The Global Data Center Physical Security Market is estimated to grow at a significant rate, at CAGR 16.04%, and reach a market size of US$24.207 billion by the year-end of 2026. This market was valued at US$9.915 billion in 2019. The prime reasons behind the surge in this market are growing data centers in the world along with the threat of theft and other crimes. Data Center houses computer systems for commercial usage, along with associated components, such as storage and telecommunication systems. These computer systems are worth a fortune and hence require safety against theft. Moreover, data centers store crucial information about the general public, projects undertaken by user/owner/government, economic information, military-related information, and others. Such information is pivotal and is prone to manipulation or pilfering by a third party that may harm the owner/ government or economy. Hence, the physical security of data centers is a top concern by the users.
A History About Data Centers
The world-first data center was constructed in the early 1940s and housed ENIAC, the world’s first electronic, programmable, digital computer. Those data centers consisted of huge computer rooms and a single system required huge power and had to be cooled down, to avoid overheating of the mainframe. This computer was used for military purposes and hence security became crucial to save and secure top-notch military information. In the 1980s, with the boom of the microcomputer industry, the growth of data centers was seen as a result of the deployment of computers in several sectors. However, it was not until 1997-2000 and the boom of the dot-com bubble that these data centers spread like fire around the nations. Further, growing internet connectivity and non-stop operation led to the construction of Internet Data Centers (ICDs).
Importance of Physical Security of Data Centers
Security of data centers is very important, especially physical security, as data centers contain both computer systems and servers storing crucial information. Since data centers house a large number of computer systems, they are prone to robbery. Further, data centers also store pivotal information such as government project details and deals, military details, details about a firm’s operation, and others that may get pilfered and used against the economy/ company. Moreover, fire protection systems enable protection against loss of life or property with early detection and prevention measures. Also, video surveillance security facilitates the location of the trouble area and timely actions.
Ways to Secure Data Centers
Owning to top-notch information and operation, physical access to certain data centers or certain rooms in those centers may have restricted entry. Layers of security are often installed in such centers/ rooms, to avoid bleach from the third party. These layers may include bollards and mantraps, along with video camera surveillance and security guard protection. Further innovation in physical security has taken the standards to next level, lowering the theft and entry bleach probability. Certain data centers have installed logging access machines, which require the entrants to log in and out at the time of their entry and exit to and from the data centers. Moreover, multiple log entries are installed at the main entrance, entrance to rooms, and others. Also, access to cabinets can be connected with power distribution systems in order to ensure locks are networked through the same appliance. And with the rising adoption of mobile-based access control systems and IP-based video surveillance further, boost the physical security of data centers.
Banking, Finance Services, and Insurance or the Bfsi Sector to Show Considerable Growth in the Forecasted Period
By industry vertical, the report segments the data center physical security market as IT and Telecom, BFSI, Government, Healthcare, Energy, Education, Retail, and others. Of these, the BFSI sector is anticipated to grow at an exponential rate, pertaining to increased, complex operations of the sector and rising financial crimes. The government, healthcare, and education sectors are estimated to grow at a significant rate. Especially in the developing economies, with the adoption of technology in the sectors. In India, for instance, social integration of programs such as Jan Dhan Yojana and Direct Benefit Transfer had led to an increase in demand for storage space, directly increasing the need for physical security. The rising adoption of Cloud-based Electronic Medical Records and Electronic Health records will also increase the market size considerably. IT and Telecommunication sector as well will hold a significant share with the expansion of the industry.
Geographically, the market is segmented as North America, Europe, Middle East, Africa, and Asia Pacific region. The North American region has a considerable market share owing to its state-of-art infrastructure and technological advancement. The European region is anticipated to grow at a significant rate during the forecasted period.
The Asia Pacific region, however, is expected to outstand the market and grow at an exponential rate. Rapid urbanization resulting in greater demand for telecommunication and It services is the key reason for the growth in the market. moreover, the low and cheap availability of IT services attracts foreign interest in the market. The growing adoption of cloud computing in various industries will also help in the market growth. Though certain government regulations may restrain the market. The Chinese government, for instance, successfully gained unrestricted access to data within the country with the implementation of its Cybersecurity Multi-level Protection Scheme in the year 2019. While there is certain favorable government regulation supporting the market, as in the case of Indonesian government regulation, numbered 82, requiring Electronic system operators to mandatory have data centers and disaster recovery centers. Companies as well are innovating their way through the market to capture greater share. Alibaba, a Chinese e-commerce giant, for instance, announced interest in investment of US$28.7 billion in the development of cloud-infrastructure in the country.
The coronavirus pandemic affected the operations of the data center, hence impacting the physical security market. To curb the spread of the virus, the governments implemented nationwide lockdowns, leading to the shutdown of data centers and a halt in the construction of new centers.