The Saudi Arabia Data Center Physical Security Market size is estimated at USD 18.53 million in 2024, and is expected to reach USD 48.55 million by 2029, growing at a CAGR of 25.20% during the forecast period (2024-2029).
The Saudi Arabian data center physical security market is fragmented among the players and has gained a competitive edge in recent years. A few major players in the market include Securitas Technology, Bosch Sicherheitssysteme GmbH, and others. These major players, with a prominent market share, focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.
Saudi Arabia Data Center Physical Security Market Trends
IT and Telecom to Hold a Significant Share
For IT players, data center physical security is a key concern when considering a third-party data center. Telecom data centers, owned and operated by telecom or service provider companies like Deutsche Telekom AG and AT&T, prioritize high connectivity and stringent security as they support content delivery and enable mobile and cloud services.
The demand for telecom data centers in Saudi Arabia is rising due to increasing data traffic and networking needs. With 5G deployment expanding, demand for telecom-related data centers and the physical security measures required for them is expected to grow significantly. In July 2023, Center3, a Saudi Telecom subsidiary, expanded one of its data centers in Riyadh. The company is increasing capacity at existing facilities in Riyadh and Jeddah and developing new data centers across the Kingdom, including in Jeddah, Riyadh, and Dammam.
The arrival of 5G is anticipated to significantly boost speeds, lower latency, and unlock unprecedented network capabilities, enabling a more interconnected, real-time environment. Saudi Arabia remains the fourth-fastest country globally for 5G internet speeds, averaging 264.7 Mbps, and the seventh-fastest for overall mobile internet speeds, at 109.48 Mbps as of Q4 2020. In 2020, 5,358 new 5G towers were installed nationwide, bringing the total to 12,302 towers by year’s end, a number expected to grow as spectrum allocation for commercial use expands and demand for faster internet services increases. This industry's growth is further driven by the rising need for robust physical security in data centers.
Access Control Solutions to Register Significant Growth
Access control is among the most effective, cost-efficient, and scalable ways to secure data centers. Securing sensitive areas through advanced access control systems has become a priority, with biometric access systems offering hierarchical, scalable, and custom-designed solutions for comprehensive data center protection.
Saudi Irsal provides design consultancy and implementation services for data centers, focusing on security, storage capacity, and disaster recovery resources. Irsal's services cater to telecom operators and the commercial and industrial sectors, encompassing physical security measures such as controlled facility access.
While hardware is onsite, software and servers are often hosted remotely within data centers, allowing Security-as-a-Service providers to offer access at a monthly rate, typically per-door or per-user. Access-Control-as-a-Service (ACaaS) provides lower-cost solutions compared to traditional access control methods, as data is stored on remote servers. ACaaS providers also offer partnership opportunities for integrators, value-added resellers (VARs), and managed service providers (MSPs), including training. For example, Assa Abloy offers SMARTair access control systems, specifically designed for small- to medium-sized businesses with intelligent solutions.
As data center construction increases to support cloud deployments, the demand for access control solutions is projected to rise. Under Saudi Vision 2030, foreign investment is actively encouraged, particularly within the technology sector. The 2019 implementation of a cloud-first strategy has further accelerated the adoption of innovative technologies, including AI for Industry 4.0. Additionally, the Cloud Computing Regulatory Framework, enacted by the Communications and Technology Information Commission, aims to enhance cloud computing services and foster regulatory transparency in Saudi Arabia.
Saudi Arabia Data Center Physical Security Report Highlights
Under Construction IT Load Capacity: Saudi Arabia’s data center physical security market is projected to reach an IT load capacity of 854.8 MW by 2029.
Under Construction Raised Floor Space: The construction of raised floor area in the country is expected to expand to 3.4 million sq. ft by 2029.
Planned Racks: The total number of racks planned for installation is anticipated to reach 171,000 units by 2029, with Riyadh projected to host the largest concentration.
Planned Submarine Cables: Currently, around five submarine cable systems connect Saudi Arabia, with additional systems expected to be under construction during the forecast period.
Key Topics Covered:
1 INTRODUCTION 1.1 Study Assumption & Market Definition 1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Dynamics 4.1 Market Overview 4.2 Market Drivers 4.2.1 Growing Adoption of Access Control Systems Owing to Rising Crime Rates and Threats 4.2.2 Advancements in Video Surveillance Systems Connected to Cloud Systems 4.3 Market Restraints 4.3.1 Operational and Return On Investment Concerns 4.4 Value Chain / Supply Chain Analysis 4.5 Industry Attractiveness - Porter's Five Forces Analysis 4.5.1 Threat of New Entrants 4.5.2 Bargaining Power of Buyers/Consumers 4.5.3 Bargaining Power of Suppliers 4.5.4 Threat of Substitute Products 4.5.5 Intensity of Competitive Rivalry 4.6 Assessment of COVID-19 Impact
5 MARKET SEGMENTATION 5.1 By Solution Type 5.1.1 Video Surveillance 5.1.2 Access Control Solutions 5.1.3 Others (Mantraps, Fences, and Monitoring Solutions) 5.2 By Service Type 5.2.1 Consulting Services 5.2.2 Professional Services 5.2.3 Others (System Integration Services) 5.3 End User 5.3.1 IT and Telecommunication 5.3.2 BFSI 5.3.3 Government 5.3.4 Healthcare 5.3.5 Other End Users
6 COMPETITIVE LANDSCAPE 6.1 Company Profiles 6.1.1 Securitas Technology 6.1.2 Bosch Sicherheitssysteme GmbH 6.1.3 Johnson Controls International 6.1.4 Honeywell International Inc. 6.1.5 Siemens AG 6.1.6 Schneider Electric SE 6.1.7 Convergint Technologies LLC 6.1.8 LenelS2 6.1.9 Ctelecoms 6.1.10 3S System Security Solutions Co.
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
A selection of companies mentioned in this report includes, but is not limited to:
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