Global Data Center Logical Security Market Size, Share & Trends Analysis Report By Solutions, By Data Center Types, By Application, By Services, By Regional Outlook and Forecast, 2024 - 2031

The Global Data Center Logical Security Market size is expected to reach $44.02 billion by 2031, rising at a market growth of 16.6% CAGR during the forecast period.

The rapid digital transformation in this industry has led to a surge in data generation and storage, including high-value digital content and intellectual property. This makes media companies attractive targets for cyberattacks. Protecting streaming platforms, content archives, and customer data is critical for business continuity. The growing use of edge computing and distributed data centers further necessitates enhanced logical security measures in this segment. Thus, the media and entertainment segment recorded 22% revenue share in the market in 2023.

Cloud-based services have revolutionized how businesses operate, providing increased flexibility and scalability. As organizations move from traditional on-premise infrastructure to cloud environments, they benefit from reduced costs, enhanced accessibility, and easier maintenance. Cloud services enable businesses to scale their operations rapidly without investing heavily in physical infrastructure, and they can access cutting-edge technologies on demand. Therefore, as organizations increase cloud usage, the demand for innovative and effective data center security solutions rises, making cloud adoption a key driver of market.

Additionally, data center modernization is a critical element of digital transformation, a process that organizations across industries increasingly prioritize. As businesses strive to stay competitive in the digital age, they are investing in upgrading their data centers to support more advanced technologies such as artificial intelligence, big data analytics, and IoT. Thus, the drive to modernize data centers and adopt digital technologies has created a strong demand for advanced logical security solutions.

However, the high cost of implementing advanced logical security solutions is one of the primary barriers to widespread adoption in the market. While these solutions provide essential protection against cyber threats, they come with significant upfront costs, including purchasing software and hardware and hiring specialized personnel. These expenses can be prohibitive for smaller businesses or those with limited IT budgets. Thus, the high cost of implementation and maintenance is a significant barrier for many organizations, particularly those in cost-sensitive industries.

Solutions Outlook

Based on solutions, the market is characterized by threat & application security solutions, access control & compliance, data protection solutions, and others. The threat & application security solutions segment garnered 33% revenue share in the market in 2023. This growth is primarily driven by the increasing need to protect data centers from rising cyber threats like malware, ransomware, and distributed denial-of-service (DDoS) attacks.

Services Outlook

On the basis of services, the market is classified into consulting & advisory services, managed security services (MSS), integration & deployment services, and support & maintenance services. The managed security services (MSS) segment acquired 38% revenue share in the market in 2023. The growing complexity of cyber threats and the increasing need for continuous monitoring and protection have driven organizations to adopt MSS.

Data Center Type

By data center types, the market is divided into mid-size, small enterprise, and large. The small enterprise segment garnered 23% revenue share in the market in 2023. With the rising number of cyberattacks targeting small businesses, these organizations recognize the importance of strengthening their data center security. Although small enterprises have limited budgets compared to larger firms, they increasingly turn to cost-effective security solutions, such as managed security services and cloud-based protection.

Application Outlook

Based on application, the market is segmented into media and entertainment, healthcare, energy & utilities, government, manufacturing, education, and others. The manufacturing segment held 7% revenue share in the market in 2023. The sector is exposed to new cybersecurity risks with the growing integration of digital technologies in manufacturing processes, including automation and IoT. Protecting data centers from potential threats and ensuring the continuity of operations is critical for manufacturers, driving the adoption of advanced security solutions in this segment.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment witnessed 23% revenue share in the market in 2023. Rapid digitalization, rising investments in data centers, and increasing cyberattacks have accelerated the adoption of security solutions in this region. Countries like China, India, and Japan are leading the growth due to expanding industries such as IT, telecom, and e-commerce.

List of Key Companies Profiled

• Cisco Systems, Inc.
• IBM Corporation
• Palo Alto Networks, Inc.
• Check Point Software Technologies Ltd.
• Hewlett Packard Enterprise Company
• McAfee Corp.
• Trend Micro, Inc.
• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Microsoft Corporation
• SentinelOne, Inc.

Global Data Center Logical Security Market Report Segmentation

By Solutions

• Threat & Application Security Solutions
• Access Control & Compliance
• Data Protection Solutions
• Other Solutions

By Data Center Types

• Large
• Mid-Size
• Small Enterprise

By Application

• Energy & Utilities
• Media & Entertainment
• Government
• Healthcare
• Manufacturing
• Education
• Other Application

By Services

• Managed Security Services (MSS)
• Integration & Deployment Services
• Consulting & Advisory Services
• Support & Maintenance Services

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA