Data Center Security Market

[140 Pages Report] The data center security market is expected to grow from USD 6.32 billion in 2016 to USD 12.91 billion by 2021, at a high Compound Annual Growth Rate (CAGR) of 15.36%. For the purpose of report, 2015 has been considered as the historical year and 2016 as the base year for performing market estimation and forecasting. The growing data center security threats and increased data traffic over the networks have paved way for adoption of data center security solutions by various organizations. Data center security includes solutions for access control, compliance, data protection, and security consulting services. Data center security is undergoing technological advancements and is experiencing significant adoption. Hence, it is expected to experience an exponential growth in the coming years. The market is broadly segmented by application solution, service, data center type, industry vertical, and region. The global data center security market is segmented across five main regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America.

Market Dynamics

Drivers

• Virtualization and cloud computing
• Increasing data traffic and need for secured connectivity
• Increased number of sophisticated attacks

Restraints

• Limited IT budgets, availability of low-cost substitutes, and piracy

Opportunities

• Requirement for more data centers
• Micro-segmentation for enhanced data center security
• Integrating logical and physical security solutions

Challenges

• Continuous innovations in data centers

Increasing data traffic and need for secured connectivity to drive growth of data center cooling market

After big data, analytics and other technological modules, data traffic is growing exponentially. Heavy use of social media, increasing need for connectivity, and high penetration of internet for business and personal use in the last few years have greatly affected the demand for advanced and efficient network and cyber security solutions and services. Further, the increasing adoption trend of technologies such as BYOD has boosted the requirement for efficient and advanced network security and network analytics solutions. Due to the increasing trend of BYOD, mobile data traffic grew by 70% in 2014, from 1.5 exabytes per month in 2013 to 2.5 exabytes per month in 2014. Rising needs for higher speed connectivity is further fueling this market.

Major Market Developments

1. In March 2016, HPE unveiled new security solutions that help enterprises with enhanced secured environment for their business
2. In February 2016, IBM announced the acquisition of Resilient Systems to strengthen its incident response capabilities
3. In February 2016, Cisco expanded its partnership with NATO’s Communications and Information Agency, to provide security services and products to 28 NATO member nations including CISCO’s customers

Objectives of the Study:

The main objective of this report is to define, describe, and forecast the global data center security market on the basis of application solutions, services, data center types, industry verticals, and regions. The report provides detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges). The report aims to strategically analyze micromarkets with respect to individual growth trends, future prospects, and contributions to the total market. The report attempts to forecast the market size with respect to five main regions, namely, North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and Latin America. The report strategically profiles key players and comprehensively analyzes their core competencies. This report also tracks and analyzes competitive developments such as joint ventures, mergers & acquisitions, new product developments, and Research & Development (R&D) activities in the data center rack server market.

The research methodology used to estimate the market size includes the following details: the key players in the market were identified through secondary research and their market shares in respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders, such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined by using secondary sources and verified through primary sources. Top-down and bottom-up approaches were used to estimate and validate the size of the global data center security market and to estimate the size of various other dependent submarkets in the overall data center security market. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data is consolidated and added with detailed inputs and analysis from MarketsandMarkets and presented in this report.

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The data center security ecosystem comprises supply side, intermediates, and demand side. The supply side vendors include hardware suppliers and equipment manufacturers, software suppliers, cloud providers, and professional services. The top vendors include Hewlett Packard Enterprises, International Business Machines (IBM) Corporation, CISCO Systems, Fortinet, and Honeywell International, among others. The intermediate includes system integrators and value-added service providers and distributors. The system integrators are responsible for the integration of data center security resources and cloud resources. The demand side includes the end users of data center security solutions, such as BFSI, IT & telecom, government & defense, healthcare, media and entertainment, and others.

Target Audience

• Telecom Operators
• IT Services Provides
• System Integrators
• Consulting Services providers
• Cloud Services Providers
• Data Center Vendors
• Colocation Providers
• Internet Service Providers (ISPs)

Report Scope

The data center security market report is broadly segmented into the following:

Global Data Center Security Market, by Application Solution

• Physical Security Solutions
• Logical Security Solutions

Global Data Center Security Market, by Service

• Consulting
• Integration and Deployment
• Managed Services

Global Data Center Security Market, by Data Center Type

• Mid-Sized Data Centers
• Enterprise Data Centers
• Large Data  Center

Global NAC Market, by Vertical

• Banking, Financial Services, and Insurance (BFSI)
• IT and Telecom
• Government and Defense
• Healthcare
• Media and Entertainment
• Others

Global NAC Market, by Region

• North America
• Europe
• APAC
• MEA
• Latin America

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product Analysis

• Product Matrix which gives a detailed comparison of the product portfolio of each company

Geographic Analysis

• Further breakdown of the regions according to the feasibility

Company Information

• Detailed analysis and profiling of additional market players (Up to 5)

The data center security market is estimated to grow from USD 5.61 billion in 2016 to USD 12.91 billion by 2021, at a high Compound Annual Growth Rate (CAGR) of 15.36% during the forecast period. Network security is gaining a significant importance among the corporates due to the increasing number of untrusted devices accessing their networks. Hence, the adoption of NAC in various industries is increasing, which is one of the major growth factors of the market.

The report provides detailed insights into the global data center security market, which is segmented by application solution, service, data center type, vertical, and region. By application solution, logical security solution holds higher market share than physical security solution. However, physical security solution is expected to show great growth opportunities within the next five years. The evolution of data center security solutions has observed a dramatic change. Earlier, the security solutions were generic in nature but today, with the advent of technology, advanced analytics and proactive tools have emerged that provide higher degree of data center security. Growing investment in data center security across the world and the increasing adoption of these solutions is further fueling the growth of the market.

The data center security market by data center type includes mid-sized data center, enterprise data center, and large data center. With the increasing adoption of the security solutions in large data centers, adoption of security solutions is also growing in mid-sized and enterprise data centers.

Data center security is considered crucial as it needs to address the network security as well as physical security of a data center. The data center security market is booming and during the forecast period, it is expected that adoption rate will increase and contribute to the high growth of this market. The report provides detailed insights into the global data center security market. The market has been segmented into many industry verticals, namely, Banking, Financial, and Insurance Services (BFSI), IT & telecom, government & defense, healthcare, media & entertainment, and others where BFSI holds the largest market share, and government and defense accounts for the highest CAGR.

Increasing data traffic and need for secured connectivity to drive growth in the data center rack server market

BFSI

Financial institutions, banks, insurance companies, and financial markets across the globe are closely monitored by regulatory agencies and are made to put a strong focus on adherence to guidelines and compliances of respective authorities. The BFSI sector uses data centers for storing and securing its customers’ crucial and personal data, which is at high risk of cyber threats and data vulnerabilities. The major challenges faced by the BFSI sector are hacking and intrusions. High adoption rate of new technologies has become an obligatory requirement for financial institutions that are strongly focusing on combating hacking. Banks and financial institutes across the globe have started using stronger access controls, IDS/IPS, IDS firewalls, two-factor authentication, encryption, and other controls and protocols to guard valuable asset information.

IT and Telecom

Telecom and IT companies across the globe frequently use data centers to store their crucial business data and customers’ personal data. Most of the telecom and IT companies highly depend on data centers for the smooth running of business operations. Therefore, telecom and IT companies around the world are aggressively adopting advance security solutions and services to protect their crucial data from cyberattacks and hackers and to strengthen their capability against unplanned threats and cyber-attacks.

Government and Defense

Governments and public sectors across the globe are putting high emphasis on data center security and data privacy. These sectors are experiencing a high usage and dependence on IT and telecommunication infrastructures to increase efficiency and reliability of the data stored on the servers. Governments and public organizations are increasingly using data center security measures to protect the data from attacks by intruders and hackers, as well as to strengthen their flexibility against natural corrosion and unplanned threats such as equipment shutdowns and user errors.

Critical questions the report answers:

• Where will all these developments take the industry in the mid to long term?
• What are the upcoming industry applications for data center security?

The report covers all the major aspects of the data center security market and provides an in-depth analysis across the regions of North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America. The market in North America is expected to hold the largest share of the market. The APAC region is projected to have great opportunities in this market and would grow at the highest CAGR by 2021 due to the presence of various developing countries, such as China, India, and the Philippines.

Due to high prices, limited IT budgets, and high initial investment costs, organizations may find it difficult to adopt new and genuine solutions and services. Though the investments involved are huge, the enterprises are slowly getting aware of the importance and benefits of these security solutions, such as help in the smooth running of the business operations. Therefore, it is expected to strengthen its footprints in not only large enterprises but also in small and mid-sized enterprises.

Various vendors are coming up with innovative data center security solutions and products due to the emerging virtualization and cloud computing which is increasing the demands for advance, proactive, and efficient virtual security solutions. Cisco Systems is one of the dominant players in providing data center security solutions and services due to its decades of experience in networking, communication and data center security. Cisco focuses highly on developing new security related products, solutions, and services, which help the company to deliver a comprehensive portfolio for data center logical security. The company provides an innovative security solution, application centric infrastructure, which is effective in micro segmentation of data centers. This solution provides enhanced security for east-west traffic within the data center.  The other major vendors providing data center security solutions and services are Hewlett Packard Enterprises, International Business Machines (IBM) Corporation, Fortinet, Honeywell International, Schneider Electric SE, McAfee, Dell, and Robert Bosch Gmbh among others. These players adopted various strategies such as new product launches, partnerships, collaborations, and expansions to become competitive in the market.

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