Market Overview

The data center security market was valued at USD 11.67?billion in 2019, and it is expected to reach a value of USD 26.61?billion by 2025, registering?a CAGR of 14.91%, during the forecast period, (2020-2025). 2019 is expected to see the largest data center users, including hyperscale cloud companies and enterprises, optimizing their data centers on a worldwide basis. As part of NTT, RagingWire Data Centers has spent years developing a global data center platform that currently extends to 20 countries.

  • Increasing data traffic arising from a multitude of devices is driving the growth of data centers. This also implies the need for secured connectivity for critical data and confidential information. According to Cisco, Global cloud data center traffic is likely to reach 20.6 zettabytes (ZB) per year by 2021, up from 6.0ZB per year in 2016. They expect to see 628 hyperscale datacenters globally in 2021, compared to 338 in 2016.
  • According to the U.S. Securities and Exchange Commission, the average cost of a cyber-data breach has risen from $4.9 million in 2017 to $7.5 million in 2018. Risks have grown significantly around cyber attacks, information breaches from third-party vendors and information theft. This calls for complete data security so that any function of an organization is not compromised and no damage is done when it comes to revenue generation.
  • Planning a data center budget seems to be getting harder for companies because a lot of variables should be taken into account and not just some form of growth by resource, volume or power usage. Old-style license plus maintenance software agreements are running out of steam. More vendors are responding to customer needs by providing subscription-based pricing. Some of these are via software as a service, which removes underlying stack costs from the data center budget.

Scope of the Report

As the adoption of cloud services, big data, and virtualization continues to grow, the demand for secure and reliable data storage has increased drastically. Organizations are working towards improving these centers to support increasing data storage needs and control cyber-attacks. The increasing demand for large-scale data services is generating an increasing demand for the physical security solutions that safeguard them.

Key Market Trends

Monitoring Solutions and Capabilities are Driving the Adoption of Data Center Security Solutions

  • Rising power density and dynamic power variations are two major factors that are forcing the conventional personnel based monitoring systems to be replaced. Physical threats to the data center include power, cooling, human error, malice, fire, leaks, and air quality.
  • Power, cooling, and fire-related threats are monitored by built-in capabilities of power, fire suppression, and cooling devices.
  • UPS systems are being employed extensively to monitor the power quality, load on battery health, while PDUs are being employed for monitoring circuit loads.
  • Temperature sensors and humidity sensors are being used for monitoring the air temperature and humidity within the data center.
  • Rope and spot leak sensors are being employed for monitoring liquid leaks that can damage the floors, cabling, and CRAC related structures.

The Asia-Pacific is Estimated to Grow the Fastest among all Regions

  • In January 2019, Alibaba Cloud, the cloud computing arm of Alibaba Group, announced the launch of a second data center in Indonesia within ten months after the inauguration of its first one in the country.
  • MNCs such as Google, Amazon, Microsoft, and Equinix are all making the region a favorite destination for the location of their data centers.
  • More brands and businesses are expanding their market to APAC, hence there is a need for data center providers in this region. The key segments that make Southeast Asia such an attractive market for data center relocation today are IT infrastructure, server market and uninterruptible power supplies (UPSs).

Competitive Landscape

The market is highly fragmented due to the presence of players like McAfee, Inc, Juniper Networks, Inc., Schneider Electric SE, Citrix Systems, Inc and other giants which play a vital role to upscale the capabilities of enterprises. the market orientation leads to a highly competitive environment. The biggest companies in retail and wholesale data center markets have further secured their dominance by acquiring hefty rivals, and there’s been a wave of consolidation in secondary markets, as smaller players seek to scale in order to compete.

  • April 2019 - McAfee announced its support for Google Cloud Platform (GCP) Cloud Security Command Center (Cloud SCC) to help security professionals gain visibility and control over their cloud resources and detect and respond to threats.
  • January 2019 - Juniper Networks announced that BroadBand Tower, one of Japan’s largest data center providers, has selected Juniper Network’s solutions to power it’s Next-Gen 5G data center’ situated in Tokyo which will support the rapidly accelerating 5G mobile and next-generation ICT infrastructure demands of the densely-populated urban capital.

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