Market Trends of Germany Data Center Physical Security Industry
Video Surveillance is Anticipated to be the Largest Segment
• 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.
• Germany's data protection laws, including GDPR, are among the strictest in Europe, ensuring high data security and protection. This is important when working with sensitive AI applications and data. Additionally, hosting our AI systems in Germany allows us to ensure compliance with European Union regulations and reduce legal risks associated with data processing.
• Further, the growth in the development of new data centers in Austria would trigger market demand. For instance, in September 2023, Virtus Data Centers planned a new 300 MW campus outside of Berlin, Germany. The company, which is part of STT GDC, unveiled its Wustermark mega campus this week in Brandenberg, west of the capital. The first phase of the campus, located within the Wustermark community, will cover 350,000 square meters (3.7 million square feet) and is expected to be operational by 2026. The company said it will provide 300 MW of input power across its two locations on campus.
• In January 2023, CyrusOne acquired a complex in Frankfurt with plans to convert it into a data center campus. Investment group Corum had sold Frankfurt's Europark office complex for EUR 95 million (USD 102.3 million) before approving Cyrus Swan as a buyer. Such investments create opportunities for providers being considered in the market. Thus, the growth in upcoming data centers in the country would drive the demand for the physical security market in the forecast period.
IT & Telecommunication is Anticipated to be the Fastest Growing Segment
• The German ICT market is becoming increasingly important thanks to advanced technologies such as cloud computing. Artificial intelligence is also expanding its application in the end-user sector, driving market growth over the next five years. For example, 5G is the new driver of digital transformation in the industry. Cisco announced that it will collaborate with its Axians under the Vinci Energies brand to offer Cisco Private 5G to companies in all industries in Germany and the Netherlands.
• Increased infrastructure development, such as the construction of smart cities and data centers, is expected to drive the growth of the ICT market over the next five years. For example, ZTE Corporation signed its 5G innovation cooperation agreement with True Group. This collaboration in the 5G Innovation Center is an outstanding effort towards the comprehensive implementation of 5G-oriented innovative technologies and business cooperation, which will lead to 5G networks, digital services, smart islands, and smart manufacturing. The aim is to develop areas such as research innovation and human resource development.
• Like other major global economies, internet connectivity in Germany has increased significantly recently. Social media is becoming popular across the country, and the platform is often used to promote products and services. German railway company Deutsche Bahn is a great example of this, providing customer support through the Twitter platform. Free public Wi-Fi has become increasingly popular, expanding the internet user base in cafes, bookstores, and libraries.
• Since last year, Germany has been one of the top countries in the EU for improving internet access. The German public was interested in using the Internet and online services. In 2020, 96% of German households had an internet connection. According to ARD/ZDF, the number of Internet users in Germany increased to 67 million by the end of the previous year. This indicates that the demand for the ICT market is expected to expand significantly. Thus, growth in the overall ICT market would drive the data center market.
