Market Trends of Denmark Data Center Physical Security Industry
The IT and Telecommunication Segment Holds a Major Share in the Market
- The Danish market has also been driven by rising cloud use across most companies as a result of developing technologies like artificial intelligence, big data, and blockchain. The Munich-based managed cloud services platform Skaylink announced in 2021 that it had merged with cVation, giving it a strong foothold in the Danish market. Both businesses will gradually bundle their cloud computing resources.
- In May 2022, Nokia announced that team.blue Denmark, a unit of the team.blue Group, the top hosting and cloud services provider to small and medium-sized businesses (SMEs) in Europe, had begun using its 7750 Service Routers (SR). With the implementation, team.blue will be able to increase its network infrastructure to accommodate its 250,000 Danish clients' fast-expanding service needs. As the popularity of cloud computing services and applications increases, more colocation cloud-based data centers are being built in Denmark.
- As the need for cloud solutions continues to grow in Denmark, the demand for cloud-based data protection and backup solutions is expected to be more robust. In June 2022, Keepit, a cloud backup service with headquarters in Copenhagen, raised USD 22.5 million in debt financing from Silicon Valley Bank (SVB) in association with Vaekstfonden. The platform will use the additional cash to build its SaaS data security platform while developing new products and expanding internationally.
- The rising adoption of the cloud across most businesses is driven by new technologies like artificial intelligence, big data, and blockchain. In October 2022, TV 2 Denmark, a major Danish national TV station and subscription-based streaming platform, overhauled its cloud infrastructure and built an internal developer platform.
- Further, in telecom, rising 4G adoption and the impending 5G wave are encouraging telecom companies to make investments in the data center market. In 2022, more than 98% of the population in the country was connected via 4G. Denmark’s broadband strategy for 2021 covers 98% of households and businesses with 1 Gbps download speeds by 2025. In Q2 2022, Denmark’s 5G availability stood at 36.4%. 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.
Understand The Key Trends Shaping This Market
Download PDF
The Video Surveillance Segment Holds the Largest Share in the Market
- 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 General Data Protection Regulation impose strict security and privacy requirements within the European Union, including Denmark. 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 in the studied market.
- Data center needs are growing due to continued digital transformation across industries, which increases the demand for data storage and, consequently, the need for more physical security facilities within data centers.
- Furthermore, the country's internet penetration increased from 97% in 2017 to 99% in 2021. At the same time, the number of smartphone users increased from 4.75 million in 2017 to 5.47 million in 2021. E-commerce sales in Denmark increased from EUR 19.5 billion (USD 20.54 billion) in 2019 to EUR 21.45 billion (USD 22.5 billion) in 2020, suggesting that people are now more inclined to prefer cashless transactions, which is predicted to have a long-term impact on the market. Such aspects are expected to complement the growth and demand for data processing facilities in the telecom industry, resulting in the country's rise in data center storage demand and contributing to segmental growth.
- Key players in the market focus on improving the data center's physical security solutions to meet the market demand. In April 2023, Schneider Electric launched a new Service, EcoCare, for modular data center services included with membership. Special expertise in maximizing the efficiency of modular data centers by continuously monitoring and maintaining conditions 24 hours a day is available to members of this innovative service plan.
