Market Trends of Poland Data Center Physical Security Industry
The IT and Telecommunication Segment Holds a Major Share in the Market
- Cloud services are growing in popularity in Poland. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
- Cloud has software and databases installed on servers located in data centers that can be accessed through the internet. Cloud computing helps businesses reduce their IT costs by managing physical servers and running software applications. For instance, employees working in different geographic locations could easily access their files that are already stored in the cloud. The market share for cloud as an end user is expected to reach around 24% by 2029 from the market share of 23.12% in 2022.
- The increased flexibility and ease of accommodating website traffic fluctuations have led businesses to gain an inclination toward cloud service. Seeing the numerous benefits offered by cloud infrastructure, companies have increasingly adopted cloud services, leading to their growth.
- Website traffic during online shopping events has led companies to experience a sudden surge in traffic, which can lead to crashing their website. Adopting cloud services by the companies has helped these websites easily accommodate these fluctuations in website traffic and conduct monetary transactions smoothly.
- The retail industry is the major adopter of cloud services and is expected to reach an annual value of USD 2.3 billion by 2030. The adoption of cloud technology infrastructure by the retail sector is expected to make a contribution of 3.3% to Poland's GDP by 2030. These factors suggest the growing need for data centers in the country; consequently, the demand for DC physical security solution providers rises.
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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.
- 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 when the staff is not at the site.
- Data protection regulations such as the General Data Protection Regulation impose strict security and privacy requirements within the European Union, including Poland. These regulations must be complied with by video surveillance equipment, and, therefore, they are of vital importance for data center operators. Such instances in the market propel the demand in the studied market.
- In April 2023, Poland's most prominent service providers set up a Data Center Association to support the development of the Polish data processing market. The association operates as an industry organization to educate the market about physical and cyber security improvements, training future staff in a current lack of specialized professionals who are required to maintain the infrastructure of colocation facilities.
- Furthermore, infrastructural developments in the country are expected to pave the way for better 5G adoption in the future. Major telecom service providers like T-Mobile introduced about 3,000 5G base stations to cover about 25% of Poland by September 2021 and further claimed to have reached about 40% of the population with 5G services by August 2022. The country would greatly benefit from initiatives by service providers, facilitating faster data transfer rates for higher transfer of data sets, thus boosting the demand for data storage facilities, which results in the rising need for data center physical security products and services in the coming years.
- Key players in the market focus on improving the data center's physical security solutions to meet the market demand. In March 2023, Honeywell installed 7000 AI video cameras as a part of Bengaluru's Safe City project. The Safe City project also includes data centers.
