Market Trends of Mexico Data Center Physical Security Industry
The Cloud Segment to Hold Major Share in the Market
- About 80% of Mexican businesses use cloud-based services through private or hybrid cloud models. This is due to favorable government initiatives that have lowered entry barriers for domestic cloud providers and reduced investment risks associated with technology obsolescence and change.
- Mexican government agencies are focusing on providing cloud-based e-government services as they go digital. This will drive the population's internet usage, which, in turn, will drive the growth of the market. Cloud-based services are widely seen as the next-generation computing revolution in major vertical end-use markets such as the public sector, banking, financial services and insurance, healthcare, and retail.
- In 2018, 48% of Mexican businesses invested in cloud products and services. Of the companies that adopted this technology, 30% invested part of their IT budget in public clouds, and the remaining 18% invested in private clouds. In early 2020, Microsoft announced it would build its first cloud data center in Mexico over the next five years as part of a USD 1.1 billion investment.
- Major companies that provide cloud services in Mexico's cloud computing industry include Microsoft Corporation, Amazon Web Services, IBM Corporation, Accenture, Oracle Corporation, SAP SE, Google, Rackspace, Salesforce.com, and Telefonica. These cloud service providers aim to extend their service portfolio and existing delivery models, such as public and private cloud models, to offer comprehensive solutions to their customers.
- With the rise of the digital economy and the increasing number of internet users in Mexico, the need for data storage and processing is increasing. Such instances in the market are expected to create more need for data centers, boosting the growth of the market studied.
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Video Surveillance Holds the Largest Market Share
- 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.
- Many operators of data centers are using remote video surveillance to keep an eye on their facilities throughout the day. This ensures that all security threats can be quickly addressed, even where staff are not at the site.
- Data protection regulations, such as the Mexican Data Protection Law, impose strict security and privacy requirements within the country. These regulations must be complied with video surveillance equipment, and, therefore, they are vital for data center operators.
- In Mexico, 97% of internet users access the internet through a smartphone, compared to 32% who use laptops and desktop computers. This has positively influenced the development of the BFSI, media and entertainment, and e-commerce industries, where a sizable amount of data has been generated. The most popular website, with 93.4% of visits, is Facebook. On the other hand, 80.5% of Mexicans used Facebook Messenger. TikTok came in sixth, with 70.4% of users in the area, and Instagram came in second with 79.1%. This shows there is a huge penetration of smartphones in the country, primarily requiring data centers for storage since they require real-time processing on enormous data chunks. Such positive growth of smartphones in the country is expected to lead to an increase in the number of data centers during the forecast period and, consequently, the growth of the segment.
- Public and commercial organizations are working together to construct Mexico's fiber connectivity network to expand the nation's connectivity infrastructure. Long-term developments have been greatly aided by some of the significant investments made in the early stages. Izzi, the telecom division of Grupo Televisa in Mexico, invested USD 40 million to extend its fiber optic network in Mexico and the state of Durango in September 2021. The installation of fiber networks has accelerated in Mexico due to the country's steady evolution of network use and the necessity for faster data transfer rates. Such instances in the market are expected to propel the growth of the data centers, creating more demand for data center physical security providers in the coming years.
- The key players in the market are focusing on improving data center physical security solutions to meet the market demand. In April 2023, Schneider Electric launched a new service, EcoCare, for Modular Data Center Services membership. Special expertise in maximizing the efficiency of modular data centers by continuously monitoring and maintaining conditions 24 hours a day is available to members of this innovative service plan. The membership provides exclusive support that includes on-site services teams, a dedicated customer success management team, addressing maintenance and infrastructure needs at a system level, and a few other services.
