Spain Data Center Physical Security - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Spain Data Center Physical Security Market size is estimated at USD 30.60 million in 2024, and is expected to reach USD 65.60 million by 2029, growing at a CAGR of 15.90% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Key Highlights

• Under construction IT load capacity: The upcoming IT load capacity of the Spain data center rack market is expected to reach 1400 MW by 2029.
• Under construction raised floor space: The country's construction of raised floor area is expected to increase to 6 million sq. ft by 2029.
• Planned racks: The country's total number of racks to be installed is expected to reach 330,000 units by 2029. Madrid is expected to house the maximum number of racks by 2029.
• Planned submarine cables: There are close to 32 submarine cable systems connecting Spain, and many are under construction.
• The data center's attack surface and the physical, human, and digital ways security can be breached are expanding. Such instances in the market create a significant role for data center physical security players in helping to install physical security products that are important in data centers, as they reduce the threat of interruptions, social engineering attacks, insider threats, and others as a result of the installation of several layers of physical security.
• In addition, increasing data consumption among various end users in the country creates more demand for data center facilities, which results in increasing investments by hyperscale and colocation providers. Such instances in the market led to the adoption of physical security products and propelled the growth of the Spanish data center physical security market.

Spain Data Center Physical Security Market Trends

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.

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.

Spain Data Center Physical Security Industry Overview

The upcoming DC construction projects in the country would increase the demand for the Spanish data center physical security market in the coming years. The Spanish data center physical security market is moderately consolidated with some players in the market, including Axis Communications AB, ABB Ltd, Securitas Technology, Bosch Sicherheitssysteme GmbH, and Johnson Controls. These major players, with a prominent market share, focus on expanding their regional customer base.

• April 2023: Securitas signed an expanded 5-year agreement to provide data center security for Microsoft in 31 countries. It includes risk management, comprehensive security technology as a system integrator, specialized safety and security resources, guarding services, and digital interfaces.
• March 2023: Motorola Solutions announced the new Avigilon physical security suite, providing organizations worldwide with scalable, secure, and flexible video security and access control solutions. The Avigilon security suite includes the on-premise Avigilon Unity solutions and cloud-native Avigilon Alta, each with advanced analytics designed to provide an effortless user experience.

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• The market estimate (ME) sheet in Excel format
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