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Data Center Logical Security Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 120 Pages
  • January 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 4591797

Global Data Center Logical Security market is expected to register a CAGR of 9.5% during the forecast period 2021 - 2026. An increase in data traffic, rise in cyber threats, and growth of virtualized data centers have led to robust demand for Data Center Security solutions. Datacenter security deals with protecting organizational data against unauthorized access to safeguard data against security breaches. The increase in internet traffic has placed more importance on the role of data centers in meeting and managing the rising demands during the COVID-19 pandemic.

Key Highlights

  • The spending on data center security is increasing enormously as large enterprises, and service providers upgrade their data centers to support increases in data and handle the massive waves of cyber-attacks. The data center security solutions are gaining prominence in recent years and hence witnessing an impressive growth pattern.
  • Technological innovations, increase in data traffic, rise in virtualized data centers, and rise in cyber threats are the factors driving the data center security market. Whereas privacy and security issues, the high cost of alternative solutions, awareness of solutions, and a large number of alternative solutions are hindering the growth.
  • Manufacturer’s vendors are eyeing emerging economies because of the high adoption of cloud computing solutions, high technological adoption rates, and increasing numbers of new data centers, presenting many opportunities to the established and new vendors into the market.
  • Since the coronavirus pandemic, the data center market has been witnessing strong growth in the development of multiple large facilities. Moreover, companies are increasingly working towards ensuring that customer data is protected by installing security measures. As more businesses adapt to working remotely, there has been a rise in cloud storage and teleconferencing services. This affects the studied market positively.

Key Market Trends

Increasing Demand for Access Control and Identification Solution

  • In recent years, companies have invested significantly in IAM (Identity & Access Management) solutions to perform job that is out of reach for humans since hackers and malicious employees are mostly unknown.
  • The impact of an identity management cybersecurity breach from organized crime, state-sponsored militaries, and others is packed with implications that can impact staff productivity and morale, the IT network, and company reputation. These threats demand a new level of identity and access management solutions.
  • Moreover, the use of AI and Machine learning algorithms is also prevalent for the same. Advancements in this segment have led to machine learning algorithms being used in these solutions. It is expected that the bulk of the authentications will be performed by machine learning technology, as IAM is increasingly relying on physical and behavioral biometrics to geolocation data. As these additions are anticipated to enhance the IAM solutions, the demand for these solutions is expected to increase.

European Market to Witness High Adoption of the Solutions

  • According to Cloudscene, Germany constitutes the majority of the market share in the European region, followed by the United Kingdom and the Netherlands, respectively. Other countries that contribute to the market within the European market include France, Italy, and Poland.
  • Despite the economic uncertainties, demand for data centers remains strong in the region. This will lead to the expansion of existing data centers and the building of new ones. The security, latency, and connectivity requirements are driving enterprises towards adopting data centers.
  • Germany contains several data center clusters throughout the country, providing plenty of colocation opportunities. The primary colocation data center markets in Germany are Frankfurt, Dusseldorf, Berlin, Munich, and Hamburg. According to CLoudscene, in 2021, there will be 453 German data centers, and most of these colocation facilities will be located around Frankfurt.
  • Moreover, the country is investing in strengthening digital sovereignty with improved framework conditions for data center operators in Germany.

Competitive Landscape

The data center logical security market is expected to have a medium market concentration with multiple players. Product launches, acquisitions, and R&D activities are key strategies adopted by these players in the Data Center Logical Security market. Some of the key players include major companies such as Cisco, IBM, HP, Dell, McAfee Inc. Juniper Networks, among many others.

  • December 2020: NTT Global Data Centers, with their technology experience lab partners FATH Mechatronics and Peaq, developed an innovative solution to elevate data center security standards. The solution combines FATH Mechatronics TANlock with a peak access control system that stores and processes all access data in Peaq Distributed Ledger Technology (DLT).

Additional Benefits:

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

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Value Chain Analysis
4.4 Market Drivers
4.4.1 Increasing Safety Concern for Business and Personal Data
4.4.2 Increasing Need for Cloud computing and Data Virtualization
4.5 Market Restraints
4.5.1 Availability of Low Priced Security Software
4.6 Technology Snapshot
5.1 By Solution
5.1.1 Access Control and Identification Solution
5.1.2 Threat Protection Solution
5.1.3 Data Loss Prevention Solution
5.1.4 Other Solutions
5.2 By Service
5.2.1 Security Consulting Service
5.2.2 Security Solution Deployment Service
5.2.3 Support and Maintenance
5.3 By End-user
5.3.1 Banking and Financial Services
5.3.2 Manufacturing
5.3.3 Technology
5.3.4 Energy
5.3.5 Healthcare
5.3.6 Central/Local Government
5.3.7 Entertainment and Media
5.3.8 Other end-users
5.4 By Geography
5.4.1 North America United States Canada
5.4.2 Europe United Kingdom Germany France Italy Rest of Europe
5.4.3 Asia Pacific China India Japan Rest of Asia Pacific
5.4.4 Latin America Brazil Mexico Argentina Rest of Latin America
5.4.5 Middle East and Africa United Arab Emirates Saudi Arabia Israel South Africa Rest of Middle East and Africa
6.1 Company Profiles
6.1.1 IBM Corporation
6.1.2 Cisco Systems Inc.
6.1.3 Hewlett-Packard Enterprise Co.
6.1.4 Trend Micro Inc.
6.1.5 McAfee Inc.
6.1.6 Fortinet Inc.
6.1.7 VMware Inc.
6.1.8 Checkpoint Software Technologies Ltd.
6.1.9 Juniper Networks Inc.
6.1.10 Dell