Market Trends of Netherlands Data Center Physical Security Industry
The IT and Telecommunication Segment Holds a Major Share in the Market
- Cloud storage in the Netherlands is expanding as a result of rising demand for low-cost data backup, storage, and protection across all companies and the need to manage the data produced by the increased use of mobile technology.
- Governments are also promoting public cloud services and changing regulations. Public cloud services have become more secure, and mass deployment of updates and patches has made software troubleshooting much easier. For these reasons, the government revised the National Cloud Policy in 2011.
- Additionally, 49% of Dutch banks use the cloud, of which 38% use the public cloud. Almost 60% of Dutch healthcare institutions use private clouds, of which 43% also use public clouds. Additionally, research shows that more than 50% of government agencies worldwide use office applications in the cloud. These figures are a major driver for the 2011 revision of the Dutch National Cloud Directive.
- The hyperscalers (e.g., AWS, Azure, Google Cloud) enter new agreements with public sector and on-premises cloud partners, including KPN. The move by the Dutch government also shows that the cloud has reached a level of maturity in the country and can be applied to a variety of government-related use cases. This shows that more racks are being used in data centers.
- Further, in telecom, the implementation of 5G is projected to impact data traffic positively. By 2026, the country's 3.5GHz (5G) rollout is anticipated to be complete. By 2030, 60% of the Dutch population will be covered by the 3.5GHz 5G network, up from 33% in 2023. This trend may greatly encourage the usage of VOD. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center physical security solutions in the coming years.
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The Video Surveillance Segment 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 provide them with monitoring of access, detection of unauthorized entry, and maintaining compliance.
- In data centers in the Netherlands, there has been an increasing demand for high-quality video surveillance systems. In particular, increasing security issues, regulatory requirements, and the need for reliable monitoring capabilities have contributed to this growth. The emphasis on implementing innovative video surveillance solutions to protect vital infrastructure and essential information is also growing as the market for data centers expands.
- Factors such as the country's central European location, robust connectivity, reliable power infrastructure, a commitment to renewable energy sources, and supportive government policies encouraging investment in ICT industries drive data center growth in the Netherlands, and so does the demand for data center physical security solutions.
- Interconnectivity is enhanced by the presence of essential internet exchanges such as Amsterdam's Internet Exchange (AMSIX). Businesses that require quick and reliable access to other networks worldwide will find that this is crucial, creating more need for hybrid-type data centers.
- Data protection regulations, such as the General Data Protection Regulation (GDPR), impose strict security and privacy requirements within Europe, including the Netherlands. Besides the GDPR, the Netherlands has a national data protection law. Other data center standards include EN 50600, which specifies the Design of Data Centre Facilities and Infrastructures. These regulations must be complied with video surveillance equipment and others; therefore, they are vital for data center operators. Such instances in the market propel the demand in the studied market.
- Furthermore, the government is expected to make more investments to innovate in areas such as quantum computing, artificial intelligence, and applications utilizing 5G and 6G technologies. It aims to attain full 5G coverage, for which it has planned a 5G spectrum auction in 2023. Such aspects are expected to complement the growth and demand for data storage facilities in the telecom industry, propel Data Centers' growth, and contribute to segmental growth.
- Key players in the market focus on improving the data center's physical security solutions to meet the demand in the market. In April 2023, Schneider Electric launched a new Service, EcoCare, for modular data center services included with 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.
