United Kingdom Data Center Physical Security - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The United Kingdom Data Center Physical Security Market size is estimated at USD 89.48 million in 2024, and is expected to reach USD 181.15 million by 2029, growing at a CAGR of 15.10% during the forecast period (2024-2029).
The security measures can be divided into four layers: perimeter security, facility controls, computer room controls, and cabinet controls. The first layer of data center security aims to deter, detect, and delay unauthorized entry of personnel at the perimeter. If there is a breach in the perimeter monitoring, the second layer of defense restricts access using an access control system that employs card swipes or biometrics.
The third layer of physical security further restricts access through various verification methods, including monitoring all restricted areas, deploying entry restrictions such as turnstiles, providing VCA, using biometric access control devices to verify finger and thumbprints, irises, or vascular patterns, and employing radio frequency identification. The first three layers ensure that only authorized personnel can enter. However, additional security measures to restrict access include cabinet locking mechanisms. This layer addresses concerns about an 'insider threat' such as a malicious employee.
Under Construction IT Load Capacity: The upcoming IT load capacity of the United Kingdom data center market is expected to reach more than 3000 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor areas is expected to exceed 17 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach above 8,89,000 units by 2029. London is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: Close to 58 submarine cable systems connect the United Kingdom, and many are under construction.
United Kingdom Data Center Physical Security Market Trends
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.
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.
United Kingdom Data Center Physical Security Industry Overview
The UK data center physical security market is moderately competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, such as ABB Ltd, Siemens AG, Cisco Systems, Inc., Schneider Electric, and Honeywell International Inc., are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In April 2023, Schneider Electric launched EcoCare, a new service offer for modular data centers. This innovative service plan provides specialized expertise to maximize modular data centers' uptime through 24/7 proactive remote monitoring and condition-based maintenance. Members of this service plan receive exclusive support, including a dedicated customer success management team. This team serves as their go-to coach, coordinating remote and on-site services teams to address infrastructure and maintenance needs at a system level rather than a fragmented approach for each asset only when problems arise.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
The security measures can be divided into four layers: perimeter security, facility controls, computer room controls, and cabinet controls. The first layer of data center security aims to deter, detect, and delay unauthorized entry of personnel at the perimeter. If there is a breach in the perimeter monitoring, the second layer of defense restricts access using an access control system that employs card swipes or biometrics.
The third layer of physical security further restricts access through various verification methods, including monitoring all restricted areas, deploying entry restrictions such as turnstiles, providing VCA, using biometric access control devices to verify finger and thumbprints, irises, or vascular patterns, and employing radio frequency identification. The first three layers ensure that only authorized personnel can enter. However, additional security measures to restrict access include cabinet locking mechanisms. This layer addresses concerns about an 'insider threat' such as a malicious employee.
Under Construction IT Load Capacity: The upcoming IT load capacity of the United Kingdom data center market is expected to reach more than 3000 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor areas is expected to exceed 17 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach above 8,89,000 units by 2029. London is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: Close to 58 submarine cable systems connect the United Kingdom, and many are under construction.
United Kingdom Data Center Physical Security Market Trends
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.
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.
United Kingdom Data Center Physical Security Industry Overview
The UK data center physical security market is moderately competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, such as ABB Ltd, Siemens AG, Cisco Systems, Inc., Schneider Electric, and Honeywell International Inc., are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In April 2023, Schneider Electric launched EcoCare, a new service offer for modular data centers. This innovative service plan provides specialized expertise to maximize modular data centers' uptime through 24/7 proactive remote monitoring and condition-based maintenance. Members of this service plan receive exclusive support, including a dedicated customer success management team. This team serves as their go-to coach, coordinating remote and on-site services teams to address infrastructure and maintenance needs at a system level rather than a fragmented approach for each asset only when problems arise.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand of Clolud Computing Capabilities Drives the Market Growth
4.2.2 Increase Security Concerns in the Market Drives the Market Growth
4.3 Market Restraints
4.3.1 The High Costs Associated with Physical Security Infrastructure
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of THE COVID-19 Impact
5 MARKET SEGMENTATION
5.1 By Solution Type
5.1.1 Video Surveillance
5.1.2 Access Control Solutions
5.1.3 Others (Mantraps, Fences, and Monitoring Solutions)
5.2 By Service Type
5.2.1 Consulting Services
5.2.2 Professional Services
5.2.3 Other Service Types (System Integration Services)
5.3 End User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Healthcare
5.3.5 Other End Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Axis Communications AB
6.1.2 ABB Ltd
6.1.3 Securitas Technology
6.1.4 Bosch Sicherheitssysteme GmbH
6.1.5 Johnson Controls
6.1.6 Honeywell International Inc.
6.1.7 Siemens AG
6.1.8 Schneider Electric
6.1.9 Cisco Systems Inc.
6.1.10 Hangzhou Hikvision Digital Technology Co. Ltd
6.1.11 Dahua Technology Co. Ltd
6.1.12 ASSA ABLOY
6.1.13 Convergint Technologies LLC
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand of Clolud Computing Capabilities Drives the Market Growth
4.2.2 Increase Security Concerns in the Market Drives the Market Growth
4.3 Market Restraints
4.3.1 The High Costs Associated with Physical Security Infrastructure
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of THE COVID-19 Impact
5 MARKET SEGMENTATION
5.1 By Solution Type
5.1.1 Video Surveillance
5.1.2 Access Control Solutions
5.1.3 Others (Mantraps, Fences, and Monitoring Solutions)
5.2 By Service Type
5.2.1 Consulting Services
5.2.2 Professional Services
5.2.3 Other Service Types (System Integration Services)
5.3 End User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Healthcare
5.3.5 Other End Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Axis Communications AB
6.1.2 ABB Ltd
6.1.3 Securitas Technology
6.1.4 Bosch Sicherheitssysteme GmbH
6.1.5 Johnson Controls
6.1.6 Honeywell International Inc.
6.1.7 Siemens AG
6.1.8 Schneider Electric
6.1.9 Cisco Systems Inc.
6.1.10 Hangzhou Hikvision Digital Technology Co. Ltd
6.1.11 Dahua Technology Co. Ltd
6.1.12 ASSA ABLOY
6.1.13 Convergint Technologies LLC
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
