Market Trends of Hong Kong 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 monitor access, detect unauthorized entry, and maintain compliance.
- Video surveillance enables easy recording of entries and activities in specific areas. Additionally, the presence of video surveillance can have a strong deterrent effect on attackers. Attackers may have to find a way to bypass video surveillance and abandon their attacks.
- Further, the growth in developing new data centers in Austria would trigger market demand. For instance, in February 2023, Big Data Exchange (BDx) announced that it would develop a new 16MW facility in an emerging high-tech industrial zone developed by the Sino Group. BDx aimed to have the hyper scaler-enabled data center, HKG8, operational by the end of 2023.
- Similarly, in August 2023, APAC data center company AirTrunk planned to develop a second facility in Hong Kong. The Macquarie-backed company announced plans for AirTrunk HKG2 (HKG2), a 15MW data center in the Eastern New Territories. The 11,600 sq. m (124,860 sq. m) facility has 4,400 sq. m (4,7360 sq. m) of technical space and a PUE value 1.25. Thus, the growth in upcoming data centers in the country would drive the demand for the physical security market during the forecast period.
Understand The Key Trends Shaping This Market
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IT & Telecommunication is Anticipated to be the Fastest Growing Segment
- The demand for the cloud segment is expected to increase with the growing demand for analytics, visualization tools, and business services.
- For instance, 75% of Hong Kong's businesses have adopted cloud services as they offer more flexibility and cost-effectiveness. Also, under the smart city blueprint program, government departments have used cloud platforms since 2020. The Hong Kong government is more inclined to use private cloud facilities than outsourced ones. However, data protection, regulatory enforcement, and privacy laws issued by the government have led some businesses to hesitate to adopt cloud services.
- The number of people using the Internet in China was 5.07 million in 2012, and it is expected to increase to 7.05 million by 2029. The average time users in Hong Kong spend on smartphones is approximately 3 hours and 31 minutes. The growing number of smartphone users in Hong Kong is expected to propel the growth of the telecom segment.
- Increasing demand for smart devices, such as smartphones and tablets, to use varying services such as streaming, browsing, and playing games has led to consumers opting for 4G services, thus diminishing the 3G service market over the years. The implementation of 5G is expected to further increase the data speed with the evolving technology over the years, which is expected to cater to the demand as more industries adopt automation in their companies in the manufacturing sector. Such improvements in the market are expected to create more demand for data centers, directly contributing to the growth of physical security accessories in the market.
