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2023

Data Center Security Market

Data Center Security Market Size, Share, Competitive Landscape and Trend Analysis Report by Component (Solution, Service), by Data Center Type (Small Data Center, Medium Data Center, Large Data Center), by Industry Vertical (BFSI, IT and Telecom, Healthcare, Retail and E-commerce, Media and Entertainment, Government, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: Sourabh Ekre | Vineet Kumar
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Data Center Security Market Research, 2032

The global data center security market was valued at $13.8 billion in 2022, and is projected to reach $62.2 billion by 2032, growing at a CAGR of 16.6% from 2023 to 2032.

A variety of goods, services, and solutions are available in the data centre security market, all aimed at protecting the digital and tangible assets kept in data centres. Protecting sensitive data, computing infrastructure, and vital information against physical dangers, cyberattacks, and unauthorized access is its main goal. This market deals with the expanding security issues that arise from the volume and importance of digital data, which call for strong security protocols to guarantee availability, integrity, and secrecy. A key component of data centre security is intrusion detection/prevention systems, firewalls, surveillance systems, encryption protocols, and access controls. Organizations are becoming increasingly dependent on data-centric operations due to factors such changing cyber threats, regulatory compliance requirements, and the rapid evolution of technology. As a result, there is a greater demand for comprehensive security solutions. The data center security market plays a crucial role in providing organizations with the tools and strategies necessary to mitigate risks and maintain the integrity of their data infrastructure.  

The escalating frequency and sophistication of cyber threats are compelling organizations to invest in robust security solutions to safeguard their critical data and infrastructure. Further, stringent regulatory requirements and compliance standards also act as drivers, necessitating organizations to implement comprehensive security measures to meet compliance obligations. Furthermore, the increasing digitization of business processes and the growing reliance on data-driven operations further drive the demand for advanced data center security solutions. Thus, these factors notably contributes towards the growth of data center security market. However, substantial upfront costs associated with implementing and maintaining comprehensive security infrastructure hinders the data center security market growth. On the contrary, technological advancements, such as the integration of artificial intelligence & machine learning and enabling more sophisticated threat detection and response mechanisms is expected to provide lucrative opportunities for data center security market to grow in upcoming years. Moreover, rising data center facilities and the growing adoption of cloud computing is also anticipated to present opportunities for the market growth.

The report focuses on growth prospects, restraints, and trends of the Data center security market forecast. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the data center security market outlook.

Data Center Security Market

The data center security market is segmented into Component, Data Center Type and Industry Vertical.

Segment Review

The data center security market is segmented on the component, data center type, industry vertical and region. On the basis of component, it is categorized into solution and service. On the basis of data center type, it is classified into small data center, medium data center, and large data center. Based on industry vertical, the market is divided into BFSI, IT & telecom, healthcare, retail and e-commerce, media and entertainment, government, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Data Center Security Market by Industry Vertical

By industry vertical, the BFSI segment acquired a major data center security market size in 2022. The is attributed to the fact that the BFSI sector is increasingly leveraging artificial intelligence and machine learning for anomaly detection and behavioural analysis, enhancing the ability to identify sophisticated attacks.

Data Center Security Market by Region

By region, the North America dominated the data center security market share in 2022. This is attributed to the increase in demand for real-time monitoring of cloud activities to detect and respond to security incidents in North American region.

The key players operating in the global data center security market include Cisco Systems, Inc., IBM, Broadcom, Dell Inc., Siemens, Schneider Electric, Juniper Networks, Inc., Fortinet, Inc., Honeywell International Inc., and Palo Alto Networks. These players have adopted various strategies to increase their market penetration and strengthen their position in the Data center security industry. 

 

Market Trends and Landscape

Increase in product launched to enhance data center security and adoption of the advance technologies are some of the trends flourishing the data center security market growth. For instance, in October 2022, Intel Corporation and Alphabet’s Inc.’s Google launched a co-designed chip that can make data centers more secure and efficient. The E200 chip, names named Mount Evans, takes over the work of packaging data for networking from the expensive CPU that do the main computing. It also offers better security between different customers that may be sharing CPU’s in the cloud.

Furthermore, increasing partnerships in the market by key players is expected to boost the growth of data center security market during the forecast period. For instance, in November 2023, Schneider Electric, the leader in the digital transformation of energy management and automation, announced a multi-year agreement with Compass Datacenters. The agreement extends the companies' existing relationship that integrates their respective supply chains to manufacture and deliver prefabricated modular data center solutions. Through this, Schneider Electric and Compass Datacenters can deliver scalable, modular data centers that offer a simplified design, streamlined manufacturing, and the ability to be deployed easily across many environments.

The surge in remote work and increased reliance on digital infrastructure have increased the importance of data center security. With a substantial rise in cyber threats exploiting vulnerabilities during the pandemic, organizations had prioritized investments in robust security solutions to protect sensitive data and ensured business continuity. Further, the need for secure data storage and processing had become even more critical as remote access and digital collaboration had become integral to business operations. Thus, the pandemic had a positive effect on data center security industry.

Recent partnerships in data center security market

In August 2022, NVIDIA announced a new data center solution with Dell Technologies designed for the era of AI, bringing state-of-the-art AI training, AI inference, data processing, data science and zero-trust security capabilities to enterprises worldwide. The solution combined Dell PowerEdge servers with NVIDIA BlueField DPUs, NVIDIA GPUs and NVIDIA AI Enterprise software, and is optimized for VMware vSphere 8 enterprise workload platform.

In November 2023, Schneider Electric, the leader in the digital transformation of energy management and automation, announced a $3 billion multi-year agreement with Compass Datacenters. The agreement extends the companies’ existing relationship that integrates their respective supply chains to manufacture and deliver prefabricated modular data center solutions.

Recent geographical expansions in data center security market

In March 2023, Cisco, a networking, cloud and cybersecurity solutions provider, has announced its plan to double down on its commitment to India by setting up a new data center in Chennai, introducing new risk-based capabilities across its security portfolio for hybrid and multi-cloud environments, and launching several new features for its Duo Risk-Based Authentication solution.

In October 2023, Global cybersecurity company Fortinet announced two dedicated data centres to expand the reach and availability of its Universal SASE, AI-powered Security Services, and FortiCloud for customers across India and SAARC strengthening its commitment to India. The new data centres announced are in Pune and Bengaluru and would add to the company’s existing development centre and support centre investments in India.

Top Impacting Factors

Rising cybersecurity threats

The growing frequency and sophistication of cyberattacks pose a significant threat to organizations. Numerous cyberthreats, including ransomware and data breaches, are driving the need for strong data center security solutions. Furthermore, businesses are depending more and more on digital infrastructure to handle and store sensitive data, which puts them at danger of assaults like ransomware and data breaches from advanced persistent threats. These risks represent serious financial and reputational risks in addition to compromising the integrity and confidentiality of vital data. Businesses invest in complete data center security solutions that include intrusion detection and prevention systems, firewalls, encryption, and other cutting-edge technology to address these issues. Organizations must also prioritize security investments if they want to protect their data centers from ever changing cyber threats. Thus, the rising cybersecurity threats is fueling the growth of data center security market.

Growing adoption of cloud

The surging adoption of cloud computing has become a pivotal driver for the data center security market. As businesses migrate their operations to the cloud for enhanced scalability, flexibility, and cost efficiency, the need for robust data center security solutions has intensified. Cloud adoption introduces a paradigm shift in data storage and processing, necessitating comprehensive security measures to protect sensitive information stored and transmitted across cloud environments. Organizations are increasingly reliant on data centers to house their cloud infrastructure, making these facilities critical points of vulnerability. Security concerns such as unauthorized access, data breaches, and compliance issues become paramount in the cloud ecosystem. To address these challenges, businesses are investing in advanced data center security solutions that encompass encryption, identity and access management, threat detection, and other protective measures. The growing recognition that traditional security approaches are inadequate for cloud environments propels the demand for innovative and adaptive security solutions. As the cloud continues to reshape the digital landscape, the data center security market is poised to play a pivotal role in ensuring the integrity, availability, and confidentiality of data in an interconnected and dynamic cloud-based ecosystem.  

Rising volume of user data

The escalating volume of user data has emerged as a significant driver for the data center security market. In an era dominated by digital transformation, businesses are amassing vast quantities of user information, ranging from personal details to transaction histories and sensitive corporate data. The sheer magnitude of this data makes data centers primary targets for cyber threats, including data breaches and unauthorized access attempts. The imperative to protect this burgeoning volume of user data against sophisticated cyberattacks propels organizations to invest in robust data center security solutions. The growth of IoT devices, mobile applications, and online services is driving digitalization, making user data protection more important. Further, encryption, access controls, and advanced threat detection technologies are few of the data center security measures that are essential to guaranteeing the availability, confidentiality, and integrity of growing user data pool. As a result, the increasing amount of user data not only highlights the need for improved security infrastructure but also acts as a catalyst for the data center security market's ongoing expansion and innovation.

 

Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the data center security market analysis from 2022 to 2032 to identify the prevailing data center security market share.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the data center security market size segmentation assists to determine the prevailing data center security market opportunity.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global data center security market trends, key players, market segments, application areas, and market growth strategies.

Data Center Security Market Report Highlights

Aspects Details
Market Size By 2032
Market Size By 2032

USD 62.2 billion

Growth Rate
Growth Rate

CAGR of 16.6%

Forecast period
Forecast period

2022 - 2032

Report Pages
Report Pages

290

Data Center Security Market By Component
By Component
  • Solution
  • Service
Data Center Security Market By Data Center Type
By Data Center Type
  • Small Data Center
  • Medium Data Center
  • Large Data Center
Data Center Security Market By Industry Vertical
By Industry Vertical
  • BFSI
  • IT and Telecom
  • Healthcare
  • Retail and E-commerce
  • Media and Entertainment
  • Government
  • Others
Data Center Security Market By Region
By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players
Key Market Players

Cisco Systems, Inc., Juniper Networks, Inc., Broadcom, Palo Alto Networks, Inc., Schneider Electric, IBM Corporation, Dell Inc., Honeywell International Inc., Fortinet, Inc., Siemens

Analyst Review

One prominent trend is the increasing adoption of cloud-based security solutions, reflecting a shift towards scalable and flexible security infrastructure. As organizations embrace hybrid and multi-cloud environments, they seek integrated security solutions that can seamlessly protect data across various platforms. Another significant trend is the rising incorporation of artificial intelligence (AI) and machine learning (ML) in security protocols, enabling more proactive threat detection and response mechanisms. The convergence of physical and digital security measures is also evident, with a focus on comprehensive strategies that encompass both aspects. Moreover, the evolving threat landscape prompts a move from traditional perimeter-based security to a more dynamic, behavior-based approach, enhancing resilience against sophisticated cyber threats. These trends collectively drive the evolution of data center security solutions, ensuring adaptability to the changing cybersecurity landscape.

The key market players are adopting strategies such as partnership for enhancing their services in the market and improving customer satisfaction. For instance, in April 2023, BDx Indonesia, a subsidiary of BDx and one the largest wholesale data center and cloud-focused operations in the Indonesian market, officially held the groundbreaking ceremony for its greenfield data enter, CGK3A, in TB Simatupang, South Jakarta. The data center with 15 MW capacity was built with the objective of providing global and leading data center services for companies and hyperscale's in Indonesia.

Moreover, some of the key players profiled in the report are Cisco Systems, Inc., IBM, Broadcom, Dell Inc., Siemens, Schneider Electric, Juniper Networks, Inc., Fortinet, Inc., Honeywell International Inc., and Palo Alto Networks. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

Author Name(s) : Sourabh Ekre | Vineet Kumar
Frequently Asked Questions?

The data center security market is estimated to grow at a CAGR of 16.6% from 2023 to 2032.

The data center security market is projected to reach 62.19 billion by 2032.

Rising cybersecurity threats, growing adoption of cloud, and rising volume of user data majorly contribute toward the growth of the market.

The key players profiled in the report include data center security market analysis includes top companies operating in the market such as Cisco Systems, Inc., IBM, Broadcom, Dell Inc., Siemens, Schneider Electric, Juniper Networks, Inc., Fortinet, Inc., Honeywell International Inc., and Palo Alto Networks.

The key growth strategies of Data center security players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.

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Data Center Security Market

Global Opportunity Analysis and Industry Forecast, 2023-2032