Data Center Security Market - By Component (Solutions, Services), By Data Center Type (Small Data Center, Medium Data Center, Large Data Center), By End Use (BFSI, Healthcare, Retail & E-commerce, Media & Entertainment), Global Forecast 2023-2032

Data Center Security Market Size

Data Center Security Market size was valued at over USD 12.6 billion in 2022 and is anticipated to grow at a CAGR of over 12% between 2023 and 2032. The increasing adoption of cloud computing platforms by a growing number of enterprises is augmenting the adoption & implementation of detailed physical & logical measures, which in turn, is driving the industry expansion.
 

The emergence of workplace virtualization, software-defined networking & software-defined storage and the rising trend of Bring Your Own Device (BYOD) have created the need for data center security to protect data from malware attacks & intrusion threats. Furthermore, the advent of new & advanced technologies is also expected to drive the need for defense measures, system upgrades, virtualized infrastructure, and authorization layers.
 

Data centers refer to commercial data storage facilities that require specialized security. These centers safeguard data against all types of attacks & threats. The goal of data center security is to make businesses as secure as possible, thereby preventing hackers from gaining unauthorized access to data. Due to the complexity of data centers, the security components must be reviewed separately while adhering to a broader security plan. Physical security and software security are the two types of security measures implemented in data centers.
 

Rising cybersecurity threats can limit market growth during the forecast period. The evolving threat landscape poses significant challenges for the data center security market as the attacks are both sophisticated and frequent in nature. Robust security measures are needed to protect data center infrastructure and sensitive information from threats such as ransomware attacks, DDoS attacks, and advanced persistent threats. The need for advanced threat response capabilities as well as threat detection & prevention has fueled the demand for innovative data center security solutions.
 

COVID-19 Impact

The COVID-19 pandemic has had significant impacts on the global data center security market. The pandemic presented an opportunity for cybercriminals to exploit the vulnerabilities of institutions and launch targeted attacks. The rise in phishing attempts as well as malware & ransomware attacks posed significant threats to data centers and the sensitive information they house. Organizations had to strengthen their data center security infrastructure to mitigate these risks.
 

Data Center Security Industry Trends

The rise in electric data center security is a notable trend in the data center security market. Data centers are becoming more complex and interconnected, housing vast amounts of sensitive and valuable data. This complexity makes them attractive targets for cybercriminals and other malicious actors, leading to a greater need for advanced security measures. In addition, With the rise of cyberattacks and data breaches, protecting data centers from unauthorized access and data theft has become a top priority for organizations. Electric data center security solutions can help mitigate the risks associated with cybersecurity threats. Overall, the rise in electric data center security reflects the growing recognition of the importance of robust security measures to protect data centers from various threats.
 

Data Center Security Component Segmentation

Based on component, the data center security market is segmented into solutions and services. The solutions segment was valued at over USD 9.5 billion in 2022. The segment consists of various products & technologies designed to secure data center infrastructure & networks. Network security solutions protect data center networks from intrusions, threats, and attacks. They also protect solutions such as electronic devices, Intrusion Detection & Prevention Systems (IDPS), Virtual Private Networks (VPNs), network devices, Access Control Network (NAC) solutions, and network traffic monitoring tools. The security management & compliance solutions offer centralized management, monitoring, and reporting for data security. Security Information & Event Management (SIEM), Security Orchestration, Automation & Response (SOAR) platforms, security analytics tools, and compliance management solutions help organizations improve their security infrastructure, detect & respond to threats, and ensure compliance.
 

Data Center Security Market Analysis

Based on data center type, the data center security market is segmented into small data center, medium data center, and large data center. The small data center segment held a market share of over 45% in 2022 and is expected to grow at a lucrative pace by 2032. The small data center segment includes data centers that are relatively smaller in size & capacity compared to large-scale enterprise data centers. The growing use of IoT devices and the rise in edge computing, driven by the need for real-time data processing, have increased the need for small data centers small datasets close to the data source reduce latency and propel the speed of data processing & analysis. The rising use of edge apps & services has fueled the growth of small data. Data centers offer flexibility, making them a good choice for businesses with changing IT infrastructure requirements. They allow organizations to start with a small footprint and then gradually expand based on their growing needs. A small data center can meet the changing needs of an SMB, a regional office, or a branch office without major resources.
 

Based on end use, the data center security market is segmented into BFSI, healthcare, retail & e-commerce, media & entertainment, IT & telecommunication, and government & defense. The BFSI segment held a dominant market share in 2022 and is anticipated to grow at 8.5% CAGR through 2032. The segment holds significant importance due to the sensitive nature of data involved and the criticality of operations in this industry. Data centers in the BFSI sector handle sensitive & critical information such as customer data, financial transactions, and business operations. Thus, it is important to ensure the security & integrity of these data centers to prevent data breaches, unauthorized access, and other cyber threats. BFSI data centers need the best network security solutions to fight against network attacks such as Distributed Denial of Service (DDoS) attacks as well as malware & intrusion attempts. The BFSI industry is subject to strict regulations regarding data protection & privacy. Data security solutions in this area must comply with industry-specific regulations such as the Payment Card Industry Data Security Standard (PCI DSS) and the General Data Protection Regulation (GDPR).
 

North America led the global data center security market with over 36% share in 2022. The data center security industry in the region, specifically the BFSI sector, has been experiencing a significant growth in recent years. The rising digitization of banking services, financial services, and the insurance sector as well as the growing adoption of cloud computing & data center services has driven the demand for robust security solutions in this region. Countries including U.S. and Canada are experiencing significant growth in financial services, thereby creating a strong demand for data center security solutions. North American countries are increasingly using the airspace to decrease costs and increase efficiency & speed. As BFSI organizations move their data & applications to the cloud, the need for cloud-centric security solutions including data center security becomes critical to protect sensitive information.
 

Data Center Security Market Share

Major companies operating in the data center security market include:

• Broadcom Inc.
• Checkpoint Software Technologies Ltd
• Cisco Systems Inc.
• Dell Inc.
• Fortinet
• Honeywell International Inc.
• Huawei Technologies Co., Ltd.
• IBM Corporation,
• Juniper Networks Inc.
• McAfee Inc.
• Palo Alto Networks, Inc.
• Schneider Electric SE
• Siemens AG
• Trend Micro Inc
• VMware Inc.
   

Data Center Security Industry News:

• In April 2023, BDx Indonesia, a subsidiary of BDx and one the largest wholesale data center and cloud-focused operations in the Indonesian market, officially held the groundbreaking ceremony for its greenfield data center, CGK3A, in TB Simatupang, South Jakarta. The data center with 15 MW capacity was built with the objective of providing global and leading data center services for companies and hyperscale’s in Indonesia.
   

The data center security market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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By Component

• Solutions
•  Physical security
•  Logical/network security        
•  Threat intelligence       
•  Data security     
• Services
•  Managed security        
•  Consulting        
•  Support & maintenance

By Data Center Type

• Small data center
• Medium data center
• Large data center

By End Use

• BFSI
• Healthcare
• Retail & E-commerce
• Media & entertainment
• IT & telecommunication
• Government & defense
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Poland
  • Benelux
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Singapore
• South America
  • Brazil
  • Argentina
  • Colombia
  • Chile
• MEA
  • South Africa
  • Saudi Arabia
  • UAE