Physical Security Market News
- October 2023: Zwipe partnered with Schneider Electric's Security Solutions Group. Schneider Electric plans to introduce the Zwipe Access fingerprint-scanning smart card to its clientele. This card will be integrated with Schneider Electric's Continuum and Security Expert platforms, serving a client base from airports, transportation, healthcare, data centers, and more.
- March 2023: Quantum introduced version 5.0 of the unified surveillance platform (USP) software, a unified compute and storage platform for mission-critical video surveillance and analytics. The software version introduces patented video data reduction techniques to record thousands of video streams simultaneously at maximum uptime with fewer servers required, reducing the risk of hardware failure and data center footprint by up to 80%.
Brazil Data Center Physical Security Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand of Cloud Computing Capabilities Drives Market Growth
4.2.2 Increase Security Concerns in the Market Drives Market Growth
4.3 Market Restraints
4.3.1 The High Costs Associated with Physical Security Infrastructure.
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 By Solution Type
5.1.1 Video Surveillance
5.1.2 Access Control Solutions
5.1.3 Others (Mantraps, and fences, Monitoring Solutions)
5.2 By Service Type
5.2.1 Consulting Services
5.2.2 Professional Services
5.2.3 Others (System Integration Services)
5.3 End User
5.3.1 IT and Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Healthcare
5.3.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Axis Communications AB
6.1.2 ABB Ltd
6.1.3 Bosch Sicherheitssysteme GmbH
6.1.4 Johnson Controls
6.1.5 Honeywell International Inc.
6.1.6 Siemens AG
6.1.7 Schneider Electric
6.1.8 Cisco Systems Inc.
6.1.9 Hikvision
6.1.10 Genetec
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Brazil Data Center Physical Security Industry Segmentation
The data center physical security market refers to the industry focused on providing products and services to safeguard the physical infrastructure and assets of data centers. This includes measures to protect data centers from unauthorized access to premises, hardware theft, vandalism, sabotage, terrorist acts, and other physical threats. The key components of data center physical security include video surveillance and monitoring, access control systems, physical barriers, biometric authentication, and environmental controls designed to ensure the safety and integrity of the data center environment.
The Brazilian data center physical security market is segmented by solution type, service type, and end user. By solution type, the market is segmented into video surveillance, access control solutions, and others. By service type, the market is segmented into consulting services, professional services, and others. By end user, the market is segmented into IT and telecommunication, BFSI, government, media and entertainment, and other end users. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Solution Type | |
| Video Surveillance | |
| Access Control Solutions | |
| Others (Mantraps, and fences, Monitoring Solutions) |
| By Service Type | |
| Consulting Services | |
| Professional Services | |
| Others (System Integration Services) |
| End User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End Users |
Brazil Data Center Physical Security Market Research FAQs
How big is the Brazil Data Center Physical Security Market?
The Brazil Data Center Physical Security Market size is expected to reach USD 40.40 million in 2024 and grow at a CAGR of less than 21.40% to reach USD 109.60 million by 2029.
What is the current Brazil Data Center Physical Security Market size?
In 2024, the Brazil Data Center Physical Security Market size is expected to reach USD 40.40 million.
Who are the key players in Brazil Data Center Physical Security Market?
Axis Communications AB, ABB Ltd., Bosch Sicherheitssysteme GmbH, Johnson Controls. and Honeywell International Inc. are the major companies operating in the Brazil Data Center Physical Security Market.
What years does this Brazil Data Center Physical Security Market cover, and what was the market size in 2023?
In 2023, the Brazil Data Center Physical Security Market size was estimated at USD 31.75 million. The report covers the Brazil Data Center Physical Security Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Brazil Data Center Physical Security Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Brazil Data Center Physical Security Industry Report
Statistics for the 2024 Brazil Data Center Physical Security market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Data Center Physical Security analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Brazil Data Center Physical Security Market Report Snapshots
