The global Data Center Security market is projected to grow at a CAGR of 17.85% to reach a value of US$18.644 billion by 2025, from US$6.958 billion in 2019. The data being generated by the various end-user industries, due to the growing penetration of internet with the increasing usage of internet services, is boosting the demand for the construction of data centers in order to manage, save and control the data effectively. This, in turn, is leading to an increase in the demand for data center security solutions as there are many security concerns associated with the management of data centers and can lead to the destruction, loss, and hacking of data, therefore, leading to a surge in the market growth over the forecast period.
There has been an increase in cybercrime and cyberattacks to steal the data and use the data for inappropriate uses. According to the report and statistics by the US Securities and Exchange Commission, the cost associated in order to completely recover from a data breach increased from US$ 4.9 million in 2017 to US$7.5 million in 2018. Hence, growing cases of data breaches and cyber-attacks are pressurizing enterprises across various industries to opt for data center security solutions, thereby positively impacting the market growth.
The above graph presents the statistics of internet traffic from the year 2016 to 2018 and the increase in the data center workload for the same period. According to the statistics by the International Energy Agency, the internet traffic increased from 138 to 237 from 2016 to 2018, showing an increase of 96 and the data center workload increased from 133 to 206, showing an increase of 73, which shows that as the internet traffic is increasing and leading to an increase in the data center workload, therefore leading to the opening of new data centers and boosting the market growth of data center security worldwide.
Furthermore, the players are increasingly involved and are participating in the market through enhanced and effective product offerings in order to boost the adoption of data center security solutions to cater to the growing needs of the rapidly advancing industries. For example, Fortinet offers a product called the “Fortinet Data Center Firewall (DCFW) Solution”. This solution makes the use of Fortigate firewalls, that are essentially available as high-performance network security appliances and chassis-based systems, which are able to facilitate intrusion prevention, application control, and anti-malware to the commonly used firewall-VPN combination. The data center firewall makes use of the performance of FortiGate family with the security intelligence of FortiGuard Labs to provide unmatched performance, with a flexible and high speed 10 GE, 40 GE, and 100 GE interface, with the throughput that ranges from 50 Gbps to 1 Tbps.
Logical Security to hold a significant share
Logical Security is expected to hold a significant market share over the forecast period, which is attributable to the fact that there has been an increase in the instances of data breaches due to the easy access to the enterprise data stored in the data centers. Moreover, logical security provides advanced and enhanced security solutions such as access control and compliance, and threat and application security among others.
Banking and Financial Services industry vertical to expand at a noteworthy pace over the forecast period
Banking and Financial services industry vertical is estimated to grow at a noteworthy pace over the forecast period and is projected to contribute to the market growth of global data center security. This is due to the fact that there are increasing concerns among the banking and financial services companies as enterprises to provide optimum protection of the personal, financial and sensitive data being generated associated with the different users, which is constantly increasing due to the growing number of users of these services.
North America to be one of the major regional markets
Geographically, the global data center security market is segmented into North America, South America, Europe, Middle East, and Africa, and Asia Pacific. The North American regional market for data center security holds a substantial market share and will grow at a decent CAGR over the forecast on account of the presence of well IT infrastructure coupled with strict regulations regarding data breaches.
In addition, there are growing investments and in data center security solutions and new openings of data centers, which is boosting the market growth. For instance, recently in February 2020, Facebook announced the opening of its new data center in New Albany, Ohio, which is finally online after getting through the construction phase. The data center is spread on a huge campus of 345-acres and serves traffic generated and is part of the growing global infrastructure of the company. The company plans to build 5 data centers within the campus to cater to the increasing traffic needs, which is going to increase the demand for data center security solutions.
In addition, there are increasing investments in the Asia Pacific region in countries such as India in order to facilitate the development and growth of the Information, Communication and Technology industry and due to the increasing requirements of data localization. For example, in October 2019, Oracle announced that they have expanded their operations by the opening of their new data center in Mumbai, and is planning to add 20 new data centers in India by the end of 2020. Therefore, the Asia Pacific region is projected to increase its share over the forecast period and show significant market growth.
The Global Data Center Security market is segmented based on data center type, solution, industry vertical, and geography. By data center type, the market is segmented as mid-sized data centers, enterprise data centers, and large data centers. By solution type, the global data center security market is segmented as logical security solutions and physical security solutions. By offering, the market has been segmented as solutions and services. By industry vertical, the market is segmented as banking and financial services, manufacturing, healthcare, government, media and entertainment, and others.
Some of the major players covered as a part of this report are Cisco Systems, Inc.,Trend Micro Incorporated,McAfee, LLC,IBM, and Dell among others.