Data Center Security Global Market Report 2024

The global data center security market has grown rapidly in recent years. It will grow from $11.66 billion in 2023 to $13.57 billion in 2024 at a compound annual growth rate (CAGR) of 16.4%. The growth in the historic period can be attributed to rising cybersecurity threats, demand for data privacy and compliance, increase in data generation, cloud computing growth.

The global data center security market is expected to see rapid growth in the next few years. It will grow to $23.64 billion in 2028 at a compound annual growth rate (CAGR) of 14.9%. The growth in the forecast period can be attributed to increase in ransomware and extortion attacks, iot and edge computing security, adoption of zero trust security, increase in security automation. Major trends in the forecast period include technological advancements, artificial intelligence (AI) and machine learning (ML), advancements in multi-layered security, increased use of micro-segmentation.

The surge in cyberattacks and data breaches is poised to propel the expansion of the data center security market. Cyberattacks represent deliberate attempts to gain unauthorized access to computer systems or networks, with the intent to cause harm. Data theft, alternatively known as information theft, involves the unauthorized acquisition or storage of personal, confidential, or financial data, including login credentials, program code, algorithms, or proprietary processes and tools. This rising trend of cyber threats has significantly expanded the scope and importance of data center security. It encompasses a range of processes and strategic measures designed to safeguard data centers from potential threats, intrusions, and unauthorized access. For instance, as reported by Positive Technologies, a cybersecurity firm based in Russia, there was a 17% increase in cyberattacks in Q1 of 2021 compared to the same period in 2020, and a 1.2% increase compared to Q4 2020. Moreover, according to Forbes, the average frequency of data breaches and cyberattacks surged by 15.1% in 2021 compared to the preceding year. Consequently, the heightened prevalence of cyber threats and data breaches is a driving force behind the growth of the data center security market.

The rising adoption of cloud computing platforms is poised to drive the expansion of the data center security market in the foreseeable future. Cloud computing entails a service that grants on-demand access to computing resources and services via the Internet. Data center security plays a pivotal role in shielding the physical and network infrastructure of cloud computing, ensuring the protection of data and services from unauthorized access and potential threats. For instance, as of December 2021, Eurostat, a Europe-based intergovernmental organization, reported that 41% of EU enterprises utilized cloud computing. This usage was primarily focused on hosting e-mail systems and storing electronic files, marking a 5% increase compared to the year 2020. Consequently, the growing adoption of cloud computing platforms is a driving force behind the expansion of the data center security market.

The substantial expenses linked with implementing physical security measures pose a challenge and may hamper the market's growth in the projected period. Incorporating physical security measures often demands significant investments in security equipment and personnel to guarantee the safety of data centers. For instance, in 2023, according to Santa Cruz, The University of California, the potential cost of a security breach can far exceed $500,000, taking into account expenses related to customer notification and recovery. Consequently, the high implementation costs associated with physical security measures serve as a hindrance to the expansion of the data center security market. safety of data centers. As reported by Santa Cruz, The University of California in 2023, the potential cost of a security breach can far exceed $500,000, taking into account expenses related to customer notification and recovery. Consequently, the high implementation costs associated with physical security measures serve as a hindrance to the expansion of the data center security.

Prominent players in the data center security market are focused on developing groundbreaking products, like the compact firewall solution, to enhance their market presence. A compact firewall solution typically encompasses features such as virtual private network (VPN) support, antivirus, antispam, antispyware, and content filtering capabilities. For example, in August 2022, Fortinet Inc., a US-based company specializing in data center security solutions including firewalls, endpoint protection, and intrusion detection systems, introduced the FortiGate 4800F series, heralded as the fastest compact firewall globally for hyperscale data centers. Powered by 16 Fortinet 7th generation network processors (NP7), it boasts exceptional performance metrics for a compacted firewall. Its Security Compute Assessments deliver up to 34 times greater efficiency compared to competitor solutions, with the ability to handle approximately 19 times more connections per second. The FortiGate 4800F hyper-scale firewalls empower businesses and Mobile Network Operators (MNOs) to run multiple applications concurrently, reduce their hardware footprint, and effectively secure their IT infrastructures.

In May 2023, DartPoints LLC, a US-based company specializing in data center security, cloud, and cybersecurity services, acquired Venyu Solutions Inc. for an undisclosed sum. With this acquisition, DartPoints LLC now boasts a portfolio of 11 data centers spanning across 10 U.S. markets, five states, and three regions. These facilities collectively comprise over 325,000 square feet of space and provide 20 megawatts of electricity. Venyu Solutions Inc. is a US-based company focused on data center security.

Major players in the data center security market are Google LLC, Dell Inc., Huawei Technologies Co. Ltd., Amazon Web Services Inc., Siemens AG, International Business Machines Corp, Cisco Systems Inc., Schneider Electric SE, Honeywell International Inc., Broadcom Inc., Hewlett Packard Enterprise Development LP, Tyco International PLC, VMware Inc., Equinix Inc., NetApp Inc., Palo Alto Networks Inc., Juniper Networks Inc., Fortinet Inc., Citrix Systems Inc., McAfee Corp., Checkpoint Software Technologies Ltd., Trend Micro Inc., Nutanix Inc., CyrusOne LLC, Coresite LLC, QTS Realty Trust Inc., Carbonite Inc., Acronis International GmbH, Nextlabs Inc., Veritas Technologies LLC.

North America was the largest region in the data center security market in 2023. The regions covered in data center security report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the data center security market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Data center security consists of two main components including solutions and services. Solutions in this context refer to the requisite tools and services essential for constructing and maintaining a data center. These data centers can be categorized as mid-sized, enterprise, or large, each requiring specific physical and logical security measures. These security measures find application in various industry verticals including banking, financial services, insurance (BFSI), IT and telecommunications, government and defense, healthcare, media and entertainment, among others.

This report provides data center security market statistics, including data center security industry global market size, regional shares, competitors with a data center security market share, detailed data center security market segments, market trends and opportunities and any further data you may need to thrive in the data center security industry. This data center security market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The data center security market consists of revenues earned by entities by providing services such as threat protection, storage transformation services, security assurance, network expansion and unified communication. The market value includes the value of related goods sold by the service provider or included within the service offering. The data center security market also includes sales of servers, storage devices and networking equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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