United States Data Center Physical Security Market Size
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 404.20 Million |
| Market Size (2029) | USD 819.10 Million |
| CAGR (2024 - 2029) | < 14.70 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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United States Data Center Physical Security Market Analysis
The United States Data Center Physical Security Market size is estimated at USD 404.20 million in 2024, and is expected to reach USD 819.10 million by 2029, growing at a CAGR of less than 14.70% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and increasing 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 US data center rack market is expected to reach 24,000 MW by 2029.
- Under construction raised floor space: The country's construction of raised floor area is expected to increase to 80 million sq. ft by 2029.
- Planned racks: The country's total number of racks to be installed is expected to reach 4,035,000 units by 2029. Northern Virginia is expected to house the maximum number of racks by 2029.
- Planned submarine cables: There are more than 90 submarine cable systems connecting the United States, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Gold Data-1, which stretches over 2,333 kilometers with landing points from Naples, United States.
- 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's physical security solutions. Several factors contribute to the demand for data centers and their growth within the United States, which is 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 & Digital Services, Renewable Energy & Sustainability, and Smart Cities & IoT Initiatives. Hence, such factors are expected to drive market growth during the forecast period.
United States Data Center Physical Security Market Trends
The IT and Telecommunication Segment Holds a Major Share in the Market
- The economic impact of companies that entered the digital transformation early during the COVID-19 pandemic, either by offering digital products and services or leveraging digital processes, more economically than their peers that gradually embraced digital transformation.
- Among the US corporate infrastructure decision-makers, 94% have at least one cloud deployment, with hybrid or multi-cloud solutions more common. Nearly 74% of US infrastructure decision-makers say their organizations are adopting containers as a platform as a service (PaaS) in on-premises or public cloud environments. Clouds are expected to increase significantly.
- US cloud providers include AWS, Microsoft, and Google. Among enterprise infrastructure decision-makers who use at least one type of cloud deployment, 94% use at least one type of cloud deployment, with the majority being hybrid or multi-cloud.
- In the United States, cloud storage is growing due to the increasing demand for cost-effective data backup, storage and backup in every business and the need to manage the data generated by the increasing use of mobile phones.
- With the rise of the digital economy and increased internet usage in the United States, the need for data storage and processing has increased. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization.
- The number of IoT devices utilizing network connections from telecommunication providers is likely to generate huge amounts of data. For instance, connected consumer device unit shipments in the United States are projected to reach more than 800 million units by 2024. By 2025, IoT connections in the United States are projected to grow to more than 4 billion. In the United States, the average monthly mobile data speed is projected to reach 534 Mbps GB in 2029 through 5G service. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center physical security solutions in the coming years.
The Video Surveillance Segment 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 provide them with monitoring of access, detection of unauthorized entry, and maintaining 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 California amended the CCPA with the California Privacy Rights Act (CPRA) and Consumer Data Protection Act (Virginia CDPA) impose strict security and privacy requirements within the United States. These regulations must be complied with video surveillance equipment, and, therefore, they are of vital importance for data center operators. Such instances in the market propel the demand in the studied market.
- Furthermore, with the advent of 5G and the increasing use of smartphones, we need to ensure adequate speed availability. As a result, the country has adopted cloud computing, increased the number of Internet users, and adopted fiber optic technology. With the introduction of such technologies and the increase in data usage, the use of hybrid storage data centers is increasing in the country.
- In 2023, approximately 92% of the US population used the internet, up from approximately 75% in 2012. The United States is one of the world's largest online markets, with approximately 299 million internet users in the country in 2022. Such market improvements propel Data Centers' growth and contribute to segmental growth.
- Key players in the market focus on improving the data center's physical security solutions to meet the market demand. In June 2023, Bosch introduced a mobile access solution to buildings and restricted areas, which allows access without any identification media such as plastic cards. It is fully integrated into the tried-and-tested Access Management System from Bosch and provides various benefits, including efficiency, security, and convenience for building owners, visitors, and employees. This was initially available to customers in the Benelux region, Switzerland, Germany, Austria, Canada, and the United States.
United States Data Center Physical Security Industry Overview
The upcoming DC construction projects in the country are expected to increase the demand for the US data center physical security market in the coming years. The US data center physical security market 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.
- July 2023: Bosch planned to acquire Paladin Technologies Inc., headquartered in Vancouver, Canada, a significant provider of security and life safety solutions as well as system integration services in Canada and the United States.
- May 2023: Alcatraz AI, a prominent provider of autonomous access control solutions, announced its participation at the Data Center Forum Helsinki in June 2023. The event brings together more than 400 data center professionals and provides Alcatraz AI with an ideal opportunity to demonstrate its innovative biometric access control solution for data center physical security.
United States Data Center Physical Security Market Leaders
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Axis Communications AB
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ABB Ltd.
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Securitas Technology
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Bosch Sicherheitssysteme GmbH
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Johnson Controls.
*Disclaimer: Major Players sorted in no particular order
United States Data Center Physical Security Market News
- July 2023: Bosch planned to acquire Paladin Technologies Inc., headquartered in Vancouver, Canada, a significant provider of security and life safety solutions as well as system integration services in Canada and the United States.
- March 2023: Kisi Inc., a significant cloud computing access control solutions provider, announced two exciting video content additions to its Access Control Product Portfolio that are much awaited. The new Kisi Video Management System (VMS) adds more functionality to the product line, which includes advanced surveillance capabilities. The Kisi VMS also integrates with existing cameras and uses AI to detect whenever someone enters their facility without tapping in.
United States 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 Demand for Cloud Computing Capabilities is Driving the Market's Growth
4.2.2 Increase Security Concerns is Driving the Market's Growth
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
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 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 Securitas Technology
6.1.4 Bosch Sicherheitssysteme GmbH
6.1.5 Johnson Controls
6.1.6 Honeywell International Inc.
6.1.7 Siemens AG
6.1.8 Schneider Electric
6.1.9 Cisco Systems Inc.
6.1.10 AMAG Technology
6.1.11 Milestone Systems AS
6.1.12 Hikvision
6.1.13 Genetec
6.1.14 Convergint Technologies LLC
6.1.15 Alcatraz AI
6.1.16 Kisi Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
United States 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 US 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 other solution types. By service type, the market is segmented into consulting services, professional services, and other service types. 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 | |
| Other Solution Types (Mantraps, Fences, and Monitoring Solutions) |
| By Service Type | |
| Consulting Services | |
| Professional Services | |
| Other Service Types (System Integration Services) |
| End User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Media and Entertainment | |
| Other End Users |
United States Data Center Physical Security Market Research FAQs
How big is the United States Data Center Physical Security Market?
The United States Data Center Physical Security Market size is expected to reach USD 404.20 million in 2024 and grow at a CAGR of less than 14.70% to reach USD 819.10 million by 2029.
What is the current United States Data Center Physical Security Market size?
In 2024, the United States Data Center Physical Security Market size is expected to reach USD 404.20 million.
Who are the key players in United States Data Center Physical Security Market?
Axis Communications AB, ABB Ltd., Securitas Technology, Bosch Sicherheitssysteme GmbH and Johnson Controls. are the major companies operating in the United States Data Center Physical Security Market.
What years does this United States Data Center Physical Security Market cover, and what was the market size in 2023?
In 2023, the United States Data Center Physical Security Market size was estimated at USD 344.78 million. The report covers the United States Data Center Physical Security Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Data Center Physical Security Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Data Center Physical Security Industry Report
Statistics for the 2024 United States Data Center Physical Security market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United States 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.
