Data Center Logical Security Market Size, Share & Trends Analysis Report By Solutions (Threat & Application Security Solutions, Access Control & Compliance), By Services, By Data Center Types, By Application, By Region, And Segment Forecasts, 2025 - 2030

Data Center Logical Security Market Trends

The global data center logical security market size was valued at USD 15.70 billion in 2024 and is anticipated to grow at a CAGR of 17.2% from 2025 to 2030. As cyber threats become more sophisticated, businesses are prioritizing data security to protect sensitive information. Data breaches, ransomware attacks, and unauthorized access can have significant financial, operational, and reputational impacts. This has led to a greater focus on strengthening logical security controls within data centers, such as encryption, multi-factor authentication, and identity access management (IAM) solutions.

The rapid adoption of cloud computing, the Internet of Things (IoT), and big data analytics has created a surge in demand for data centers. These facilities need to be protected from unauthorized access, both internally and externally, requiring advanced logical security measures to maintain confidentiality, integrity, and availability of data. This surge in data center growth directly fuels the demand for logical security solutions.

Governments and industry regulators are implementing more stringent data privacy laws, such as the GDPR in Europe and CCPA in California, to safeguard consumer data. Organizations are required to implement strong data protection measures in their data centers to comply with these regulations, making the adoption of logical security solutions a necessity to avoid potential fines and penalties.

As businesses migrate to virtualized environments and public, private, or hybrid clouds, logical security has become even more critical. Virtualized infrastructures can introduce complexities in securing access to virtual machines, network segments, and storage resources. Logical security tools that offer advanced monitoring, segmentation, and encryption are vital for securing cloud-based and virtualized data center environments.

Solutions Insights

The threat and application security solutions segment dominated the market and accounted for the revenue share of nearly 34.0% in 2024 due to the rapid expansion of digital transformation initiatives across industries such as banking, healthcare, and e-commerce. With businesses increasingly relying on web applications and digital platforms, securing applications from vulnerabilities such as SQL injection, cross-site scripting (XSS), and API-based attacks has become critical. This has led to a surge in demand for web application firewalls (WAFs) and runtime application self-protection (RASP) solutions.

The data protection solutions segment is expected to grow at a significant CAGR of 18.7% over the forecast period. Governments and regulatory bodies worldwide have implemented stringent data protection laws, such as the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), Japan’s Act on the Protection of Personal Information (APPI), and the Payment Card Industry Data Security Standard (PCI DSS). These regulations mandate organizations to implement stringent security controls, encryption, and access restrictions to protect personal and financial data. As a result, businesses are increasing their investment in compliance-driven data protection solutions, including automated data classification, encryption-at-rest, and secure data erasure technologies.

Services Insights

The managed security services (MSS) segment accounted for the largest revenue share of over 40.0% in 2024. Many enterprises, especially small and medium-sized businesses (SMBs), lack the in-house expertise required to manage evolving threats such as ransomware, phishing attacks, and advanced persistent threats (APTs). MSS helps bridge this gap by offering 24/7 security monitoring, vulnerability management, and threat detection services, allowing organizations to focus on their core business operations while ensuring robust security.

The consulting & advisory services segment is expected to grow at a significant CAGR over the forecast period. The increasing frequency and sophistication of cyber threats, including ransomware, insider threats, and advanced persistent threats (APTs), have driven demand for cybersecurity advisory services. Organizations require expert guidance to develop proactive defense strategies, incident response plans, and threat intelligence programs to safeguard their data centers. Consultants assist in developing Zero Trust security models, cloud security architectures, and identity and access management (IAM) frameworks to enhance cybersecurity resilience in the data center logical security industry.

Data Center Types Insights

The large segment accounted for the largest revenue share of over 49.0% in 2024. The expansion of cloud computing and hybrid IT architectures contributes to the growth of this segment. Hyperscale data centers operated by companies such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud, and IBM Cloud require advanced security mechanisms to protect workloads across multi-cloud environments.

The small enterprise segment is expected to grow at a significant CAGR over the forecast period due to the increasing adoption of digital solutions by small and medium-sized enterprises (SMEs), edge computing expansion, and the rising need for cost-effective security solutions. As cyber threats become more sophisticated, businesses are investing in affordable yet robust security solutions to protect their infrastructure. Moreover, businesses are adopting lightweight, AI-powered security tools that offer proactive threat detection with minimal resource consumption.

Application Insights

The energy & utilities segment accounted for the largest revenue share of over 27.0% in 2024. The adoption of smart grids, IoT devices, and digital twins in the energy sector has increased the need for secure data management and real-time threat monitoring. As utility providers integrate IoT sensors, AI-driven analytics, and edge computing into their operations, securing data transmission, cloud-based control systems, and remote access has become critical. Organizations are deploying Zero Trust security models, secure access service edge (SASE), and AI-driven security analytics to protect against cyber intrusions.

The government segment is expected to grow at a significant CAGR over the forecast period. Governments worldwide are shifting from legacy IT systems to cloud-based and hybrid data center infrastructures to improve efficiency and scalability. However, hybrid and multi-cloud environments increase security risks. Many governments also implement sovereign cloud solutions to protect national data within domestic borders, ensuring compliance with data residency laws. Moreover, governments face increasing cyber espionage, ransomware, and advanced persistent threats (APTs) from hostile nations and cybercriminal groups. Attackers often target government data centers to steal confidential intelligence, disrupt operations, or launch disinformation campaigns.

Regional Insights

North America data center logical security market held the largest share of nearly 41.0% in 2024 due to the increasing adoption of zero-trust security models. The zero-trust approach assumes that both internal and external networks may be compromised, so no user or device is trusted by default. This strategy emphasizes continuous monitoring, strict access controls, and the principle of least privilege to mitigate the risk of data breaches.

U.S. Data Center Logical Security Market Trends

The data center logical security market in the U.S. is expected to grow significantly at a CAGR of 17.7% from 2025 to 2030. Recognizing the strategic importance of AI, major corporations are investing heavily in AI infrastructure. For instance, in September 2024, Microsoft and BlackRock launched a USD 30 billion fund, with a potential expansion of up to USD 100 billion, to develop and expand data centers and energy infrastructure in the United States. This initiative underscores the need for robust data center security to support AI operations.

Europe Data Center Logical Security Industry Trends

The data center logical security market in Europe is anticipated to register considerable growth from 2025 to 2030. Compliance with data protection regulations such as the General Data Protection Regulation (GDPR) is a significant driver for adopting comprehensive logical security measures. Organizations are investing in technologies like encryption, multi-factor authentication, and intrusion detection systems to meet these stringent requirements and protect sensitive data.

The UK data center logical security market is expected to grow rapidly in the coming years. The UK government's decision to classify data centers as critical national infrastructure underscores their importance to national security and the economy. This designation ensures that data centers receive enhanced protection against cyber threats and IT outages, fostering a more secure environment for data storage and processing.

The data center logical security market in Germany held a substantial market share in 2024. The integration of AI and ML into data center operations enhances threat detection and response capabilities. These technologies enable the identification of anomalies and potential security breaches in real-time, allowing for prompt mitigation. Germany's focus on AI innovation further drives the demand for advanced security solutions to protect AI-driven data centers.

Asia Pacific Data Center Logical Security Industry Trends

The data center logical security market in Asia Pacific is growing significantly at a CAGR of 18.3% from 2025 to 2030. With the growing adoption of cloud computing across various sectors in the APAC region, there is an increasing reliance on data centers to handle and process vast amounts of data. Cloud service providers are heavily investing in robust security infrastructure, including encryption, multi-factor authentication (MFA), and access control, to ensure that the data stored in their data centers remains protected from breaches. This trend is accelerating as industries like finance, healthcare, and e-commerce are rapidly transitioning to cloud-based services, demanding more secure data management.

Japan data center logical security market is expected to grow rapidly in the coming years. With Japan's commitment to reducing carbon emissions and promoting sustainability, the data center industry is increasingly focusing on energy-efficient practices. Data centers are investing in energy-efficient cooling systems and exploring renewable energy sources to reduce their environmental impact while maintaining high security standards.

The data center logical security market in China held a substantial market share in 2024. China has strengthened its data protection regulations in recent years. The introduction of the Personal Information Protection Law (PIPL) and the Data Security Law has placed significant pressure on organizations to ensure they are compliant with stringent data security standards. Companies operating data centers are adopting comprehensive logical security solutions to comply with these regulations, which require businesses to store and process personal data securely and responsibly. Non-compliance can result in severe penalties, further driving the demand for high-level data security infrastructure.

Key Data Center Logical Security Company Insights

Key players operating in the data center logical security industry are Cisco Systems, Inc., IBM Corporation, Hewlett Packard Enterprise Development LP, McAfee, LLC, and Trend Micro Incorporated. The companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In October 2024, IBM Corporation introduced Guardium Data Security Center, a comprehensive solution for managing data security from discovery to remediation, addressing AI and quantum computing threats. It includes AI security tools to mitigate risks like unauthorized AI use and ensures quantum-safe encryption to protect against future cyber threats. With unified security controls across on-premises and cloud environments, it enhances data protection and compliance. This advanced approach strengthens logical security in evolving digital infrastructures.

• In February 2024, Cisco Systems Inc., in collaboration with NVIDIA Corporation, a U.S.-based developer of graphics processing units, launched Nexus HyperFabric AI Clusters, a data center solution for seamless generative AI deployment. Integrating NVIDIA’s AI software with Cisco’s networking security ensures data integrity and confidentiality. With end-to-end visibility and cloud management features, it enhances security monitoring and operational efficiency. Designed for scalability, it supports evolving AI workloads with robust logical security.

Data Center Logical Security Market Report Scope

Global Data Center Logical Security Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global data center logical security market report based on solutions, services, data center types, application, and region.

• Solutions Outlook (Revenue, USD Billion, 2018 - 2030)

  • Threat and Application Security Solutions

  • Access Control and Compliance

  • Data Protection Solutions

  • Others

• Services Outlook (Revenue, USD Billion, 2018 - 2030)

  • Consulting & Advisory Services

  • Managed Security Services (MSS)

  • Integration & Deployment Services

  • Support & Maintenance Services

• Types Outlook (Revenue, USD Billion, 2018 - 2030)

  • Mid-Size

  • Small Enterprise

  • Large

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Media and Entertainment

  • Healthcare

  • Energy & Utilities

  • Government

  • Manufacturing

  • Education

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa