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

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

The Brazil Data Center Physical Security Market size is estimated at USD 40.40 million in 2024, and is expected to reach USD 109.60 million by 2029, growing at a CAGR of less than 21.40% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing 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 Brazilian data center physical security market is expected to reach 1,200 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.6 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 231,000 units by 2029. Sao Paulo is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 16 submarine cable systems connecting Brazil, and many are under construction.

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 physical security solutions. Several factors contribute to the demand for data centers and their growth within Brazil, 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 and digital services, renewable energy and sustainability, and smart cities and IoT initiatives. Hence, such factors are expected to drive market growth during the forecast period.

Brazil Data Center Physical Security Market Trends

The IT & Telecommunication Segment Holds the Major Share

• Cloud service providers AWS, Microsoft, Oracle, IBM, Tencent, and Huawei are present in Brazil through cloud regions/availability zones. These companies provide private and public cloud services, primarily for financial companies.
• Major factors driving the demand for data centers in the country include the expansion of cloud computing, penetration of various cloud providers, and increasing investment from domestic players.
• Cloud is an important part of IT infrastructure. In 2021, public cloud spending for Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) was expected to grow by 46.5% to USD 3 billion. The private cloud model generated USD 614 million in revenue from 2022 to 2023. Increasing cloud adoption in most businesses is driven by emerging technologies, such as artificial intelligence, big data, and blockchain, among various end users.
• The COVID-19 pandemic impacted the economic aspect of early entrants in digital transformation by offering digital products and services or using digital processes more than their competitors engaged in digital transformation.
• The telecom segment in Brazil is expanding with the introduction of 5G services. The 5G spectrum winners are expected to meet various buildout obligations, including coverage to 26 capital cities and the federal district by July 2022, coverage to all municipalities with more than 30,000 inhabitants by 2029, and 4G coverage to all towns with more than 600 inhabitants by 2028. Owing to such factors, the demand for data centers from the telecom segment is constantly rising, mirrored by a rapid rise in the infrastructure and resources required for data centers. The manufacturers of data centers are developing cutting-edge, affordable solutions that are scalable and secure to fulfill the rising demand from the telecom industries.
• With the rise of the digital economy and the increasing number of internet users in Brazil, the need for data storage and processing is increasing. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization. Such instances in the market are expected to create more need for data centers, boosting the market studied.

Video Surveillance 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 monitor access, detect unauthorized entry, and maintain 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 Brazilian General Data Protection Law (LGPD), impose strict security and privacy requirements within the country. These regulations must be complied with video surveillance equipment, and, therefore, they are vital for data center operators.
• Brazil was the largest Latin American e-commerce market for remote purchases, totaling USD 79.7 billion in 2020. Since a large portion of the population gained access to the internet for the first time using a smart device rather than a desktop computer or laptop, the increasing penetration of smart devices, particularly smartphones, over the past ten years has been the driving force behind digital inclusion in Brazil. Brazil's high mobile appeal makes it essential that e-commerce solutions are responsive and mobile-friendly.
• The number of people using social media is increasing, along with internet usage. The number of social media users in Brazil increased from 160 million in 2021 to 171.5 million in 2022, equivalent to 79.9% of the total population. Such instances in the market create more need for data storage in the region, which propels the demand for data centers and, consequently, the growth of the data center physical security solutions.
• The key players in the market are focusing on improving data center physical security solutions to meet the market demand. In April 2023, Schneider Electric launched a new service, EcoCare, for Modular Data Center Services membership. Special expertise in maximizing the efficiency of modular data centers by continuously monitoring and maintaining conditions 24 hours a day is available to members of this innovative service plan. The membership provides exclusive support that includes on-site services teams, a dedicated customer success management team, addressing maintenance and infrastructure needs at a system level, and a few other services.

Brazil Data Center Physical Security Industry Overview

The upcoming DC construction projects in the country are expected to boost the Brazilian data center physical security market in the coming years. The market studied 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.

• In October 2023, Zwipe partnered with Schneider Electric's Security Solutions Group. The France-based multinational Schneider Electric plans to introduce the Zwipe Access fingerprint-scanning smart card to its clientele. This card will be integrated with Schneider Electric's Continuum and Security Expert platforms, serving a client base from airports, transportation, healthcare, data centers, and more.
• In October 2022, Axis Communications announced a new version of the AXIS Optimizer for Milestone XProtect that provides enhanced audio and device management, as well as centralized lists of license plate holders in Milestone XProtect.

Additional Benefits:

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