Data Center Security Market Research Report: Information By Components (Solutions and Services), By Type (Small Data Center, Medium Data Center, and Large Data Center), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

Data Center Security Market Overview

The Data Center Security Market is projected to grow from USD 19.16 billion in 2024 to USD 40.9 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.94% during the forecast period (2024 - 2032). Additionally, the market size for data center security was valued at USD 17.2 billion in 2023.

Increased demand for better security solutions and the growing popularity of e-commerce and online shopping platforms are the key market drivers enhancing the growth of market.

Figure 1: Data Center Security Market Size, 2023-2032 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review

Data Center Security Market Trends

The growing adoption of better security solutions is driving the market growth.

Market CAGR for data center security is being driven by the rising adoption of better security solutions. The enterprises have initiated to emphasize adopting better security solutions for securing the information deployed on the cloud and also on-premises and strengthening internal security structures due to the rise in the cases of cybercrime and data hacking activities. There is an increase in the number of businesses opting for cloud computing platforms and visualization techniques for their business information storage.

Data centers refer to commercial data storage facilities which need specialized security to protect the data against all types of attacks and threats. The rising awareness about the adoption of data center security solutions is the primary factor fueling the adoption of data centers throughout the world and is supporting the growth of the data center security market in value terms. The growth in the number of initiatives taken by the government of different developing and developed countries has also fueled the market of data center security. The growing penetration of the internet and the ease of data management and storage over the internet has caused the virtualization of workplaces and enterprises. Therefore, enterprises are adopting improved data security solutions and cybersecurity solutions like data center security services and solutions.

After analytics, big data, and technological modules, data traffic is growing significantly. The mass use of social media, rising demand for connectivity, and high penetration of the internet for personal and business use in the last few years have greatly affected the need for modern and efficient network and cyber security solutions and services. Further, the adoption trend of technologies like BYOD has fueled the need for advanced and efficient network security and network analytics solutions. Thus, driving the Data Center Security market revenue.

Growing cybersecurity threats can restrain market growth throughout the forecast years. The emerging threat landscape has a significant challenge for the data center security market as the attacks are more frequent and sophisticated in nature.

Data Center Security Market Segment Insights

Data Center Security Components Insights

The Data Center Security market segmentation, based on components, includes Solutions and Services. The solutions segment dominates the market, accounting for the largest market revenue. The segment consists of several products and technologies designed to secure data center infrastructure & networks. The network security solutions protect data center networks from threats, intrusion, and attacks. The segment is further segmented into physical and logical security solutions, from which the logical security solution has the largest contribution.

Figure 2: Data Center Security Market, by Component, 2022 & 2032 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review

Data Center Security Type Insights

The Data Center Security market segmentation, based on type, includes Small Data Centers, Medium Data Centers, and Large Data Centers. The small data center segment dominates the market. It includes data centers that are smaller in size and capacity as compared to large-scale enterprise data centers. There is a rising utilization of IoT devices and an increase in edge computing due to the requirement for real-time data processing has significantly increased the demand for small data centers and small datasets. The increase in the utilization of edge apps & services has boosted the growth of small data as these small data centers can fulfill the changing requirements of an SMB, a branch office, or a regional office without major resources.

Data Center Security Regional Insights

By region, the study offers market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Data Center Security market area dominates the market due to the recent technical developments and refinements and the rising demand for data center security solutions and services throughout a large range of organizations in this region. The growing adoption of cloud-based technologies is a main factor boosting the growth of data center security market trends in the North American region.

Further, the prime countries studied in the market report are the US, Canada, German, France, the UK, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil.

Figure 3: DATA CENTER SECURITY MARKET SHARE BY REGION 2022 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Data Center Security market accounts for the second-largest market revenue due to the increasing demand for data center security services and solutions throughout the different enterprises in this region. Further, the German Data Center Security market held the largest market share, and the UK Data Center Security market was the fastest-growing market in the European region.

The Asia-Pacific Data Center Security Market is expected to grow at a rapid CAGR from 2023 to 2032. This is because of the rising demand for data center security, and more business and brands are spreading their market to the Asia-Pacific region. Moreover, China’s Data Center Security market held the largest market share, and the Indian Data Center Security market was the fastest-growing market in the Asia-Pacific region.

Data Center Security Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Data Center Security market grow even more. Market players are also undertaking various of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, higher investments, mergers and acquisitions, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Data Center Security industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Data Center Security industry to benefit clients and increase the market sector. In recent years, the Data Center Security industry has offered some of the most significant advantages to data security. Major players in the Data Center Security market, including Check Point Software Technologies Ltd., Trellix, Ubiquiti Inc., Symantec Corporation, Cisco Systems Inc., Citrix Systems Inc., IBM Corporation, Honeywell International Inc. Schneider Electric SE, Dell Inc., and others, are attempting to increase market demand by investing in research and development operations.

Check Point Software Technologies is an American-Israeli multinational leading supplier of cyber security solutions, software, and combined hardware & software products to governments and corporate enterprises worldwide. The solutions of the company protect over 100,000 customers from cyber-attacks with an industry-leading catch rate of malware, advanced targeted threats, and ransomware. Check Point provides the most comprehensive and instinctive one-point-of-control security management system. In February 2021, Check Point Software Technologies Ltd. extended its capabilities of a unified CloudGuard Cloud Native Security platform. The company introduced a new CloudGuard Application Security (AppSec), which helped enterprises to secure all cloud-native applications against zero-day and known attacks. This eliminates the requirement for manual tuning and a high rate of false-positive alerts with the utilization of contextual AI to prevent attacks from impacting cloud applications.

Trellix, a California-based security-based cyber security firm founded in 2022, is a privately held cybersecurity company involved in the detection and prevention of major cybersecurity attacks. The company offers software, hardware, and services for investigating cybersecurity attacks, analyzing IT security risks, and protecting against malicious software. The open and native extended detection and response (XDR) platform security of the company, with an extensive partner ecosystem, fastens the technology innovation via machine learning. In May 2022, a new data center was opened by the company in Mumbai to help clients in adhering to compliance and data residency rules. As per the company's statement, this launch of a new data center will provide customers with access to a scalable cloud-native architecture.

Key Companies in the Data Center Security market include

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  Check Point Software Technologies Ltd.

  
  


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  Trellix

  
  


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  Ubiquiti Inc.

  
  


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  Symantec Corporation

  
  


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  Cisco Systems Inc.

  
  


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  Citrix Systems Inc.

  
  


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  IBM Corporation

  
  


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  Honeywell International Inc.

  
  


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  Schneider Electric SE

  
  


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  Dell Inc.

  
  

Data Center Security Industry Developments

In April 2024, Cisco Systems inc. showcased a restructuring and reimagination of their latest cloud and data center security architecture, which they have coined Cisco Hypershield. In doing so, they have entered the AI Technology market and have aimed to bring security with it.

In August 2022, Nvidia unveiled its new partnership with Dell Technologies by introducing data center solutions specifically designed for AI. They are further expanding the realm of AI by introducing Advanced AI training AI inference along with data processing, data science and zero trust security capabilities for enterprises on a global scale. This revolutionary solution integrates PowerEdge Servers with BlueField DPUs from Nvidia, where Versprhe is placed as the enterprise functioning platform.

In November 2023, Schneider Electric announced an agreement with Compass Datacenters on a multi-year basis with a value of 3 billion dollars, where they assist in the digital transformation for energy management alongside automation. This partnership is an extension of the mutual agreement between both companies where the aim was to create trimmed and modular data center solutions.

In March 2023, Cisco announced that it would establish a new data center in Chennai with new hybrid multi-cloud security, which would enhance the functionality of its Duo Risk-Based Authentication. As a Cybersecurity and networking solutions provider, Cisco aims to expand to India's cyber market further.

In October 2023, Fortinet, which is a global Cybersecurity company, announced that it would set up two new data centers in Pune and Bengaluru while broadening its reach to SAARC customers as well as enhancing the availability of its AI-powered Security Services. This complements their previous investment in development and support centers in India.

In February 2021, Check Point Software Technologies moved towards enhancing its unified CloudGuard security tools by launching a new CloudGuard Application Security tool and securing all-day cloud-native attacks, which allowed companies to secure their applications since Appsec reduced the need for manual tuning and high alert rearrangement with the help of contextual AI.

Data Center Security Market Segmentation

Data Center Security Components Outlook

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  Solutions

  
  


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  Services

  
  

Data Center Security Type Outlook

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  Small Data Center

  
  


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  Medium Data Center

  
  


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  Large Data Center

  
  

Data Center Security Regional Outlook

Attribute/Metric	Details
Market Size 2023	USD 17.2 Billion
Market Size 2024	USD 19.16 Billion
Market Size 2032	USD 40.9 Billion
Compound Annual Growth Rate (CAGR)	9.94% (2024-2032)
Base Year	2023
Market Forecast Period	2024-2032
Historical Data	2018- 2022
Market Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends
Segments Covered	Component, Type, and Region
Geographies Covered	North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered	The US, Canada, German, France, UK, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil
Key Companies Profiled	Check Point Software Technologies Ltd., Trellix, Ubiquiti Inc., Symantec Corporation, Cisco Systems Inc., Citrix Systems Inc., IBM Corporation, Honeywell International Inc., Schneider Electric SE, Dell Inc.
Key Market Opportunities	Growing demand for mobile applications.
Key Market Dynamics	Increase demand for better security solutions and popularity of e-commerce and online shopping platforms.