Market Trends of China Data Center Physical Security Industry
The Video Surveillance Segment Holds a Significant Share in the Market
- Data center operators use video surveillance systems to ensure security standards and regulations are met. This allows you to monitor access, detect unauthorized access, and maintain compliance. Video surveillance helps prevent malicious or erroneous data center operations and provides evidence to identify those responsible in the event of an incident.
- Video surveillance also has a powerful deterrent effect, reducing the risk of physical attacks and unauthorized access to critical data. Users can monitor all ongoing issues and events within the data center in real-time and provide up-to-date information to customers anytime and anywhere.
- The information technology sector is central to national security, the economy, and public health and safety, with businesses, governments, academia, and individuals increasingly relying on it to function. To reduce data theft and cybercrime in the country, data centers rely on video surveillance cameras.
- Additionally, factors such as increased connectivity and online shopping are likely to contribute to increased data generation and processing power. As the country's internet penetration rate increased, the number of smartphone users also increased in 2022. This means data centers will grow in size, and, as a result, the demand for preventive video surveillance will increase. Detect malicious or erroneous operations within the data center and provide evidence to identify responsible parties in the event of an incident.
- The government is focusing on improving the data center's 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.
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The IT and Telecommunication Segment Holds the Major Share
- China is leaping ahead on the global scale for the construction of data centers, majoring in the increasing demand from enterprises to scale up their data center operations. Enterprises in the region seek reliable and stable data services for the application of IoT, 5G, and other AI-driven spurs demanding high internet computation power. Global tech giants such as Huawei Technologies Co and Apple Inc. are stepping up efforts to build data centers in Guizhou province due to its ample power resources and mild climatic conditions.
- Since the advent of the Internet, ICT has become one of the most important drivers of global development and value creation. In recent years, the ICT industry has undergone many changes due to technological advances. High growth rates are projected in this rapidly growing market. ICT companies, and virtually all companies with access to telecommunications networks, are likely to feel immediate and far-reaching impacts from these major trends currently prevalent in the telecommunications sector.
- The Chinese government is stridden into fifth-generation mobile telecommunications technology and the thriving e-commerce sector, which is leveraging the potential of internet data centers, thereby enabling IDCs to be viable investments for 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. The country capitalizes on the demand for computing power and continues to dominate the list of the world's fastest supercomputers by number.
- Additionally, the region is encouraging the adoption of the internet in private and state businesses, thereby driving disruption in the economy and creating technological leaders. Private and public businesses' proliferation and adoption of digital payment systems drive the demand for IDC infrastructure. Further, it is expected that the increasing digital transformation of the region, demanding more information processing, would drive the construction of data centers and increase the need for data center security in the country.
- The increasing demand for streaming services, such as Douyin, Kuaishou, Iqiyi, Youku, and Tencent Video, in China has increased data consumption with their high-quality video streaming services. Netflix, a popular OTT platform with a presence in many countries, is unavailable in China.
