South America Data Center Physical Security Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 99.80 Million |
| Market Size (2029) | USD 206.80 Million |
| CAGR (2024 - 2029) | 15.60 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South America Data Center Physical Security Market Analysis
The South America Data Center Physical Security Market size is estimated at USD 99.80 million in 2024, and is expected to reach USD 206.80 million by 2029, growing at a CAGR of 15.60% during the forecast period (2024-2029).
The security measures for the data center can be divided into four layers: perimeter security, facility controls, computer room controls, and cabinet controls. The first layer focuses on discouraging, detecting, and delaying unauthorized entry into the perimeter. If there is a breach in the perimeter monitoring, the second layer restricts access through an access control system using card swipes or biometrics. The third layer further restricts access by using various verification methods, monitoring restricted areas, deploying entry restrictions, providing biometric access control devices, and using radio frequency identification. These layers ensure entry for only authorized personnel. Additional measures to restrict access include cabinet locking mechanisms addressing concerns about insider threats such as malicious employees.
The upcoming IT load capacity of the South American data center construction market is expected to reach 1800 MW by 2029.
The region's construction of raised floor area is expected to increase 7.8 million sq. ft by 2029.
The region's total number of racks to be installed is expected to reach 392K units by 2029. Brazil is expected to house the maximum number of racks by 2029.
Close to 60 submarine cable systems are connecting South America, and many are under construction. One submarine cable estimated to start service in 2025 is Carnival Submarine Network-1 (CSN-1), which stretches over 4500 Kilometers with a landing point in Barranquilla, Colombia.
South America Data Center Physical Security Market Trends
The IT & Telecom Segment to Hold Significant Share
- The demand for telecom data center construction in the country is increasing for physical security solutions. In South America, government biometric identification initiatives and the increasing prominence of biometrics in various sectors are expected to drive market growth.
- The rollout of 5G networks would strengthen the nation's digital economy and increase demand for high data center storage infrastructure. The arrival of 5G is expected to bring a major increase in speeds, low latencies, and an unforeseen level of network capabilities.
- The Chilean government has substantially invested in fiber-optic networks, with connections reaching more than 90% of the population. Due to this, most Chilean families now have access to high-speed internet services, enabling them to benefit from the expanding range of available digital services.
- In terms of 5G connectivity, all Brazilian municipalities with at least 200,000 residents will have a 5G network by July 31, 2026, with at least one antenna. Brazil's 5G spectrum auction held in October 2021 raised about USD 8.5 billion. By 2035, introducing 5G in Brazil may have a USD 1.2 trillion economic impact and a USD 3 trillion productivity boost. Data center construction is increasing with network traffic, leading to demand for major physical security solutions.
- Owing to such factors, the demand for data centers from the telecom segment is constantly rising, mirrored by a rapid rise in the data center's physical security. 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.
Brazil to Hold Significant Growth
- Brazil's digital economy demonstrates the potential for continued growth over the medium and long term. The Brazilian government plays a significant role in developing local data center infrastructure. According to the government, the country's General Data Protection Act (LGPD) was implemented in August 2020. It is now expected to force many enterprises to migrate their cloud access to private networks and update their encryption services to extend user data protection.
- About 10-15% of data is created and processed outside a centralized data center or cloud, but the number is expected to cross 60-70% by 2025, a global trend that is also expected in Brazil. Such factors will lead to significant physical security solutions demand in terms of video surveillance and access control solutions.
- Microsoft, Amazon Web Services, and Google are Brazil's major cloud service providers. These cloud service providers will collocate their workloads with existing colocation operators and collaborate with new market entrants to provide cloud-based services.
- In Brazil, São Paulo is the most connected city, with a high availability of digital business and financial centers, making it a favorable location for facility development. The region is also witnessing a boost in investments in the market due to Brazil's data localization law, the Lei Geral de Proteção de Dados Pessoais (LGPD), which has implemented regulations to store the data generated within the country.
- According to the latest Security Industry Association’s (ABESE) survey, the Brazilian market for electronic security equipment comprises video surveillance at 39.6% and access control at 20.8%. With more than 26,000 companies, including data center companies, and an average market growth rate of 8% per year, businesses in the market expect to meet the demand. Such a scenario is expected to cater to the demand in the market.
South America Data Center Physical Security Industry Overview
The South American data center physical security market is fragmented and has gained a competitive edge. A few major players are Axis Communications AB and Bosch Sicherheitssysteme GmbH. These major players with a prominent market share focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.
March 2023: Genetec Inc. and Axis Communications collaborated with the introduction of Axis Powered by Genetec, the industry’s first enterprise-level access control offering that combines Genetec access control software with Axis network door controllers in a single, easy-to-deploy all-in-one offering.
South America Data Center Physical Security Market Leaders
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Axis Communications AB
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Hangzhou Hikvision Digital Technology Co., Ltd.
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Securitas Technology
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Genetec Inc.
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Bosch Sicherheitssysteme GmbH
*Disclaimer: Major Players sorted in no particular order
South America Data Center Physical Security Market News
- 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 sectors including airports, transportation, healthcare, data centers, and more.
- April 2023: Securitas signed an expanded 5-year agreement to provide data center security for Microsoft in 31 countries. It includes risk management, comprehensive security technology as a system integrator, specialized safety and security resources, guarding services, and digital interfaces.
South America 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 Growing Adoption of Access Control Systems
4.2.2 Advancements in Video Surveillance Systems Connected to Cloud Systems
4.3 Market Restraints
4.3.1 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 Other Solution Types (Mantraps, Fences, and Monitoring Solutions)
5.2 By Service Type
5.2.1 Consulting Services
5.2.2 Professional Services
5.2.3 Other Service Types (System Integration Services)
5.3 End User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Healthcare
5.3.5 Other End User
5.4 Country
5.4.1 Brazil
5.4.2 Chile
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Axis Communications AB
6.1.2 Hangzhou Hikvision Digital Technology Co. Ltd
6.1.3 Securitas Technology
6.1.4 Genetec Inc.
6.1.5 Bosch Sicherheitssysteme GmbH
6.1.6 Johnson Controls International
6.1.7 Honeywell International Inc.
6.1.8 Siemens AG
6.1.9 Schneider Electric
6.1.10 ABB Ltd
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
South America Data Center Physical Security Industry Segmentation
The data center physical security market refers to the industry focused on providing products and services to safeguard data centers' physical infrastructure and assets. This includes measures to protect data centers from unauthorized access to premises, hardware theft, vandalism, sabotage, terrorist acts, and other physical threats. Data center physical security components 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 South American data center physical security market is segmented by solution type (video surveillance and access control solutions), service type (consulting services and professional services), end user (IT & telecommunication, BFSI, government, healthcare, and other end users), and country. 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 | |
| Other Solution Types (Mantraps, Fences, and Monitoring Solutions) |
| By Service Type | |
| Consulting Services | |
| Professional Services | |
| Other Service Types (System Integration Services) |
| End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End User |
| Country | |
| Brazil | |
| Chile |
South America Data Center Physical Security Market Research FAQs
How big is the South America Data Center Physical Security Market?
The South America Data Center Physical Security Market size is expected to reach USD 99.80 million in 2024 and grow at a CAGR of 15.60% to reach USD 206.80 million by 2029.
What is the current South America Data Center Physical Security Market size?
In 2024, the South America Data Center Physical Security Market size is expected to reach USD 99.80 million.
Who are the key players in South America Data Center Physical Security Market?
Axis Communications AB, Hangzhou Hikvision Digital Technology Co., Ltd., Securitas Technology, Genetec Inc. and Bosch Sicherheitssysteme GmbH are the major companies operating in the South America Data Center Physical Security Market.
What years does this South America Data Center Physical Security Market cover, and what was the market size in 2023?
In 2023, the South America Data Center Physical Security Market size was estimated at USD 84.23 million. The report covers the South America Data Center Physical Security Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Data Center Physical Security Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Data Center Physical Security Industry Report
Statistics for the 2024 South America Data Center Physical Security market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America 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.
