Latin America Data Center Physical Security Markets 2022-2027 - Adoption of Anti-Climb Perimeter Security & Increasing Adoption of Multi-Factor Authentication Solutions
The Latin America data center market is witnessing strong growth and is dominated by colocation providers, followed by internet and cloud service providers.
Physical security layers are installed in data centers to prevent unwanted entry and threats. Companies are increasingly working toward ensuring that customer data is protected, by installing physical security measures at the perimeter, building, data hall, and cabinet level.
For instance, Equinix's MX2 data center facility is equipped with card readers, biometric access, mantraps, metal detector points, CCTV surveillance, and 24x7 on-site security.
SEGMENTAL ANALYSIS
The data center physical security market is commonly divided into four layers - Perimeter Security, Building Security, Data Hall Security, and Cabinet Security.
Perimeter Security Layer
In the perimeter security layer, a perimeter fence is installed with continuous monitoring devices such as video surveillance, sensors, and motion detectors. The height of the security fence in most data centers is 3 meters high, with some going up to 5 meters, depending on the facility location.
Sensors installed near the perimeter fence detect intrusion and are integrated with video surveillance systems, intrusion alarms, and motion detection security systems. Security systems near the fence respond to intrusion and immediately access network systems. Video surveillance is the most responsive to security breaches and captures H.D. images of threats and intruders; video analytics can identify objects and tactics to spot threats easily.
Building Security
Building security features many procedures to go through before entering the building. They are installed with mantraps, multi-factor authentication comprising biometric scans, key cards, PIN access, and video surveillance to verify the identity of the person entering access points by swiping an access card.
These access points prevent tailgating, and video content analytics count the number of people going through the doorway. These access cards and biometrics are used inside the building to access the server and monitoring rooms. Modern data centers include a retina scanner as part of their multi-factor authentication systems.
Data Hall Security
The data hall is the most sensitive area of the data center and has security systems such as CCTV surveillance, biometrics, PIN, and key cards. Data halls are secured through multiple forms of verification and monitor authorized access. Access to the data hall is restricted to a few individuals. Anyone entering the data hall must carry the right key card or token and enter their biometrics, iris scans, and vascular patterns. CCTVs are monitored continuously in the data hall.
Cabinet Security
Cabinet security is equipped with PIN access, biometric scanning, and key cards, and some feature mechanical lock systems. Each rack is monitored by video surveillance, and the data center provides insights, such as which rack is accessed by whom and when these details are recorded, for security purposes.
The Latin America physical security data center market in terms of end-users is divided into Enterprise data centers and Colocation data centers.
Enterprise data centers
Across Latin America, the number of enterprise-owned data centers is still higher than that of colocation facilities. Over the past decade, enterprises have faced difficulties building, operating, and managing their data centers. As a result, they are moving to colocation, managed hosting, and cloud services providers for their operational business needs. Enterprises prefer colocation facilities because of budget constraints, scalability, faster market time, interconnectivity, and cloud connectivity.
KEY HIGHLIGHTS OF THE LATIN AMERICA DATA CENTER PHYSICAL SECURITY MARKET
Increased deployment of the cloud-based and edge data center facilities will increase the demand for physical security solutions such as video surveillance and access control systems.
Many data centers use Building Management System (BMS) to manage the physical security of their data centers (as part of the overall management of the building), including CCTV cameras, access controls, and even rodent repellent systems.
In 2021, Brazil and Mexico significantly contributed to the Latin America data center physical security market. In terms of Product, Video Surveillance is the major contributor to the Latin America data center physical security market.
The rise in data center facilities deployed across the region, mainly in Brazil and Mexico, will increase the demand for physical security solutions such as video surveillance and access control systems.
There have been advancements in video surveillance systems connected to cloud systems, which provide services such as recording, image captures, analytics, and notification services. These cloud-based video cameras upload constantly and need a reliable connection since they do not come with local storage. Cloud-based video analytics has become the latest trend in data center physical security.
Cloud computing and edge processing will drive the adoption of advanced video content analytics in the coming years. IoT-based sensors are also increasingly being deployed along with camera-based surveillance solutions.
Augmented reality (A.R.) is also being tested in data centers for training purposes for technicians. Remote monitoring using Artificial Intelligence (A.I.) is increasingly being done to ensure advanced security on the premises.
Multi-Factor Authentication (MFA) is the primary security solution in data centers. With the integration of Artificial Intelligence, MFA has become more advanced. For instance, Ascenty's Queretaro, Mexico 1 facility is equipped with 24/7 monitoring using CCTV cameras, high-definition automatic movement detection, and dual authentication for access control using biometric and magnetic cards.
The demand for video surveillance systems is rising as data center investments increase YOY. The Latin America video surveillance security market will reach USD 9 million in 2027.
Installing racks in existing data centers boosts the adoption of cabinet security solutions. The Latin America cabinet security market will grow at a CAGR of 14.04% by 2027.
GEOGRAPHY AND VENDOR ANALYSIS
In 2021, Brazil and Mexico were significant contributors to the Latin America data center physical security market, wherein Mexico alone contributed to more than 36% of investment within the market.
The increase in the data center investments across countries such as Chile, Peru, and Colombia is likely to increase the investments in physical security in these countries over some time.
Major Physical Security service providers in Latin America include ASSA ABLOY, Axis Communication, ABB, Bosch Security Systems, Cisco Systems, Johnson Controls, Legrand, Siemens, and Schneider Electric.
The deployment of 5G services, the opening of cloud regions by major operators such as Google, Microsoft, AWS, and Alibaba Cloud, and increasing colocation investment by operators such as Equinix, Ascenty (Digital Realty), ODATA, HostDime, Scala Data Centers and others will be a significant revenue booster for the players operating in the market.
Key Vendors:
AMAG Technology
ASSA ABLOY
Axis Communications
ABB
Bayometric
Boon Edam
Bosch Security Systems
Convergint Technologies
Cisco Systems
Dahua Technology
Digitus Biometrics
Eagle Eye Networks
Gunnebo
Hangzhou Hikvision Digital Technology
Horton Automatics
Johnson Controls
Legrand
Pelco
Siemens
Schneider Electric
SUPREMA
Verkada
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage 4.1 Market Definition 4.2 Base Year 4.3 Scope of the Study 4.4 Market Segments
7 Premium Insights 7.1 Key Highlights 7.2 Segmental Analysis 7.3 Geography and Vendor Analysis 7.4 Market Overview 7.5 Physical Security Layers of Data Centers 7.5.1 Perimeter Security Layer 7.5.2 Building Security 7.5.3 Data Hall Security 7.5.4 Cabinet Security
8 Market Opportunities & Trends 8.1 Increase in Deployments of Edge Data Centers 8.2 Advancements in Video & Cloud-Based Analytics 8.3 Adoption of Anti-Climb Perimeter Security
9 Market Growth Enablers 9.1 Increasing Colocation Investments 9.2 Increasing Adoption of Multi-Factor Authentication Solutions 9.3 Impact of Covid-19
10 Market Restraints 10.1 Cost of Physical Security Solutions 10.2 Security Challenges in Data Centers
11 Market Landscape 11.1 Market Overview 11.2 Market Size & Forecast 11.3 Five Forces Analysis 11.3.1 Threat of New Entrants 11.3.2 Bargaining Power of Suppliers 11.3.3 Bargaining Power of Buyers 11.3.4 Threat of Substitutes 11.3.5 Competitive Rivalry
12 Product 12.1 Market Snapshot & Growth Engine 12.2 Market Overview 12.3 Video Surveillance 12.4 Access Control 12.5 Other Physical Security Products
13 Physical Security Layers 13.1 Market Snapshot & Growth Engine 13.2 Market Overview 13.3 Perimeter Security Layer 13.4 Building Security 13.5 Data Hall Security 13.6 Cabinet Security
14 End-User 14.1 Market Snapshot & Growth Engine 14.2 Market Overview 14.3 Colocation Data Centers 14.4 Enterprise Data Centers
