Market Trends of Asia-Pacific Data Center Physical Security Industry
The IT & Telecom Segment is Expected to Hold Significant Share
- In Asia-Pacific, the hyper-connectivity environment has reinforced the importance of telcos, which play a foundational role in supporting consumers’ and enterprises’ connectivity and collaboration needs. Across Asia-Pacific, 75% of the operators registered positive revenue growth. South Korea is second only to Hong Kong in the world rankings of telecom market maturity.
- South Korea is on the leading edge of the latest telecom technology developments, including around 6G. In terms of investment, in November 2022, Malaysian telcos Celcom and DiGi approved the merger agreement. Once the two companies are fully merged, the new entity will be one of the largest carriers in Malaysia, with over 20 million subscribers.
- Australia has deployed 5G in major cities and is in the process of auctioning off the spectrum to provide more services. In April 2021, the government allocated a high band 5G spectrum (in the 26 GHz band), which will enable extremely fast, high-capacity services. In the second half of 2021, the government allocated a low band 5G spectrum (in the 850/900 MHz band), which will be crucial for ensuring broader geographic coverage of 5G services. This will enable new applications for 5G in the enterprise market leading to major increase in data traffic and data center demand. This will lead to major physical security demand.
- The advent of 5G in Asia-Pacific has accelerated small-cell deployment for high-speed network connectivity. Many nations have created exemption standards that can be applied when deploying new small cells. For instance, in Singapore, The Infocomm Media Development Authority (IMDA) has directed the building developers and owners to provide rooftop spaces free of charge for telecommunication equipment the telecom providers.
- The Chinese government is focusing on improving the data center physical security solutions to meet the market demand. The Chinese government plans to build eight computing hubs and 10 data center clusters to build a unified data center system by 2025. The project aims to channel the growing demand from the east to the data centers in the western region of the country.
China is Expected to Hold Significant Growth
- The Chinese government is focusing on improving the data center physical security solutions to meet the market demand. The Chinese government plans to build eight computing hubs and 10 data center clusters to build a unified data center system by 2025. The project aims to channel the growing demand from the east to the data centers in the western region of the country.
- Many businesses are constantly investing in data center expansion, which will create market opportunities in data center applications. GLP Pte, for example, raised USD 500 million in new funds in February 2022 to help expand its data center platform in China amid rising investor demand for digital infrastructure assets. According to the company, the transaction could value China data centers between USD 4 billion and USD 5 billion. Such investments will propel the market forward.
- Cloud computing provides web-based infrastructure, wherein services such as additional computing and information storage are delivered to the clients. The cloud infrastructure is comparatively cheaper than the traditional system, wherein sizeable server farms and storage systems are allocated in a data center. Such factor relates with major construction in cloud data center catering to major physical security solutions demand.
- Chinese government is stridden into fifth-generation mobile telecommunications technology and the thriving e-commerce sector leveraging the potential of internet data centers, thereby enabling IDCs viable investments for the industry stakeholders. Further, the trend is supported by the emergence of powerhouses such as Tencent Holdings and Huawei Technologies, whose growth drives the construction of IDC facilities in the region leading to major demand for video surveillance and access control solutions.