Market Trends of Malaysia Data Center Physical Security Industry
The Video Surveillance Segment to Hold Significant Share
- Sensitive and important data are stored in data centers, so security is a top priority. Data center operators use video surveillance systems to ensure that security standards and regulations are met. This allows one to monitor access, detect unauthorized access, and maintain compliance.
- Video surveillance allows users to monitor all ongoing issues and events within the data center in real-time, allowing them to provide up-to-date information to their customers anytime and anywhere.
- Malaysia added 3 million new digital consumers from the start of the pandemic to the first quarter of 2021. Considering that 55.9% of e-commerce transactions in Malaysia are done through mobile devices, the increasing penetration of smartphones means that more people will choose to shop online in the coming years. It means that. With the advent of online shopping platforms, small and medium-sized businesses are also switching to online payment methods and to have a digital presence in the world of e-commerce. Even large, well-established companies are integrating e-commerce platforms with traditional forms of business. This leads to an increase in data traffic and, thus, an increase in data centers and, in turn, an increase in the demand for video surveillance. This helps prevent malicious or erroneous operations in a data center and provides evidence to identify those responsible in the event of an incident.
- Approximately 86% of Malaysia's population were active social media users in 2021. This is a 24% increase compared to 2016, when social media users accounted for about 62% of Malaysia's total population. In the first quarter of 2021, an average mobile internet user in Malaysia consumed approximately 25.7 GB of data. The high usage can be explained by the fact that most providers gave their users 1 GB for free during the pandemic. Additionally, the increased use of connected devices and smart homes has increased the demand for digital data and network traffic. This makes the country one of the pioneers of mobile commerce in the region. This means an increase in data consumption across data centers and, in turn, growth in the market studied.
Understand The Key Trends Shaping This Market
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IT and Telecommunication Segment Holds the Major Share
- Malaysia is becoming a regional hub for many businesses, which is driving more organizations to invest in cloud systems. This, in turn, may drive the need for more local data centers. The new government hybrid cloud service, called MyGovCloud, will be a combination of both private cloud services from PDSA and public cloud from a cloud service provider (CSP).
- According to the SME Corporation of Malaysia (SME Corp. Malaysia), the central coordinating agency under the Ministry of Entrepreneur Development and Cooperatives (MECAD), the country's MSMEs (micro, small, and medium businesses) formed the backbone of the economy, representing 97.4% of overall business establishments in 2021. In the endemic phase of COVID-19, cloud computing was widely acknowledged as the foundation of the digital journey. This enables more data consumption, necessitating data center growth and thereby increasing the need for data center security in the country.
- With the 5G technology, the consumption rate is expected to increase, along with the need for effective data storage facilities in the industry. The development of digital infrastructures, such as data centers, is central to enabling 5G applications.
- The demand for data centers is experiencing rapid growth, driven primarily by the telecom sector's need to deliver content, mobile, and cloud services. Ensuring the continued operation of these facilities is crucial. Interconnecting data centers and providing WAN connectivity are vital to network requirements, resulting in high data consumption, necessitating data center growth and thereby increasing the need for data center security in the country.
- Moreover, rising smartphone users coupled with discounted internet services and the increasing data traffic per smartphone drive the demand for telecom services, creating more need for data storage space and leading to rising demand for data centers in the region, thereby increasing the need for data center security in the country.
