Market Trends of Canada Data Center Physical Security Industry
The IT and Telecommunication Segment Holds a Major Share in the Market
- The economic impact of companies that entered the digital transformation early during the COVID-19 pandemic, either by offering digital products and services or leveraging digital processes, more economically than their peers that gradually embraced digital transformation.
- In the early days of the pandemic, after years of increasing adoption, public cloud adoption became mainstream. Canada's public cloud market revenues will continue to total USD 5,213.5 million, projected to increase by 46.42% from 2023 to 2027. Revenue is expected to grow to USD 16.4 billion by 2027 for the fourth year in a row. It is worth noting that the public cloud market revenue has increased steadily in recent years.
- Cloud storage in Canada is growing due to the increasing demand for cost-effective data backup, storage, and protection across all businesses and the need to manage data generated by the increasing use of mobiles.
- Cloud infrastructure offers capabilities such as increased scalability and flexibility to serve customers with minimal downtime. Enterprises are migrating from traditional complex infrastructures to cloud infrastructures, and data center usage is expected to increase during the forecast period.
- Further, telecommunications have evolved and started using a hybrid cloud structure, which combines both public and private cloud structures. The usage of this hybrid cloud structure helps telecommunication companies manage the sudden surge in traffic. The implementation of hybrid cloud services helps the telecom industry deploy its cloud services instantly, leading to lower downtime. The increased bandwidth speeds have increased data consumption on mobiles from 1.5 GB in 2016 to 4.8 GB in 2022 and is expected to reach around 8.6 GB by 2029. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center physical security solutions in the coming years.
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The Video Surveillance Segment 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 provide them with monitoring of access, detection of unauthorized entry, and maintaining 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 Personal Information Protection and Electronic Documents Act (“PIPEDA”) impose strict security and privacy requirements within Canada. These regulations must be complied with video surveillance equipment, and, therefore, they are of vital importance for data center operators. Such instances in the market propel the demand of the studied market.
- According to the Government of Canada's Smart Cities Challenge launched in 2017, more than 225 municipalities expressed an inclination to explore the plan's advantages by filing their applications, demonstrating interest in developing more smart regions in the future. The emergence of 5G services in smartphones and other faster network technologies is giving rise to wider deployment of smart devices that are controlled by apps in smartphones. The number of 5G users is expected to increase from 7% in 2021 to about 62% by 2025, further contributing to data consumption and network evolution during the forecast period. Such improvements in the market propel the growth of data centers and, consequently, the rise of demand for DC physical security products and services in the country.
- Key players in the market focus on improving the data center's physical security solutions to meet the market demand. In June 2023, Bosch introduced a mobile access solution to buildings and restricted areas, which allows access without any identification media such as plastic cards. It is fully integrated into the tried-and-tested access management system from Bosch and provides various benefits, including efficiency, security, and convenience for building owners, visitors, and employees. This was initially available to customers in the Benelux region, Switzerland, Germany, Austria, Canada, and the United States.
