Market Trends of Indonesia Data Center Physical Security Industry
The Video Surveillance Segment Holds a Significant Share
- Sensitive and important data is stored in data centers, so security is a top priority. 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.
- Data protection laws set strict requirements for data center operators. Video surveillance can help maintain compliance by improving physical security measures.
- Indonesia's banking sector has one of the highest net interest margins (NIM) in the world and is currently one of the most profitable sectors among ASEAN countries. Indonesia's GDP for financial and insurance activities is expected to grow by approximately 1.93% in 2022. Banks have a high need for data centers to perform activities such as banking, trading, and financial compliance. It is important to follow regulations to ensure data protection and safety. Such instances in the market lead to increasing demand for physical data center security players in the country.
- 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 represents an increase in data centers and the associated demand for video surveillance to prevent malicious or erroneous operations within the data center and provide evidence to identify those responsible in the event of an incident.
Understand The Key Trends Shaping This Market
Download PDF
The IT and Telecommunication Segment Holds a Major Share
- The telecommunication sector will maintain its dominance due to the growing adoption of 5G networks. The 5G mobile data speed is expected to increase significantly, reaching 259.3 Mbps by 2029. This suggests increasing data traffic, demand for data centers in the market, and the need for data center security in the country.
- Companies increasingly rely on data centers to manage their databases and storage efficiently, as they generate significant amounts of data every day. Therefore, the main driving factor for data center rack usage is the increased deployment of fully configured data centers. The market's growth is also being influenced by the growing demand for IT services and investments made by large companies.
- Indonesia's digital economy is expected to add USD 150 billion to GDP by 2025. To achieve this goal, the Indonesian government is undertaking large-scale infrastructure development. As part of the digital transformation, the government has launched several national initiatives, such as the 100 Smart Cities Movement, e-Smart IKM, and Go Digital Vision 2020.
- Indonesia's digital economy is growing rapidly, owing to the increasing adoption of digitalization and well-known online marketplaces such as Tokopedia and GoJek. Enabling three stages of future cities: smart cities (comfortable, livable, and safe), greener cities (climate change and disaster resistant), and competitive, technology-based smart cities. The Indonesian government has launched a smart city. City Vision Indonesia 2015-2045. Thus, the demand for data center facilities is expected to increase in the coming years, and the need for data center security in the country is also increasing.
