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

The Middle East Data Center Physical Security Market size is estimated at USD 69.21 million in 2024, and is expected to reach USD 160.94 million by 2029, growing at a CAGR of 18.30% during the forecast period (2024-2029).

Data center security employs a four-layered approach: perimeter security, facility controls, computer room controls, and cabinet controls. The first layer, perimeter security, focuses on deterring and detecting unauthorized personnel, aiming to delay potential breaches. Should a breach occur, the second layer, which employs access control systems like card swipes or biometrics, restricts further access. The third layer enhances physical security with various verification methods, including monitoring restricted areas, turnstiles, VCA, biometric access controls for fingerprints, irises, or vascular patterns, and radio frequency identification. While these layers primarily focus on authorized personnel, an additional layer, cabinet locking mechanisms, addresses concerns of insider threats, such as malicious employees.

The upcoming IT load capacity of the Middle Eastern data center market is expected to reach 2,059.5 MW by 2029.

The region's construction of raised floor area is expected to increase 9.7 million sq. ft by 2029.

The region's total number of racks to be installed is expected to reach 496K units by 2029. Saudi Arabia is expected to house the maximum number of racks by 2029.

Close to 26 submarine cable systems are connecting the Middle East, and many are under construction. One such submarine cable estimated to start service in 2024 is Blue, which stretches over 4,696 km with a landing point in Tel Aviv.

Middle East Data Center Physical Security Market Trends

The IT and Telecom Segment is expected to Hold a Significant Share

• IT players are increasingly concerned about the physical security of data centers when transitioning to third-party facilities, even as the industry moves away from on-premise setups towards colocation and cloud services. Telecom data centers typically owned and operated by major players like Deutsche Telekom AG, Verizon, or AT&T, are essential in content delivery and supporting mobile and cloud services, necessitating top-tier connectivity and security.
• FOSS LLC, a prominent systems integrator in the UAE, has observed a significant rise in customer demands for physical security and CCTV solutions. This increase is largely attributed to a growing emphasis on safety and security. Notably, advancements in IP-based CCTV systems and software-driven analytics have introduced "intelligent" solutions, reducing the need for constant human monitoring in telecom data centers.
• With rising data traffic and networking needs, the United Arab Emirates is experiencing a rise in telecommunication data centers. As the deployment of 5G technology progresses, the demand for secure telecom data centers is expected to increase.
• In July 2023, Saudi Telecom's (STC) subsidiary, Center3, expanded its data center in Riyadh. STC is increasing capacities in its existing Riyadh and Jeddah facilities and developing new data centers across key cities like Jeddah, Riyadh, and Dammam, highlighting the Kingdom's growing data infrastructure.

The United Arab Emirates is Expected to Hold Significant Growth

• The UAE's data center landscape is experiencing increased investments, driven by the rising adoption of 4G and the imminent 5G revolution. The Telecommunications Regulatory Authority (UAE) reported 18.7 million active mobile subscribers in the UAE as of March 2022.
• BIOS Middle East Group provides access security solutions for UAE data centers. Their measures include limiting physical access to authorized personnel, supported by on-premise security systems. These systems utilize biometric, card key, and coded entry controls. Regular reviews of access logs ensure ongoing security.
• As cloud startups drive a boom in data center construction, the UAE's demand for access control solutions is expected to rise. The country has approximately 1,171 SaaS startups, including TruKKer, G42, and Alaan.
• The UAE's telecoms authority has set a target of achieving 100% 5G penetration by 2025, indicating a significant data center expansion for telecom providers. Notably, security threats like insider breaches often stem from physical network access, highlighting the growing need for robust data center physical security measures.

Middle East Data Center Physical Security Industry Overview

The Middle Eastern data center physical security market is fragmented among the players and has gained a competitive edge in recent years. A few major players are Securitas Technology, Bosch Sicherheitssysteme GmbH, etc. These major players, with a prominent market share, focus on expanding their regional customer base. These companies leverage strategic collaborative initiatives to increase their market share and profitability.

April 2023: Schneider Electric launched a new service offer, EcoCare for Modular Data Centers services membership. Members of this innovative service plan benefit from specialized expertise to maximize modular data centers' uptime with 24/7 proactive remote monitoring and condition-based maintenance.

Additional Benefits:

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