How Has the Data Center Security Market Evolved Historically and What is its Current Size?
The data center security market has seen considerable growth due to a variety of factors.
• In recent times, there has been a rapid expansion in the size of the data center security market. The market is projected to expand from a size of $13.57 billion in 2024 to a value of $15.73 billion in 2025, with a compound annual growth rate (CAGR) of 16.0%.
Several reasons can explain this growth, including the escalation of cybersecurity threats, the need for data privacy and compliance, an upsurge in data creation, and the proliferation of cloud computing.
What is the Forecasted Market Size and CAGR for the Data Center Security Market?
The data center security market is expected to maintain its strong growth trajectory in upcoming years.
• In the foreseeable future, the data center security market is projected to experience a swift expansion. The market value is expected to reach $27.22 billion by 2029, growing at a compound annual growth rate (CAGR) of 14.7%.
This predicted growth during the forecast period can be ascribed to factors such as rising ransomware and extortion threats, security requirement in IoT and edge computing, implementation of zero trust security measures, and heightened security automation. The forecast period will also see major trends such as progress in technology, the incorporation of artificial intelligence (AI) and machine learning (ML), enhancements in multi-layered security and the growing application of micro-segmentation.
What Key Factors and Trends Are Driving The Growth Data Center Security Market?
The surge in cyberattacks and data breaches is anticipated to drive the data center security market's expansion in the upcoming days. A cyber-attack refers to any unwarranted attempt to gain control of a computer, computing system, or computer network intending to cause damage. Data theft, also known as information theft, refers to the unauthorized transfer or storage of personal, confidential, or monetary data. The frequency of cyberattacks and data breaches is escalating owing to the accelerated digitalization of data, the proliferation of connected devices, and the cunning strategies employed by cybercriminals to exploit security weak points. This could potentially involve login credentials, program code or algorithms, and exclusive methods or tools. The rising frequency of cyberattacks and data thefts is widening the data center security market, which encompasses the procedures and strategies to secure data centers from threats, attacks, and unlawful access. For example, the Information Commissioner's Office, a UK-based government office, reported in May 2024 that over 3,000 cyber breaches occurred in 2023, with the financial sector making up 22% of the incidents, followed by retail at 18% and education at 11%. Consequently, the escalating incidence of cyberattacks and data thievery propels the data center security market. Heading: Cloud Computing Adoption Bolsters Data Center Security Market Growth
What Are The Market Segments In The Data Center Security Market?
The data center security market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Data Center Type: Mid-Sized Data Centers, Enterprise Data Centers, Large Data Center
3) By Application: Physical Security Solutions, Logical Security Solutions
4) By Vertical: Banking, Financial Services and Insurance (BFSI), IT And Telecom, Government and Defense, Healthcare, Media And Entertainment, Other Verticals
Subsegments:
1) By Solutions: Physical Security Solutions, Network Security Solutions, Data Security Solutions, Endpoint Security Solutions, Access Control Solutions
2) By Services: Consulting Services, Integration Services, Managed Security Services, Training And Support Services
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Which Emerging Market Trends Are Altering The Data Center Security Industry?
Leading companies in the data center security sector are focusing on developing innovative products, such as small firewall systems, to increase their market presence. Such a system often includes support for a virtual private network (VPN), antivirus, antispam, antispyware, and content filtering features. For example, in August 2022, Fortinet Inc., an American company specializing in data center security and providing solutions like firewalls, endpoint protection, and intrusion detection systems, launched the FortiGate 4800F series, the fastest compact firewall worldwide for hyper scale data centers. The FortiGate 4800F is powered by 16 of Fortinet's 7th generation network processors (NP7), and delivers outstanding performance for a scaled-down firewall, with Security Compute Evaluations that provide up to 34 times more efficiency than rival solutions and the ability to manage an average of 19 times more connections per second. The FortiGate 4800F hyper-scale firewalls enable businesses and MNOs to run more applications concurrently while reducing hardware requirements and providing effective defense for their IT infrastructures.
Who Are the Key Players In The Data Center Security Market?
Major companies operating 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.
What Are The Regional Insights Into The Data Center Security Market?
North America was the largest region in the data center security market in 2024. The regions covered in data center security market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
