Market Trends of South Korea Data Center Physical Security Industry
The Video Surveillance Segment Holds a Significant Share in the Market
- Sensitive and important data is stored in data centers, so security is a top priority. Data center operators use video surveillance systems to ensure security standards and regulations are met. This allows for monitoring access, detecting unauthorized access, and maintaining compliance.
- Data protection laws set strict requirements for data center operators. Video surveillance can help maintain compliance by improving physical security measures.
- Furthermore, factors such as growing connectivity and online shopping would contribute to the increasing generation of data and processing facilities. The country's internet penetration rate increased in 2022, while smartphone penetration rose from 81.6% in 2016 to 92.7% in 2021. This percentage is expected to reach 97% by the end of 2029. This represents a proliferation of data centers, thereby increasing the demand for video surveillance. This helps avoid malicious operations within the data center and provides evidence to identify those responsible in the event of an incident.
- The growth of the e-commerce industry is expanding the size of data centers and increasing the need for video surveillance. Video surveillance has a powerful deterrent effect, reducing the risk of physical attacks and unauthorized access to critical data.
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The IT and Telecommunication Segment Holds a Major Share in the Market
- The two major sub-sectors of the telecom industry, telecom equipment and services, respond flexibly to changing market demands and technology trends and continuously invest in innovations that drive growth in the ICT industry.
- In parallel with the 5G+ initiative, in July 2020, the Moon administration proposed a Korean version of the New Deal based on two pillars: the Green New Deal and the Digital New Deal. Combined with environmental programs, the Digital New Deal paints a grand blueprint for the digital economy. To implement these measures, the South Korean government plans to put more emphasis on developing a DNA-based digital ecosystem. Technologies that facilitate the development of productivity and the production of digital goods and services. Thus, advancements in ICT would increase the country's overall sector.
- South Korea stands second in the world rankings of telecom market maturity. It is also planning to roll out the latest telecom technology developments, including around 6G. It enjoys a highly competitive but stable market, with strong government support that enables the rollout of advanced infrastructure in both the fixed and mobile arenas. Further, it is home to the world’s top equipment manufacturers, Samsung and LG.
- Recently, the government decided to lower the barriers to entry for cloud computing services in the country. The move is expected to make foreign tech giants such as Amazon and Microsoft a threat to domestic companies. The US and Chinese tech firms welcome proposed deregulation despite growing concerns from KT, Naver, NHN, and other domestic cloud service providers about foreign firms' potential domination of local markets, and experts said they are beginning to explore opportunities.
- Cloud computing services for the public sector. Such developments have increased the need for data centers from the domestic cloud sector, thereby increasing the need for data center security in the country.
