The global data center physical security market is expected to grow at a compound annual growth rate of 16.04% over the forecast period to reach a market size of US$24.207 billion in 2026 from US$9.915 billion in 2020. Servers and storage units which are housed in the data centers require physical security from external threats which can disrupt business activities of the customers. Video surveillance through cameras, access control systems, perimeter security among others are major security solutions being deployed by enterprises for physical security of data centers in various parts of the world. The growth of data center physical security market is also facilitated by the rising number of new data centers coupled with the increasing security concern of crucial data and data center critical infrastructure and increasing adoption of advanced security solutions specifically in developed economies. Furthermore, implementation of mobile-based access control along with the rising use of IP-based cameras for video surveillance is expected to drive the growth of the data center physical security market over the forecast period. Additionally, adoption of the innovative products and solutions, facilitating efficient monitoring and management of personnel into the data center facility has further helped the data center physical security market to grow significantly on the coming years. Government Initiatives for data privacy and security due to growing concerns in various sectors such as BFSI, Government and public had proved to be a major contributing factor to the growth of Data Center Physical security market.
By industry vertical, BFSI sector is expected to witness considerable growth across the region as companies are constantly upgrading their existing IT infrastructure while moving on to the latest solutions. In the developing economies such as India, there is a renewed focus on social integration and schemes such as “Jan Dhan Yojana”, “Direct Benefit Transfer” scheme among other such initiatives that are creating the demand for more storage space which is directly impacting the data center requirement in the banking sector. Cloud-based Electronic Health Records (EHRs)/Electronic Medical Records (EMRs) are now becoming a preferable model of deployment for healthcare service providers across the region and due to the current COVID-19 pandemic, the adoption of remote patient monitoring has further increased. The other major trend transforming the healthcare industry is Healthcare Information Exchanges (HIEs) solutions that are being used for population healthcare management and efficient patient services. Due to such a favorable trend healthcare segment is expected to witness a growth of XX% over the forecast period. Further the communication and technology service providers today require data centers to meet the burgeoning customer requirements for cloud-based and advance solutions. Also, technology companies provide digital solutions to their clients, which requires solutions to be capable of delivering analytical solutions while maintaining cost-competitiveness.
Asia Pacific region insights
Reduction in the overall IT cost in countries like China and India is considered as one of the prime drivers for the growth of the data centers market in the region. In addition, with a booming urban population, there is an increasing demand for telecommuting and other online entertainment services that is boosting the demand for data centers in the Asia Pacific region. besides, the growing adoption of cloud computing solutions amongst SMEs is opening a wide range of opportunities for data center players during the forecast period. However, stringent government regulations in China which hold a significant share in the regional market are expected to restraint the growth of the market. For instance, in 2019 the Chinese government disclose its new cybersecurity law known as the Cybersecurity Muti-Level Protection Scheme (MLPS 2.0) under which government will have unrestricted access to all data within the country. Besides, there are also favorable government initiative that are creating growth opportunities in the market. For instance, under the Indonesia Government regulation number 82, all the Electronic System Operators that provide public services are required to have data centers and disaster recovery centers as part of their business continuity plan. Companies are investing extensively in data center expansion plans to cater to the growing demand from various end-user industries. Like, in August 2020, Chinese e-commerce giant Alibaba announced its plans to invest more than US$28.7 billion in the cloud infrastructure that includes the construction of data centers.
The major players profiled in the Global data center physical security market include Assa Abloy, Robert Bosch, Honeywell, Morpho, Tyco International, Siemens, Schneider Electric, Hikvision Digital Technology, Dahua Technology, and Axis Communication, among others.