SOURCE: BCC Research LLC

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December 03, 2015 06:30 ET

Data Security Products Market to Almost Double With $5.7 Billion Gain by 2020, Projects BCC Research

WELLESLEY, MA--(Marketwired - December 03, 2015) - The overall market for data security products offers a strong growth opportunity for new entrants as well as established players. BCC Research reveals in its new report that technological innovation and real-time analysis are the keys to market survival and growth.

Data center security is a computer or cyber security applied to data centers, where the data centers can be in physical form or can be virtualized (software-defined data centers). The security applied can be either in software or hardware form, or as a mix of software and hardware. For the purpose of this report, security is defined as all forms of processes and mechanisms by which data center equipment, information and services are protected from intended or unintended (and unauthorized) access and change or destruction.

The global demand for data security products is projected to reach almost $6.4 billion and $12.1 billion in 2015 and 2020, respectively, reflecting a five-year compound annual growth rate (CAGR) of 13.8%. Key end-users of data security products include the following industries: financial services, retail and e-commerce, healthcare, telecommunications, government, information technology, and energy and utilities.

Distributed denial of service (DDoS) mitigation, the strongest growing market with a five-year CAGR of 18.2%, should more than double its projected 2015 market value to $539.2 million in 2020. Key factors include the rising number, size and frequency of DDoS attacks; nation-sponsored DDoS attacks; growing attacks on government departments; and usage of DDoS attacks to cover the tracks of data breaches.

In terms of dollar volume, the Americas are the largest contributor, followed by Europe. However, Asia-Pacific should enjoy higher growth rates than either Americas or Europe, spurring a change in market share percentage as Asia-Pacific's share rises and the others decline slightly.

Data center security is a demand-pull market experiencing strong growth provided by the constantly changing and evolving nature of security threats. Although the overall market is witnessing this strong growth, traditional data center security is slowing down as it nears saturation. Cloud and virtualized data centers are key market drivers. In recent years, data centers have grown to massive scale as cloud computing cost savings increased. These hyperscale data centers have become more critical to the operations of companies such as Amazon, Google and Facebook as well as private multinational corporations and governments.

"The keys to survival in this market remain technological readiness and innovation, along with building a long-term relationship with clients," says BCC Research analyst Ritam Biswas. "Although a new entrant in the market will face the dual pronged challenge from existing players and other new players, a focus on innovation and development around key growth sub-segments such as DDoS mitigation, SDDC security, will drive a new entrant toward strong growth."

Data Center Security: Global Markets (SAS025A) examines the trends toward mega data centers, increased spending in both security solutions and global IT spending, and increased government regulations and compliance requirements. The report also identifies market dynamics, growth drivers, opportunities, and forecasts trends and revenue globally and regionally through 2020.

About BCC Research
BCC Research publishes market research reports that make organizations worldwide more profitable with intelligence that drives smart business decisions. These reports cover today's major industrial and technology sectors, including emerging markets. For more than 40 years we've helped customers identify new market opportunities with accurate and reliable data and insight, including market sizing, forecasting, industry overviews, and identification of significant trends and key market participants. We partner with analysts who are experts in specific areas of industry and technology, providing unbiased measurements and assessments of global markets. Recently selected as the world's greatest market research company, BCC Research is a unit of Eli Global, LLC. Visit our website at www.bccresearch.com. Contact us: (+1) 781-489-7301 (U.S. Eastern Time), or email information@bccresearch.com.

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