Market Trends of Italy Data Center Physical Security Industry
Video Surveillance is Anticipated to be the Largest Segment in the Market Studied
- 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.
- With the help of video surveillance, consumers can easily record movements around the area. Additionally, the presence of video surveillance can have a deterrent effect on attackers. Attackers may have to find a way to bypass video surveillance and abandon their attacks.
- The growth in the development of new data centers in Austria would trigger market demand. For instance, in September 2023, a consortium of Italian companies wanted to build a data center in a Dolomite mine. The University of Trento, in collaboration with the construction company Covi Costolziono, the IT services company Deda Group, the sustainable healthcare provider GPI, and the holding company Istituto Atesino di Sviluppo (ISA), will develop the San Romedio mine in Trento. The company plans to develop a data center in Italy.
- Similarly, in September 2023, Digital Realty planned to expand into Italy and acquired land in Rome's capital. The company announced its expansion into the Italian market following the acquisition of real estate in Rome and preliminary development plans. Thus, the growth in upcoming data centers in the country would drive the demand for the physical security market during the forecast period.
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IT and Telecommunication is Anticipated to be the Fastest Growing Segment
- The ICT industry includes both the IT market and the telecommunications market. IT investments are increasing, and ICT market demand is expected to increase significantly over the next five years. For example, TIM Group (Telecom Italia SpA) works with Cisco to provide private companies and government agencies with cloud services. The growth of the Italian ICT industry is accelerating significantly due to the increasing need to consider and implement investments in cloud technologies.
- The government has committed to developing the ICT industry and bringing new growth opportunities to the ICT market. For example, Italy's National Plan for Recovery and Resilience is expected to positively stimulate and influence the ICT market over 2021-2024. Italy is one of the leaders in the digital market. From 2022 to 2024, the key technological drivers will continue to be cloud computing, big data, artificial intelligence (AI), Internet of Things (IoT), and cybersecurity.
- Cyberattacks are expected to continue to increase over the next five years. Advances in IT operations protect the ICT market from cyberattacks. For example, the Italian company Google has developed a hacking tool to spy on Apple Inc. and Android smartphones in Italy and Kazakhstan. Google reports that the website lists European law enforcement agencies as customers and has developed tools to spy on private communications and contacts on targeted devices.
- The transition to 5G is still progressing in the country due to the rollout of new networks and increasing demand for high-speed connectivity services. For example, Telecom Italia (TIM) won a government tender to implement its 5G network worth USD 817.54 million. Such government investments will provide new growth opportunities for major players in the ICT market.
- Growth in the telecommunications industry is primarily due to population growth and increased adoption of broadband services in the country. According to the Ookla Speedtest Global Index, Italy ranked 65th with an average fixed broadband download speed of 60.38 Mbps in December 2023. The penetration of fixed broadband services is increasing significantly, and the demand for telecommunications services is rising.
