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

The United States Data Center Physical Security Market size is estimated at USD 404.20 million in 2024, and is expected to reach USD 819.10 million by 2029, growing at a CAGR of less than 14.70% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and increasing 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 US data center rack market is expected to reach 24,000 MW by 2029.
• Under construction raised floor space: The country's construction of raised floor area is expected to increase to 80 million sq. ft by 2029.
• Planned racks: The country's total number of racks to be installed is expected to reach 4,035,000 units by 2029. Northern Virginia is expected to house the maximum number of racks by 2029.
• Planned submarine cables: There are more than 90 submarine cable systems connecting the United States, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Gold Data-1, which stretches over 2,333 kilometers with landing points from Naples, United States.
• 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's physical security solutions. Several factors contribute to the demand for data centers and their growth within the United States, which is 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 & Digital Services, Renewable Energy & Sustainability, and Smart Cities & IoT Initiatives. Hence, such factors are expected to drive market growth during the forecast period.

United States Data Center Physical Security Market Trends

The IT and Telecommunication Segment Holds a Major Share in the Market

• The economic impact of companies that entered the digital transformation early during the COVID-19 pandemic, either by offering digital products and services or leveraging digital processes, more economically than their peers that gradually embraced digital transformation.
• Among the US corporate infrastructure decision-makers, 94% have at least one cloud deployment, with hybrid or multi-cloud solutions more common. Nearly 74% of US infrastructure decision-makers say their organizations are adopting containers as a platform as a service (PaaS) in on-premises or public cloud environments. Clouds are expected to increase significantly.
• US cloud providers include AWS, Microsoft, and Google. Among enterprise infrastructure decision-makers who use at least one type of cloud deployment, 94% use at least one type of cloud deployment, with the majority being hybrid or multi-cloud.
• In the United States, cloud storage is growing due to the increasing demand for cost-effective data backup, storage and backup in every business and the need to manage the data generated by the increasing use of mobile phones.
• With the rise of the digital economy and increased internet usage in the United States, the need for data storage and processing has increased. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization.
• The number of IoT devices utilizing network connections from telecommunication providers is likely to generate huge amounts of data. For instance, connected consumer device unit shipments in the United States are projected to reach more than 800 million units by 2024. By 2025, IoT connections in the United States are projected to grow to more than 4 billion. In the United States, the average monthly mobile data speed is projected to reach 534 Mbps GB in 2029 through 5G service. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center physical security solutions in the coming years.

The Video Surveillance Segment 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 provide them with monitoring of access, detection of unauthorized entry, and maintaining 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 California amended the CCPA with the California Privacy Rights Act (CPRA) and Consumer Data Protection Act (Virginia CDPA) impose strict security and privacy requirements within the United States. These regulations must be complied with video surveillance equipment, and, therefore, they are of vital importance for data center operators. Such instances in the market propel the demand in the studied market.
• Furthermore, with the advent of 5G and the increasing use of smartphones, we need to ensure adequate speed availability. As a result, the country has adopted cloud computing, increased the number of Internet users, and adopted fiber optic technology. With the introduction of such technologies and the increase in data usage, the use of hybrid storage data centers is increasing in the country.
• In 2023, approximately 92% of the US population used the internet, up from approximately 75% in 2012. The United States is one of the world's largest online markets, with approximately 299 million internet users in the country in 2022. Such market improvements propel Data Centers' growth and contribute to segmental growth.
• Key players in the market focus on improving the data center's physical security solutions to meet the market demand. In June 2023, Bosch introduced a mobile access solution to buildings and restricted areas, which allows access without any identification media such as plastic cards. It is fully integrated into the tried-and-tested Access Management System from Bosch and provides various benefits, including efficiency, security, and convenience for building owners, visitors, and employees. This was initially available to customers in the Benelux region, Switzerland, Germany, Austria, Canada, and the United States.

United States Data Center Physical Security Industry Overview

The upcoming DC construction projects in the country are expected to increase the demand for the US data center physical security market in the coming years. The US data center physical security market 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.

• July 2023: Bosch planned to acquire Paladin Technologies Inc., headquartered in Vancouver, Canada, a significant provider of security and life safety solutions as well as system integration services in Canada and the United States.
• May 2023: Alcatraz AI, a prominent provider of autonomous access control solutions, announced its participation at the Data Center Forum Helsinki in June 2023. The event brings together more than 400 data center professionals and provides Alcatraz AI with an ideal opportunity to demonstrate its innovative biometric access control solution for data center physical security.

Additional Benefits:

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