South Africa Data Center Physical Security - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The South Africa Data Center Physical Security Market size is estimated at USD 16.42 million in 2024, and is expected to reach USD 46.75 million by 2029, growing at a CAGR of 27.60% during the forecast period (2024-2029).

Security measures can be categorized into four, namely perimeter security, computer room controls, facility controls, and cabinet controls. The first layer of data center security discourages, detects, and delays any unauthorized entry of personnel at the perimeter. In case of any infringement in the perimeter monitoring, the second layer of defense denies access. It is an access control system utilizing card swipes or biometrics.

The third layer of physical security further restricts access through various verification methods, including monitoring all restricted areas, deploying entry restrictions such as turnstiles, providing biometric access control devices to verify finger and thumbprints, irises, or vascular patterns, providing VCA, and using radio frequency identification. The first three layers ensure the entry of only authorized people. Further security to restrict admission includes cabinet locking mechanisms. This layer addresses the fear of an 'insider threat,' such as a malicious employee.

Under Construction IT Load Capacity: The upcoming IT load capacity of the South African data center physical security market is expected to reach 828.92 MW by 2029.

Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.4 million sq. ft by 2029.

Planned Racks: The country's total number of racks to be installed is expected to reach 220,201 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.

Planned Submarine Cables: There are close to 9 submarine cable systems connecting South Africa, and many are under construction. One such submarine cable that was estimated to start service in 2023 was 2Africa, which stretches over 45,000 km with landing points in Cape Town, Mtunzini, and Port Elizabeth in South Africa.

South Africa Data Center Physical Security Market Trends

IT and Telecom to Hold Significant Share

• Data centers are responsible for maintaining prevention and safety protocols for physical threats. Attackers are becoming smarter and finding elaborate ways to phish information. It is preventable by installing protocols, technologies, and systems to safeguard sensitive data within the company.
• Telecom data centers are increasing in the country with expanding data traffic. South Africa's prominent data center providers include Africa Data Centres, Teraco, Vantage, Telkom's BCX, and MTN Business. Telecom data centers are owned and operated by telecom or service provider companies such as Deutsche Telekom AG, Verizon, or AT&T. As they are primarily responsible for content delivery and facilitating mobile and cloud services, telecom data centers require very high connectivity and security.
• Digital transformation has significantly increased in South Africa in the last couple of years. The country has made significant efforts in this area and has been actively trying to improve 5G legislation and regulations to remain prepared for the digital age. One recent instance is the launch of a three-stage 5G spectrum auction by the Independent Communications Authority of South Africa (ICASA).
• In September 2022, the US Department of Commerce's Market Development Cooperator Program (MDCP), run by the International Trade Administration, awarded the Wireless Infrastructure Association (WIA) a grant for its proposed Roadmap to 5G Success initiative. This project aims to accelerate the deployment of 5G in South Africa and boost business for US-based enterprises. South Africa has 109 million active mobile connections.
• With increasing data traffic, the demand for telecom data centers is expected to grow. This will lead to a major demand for physical security solutions.

Access Control Solutions to Register Significant Growth

• Access control is one of the most efficient and scalable ways of securing data centers. Data center security through biometric access control is one of the trending security features in data centers.
• African data centers are designed and operated according to the highest standards demanded by today’s leading cloud providers, carriers, and enterprises. The physical security of the data and transactional computer processing remain front-of-mind from the physical layer up. Onsite security is guaranteed by multiple layers and is a combination of physical security, biometric access control, and CCTV systems.
• In South Africa, various biometric access control solutions are designed to meet stringent requirements from modern data centers. Combining the leading biometric technology, distributed system topology, and two-way CCTV integration, various providers deliver the most secure physical access control solutions for data centers.
• The demand for access control solutions is expected to increase with the increase in cloud startups. South Africa is also an important market for Chinese cloud providers such as Huawei and Alibaba. Huawei was aggressive in terms of its cloud expansion strategy in South Africa, targeting at least 15% market share by the end of 2023. Huawei’s approach to increasing its market share was to provide everything as a service. Similarly, Alibaba partnered with BCX in Q3 2022 to increase the uptake of its cloud solutions. It employed a similar strategy to that of Huawei, focusing on SaaS services to expand its market share.
• There are 13 cloud infrastructure startups in South Africa, including Snapt, Echo Service Provider, Nebula, Routed, and Wingu. With increasing data center construction due to cloud startups, the demand for access control solutions is expected to increase in the country.

South Africa Data Center Physical Security Industry Overview

The South African data center physical security market is consolidated among the players and has gained a competitive edge in recent years. A few major players in the market include Axis Communications AB, Bosch Sicherheitssysteme GmbH, and others. These major players, with a prominent market share, focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.

In March 2023, Genetec Inc. and Axis Communications collaborated with the introduction of Axis Powered by Genetec, the industry's first enterprise-level access control offering that combines Genetec's access control software with Axis' network door controllers in a single easy-to-deploy all-in-one offering.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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