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

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

The Switzerland Data Center Physical Security Market size is estimated at USD 37 million in 2024, and is expected to reach USD 75.5 million by 2029, growing at a CAGR of 14.90% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and increasing 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 Swiss data center rack market is expected to reach 670 MW by 2029.
• Under construction raised floor space: The country's construction of raised floor area is expected to increase to 2.6 million sq. ft by 2029.
• Planned racks: The country's total number of racks to be installed is expected to reach 130,000 units by 2029. Zurich is expected to house the maximum number of racks by 2029.
• An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide and, consequently, the growth of physical security solutions for data centers. Several factors contribute to the demand for data centers and their growth within Switzerland, 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 market 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.

Switzerland Data Center Physical Security Market Trends

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

• The Swiss data center market has also been driven by growing cloud use across companies because of their increasing integration of emerging technologies like artificial intelligence, big data, and blockchain. Cloud computing (anything-as-a-service (XaaS)) continues to be one of the most important trends in the Swiss IT industry. However, while most cloud solutions are still deployed in-house (besides traditional outsourcing and managed services), software-as-a-service (SaaS), in particular, is becoming increasingly important as a procurement model.
• Globally leading hyperscalers, namely AWS, Google, and Microsoft, now have a presence in Switzerland. Since 2019, they have invested intensively in developing their Swiss cloud regions and attracting new customers. For instance, AWS plans to invest USD 5.9 billion into the local economy through 2036. The 15-year investment plan will help drive local cloud adoption and add USD 16.3 billion to the Swiss GDP. In 2021, cloud expenditure in Switzerland was more than CHF 4.93 billion (USD 5.42 billion).
• By 2022, only a few companies, approximately 5%, were not using any cloud services, suggesting an upward trend and, hence, increasing demand for data processing facilities. Additionally, scalable and strong cloud networks are being developed with the help of hyperscale data centers, which can enhance customer satisfaction, increase availability, and cut costs. Considering the above developments, the cloud data center segment is expected to account for a majority of capacity in the Swiss data center market by 2029.
• Additionally, in telecom, rising 4G adoption and the impending 5G wave are encouraging telecom companies to make investments in the Swiss data center market. In 2021, 99% of the population was covered by LTE (4G). By the end of 2021, Swisscom reached 98% of the population with 5G and transmission rates of up to 1 Gbps and 31% with 5G+ and transmission rates of up to 2 Gbps, while Sunrise UPC covered over 96% with 5G and transmission rates of up to 1 Gbps. By 2022, 90% of homes and companies in the country were connected to Swisscom's ultra-fast broadband services. 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.
• Key players in the market focus on improving the data center's physical security solutions to meet the market demand. In June 2023, Bosch introduced a Mobile Access solution to buildings and restricted areas, which allows access without any identification media such as plastic cards. It is fully integrated into the tried-and-tested Access Management System from Bosch and provides various benefits, including efficiency, security, and convenience for building owners, visitors, and employees. This was initially available to customers in the Benelux region, Switzerland, Germany, Austria, Canada, and the United States.

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.
• The Swiss legislation on data protection has strict provisions requiring operators of data centers to comply with them. By enhancing physical security measures, video surveillance contributes to the maintenance of compliance.
• Switzerland is an international finance center with a significant presence in the financial services sector. Banks have a strong data center requirement to perform activities such as banking, trade, and compliance with finance regulations. Protecting and safeguarding the data is very crucial, as per the regulations. Such instances in the market create more demand for data center physical security players in the region.
• Furthermore, factors such as growing connectivity and online shopping would contribute to the increasing generation of data and processing facilities. The country's internet penetration increased from 89% in 2016 to 96% in 2021, while at the same time, the number of smartphone users increased from 6.9 million in 2018 to 7.9 million in 2023.
• Moreover, in 2021, Switzerland ranked first in the annual e-commerce index of UNCTAD, which ranks countries on their readiness to engage in e-commerce. Online shopping was found to be preferred by about 11% of Swiss customers, and this share was expected to reach 22% in 2022. Such improvements in the market propel the growth of data centers and, consequently, the rise of DC storage demand in the country.
• Key players in the market focus on improving the data center's physical security solutions to meet the market demand. In June 2023, Bosch introduced a mobile access solution to buildings and restricted areas, which allows access without any identification media such as plastic cards. It is fully integrated into the tried-and-tested access management system from Bosch and provides various benefits, including efficiency, security, and convenience for building owners, visitors, and employees. This was initially available to customers in the Benelux region, Switzerland, Germany, Austria, Canada, and the United States.

Switzerland Data Center Physical Security Industry Overview

The upcoming DC construction projects in the country increase the demand for data center physical security in Switzerland in the coming years. The Swiss 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.
• 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.

Additional Benefits:

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