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

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

The Netherlands Data Center Physical Security Market size is estimated at USD 53.40 million in 2024, and is expected to reach USD 98.90 million by 2029, growing at a CAGR of 12.70% 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 Netherlands 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. Amsterdam will likely house the maximum number of racks by 2029.
• Planned submarine cables: There are close to 10 submarine cable systems connecting the Netherlands, and many are under construction.
• An increasing need for data center physical security products and services has resulted in an upsurge in the number of data centers nationwide. Several factors contribute to the demand for data centers and their growth within the Netherlands, which is reflected by the country's evolving IT landscape, business activities, and technological initiatives. Key drivers that propel the development of data centers in the nation include digital transformation, cloud computing adoption, e-commerce and digital services, renewable energy and sustainability, and smart cities and IoT initiatives. Hence, such factors are expected to drive the market's growth during the forecast period.
• 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.

Netherlands Data Center Physical Security Market Trends

The IT and Telecommunication Segment Holds a Major Share in the Market

• Cloud storage in the Netherlands is expanding as a result of rising demand for low-cost data backup, storage, and protection across all companies and the need to manage the data produced by the increased use of mobile technology.
• Governments are also promoting public cloud services and changing regulations. Public cloud services have become more secure, and mass deployment of updates and patches has made software troubleshooting much easier. For these reasons, the government revised the National Cloud Policy in 2011.
• Additionally, 49% of Dutch banks use the cloud, of which 38% use the public cloud. Almost 60% of Dutch healthcare institutions use private clouds, of which 43% also use public clouds. Additionally, research shows that more than 50% of government agencies worldwide use office applications in the cloud. These figures are a major driver for the 2011 revision of the Dutch National Cloud Directive.
• The hyperscalers (e.g., AWS, Azure, Google Cloud) enter new agreements with public sector and on-premises cloud partners, including KPN. The move by the Dutch government also shows that the cloud has reached a level of maturity in the country and can be applied to a variety of government-related use cases. This shows that more racks are being used in data centers.
• Further, in telecom, the implementation of 5G is projected to impact data traffic positively. By 2026, the country's 3.5GHz (5G) rollout is anticipated to be complete. By 2030, 60% of the Dutch population will be covered by the 3.5GHz 5G network, up from 33% in 2023. This trend may greatly encourage the usage of VOD. Such instances in the market are expected to create more need for data centers, resulting in rising demand for data center physical 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.
• In data centers in the Netherlands, there has been an increasing demand for high-quality video surveillance systems. In particular, increasing security issues, regulatory requirements, and the need for reliable monitoring capabilities have contributed to this growth. The emphasis on implementing innovative video surveillance solutions to protect vital infrastructure and essential information is also growing as the market for data centers expands.
• Factors such as the country's central European location, robust connectivity, reliable power infrastructure, a commitment to renewable energy sources, and supportive government policies encouraging investment in ICT industries drive data center growth in the Netherlands, and so does the demand for data center physical security solutions.
• Interconnectivity is enhanced by the presence of essential internet exchanges such as Amsterdam's Internet Exchange (AMSIX). Businesses that require quick and reliable access to other networks worldwide will find that this is crucial, creating more need for hybrid-type data centers.
• Data protection regulations, such as the General Data Protection Regulation (GDPR), impose strict security and privacy requirements within Europe, including the Netherlands. Besides the GDPR, the Netherlands has a national data protection law. Other data center standards include EN 50600, which specifies the Design of Data Centre Facilities and Infrastructures. These regulations must be complied with video surveillance equipment and others; therefore, they are vital for data center operators. Such instances in the market propel the demand in the studied market.
• Furthermore, the government is expected to make more investments to innovate in areas such as quantum computing, artificial intelligence, and applications utilizing 5G and 6G technologies. It aims to attain full 5G coverage, for which it has planned a 5G spectrum auction in 2023. Such aspects are expected to complement the growth and demand for data storage facilities in the telecom industry, propel Data Centers' growth, and contribute to segmental growth.
• Key players in the market focus on improving the data center's physical security solutions to meet the demand in the market. 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. The membership provides exclusive support that includes on-site services teams, a dedicated customer success management team, addressing maintenance and infrastructure needs at a system level, and a few other services.

Netherlands Data Center Physical Security Industry Overview

The upcoming DC construction projects in the country are expected to increase the demand for data center physical security in the Netherlands market in the coming years. The Netherlands 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.

• March 2023: Securitas Technology, a significant provider of integrated security systems, announced bringing together the electronic security expertise and capabilities of Securitas and STANLEY Security, which was acquired in July 2022.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support