Market Trends of United Kingdom Data Center Physical Security Industry
Video Surveillance is Anticipated to be the Largest Segment
- 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 March 2022, the UK security regulator published new guidance for ensuring data center security. This month, the National Cyber Security Center (NCSC) and the National Infrastructure Protection Center (CPNI) released guidance on data center security for data center owners and users to inform risk management strategies that meet their organizations' individual needs.
- Innovation is needed in the field of surveillance systems. The increasing complexity of risk means customers need more agile solutions. The customer requests to replace the analog CCTV system with his IP surveillance system, which has extra features such as facial recognition and integration of interfaces with smartphone technology. The United Kingdom follows the global trend of developing customized solutions for security product customers.
- The demand for contactless technology, remote control devices, and security requirements is increasing. Opportunities for first responders in the United Kingdom include personal protective equipment (PPE), integrated systems, and platforms. Fire protection is a sub-segment of the security market that saw increased demand following the high-profile Grenfell Tower fire incident in 2017.
- Further, the growth in the development of new data centers in the United Kingdom would trigger market demand. For instance, in May 2023, British data center company Kao Data planned to invest GBP 350 million (EUR 395.7 million) to develop its first data center in the north of England. Kao Data, which operates data centers primarily in east and west London, has announced that it secured 39,000 square meters of former industrial land to redevelop a new 40MW data center at Kenwood Point, Manchester.
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IT & Telecommunication is Anticipated to be the Fastest Growing Segment
- With continuous technological advancements, telecommunications companies consistently focus on and invest in innovation, providing cutting-edge solutions to support customers while improving infrastructure, including configuration, innovation, customer service, and personnel. For instance, in October 2022, Qualcomm Technologies and Vodafone partnered to deliver a 5G open RAN infrastructure solution based on the powerful Qualcomm QRU100 5G RAN platform and Qualcomm X100 5G RAN accelerator card. The goal of our collaboration was to enable the next wave of digital transformation with high-performance, energy-efficient wireless, distributed device solutions and expand open RAN deployments worldwide.
- Additionally, Tech Mahindra developed the Google Cloud Telco Smart Analytics Lab in Milton Keynes, United Kingdom, in September 2022. The company aims to drive data-driven digital transformation for companies across various industries, including telecommunications. Telco Smart Analytics Lab develops data analytics solutions on Google Cloud to help communications service providers (CSPs) worldwide modernize their data ecosystems and support analytics-driven operations.
- As the amount of data increases, several new developments, such as quantum computing and edge computing, will keep businesses afloat for the next few years. Companies are also moving their IT systems to the cloud. For example, Amazon Web Services (AWS) planned to double its investment in the United Kingdom in March 2022, investing EUR 1.8 billion (USD 1.45 billion) in cloud computing infrastructure over two years.
- The three largest providers, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, accounted for 63% of total market spending in Q2 2022, increasing 42% globally. In the second quarter of 2022, AWS accounted for 31% of total cloud infrastructure services spending, growing 33% annually. Azure was the second most important cloud service company in Q2, accounting for 24% of the market after increasing 40% annually. Google Cloud rose by 45% and held an 8% market share.
