Japan Data Center Physical Security Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 52.51 Million |
| Market Size (2029) | USD 116.16 Million |
| CAGR (2024 - 2029) | 16.21 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Data Center Physical Security Market Analysis
The Japan Data Center Physical Security Market size is estimated at USD 52.51 million in 2024, and is expected to reach USD 116.16 million by 2029, growing at a CAGR of 16.21% during the forecast period (2024-2029).
Security measures can be categorized into four layers, i.e., perimeter security, facility controls, computer room controls, and cabinet controls. The first layer of data center security discourages, detects, and delays any unauthorized entry of personnel at the perimeter. In case of any infringement in the perimeter monitoring, the second layer of defense denies access. It is an access control system utilizing card swipes or biometrics.
The third layer of physical security further restricts access through various verification methods, including monitoring all restricted areas, deploying entry restrictions such as turnstiles, providing biometric access control devices to verify finger and thumbprints, irises, or vascular patterns, providing VCA, and using radio frequency identification. The first three layers ensure the entry of only authorized people. Further security to restrict admission includes cabinet locking mechanisms. This layer addresses the fear of an 'insider threat,' such as a malicious employee.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Japanese data center physical security market is expected to reach 2,000 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 10 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 500 K units by 2029. Tokyo is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 30 submarine cable systems connecting the Philippines, and many are under construction. One such submarine cable that is estimated to start service in 2023 was the Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 kilometers with landing points from Chikura, Japan, to Shima, Japan.
Japan Data Center Physical Security Market Trends
The Video Surveillance Segment Holds Significant Share
- Sensitive and important data are stored in data centers, so security is a top priority. Data center operators use video surveillance systems to ensure that security standards and regulations are met. This allows one to monitor access, detect unauthorized access, and maintain compliance.
- Data protection laws set strict requirements for data center operators. Video surveillance can help maintain compliance by improving physical security measures.
- With the advent of online shopping platforms, small and medium-sized businesses are also switching to online payment methods and a digital presence in the world of e-commerce. Even large, well-established companies are integrating e-commerce platforms with traditional forms of business.
- This leads to an increase in data traffic and, thus, an increase in data centers and, in turn, an increase in the demand for video surveillance. This helps prevent malicious or erroneous operations in the user's data center and provides evidence to identify those responsible in the event of an incident.
- Internet users in Japan increased by 844 thousand (+0.7%) between 2021 and 2022. Internet traffic increased 1.6x in 2020 compared to pre-COVID-19 levels in 2019 as the pandemic led to a surge in home video conferencing, distance learning, and video streaming. In addition, the increased use of connected devices and smart homes increased the demand for digital data and improved network traffic. This makes the country one of the pioneers of mobile commerce in the region. This means an increase in data consumption across data centers, thereby boosting the data center physical security market.
- Since the beginning of 2021, Japanese mobile phone companies have been accelerating the rollout of 5G. The Ministry of International Communications wanted to advance Japan's 5G experience further. The goal was to achieve 98% 5G population coverage by the end of March 2024. Overall, Japan wants to increase the number of frequencies available for its 5G services. The growth of the telecommunications industry is increasing the size of data centers, thereby increasing the need for video surveillance. Video surveillance has a powerful deterrent effect, reducing the likelihood of physical attacks and unauthorized access to critical data.
The IT and Telecommunication Segment Holds the Major Share
- Japan is home to major ICT organizations such as Sony, Panasonic, Fujitsu, NEC, and Toshiba, which continue to play a key role in the country's expansion as a major center for ICT.
- In addition, the orderly development of numerous modernization and expansion projects in the country, along with increasing government spending on maintaining high-quality and advanced infrastructure, are also driving the growth of the market.
- The Japanese government is making efforts to accelerate the digital transformation of the private sector and support emerging SMEs Similarly, guidelines on implementing AI, cybersecurity, and secure cloud services were also published in the same year.
- The Government of Japan's Digital Agency promotes the utilization of cloud services for both central and local government offices. For instance, the Digital Agency announced in October 2022 that the government agencies would adopt "Government Cloud" services for the fiscal year.
Japan Data Center Physical Security Industry Overview
The market is semi consolidated due to players like Axis Communications AB, ABB Ltd, and Bosch Sicherheitssysteme GmbH, 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 are trying to make their system secure and safe from thefts. There has been a wave of consolidation in the market as smaller players seek to scale up their production to compete, and big companies are focusing on product innovation and launches to maintain their market position. For instance,
In April 2023, Schneider Electric launched a new service offer, EcoCare for Modular Data Centers. Members of this innovative service plan benefit from specialized expertise to maximize modular data centers' uptime with 24/7 proactive remote monitoring and condition-based maintenance. Members benefit from exclusive support, which includes a dedicated customer success management team, who become their go-to coach, orchestrating remote and on-site services teams and addressing infrastructure and maintenance needs at a system level, rather than a fragmented approach for each asset only when problems arise.
Japan 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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Honeywell International Inc.
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Johnson Controls.
*Disclaimer: Major Players sorted in no particular order
Japan Data Center Physical Security Market News
- February 2024: In the latest release of the operating system, AXIS OS, Axis Communications AB announced that more than 200 network devices, including cameras, intercoms, and 11.8 audio speakers, were supported by the IEEE MAC 802.1sec security standard. Demonstrating the company's continued commitment to device and data security, Axis has become the first manufacturer of physical safety products supporting MACsec Media Access Control Security.
- 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 sectors such as airports, transportation, healthcare, and data centers.
Japan Data Center Physical Security Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and 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 Data Traffic and Need for Secured Connectivity is Promoting the Growth of the Data Center Physical Security Market
4.2.2 Rise in Cyber Threats is Causing the Data Center Physical Security Market to Grow
4.3 Market Restraints
4.3.1 Limited IT Budgets, Availability of Low-Cost Substitutes, and Piracy is Discouraging the Potential Growth of Data Center Physical Security Market
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 and 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 User
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 Honeywell International Inc.
6.1.5 Johnson Controls
6.1.6 Schneider Electric
6.1.7 ASSA ABLOY
6.1.8 Cisco Systems Inc.
6.1.9 Boon Edam
6.1.10 Dahua Technology
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Japan 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. Key components of data center physical security may 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 Japanese data center physical security market is segmented by solution type, service type, and end user. By type, the market is segmented into video surveillance and access control solutions. By service type, the market is segmented into consulting services and professional services. 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 and Monitoring Solutions) |
| By Service Type | |
| Consulting Services | |
| Professional Services | |
| Others (System Integration Services) |
| End-User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End User |
Japan Data Center Physical Security Market Research FAQs
How big is the Japan Data Center Physical Security Market?
The Japan Data Center Physical Security Market size is expected to reach USD 52.51 million in 2024 and grow at a CAGR of 16.21% to reach USD 116.16 million by 2029.
What is the current Japan Data Center Physical Security Market size?
In 2024, the Japan Data Center Physical Security Market size is expected to reach USD 52.51 million.
Who are the key players in Japan Data Center Physical Security Market?
Axis Communications AB, ABB Ltd, Bosch Sicherheitssysteme GmbH, Honeywell International Inc. and Johnson Controls. are the major companies operating in the Japan Data Center Physical Security Market.
What years does this Japan Data Center Physical Security Market cover, and what was the market size in 2023?
In 2023, the Japan Data Center Physical Security Market size was estimated at USD 44.00 million. The report covers the Japan Data Center Physical Security Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Data Center Physical Security Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Data Center Physical Security Industry Report
Statistics for the 2024 Japan Data Center Physical Security market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan 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.
