Changing Trends in the Data Center Security Market
The Data Center Security market is worth $6.958 billion for the year 2019 and is expected to grow at 17.17% CAGR to reach a market volume of US$21.858 billion by 2026.
Due to the rising number of cyber-attacks and cybercrime activities, organizations are widely adopting various data security solutions for safeguarding could as well as internal security measures. The data center refers to a set of practices, physical policies and virtual technologies used to protect data centers against external threats and attacks. Data centers aid in reducing the cost for private companies by providing centralized computing networks and servers. The largest data centers users are hyper-scale cloud companies and large-scale enterprises that use data Center security solutions to optimize and protect their data. Data Center security solutions are extensively being used in industries such as defense, healthcare, media, and entertainment and Banking & Financial services among others
A recent report by Interpol has indicated an exponential rise in the number of cyber-attacks and cyber threats during the Covid-19 pandemic. Hence, a growing number of cyber-attacks and cyber threats are forcing companies to opt for data security solutions to safeguard their data against data breaches and cyber-attacks. Thereby, positively impacting the data center market growth. However, the market growth has been hindered owing to the availability of cheaper substitutes and a limited budget for IT. Besides, concerns relating to privacy are impeding the growth in the market. The Data center security market can be segmented into the following subdivisions, namely midsize data centers, large Size data centers and enterprise data centers. Further data center security market can be segmented by service into managed security services, professional services and security consulting. Data Center security solutions are extensively being used in industries such as defense, healthcare, media, and entertainment and Banking & Financial services among others
Prominent players in the Datac enter Security market are McAfee LLC, Cisco Systems Inc., Trend Micro Incorporated, Dell Inc., IBM, Hewlett Packard Enterprise Development LP, Broadcom, IAM Networks and Fortinet Inc. among others.
The Growing Need for Cyber Security Solutions Will Drive the Market Growth
One of the primary reasons for the data center security market growth is the growing demand for advanced security solutions. The rise in the number of online threats and cybercrimes has resulted in the growth of the data center security market. Besides, the increase in the number of sophisticated attacks, virtualization & cloud computing and rising data usage has resulted in the pressing need for secured connectivity across platforms.
Furthermore, monitoring solutions and physical capabilities are some of the key drivers of the data center security market. Shifting trends in the market such as dynamic power variations and power density have resulted in the replacement of conventional personnel-based monitoring systems. Besides, these shifting trends have brought about new opportunities such as integrated physical and logical solutions and micro-segmentation of data which are augmenting the need for more data centers.
Market players through advanced and effective product solutions are trying to meet the growing requirements of rapidly advancing industries and augmenting the demand for data center security solutions.
Trends in Data Centre Security Market by Region:
Key market players around the world have adopted various business strategies to sustain, grow and develop in the video streaming market. Various business strategies that have been employed by organizations around the world are partnerships, acquisitions, mergers and other related commercial agreements which have assisted conglomerates to develop and provide services to a large group of people worldwide.
Through such collaborative agreements between market players and governments and other allied government agencies in the North American region have resulted in significant development of the market on the whole. The North American region holds a significant market share and is projected to grow at a decent CAGR over the forecasted period. The growth in the North American region is majorly driven by the adoption of strict regulations regarding online data breaches. Moreover, rising investment in the region and the opening of new data centers in the region is augmenting the growth in the data center security market. Additionally, the growing demand for cloud-based solutions is another driving factor in the region.
APAC is forecasted to grow at the fastest rate in the coming years. The APAC region has become a growing hotspot for data center operations as a large number of businesses and brands are expanding their businesses in the region and due to an increasing need for data center security solutions. Further, global MNC such as Google, Amazon, and Microsoft are considering APAC as a desirable region for their data centers. For instance, Microsoft recently announced the expansion of their data server market to four regions, namely Indonesia, Taiwan, Malaysia and New Zealand. Countries such as China, India are expected to grow progressively owing to the rapid expansion and development of the Information, Communication and Technology (ICT) Industry. These highly competitive markets have incentivized several global companies to enter these countries to expand their data center portfolios. Moreover, governments in countries like India are formulating new schemes to incentivize more companies to set up hyper-scale data centers in the region to boost the capacity of the existing data centers.
Data security is paramount to companies as it protects them against cyber-attacks but the need for Data Center security has exponentially risen during the pandemic owing to unforeseen threats that could affect business infrastructure and its operations. The pandemic has led to an increase in the number of online users, resulting in the growing demand for bandwidth and storage capacities. Individuals, educational institutions and businesses have resorted to digital means to conduct their business, thereby increasing the need for data center security solutions to safeguard and protect their data against any malware.
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