Global Data Center Physical Security Market Landscape 2024-2029

INDUSTRY OVERVIEW

The global data center physical security market by investment was valued at USD 1.31 billion in 2023 and is expected to reach USD 2.57 billion by 2029, growing at a CAGR of 11.90% during the forecast period. The data center market has been witnessing major data center investments by prominent colocation and hyperscale operators globally. The market is witnessing continuous competition among global vendors offering physical security systems. Rapidly developing technologies and innovation in the market have forced several vendors to offer more innovative solutions. Furthermore, the rise in data center buildings will generate an obvious demand for physical security and support the data center physical security market growth. This will shoot up the demand for physical security solutions and, in turn, make the providers of such solutions enter this market.

KEY TRENDS

State & Nature of Biometric Monitoring

Operating a data center comes with several challenges. One of these challenges is managing access to the data center while ensuring unauthorized individuals are kept out. In the past, using keys and access cards to control entry to data center facilities was inefficient and difficult to scale. However, advancements in video surveillance systems connected to cloud services now offer recording, image captures, analytics, and notification services. These cloud-based video cameras continuously upload data and require a reliable connection as they do not have local storage. Cloud-based video analytics is currently a leading trend in the data center physical security market.

Evolving Stage of Robotics in Data Center

The data center physical security industry witnessed several innovations over a period of time. One of them includes the deployment of robots to monitor the data center facilities. Robots have become more capable than before in optimizing operations and efficiency in maintaining the vitals of a data center with advances in artificial intelligence (AI) and machine learning (ML) by the hour. Apart from the usual inspections and monitoring, it also plays a role in the physical security of a data center and mitigates human intervention, thereby employing fewer people and reducing organizational costs.

Boston Dynamics is a major company developing robot dogs, which data center operators are deploying in their facilities. For example, Novva Data Centers has announced the deployment of robot dogs in its Utah data center facility in the US and plans to deploy them in other data center facilities in the future.

SEGMENTATION INSIGHTS

1. Access control products hold the most significant segmental share and help provide selective access to various areas of data center facilities. They include MFA products, such as biometrics, fingerprint scanners, ID verification, and much more.
2. Perimeter Security segment is projected to grow at a CAGR of over 12% during the forecast period in the global market. These are the outermost physical layer and the first point of contact of a data center facility. Perimeter fencing with anti-climb features, security guards, and sensors are a few solutions used in this layer.
3. The colocation data centers segment holds the most prominent segmental industry share and are data centers that rent or lease out their space to third-party vendors for them to store their data center components. Equinix, Digital Realty, NTT DATA, Vantage Data Centers, and STACK Infrastructure are some prominent colocation operators.

GEOGRAPHICAL ANALYSIS

1. In the Americas, North America leads the data center physical security industry, followed by Latin America. North America is considered among the developed and established data center markets and sets the base for other regions, such as Europe and APAC. Latin America is considered among the emerging and developing data center markets with a high potential during the forecast period.
2. APAC is considered among the fastest-growing markets globally due to increased digitalization among internet users, creating a high demand for data storage facilities. The region has some of the largest and most established markets, such as China, Singapore, Australia, Japan, Hong Kong, and India. Some emerging markets include Indonesia, Malaysia, South Korea, New Zealand, Thailand, and others.
3. The MEA region has a high potential for growth in terms of the adoption of physical security products in the data center physical security industry. The industry witnesses higher breaches of physical security than other regions. Operators are involved in deploying higher measures of physical security products to reduce unauthorized entry and access into data center buildings.
4. Europe has the presence of several established markets, such as the UK, France, Germany, Ireland, and the Netherlands. The region also witnesses a boom across other markets, such as Spain, Poland, Italy, Belgium, Denmark, Sweden, and other countries. The development of data center facilities will lead to an increased adoption of physical security products and support the data center physical security market growth.

COMPETITIVE LANDSCAPE

1. In terms of competition, the data center physical security market largely depends on the relationship between vendors and data center operators. The product portfolio, cost, and installation services play a vital role. The data center physical security industry has both local and global providers.
2. Global providers of physical security offer data center infrastructure solutions, such as biometric scanners, video surveillance systems, network cameras, perimeter fences, and motion detectors.
3. The data center physical security market is moving toward the adoption of customized security solutions, such as access points, video analytics, additional biometrics, and perimeter fencing, depending on the location of the data center facility.
4. A few examples of such companies are ABB, Johnson Controls, ASSA ABLOY, Legrand, Cisco Systems, Schneider Electric, Honeywell, Bosch Security and Safety Systems, Siemens, Secure IT Environments, Eagle Eye Networks, and Boston Dynamics.
5. The newest player, Boston Dynamics, may disrupt this data center physical security market with its incredibly modern and unique solution for robot deployments in data centers. The company’s idea is to deploy its robot dogs in data centers’ data halls and program them in a way that it can monitor and detect any inefficiencies and safety risks, perform manual iterative tasks, and prevent any unauthorized intrusions in the facility. It has deployed its robot dog, Spot, into various data center facilities so far, like the one deployed at GlobalFoundries and Oracle recently.
6. The physical security industry is likely to grow in developing markets in regions with more security threats. Data center operators are likely to procure the most robust physical security infrastructure for their facilities. Currently, the competition in North America is high due to the presence of these companies. In contrast, in regions like the Middle East & Africa, the competition is quite low due to the underdeveloped nature of these markets.
7. The data center physical security industry is anticipated to face lower competition in developing markets owing to the low presence of global vendors. It is also observed that global vendors partner with local vendors to capture the new growing market and generate more revenues till the market matures.