Market Trends of Spain Data Center Physical Security Industry
The IT and Telecommunication Segment Holds a Major Share in the Market
- Increasing use of the cloud by large companies, driven by big data and artificial intelligence, is the main driver of the Spanish market. Increased adoption of cloud-based services has fueled the expansion of retail and wholesale colocation services in Spain, leading to increased demand. This will require more racks in the data center.
- The cloud service market, which is indispensable for digitalization, is growing rapidly. With the rise of the digital economy and increased internet usage in Spain, the need for data storage and processing is increasing.
- The government has allocated EUR 84 million (USD 90.81 million) for the expansion and improvement of the Central Government Private Cloud (SARA Cloud) initiative. The use of the cloud facilitates the development of new business models, enabling companies of all sizes and industries to innovate and gain a competitive edge.
- Additionally, the data center industry heavily depends on the telecommunications sector. The 5G and broadband industries are rapidly building and deploying links across the nation. The nation has developed the Plan for Connectivity and Digital Infrastructures and the Strategy to Promote 5G Technology, which would be endowed with EUR 4,320 million (USD 4551.1 million) through 2025 to push the adoption of 5G. Such instances in the market are expected to create more demand for data center 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.
- 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 General Data Protection Regulation impose strict security and privacy requirements within the European Union, including Spain. 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 of the studied market.
- Furthermore, factors such as internet users and online shopping would contribute to the increasing generation of data and processing facilities. As users grow more inclined to shop online with attractive deals offered, this would lead to a rise in digital payment services and traffic on websites, thus increasing data consumption. The number of digital payment users in the country is projected to reach 40.6 million by 2027, up from 32.35 million users in 2022. All these factors would contribute to a significant increase in consumption, boosting the demand for DC physical security solutions in the region.
- Key players in the market focus on improving the data center's physical security solutions to meet the market demand. 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.
