South Korea Data Center Physical Security Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 29.38 Million |
| Market Size (2029) | USD 75.92 Million |
| CAGR (2024 - 2029) | 20.91 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Data Center Physical Security Market Analysis
The South Korea Data Center Physical Security Market size is estimated at USD 29.38 million in 2024, and is expected to reach USD 75.92 million by 2029, growing at a CAGR of 20.91% during the forecast period (2024-2029).
- The security measures can be categorized into computer room controls, facility controls, perimeter security, and cabinet controls. The first layer of data center security detects, delays, and discourages unauthorized personnel entry at the perimeter. Upon breach of the perimeter monitoring, the second layer of defense withholds access. It is an access control system which uses card swipes or biometrics.
- The third layer further restricts access through diverse verification methods by monitoring all restricted areas and deploying entry restrictions such as turnstile with VCA, biometric access control devices for thumbprints, irises, or vascular patterns, and using radio frequency identification. The initial three layers ensure only authorized entry. However, additional security to restrict access is comprised of cabinet locking mechanisms. It addresses the fear of an 'insider threat,' such as a malicious employee.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the South Korean data center market is expected to touch around 2,000 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 270K units by 2029. Greater Seoul is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 10 submarine cable systems connecting South Korea, and many are under construction. One such submarine cable that is estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 Kilometers with landing points from Geoje, South Korea.
South Korea Data Center Physical Security Market Trends
The Video Surveillance Segment Holds a Significant Share in the Market
- Sensitive and important data is stored in data centers, so security is a top priority. Data center operators use video surveillance systems to ensure security standards and regulations are met. This allows for monitoring access, detecting unauthorized access, and maintaining compliance.
- Data protection laws set strict requirements for data center operators. Video surveillance can help maintain compliance by improving physical security measures.
- Furthermore, factors such as growing connectivity and online shopping would contribute to the increasing generation of data and processing facilities. The country's internet penetration rate increased in 2022, while smartphone penetration rose from 81.6% in 2016 to 92.7% in 2021. This percentage is expected to reach 97% by the end of 2029. This represents a proliferation of data centers, thereby increasing the demand for video surveillance. This helps avoid malicious operations within the data center and provides evidence to identify those responsible in the event of an incident.
- The growth of the e-commerce industry is expanding the size of data centers and increasing the need for video surveillance. Video surveillance has a powerful deterrent effect, reducing the risk of physical attacks and unauthorized access to critical data.
The IT and Telecommunication Segment Holds a Major Share in the Market
- The two major sub-sectors of the telecom industry, telecom equipment and services, respond flexibly to changing market demands and technology trends and continuously invest in innovations that drive growth in the ICT industry.
- In parallel with the 5G+ initiative, in July 2020, the Moon administration proposed a Korean version of the New Deal based on two pillars: the Green New Deal and the Digital New Deal. Combined with environmental programs, the Digital New Deal paints a grand blueprint for the digital economy. To implement these measures, the South Korean government plans to put more emphasis on developing a DNA-based digital ecosystem. Technologies that facilitate the development of productivity and the production of digital goods and services. Thus, advancements in ICT would increase the country's overall sector.
- South Korea stands second in the world rankings of telecom market maturity. It is also planning to roll out the latest telecom technology developments, including around 6G. It enjoys a highly competitive but stable market, with strong government support that enables the rollout of advanced infrastructure in both the fixed and mobile arenas. Further, it is home to the world’s top equipment manufacturers, Samsung and LG.
- Recently, the government decided to lower the barriers to entry for cloud computing services in the country. The move is expected to make foreign tech giants such as Amazon and Microsoft a threat to domestic companies. The US and Chinese tech firms welcome proposed deregulation despite growing concerns from KT, Naver, NHN, and other domestic cloud service providers about foreign firms' potential domination of local markets, and experts said they are beginning to explore opportunities.
- Cloud computing services for the public sector. Such developments have increased the need for data centers from the domestic cloud sector, thereby increasing the need for data center security in the country.
South Korea Data Center Physical Security Industry Overview
The market is highly fragmented 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 have further tried to make their system secure and safe from thefts. There has been a wave of consolidation in the secondary markets as smaller players seek to scale to compete and big players scale their products in the market. For instance,
August 2023: Securitas signed an expanded 5-year agreement to provide data center security for Microsoft in 31 countries, solidifying a strong relationship. The global agreement includes risk management, comprehensive security technology as a system integrator, specialized safety and security resources, guarding services, and digital interfaces. Securitas ensures that the data center's physical security program remains innovative, robust, and effective. This demonstrates stability as a collaborator, assisting in navigating the challenges of Microsoft's expanding business.
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 including airports, transportation, healthcare, and data centers.
South Korea 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
South Korea Data Center Physical Security Market News
February 2024: In the latest release of the Axis operating system, AXIS OS, Axis Communications AB announced that the IEEE MAC 802.1sec security standard supports more than 200 network devices, including cameras, intercoms, and 11.8 audio speakers. 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.
April 2023: Schneider Electric launched a new services offer, EcoCare for Modular Data Centers services membership. 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 also benefit from support provided in the form of a dedicated customer success management team, who become their coach, planning on-site and remote services teams and monitoring maintenance and infrastructure needs at a system level rather than an ad hoc approach for each asset only when problems arise.
South Korea Data Center Physical Security Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption 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 are 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 are Discouraging the Potential Growth of the 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
5. MARKET SEGMENTATION
5.1 By Solution Type
5.1.1 Video Surveillance
5.1.2 Access Control Solutions
5.1.3 Others (Mantraps, 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 Media and Entertainment
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 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 Dahua Technology
6.1.10 Hangzhou Hikvision Digital Technology Co. Ltd (Hikvision)
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
South Korea 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 South Korean data center physical security market is segmented by solution type, service type, and end users. 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, Fences, and Monitoring Solutions) |
| By Service Type | |
| Consulting Services | |
| Professional Services | |
| Others (System Integration Services) |
| End User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Media and Entertainment | |
| Other End Users |
South Korea Data Center Physical Security Market Research FAQs
How big is the South Korea Data Center Physical Security Market?
The South Korea Data Center Physical Security Market size is expected to reach USD 29.38 million in 2024 and grow at a CAGR of 20.91% to reach USD 75.92 million by 2029.
What is the current South Korea Data Center Physical Security Market size?
In 2024, the South Korea Data Center Physical Security Market size is expected to reach USD 29.38 million.
Who are the key players in South Korea 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 South Korea Data Center Physical Security Market.
What years does this South Korea Data Center Physical Security Market cover, and what was the market size in 2023?
In 2023, the South Korea Data Center Physical Security Market size was estimated at USD 23.24 million. The report covers the South Korea Data Center Physical Security Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Data Center Physical Security Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Korea Data Center Physical Security Industry Report
Statistics for the 2024 South Korea Data Center Physical Security market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea 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.
