Data Center Security Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 14.91 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Data Center Security Market Analysis
The data center security market is expected to register a CAGR of 14.91% during the forecast period. As part of NTT, RagingWire data centers have spent years developing a global data center platform that currently extends to 20 countries.
- The increasing adoption of data centers is reshaping the global IT landscape, shifting data from on-premise computer rooms and IT closets to massive centralized data center hubs. Cloud campuses are consolidating workloads offering economies of scale and enabling hyperscale operators to add server capacity and electric power rapidly. Several companies are witnessing an influx of customer data; thus, they are under pressure to manage all business-critical data. They also face a constant need to outpace their current competitors.
- Some of the major companies in the studies market are investing heavily in hyperscale data centers. For instance, in June 2021, Equinix announced plans to build 32 hyperscale data centers in some of the world's major markets. With a total capacity of 600 megawatts and more than USD 6.9 billion in investment, the company aims to tap new markets and gain a better position in the growing landscape of hyperscale data centers. Such developments are expected to drive the demand for data center security shortly. However, customer concerns relating to data privacy are a significant setback as the data is not being hosted locally, and there are high chances of data leakage.
- In cloud security, managed security providers are expected to see significant global demand. Resultantly, major players in the market are focusing on investing in such firms to gain a regional foothold and market share along with capabilities. Most organizations use multiple cloud providers, and with it, customers' demand for a unified way to secure them is increasing. Also, companies are looking to adopt a centralized way to apply security controls and compliance policies.
- Furthermore, government initiatives and the digitalization of public accessibility platforms are the most significant sources of demand for data centers across the globe. Several developments are taking place to cater to the increasing demand from the government sector. For instance, the USD 1.5 billion National Security Agency data center in Bluffdale, Utah, is unique in its scale for a government facility, 26 but similar in design and purpose to any off-premise enterprise data center.
- Planning a data center budget seems to be getting harder for companies because a lot of variables should be taken into account, not just some form of growth by resource, volume, or power usage. Old-style licenses plus maintenance software agreements are running out of steam. More vendors are responding to customer needs by providing subscription-based pricing. Some of these are via software as a service, which removes underlying stack costs from the data center budget.
Data Center Security Market Trends
This section covers the major market trends shaping the Data Center Security Market according to our research experts:
Rise in Cyber Threats is Causing the Data Center Security Market to Grow
- According to a recent cyber security firm Cyble Research Labs analysis, over 20,000 web instances of various data center management and monitoring products, ranging from intelligent monitoring software to thermal cooling management control systems, are accessible to online hackers. The cybersecurity report discovered accessible instances of data center infrastructure management (DCIM) and monitoring services provided by APC by Schneider Electric, Device42, Sunbird, and Vertiv. Applications still frequently use default passwords for security, which is the cause of many of these cybersecurity incidents.
- The most frequently targeted systems today are the open, vulnerable ones unprotected and exposed to the internet. According to research conducted by The Institution of Electronics and Telecommunication Engineers (IETE), CyberPeace Foundation (CPF), and Autobot Infosec Private Limited, there have been close to 51 million attack events recorded between April and December 2021 on the Data Centers Network-based Threat Intelligence sensors network specifically simulated in India.
- DDoS assaults, also known as distributed denial of service attacks, have been employed by online criminals and hackers for years. When a server is the target of a DDoS attack, a massive volume of traffic is sent there to consume all available bandwidth and prevent legitimate users from accessing the service.
- In the last ten years, several significant DDoS assaults have occurred on both large and small businesses, including Google, Amazon Web Services, OVH, and GitHub. In 2020 alone, there will be more than 10 million DDoS attacks, according to Cisco's analysis. According to the same report, the future is expected to see a marked increase in DDoS cyberattacks. According to Cisco's prediction, there will be a 100% rise in DDoS attacks by 2023, reaching over 15.4 million.
- For all the data centers, cyber-attacks remain a significant problem. Organizations can better protect themselves from such attacks by using various cyber security solutions and developing a coordinated security strategy. This is the sole primary driver of the Data Center Security Market's expansion.
Asia Pacific is Estimated to Grow the Fastest among all Regions
- Over the past few years, the market for data centers has grown significantly, not just in the four major Asian Pacific countries but also in terms of total data center real estate capacity. Tokyo (Japan), Singapore, Sydney (Australia), and Hong Kong Special Administrative Region are the leading Tier 1 markets for data centers in the Asia Pacific region. Due to its rapidly expanding economy and high need for data, India has a significant potential to become a data center (DC) hub for the Asia Pacific and the entire world.
- MNCs, such as Google, Amazon, Microsoft, and Equinix, are all making the Asia Pacific a favorite destination for the location of their data centers.
- More brands and businesses are expanding their market to the Asia-Pacific region. Hence, there is a need for data center providers in this region. The key segments that make Southeast Asia such an attractive market for data center relocation currently are IT infrastructure, server market, and uninterruptible power supplies (UPSs).
- In March 2022 - In Hyderabad, CTRL constructed a brand-new data center facility with an 18 MW power capacity. In addition, the corporation plans to build a 500-acre solar facility and 500 edge data centers in Tier 2 and Tier 3 cities around the nation to run its operations on renewable energy.
- As the Data Center market flourishes in the region, the demand for Data Center Security will also grow similarly. As already, the region is facing a lot of cyber attacks. The Asia Pacific is the third-most frequently affected region worldwide by ransomware, according to cybersecurity company Group-IB. Ransomware Uncovered 2021/2022, the second annual guide to the evolution of the top threat, has been released by Group-IB. The second edition of the report's findings shows that the ransomware industry continued to prosper, with the average ransom demand increasing by 45% to reach USD 247,000 in 2021.
Data Center Security Industry Overview
The market is highly fragmented due to players like McAfee Inc., Juniper Networks Inc., Schneider Electric SE, Citrix Systems Inc., and other giants, which play a vital role in upscaling the capabilities of enterprises. Market orientation leads to a highly competitive environment. The biggest retail and wholesale data center market companies have further secured their dominance by acquiring hefty rivals. There has been a wave of consolidation in the secondary markets as smaller players seek to scale to compete.
- February 2021 - Check Point Software Technologies Ltd, a provider of cybersecurity solutions globally, extended the capabilities of its unified CloudGuard Cloud Native Security platform. The company launched a new CloudGuard Application Security (AppSec). This enabled the enterprises to secure all cloud-native applications against known and zero-day attacks. It eliminates the need for manual tuning and a high rate of false-positive alerts by using contextual AI to prevent attacks from impacting cloud applications.
- January 2021 - As an Internet of Things (IoT) technology vendor, Ubiquiti, Inc. warned its customers of a data breach caused by unauthorized access to their database. The data exposed included many customer names, email addresses, hashed and salted passwords, addresses, and phone numbers.
Data Center Security Market Leaders
Symantec Corporation
VMware Inc.
Cisco Systems Inc.
McAfee Inc.
Citrix Systems Inc.
*Disclaimer: Major Players sorted in no particular order
Data Center Security Market News
- May 2022 - A new data center in Mumbai has been opened by the California-based cyber security firm Trellix to assist clients in adhering to compliance and data residency rules. According to a statement from the company, opening the new data center will give customers access to a scalable cloud-native architecture.
- May 2022 - The cloud-based secure access provider Duo established its first data center in India in Mumbai to satisfy data localization needs and assist customers in strengthening their cyber defenses. The opening of the data center is a component of the duo's international expansion plan. The duo is now a part of Cisco.
Data Center Security Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Introduction to Market Drivers and Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/ Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19
4.6 Market Drivers
4.6.1 Increasing Data Traffic and Need for Secured Connectivity is Promoting the Growth of the Data Center Security Market
4.6.2 Rise in Cyber Threats is Causing the Data Center Security Market to Grow
4.7 Market Restraints
4.7.1 Limited IT Budgets, Availability of Low-Cost Substitutes, and Piracy is Discouraging the Potential Growth of Data Center Security Market
5. MARKET SEGMENTATION
5.1 By Solutions
5.1.1 Physical Security Solutions
5.1.2 Monitoring Solutions
5.1.3 Analysis and Modelling
5.1.4 Video Surveillance
5.2 Logical Security Solutions
5.2.1 Compliance Management and Access Control
5.2.2 Threat and Application Security Solution
5.2.3 Data Protection Solution
5.3 By Industry Vertical
5.3.1 Consumer Goods and Retail
5.3.2 Banking and Financial Services
5.3.3 Telecom and Information Technology
5.3.4 Healthcare
5.3.5 Entertainment and Media
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Rest of Asia-Pacific
5.4.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Symantec Corporation
6.1.2 VMware Inc.
6.1.3 Cisco Systems Inc.
6.1.4 Checkpoint Software Technologies Ltd
6.1.5 McAfee Inc.
6.1.6 Citrix Systems Inc.
6.1.7 Trend Micro Inc.
6.1.8 Juniper Networks Inc.
6.1.9 Schneider Electric SE
6.1.10 Siemens AG
6.1.11 Dell Inc.
6.1.12 Honeywell International Inc.
6.1.13 IBM Corporation
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Data Center Security Industry Segmentation
With the adoption of cloud services and the growth of Big Data and virtualization, the demand for secure and reliable data storage has increased drastically. Organizations are working toward improving these centers to support growing data storage needs and to control cyber-attacks. The increasing demand for large-scale data services is generating a growing demand for the physical security solutions that safeguard them.
The Data Center Security Market can be segmented by Solutions (Physical Security Solutions, Monitoring Solutions, Analysis & Modelling, and Video Surveillance), Logical Security Solutions (Compliance Management and Access Control, Threat and Application Security Solutions,s and Data Protection solutions), Industry Vertical (Consumer Goods and Retail, Banking and Financial Services, Telecom and Information Technology, Healthcare, and Entertainment and Media) and Geography.
| By Solutions | |
| Physical Security Solutions | |
| Monitoring Solutions | |
| Analysis and Modelling | |
| Video Surveillance |
| Logical Security Solutions | |
| Compliance Management and Access Control | |
| Threat and Application Security Solution | |
| Data Protection Solution |
| By Industry Vertical | |
| Consumer Goods and Retail | |
| Banking and Financial Services | |
| Telecom and Information Technology | |
| Healthcare | |
| Entertainment and Media |
| Geography | ||||||
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| Rest of the World |
Data Center Security Market Research FAQs
What is the current Data Center Security Market size?
The Data Center Security Market is projected to register a CAGR of 14.91% during the forecast period (2024-2029)
Who are the key players in Data Center Security Market?
Symantec Corporation, VMware Inc., Cisco Systems Inc., McAfee Inc. and Citrix Systems Inc. are the major companies operating in the Data Center Security Market.
Which is the fastest growing region in Data Center Security Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Data Center Security Market?
In 2024, the North America accounts for the largest market share in Data Center Security Market.
What years does this Data Center Security Market cover?
The report covers the Data Center Security Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Data Center Security Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Data Center Security Services Industry Report
Statistics for the 2023 Data Center Security Services market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Data Center Security Services analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
