Data Center Logical Security Market Size, Share & Trends Analysis grow at a CAGR of 17.2% from 2025 to 2030
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.
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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.
