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Global Data Center Physical Security Market - Outlook and Forecast 2022-2027
The global data center physical security market experienced a valuation of USD 953 million in 2021 and is projected to reach USD 1.4 billion by 2027, with a compound annual growth rate (CAGR) of 7.28%.
The data center industry is witnessing robust growth, primarily driven by colocation providers, followed by internet and cloud service providers. Companies are increasingly prioritizing the protection of customer data by implementing physical security measures at various levels, including the perimeter, building, data halls, and cabinets. One example is Vantage Data Centers Berlin, which has implemented stringent security measures such as round-the-clock security personnel, K12-rated fencing around the facility, CCTV surveillance throughout the campus, and dual authentication access for critical infrastructure areas.
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USD 1 billion in 2020
Product, Security Layers, End-Users, and Geography
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The increasing deployment of cloud-based and edge data center facilities will fuel the demand for physical security solutions like video surveillance and access control systems. Data centers commonly employ K-rated fences and gates, with the ‘K’ rating being a crash test certification issued by the Department of State (DOS) in the United States to fences, gates, and barriers capable of stopping incoming vehicles.
Many data centers utilize Building Management Systems (BMS) to oversee the physical security aspects of their facilities as part of overall building management. These systems encompass CCTV cameras, access controls, and even rodent repellent systems.
In 2021, the major contributors to the global data center physical security market were North America, APAC, and Western Europe. In terms of product type, access control played a significant role in shaping the market landscape for data center physical security.
The market is segmented based on various factors, including product, security layers, end-users, and geography.
Segmentation by Product
Other Physical Security
Segmentation by Physical Security Layers
Data Hall Security
Segmentation by End Users
Colocation Data Centers
Enterprise Data Centers
Segmentation by Geography
North America – US, Canada
Latin America – Brazil, Mexico, Other Countries
Western Europe – UK, Germany, France, Netherlands, Ireland, Switzerland, Italy, Belgium, Spain, Other Western Europe Countries
Nordics – Denmark, Norway, Sweden, Finland & Iceland
Central & Eastern Europe – Russia, Poland, Other Central & Eastern Europe Countries
Middle East – UAE, Saudi Arabia, Turkey, Israel, Other Countries
Africa – South Africa, Kenya, Nigeria, Other African Countries
APAC – China, Australia, India, New Zealand, Japan Rest of APAC
Southeast Asia – Singapore, Indonesia, Thailand, Malaysia, Other Southeast Asia Countries
The global increase in data center facilities is fueling the demand for physical security solutions, including video surveillance and access control systems. Advancements in cloud-connected video surveillance systems have revolutionized the industry by offering services such as recording, image capture, analytics, and notification services. Cloud-based video analytics has emerged as a prominent trend in data center physical security.
The adoption of advanced video content analytics is expected to be driven by the combination of cloud computing and edge processing in the coming years. Additionally, IoT-based sensors are being increasingly deployed alongside camera-based surveillance solutions. Data centers are also exploring the use of augmented reality (A.R.) for technician training purposes. Furthermore, remote monitoring utilizing Artificial Intelligence (A.I.) is gaining traction as a means of ensuring advanced security on premises.
Multi-Factor Authentication (MFA) stands as the primary security solution in data centers, with advancements facilitated by the integration of Artificial Intelligence. Notably, Vantage Data Centers Berlin has implemented dual authentication for customers and employees in critical infrastructure areas, alongside stringent access control policies for customers.
With the rise in data center investments year on year, the demand for video surveillance systems is increasing. It is projected that the global video surveillance security market will reach USD 522 million by 2027. Moreover, the installation of racks in existing data centers is driving the adoption of cabinet security solutions, with the global cabinet security market expected to grow at a CAGR of 6.71% by 2027.
In 2021, the Americas were the largest contributors to the global data center physical security market, with the United States accounting for over 90% of investments in the region. In the APAC region, countries such as China & Hong Kong, India, Australia, Japan, and Southeast Asia saw significant growth in data center investments, dominating the data center physical security market. Western Europe held the majority share of investments in the European region, with Ireland, the Netherlands, Germany, France, and the U.K. being the major contributors. In the Middle East and Africa, the market was primarily driven by the UAE, South Africa, Saudi Arabia, Turkey, Kenya, Nigeria, and Israel.
Prominent global providers of physical security services encompass companies such as Assa Abloy, Axis Communication, ABB, Bosch Security Systems, Cisco Systems, BioConnect, Honeywell, Siemens, and Schneider Electric.
BioConnect specializes in offering biometric system solutions to data center facilities, including Switch, Equinix, CyrusOne, and DataBank.
Key companies profiled in this report include AMAG Technology, ASSA ABLOY, Axis Communications, ABB, Alcatraz, Bayometric, Boon Edam, Bosch Security Systems, BioConnect, Convergint Technologies, Cisco Systems, CLD FENCING, Dahua Technology, Digitus Biometrics, Eagle Eye Networks, Gunnebo, Hangzhou Hikvision Digital Technology, Honeywell, Horton Automatics, Instor, Johnson Controls, Kisi, Legrand, Pacific Control, Pelco, Puffin Solutions, Secure I.T. Environments, Siemens, Schneider Electric, Southwest Microwave, SUPREMA, Verkada, WireCrafters.
Key Questions Answered
HOW LARGE IS THE PROJECTED SIZE OF THE DATA CENTER PHYSICAL SECURITY MARKET IN 2027?
The projected size of the Global Data Center Physical Security market in 2027 is expected to reach USD 1,453 million.
WHAT ARE THE DRIVING FACTORS CONTRIBUTING TO THE GROWTH OF THE DATA CENTER PHYSICAL SECURITY MARKET?
The growth of the global data center physical security market is primarily driven by the increasing development of hyperscale and colocation data center facilities, as well as the widespread adoption of multi-factor authentication.
WHAT ARE SOME PROMINENT TRENDS OBSERVED IN THE DATA CENTER PHYSICAL SECURITY MARKET?
Some prominent trends observed in the data center physical security market include the adoption of Video analytics and cloud-based analytics, along with the deployment of edge data centers.
WHO ARE THE KEY PLAYERS IN THE DATA CENTER PHYSICAL SECURITY MARKET?
The key players in the data center physical security market include A. Axis Communication, Assa Abloy, ABB, BioConnect, Bosch Security Systems, Johnson Controls, and Honeywell.