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

The Canada Data Center Physical Security Market size is estimated at USD 38.20 million in 2024, and is expected to reach USD 80 million by 2029, growing at a CAGR of less than 15.5% 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 Canadian data center rack market is expected to reach 1,150 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.1 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 289,000 units by 2029. Quebec is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 16 submarine cable systems connecting Canada, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Sednalink Fibre, which stretches over 2,104 kilometers with landing points from Goose Bay, NL, Canada, and Iqaluit, NU, Canada.
• An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide and, consequently, the growth of data center physical security solutions. Several factors contribute to the demand for data centers and their growth within Canada, 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.

Canada Data Center Physical Security Market Trends

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

• The economic impact of companies that entered the digital transformation early during the COVID-19 pandemic, either by offering digital products and services or leveraging digital processes, more economically than their peers that gradually embraced digital transformation.
• In the early days of the pandemic, after years of increasing adoption, public cloud adoption became mainstream. Canada's public cloud market revenues will continue to total USD 5.21 billion, projected to increase by 46.42% from 2023 to 2027. Revenue is expected to grow to USD 16.4 billion by 2027 for the fourth year in a row. It is worth noting that the public cloud market revenue has increased steadily in recent years.
• Cloud storage in Canada is growing due to the increasing demand for cost-effective data backup, storage, and protection across all businesses and the need to manage data generated by the increasing use of mobiles.
• Cloud infrastructure offers capabilities such as increased scalability and flexibility to serve customers with minimal downtime. Enterprises are migrating from traditional complex infrastructures to cloud infrastructures, and data center usage is expected to increase during the forecast period.
• Further, telecommunications have evolved and started using a hybrid cloud structure, which combines both public and private cloud structures. The usage of this hybrid cloud structure helps telecommunication companies manage the sudden surge in traffic. The implementation of hybrid cloud services helps the telecom industry deploy its cloud services instantly, leading to lower downtime. The increased bandwidth speeds have increased data consumption on mobiles from 1.5 GB in 2016 to 4.8 GB in 2022 and is expected to reach around 8.6 GB by 2029. 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.
• 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 Personal Information Protection and Electronic Documents Act (“PIPEDA”) impose strict security and privacy requirements within Canada. These regulations must be complied with 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.
• According to the Government of Canada's Smart Cities Challenge launched in 2017, more than 225 municipalities expressed an inclination to explore the plan's advantages by filing their applications, demonstrating interest in developing more smart regions in the future. The emergence of 5G services in smartphones and other faster network technologies is giving rise to wider deployment of smart devices that are controlled by apps in smartphones. The number of 5G users is expected to increase from 7% in 2021 to about 62% by 2025, further contributing to data consumption and network evolution during the forecast period. Such improvements in the market propel the growth of data centers and, consequently, the rise of demand for DC physical security products and services 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.

Canada 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 Canadian market in the coming years. The Canadian 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.

• July 2023: Bosch planned to acquire Paladin Technologies Inc., headquartered in Vancouver, Canada, a significant provider of security and life safety solutions and system integration services in Canada and the United States.
• October 2022: Axis Communications announced a new version of the AXIS Optimizer for Milestone XProtect that provides enhanced audio and device management, as well as centralized lists of license plate holders in Milestone XProtect.

Additional Benefits:

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

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