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

The Mexico Data Center Physical Security Market size is estimated at USD 17.10 million in 2024, and is expected to reach USD 40.40 million by 2029, growing at a CAGR of less than 18.20% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Key Highlights

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Mexican data center physical security market is expected to reach 480 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 2.2 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 120,000 units by 2029. Querétaro is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are around 11 submarine cable systems connecting Mexico, and many are under construction.

An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide and, consequently, the growth of the data center physical security solutions. Several factors contribute to the demand for data centers and their growth within Mexico, reflected by the country's evolving IT landscape, business activities, and technological initiatives. Key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce and digital services, renewable energy and sustainability, and smart cities and IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.

Mexico Data Center Physical Security Market Trends

The Cloud Segment to Hold Major Share in the Market

• About 80% of Mexican businesses use cloud-based services through private or hybrid cloud models. This is due to favorable government initiatives that have lowered entry barriers for domestic cloud providers and reduced investment risks associated with technology obsolescence and change.
• Mexican government agencies are focusing on providing cloud-based e-government services as they go digital. This will drive the population's internet usage, which, in turn, will drive the growth of the market. Cloud-based services are widely seen as the next-generation computing revolution in major vertical end-use markets such as the public sector, banking, financial services and insurance, healthcare, and retail.
• In 2018, 48% of Mexican businesses invested in cloud products and services. Of the companies that adopted this technology, 30% invested part of their IT budget in public clouds, and the remaining 18% invested in private clouds. In early 2020, Microsoft announced it would build its first cloud data center in Mexico over the next five years as part of a USD 1.1 billion investment.
• Major companies that provide cloud services in Mexico's cloud computing industry include Microsoft Corporation, Amazon Web Services, IBM Corporation, Accenture, Oracle Corporation, SAP SE, Google, Rackspace, Salesforce.com, and Telefonica. These cloud service providers aim to extend their service portfolio and existing delivery models, such as public and private cloud models, to offer comprehensive solutions to their customers.
• With the rise of the digital economy and the increasing number of internet users in Mexico, the need for data storage and processing is increasing. Such instances in the market are expected to create more need for data centers, boosting the growth of the market studied.

Video Surveillance Holds the Largest Market Share

• Data centers are home to sensitive and vital data, which makes security their highest priority. Data center operators help ensure that security standards and regulations are respected through video surveillance systems, which monitor access, detect unauthorized entry, and maintain compliance.
• Many operators of data centers are using remote video surveillance to keep an eye on their facilities throughout the day. This ensures that all security threats can be quickly addressed, even where staff are not at the site.
• Data protection regulations, such as the Mexican Data Protection Law, impose strict security and privacy requirements within the country. These regulations must be complied with video surveillance equipment, and, therefore, they are vital for data center operators.
• In Mexico, 97% of internet users access the internet through a smartphone, compared to 32% who use laptops and desktop computers. This has positively influenced the development of the BFSI, media and entertainment, and e-commerce industries, where a sizable amount of data has been generated. The most popular website, with 93.4% of visits, is Facebook. On the other hand, 80.5% of Mexicans used Facebook Messenger. TikTok came in sixth, with 70.4% of users in the area, and Instagram came in second with 79.1%. This shows there is a huge penetration of smartphones in the country, primarily requiring data centers for storage since they require real-time processing on enormous data chunks. Such positive growth of smartphones in the country is expected to lead to an increase in the number of data centers during the forecast period and, consequently, the growth of the segment.
• Public and commercial organizations are working together to construct Mexico's fiber connectivity network to expand the nation's connectivity infrastructure. Long-term developments have been greatly aided by some of the significant investments made in the early stages. Izzi, the telecom division of Grupo Televisa in Mexico, invested USD 40 million to extend its fiber optic network in Mexico and the state of Durango in September 2021. The installation of fiber networks has accelerated in Mexico due to the country's steady evolution of network use and the necessity for faster data transfer rates. Such instances in the market are expected to propel the growth of the data centers, creating more demand for data center physical security providers in the coming years.
• The key players in the market are focusing on improving data center physical security solutions to meet the market demand. In April 2023, Schneider Electric launched a new service, EcoCare, for Modular Data Center Services membership. Special expertise in maximizing the efficiency of modular data centers by continuously monitoring and maintaining conditions 24 hours a day is available to members of this innovative service plan. The membership provides exclusive support that includes on-site services teams, a dedicated customer success management team, addressing maintenance and infrastructure needs at a system level, and a few other services.

Mexico Data Center Physical Security Industry Overview

The upcoming DC construction projects in the country are expected to boost the Mexican data center physical security market in the coming years. The market studied is moderately consolidated with some players in the market, including Axis Communications AB, ABB Ltd, Securitas Technology, Bosch Sicherheitssysteme GmbH, and Johnson Controls. These major players, with a prominent market share, focus on expanding their regional customer base.

• In May 2024, Cisco and Splunk launched the industry’s first AI-native security architecture, Hypershield, powered by artificial intelligence to secure data centers and clouds. Cisco Hypershield protects applications, devices, and data across public and private data centers, clouds, and physical locations.
• In March 2023, Securitas Technology, a significant provider of integrated security systems, officially announced bringing together the electronic security expertise and capabilities of Securitas and STANLEY Security, which was acquired in July 2022.

Additional Benefits:

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

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