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

The Hong Kong Data Center Physical Security Market size is estimated at USD 29.92 million in 2024, and is expected to reach USD 76.01 million by 2029, growing at a CAGR of 20.5% during the forecast period (2024-2029).

The security measures can be categorized into four layers: perimeter security, facility controls, computer room controls, and cabinet controls. The first layer of data center security is to discourage, detect, and delay any unauthorized entry of personnel at the perimeter. In case of any breach in the perimeter monitoring, the second layer of defense restricts access. It is an access control system using card swipes or biometrics.

The third layer of physical security further restricts access through diverse verification methods, including monitoring all restricted areas, deploying entry restrictions such as turnstiles, providing VCA, providing biometric access control devices to verify finger and thumbprints, irises, or vascular patterns, and using radio frequency identification. The first three layers ensure the entry of only authorized personnel. However, further security measures to restrict access include cabinet locking mechanisms. This layer addresses the fear of an 'insider threat', such as a malicious employee.

Under Construction IT Load Capacity: The upcoming IT load capacity of the Hong Kong data center market is expected to reach 1700 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 230K units by 2029. NCR Ho Chi Minh City is expected to house the maximum number of racks by 2029.

Planned Submarine Cables: There are close to 2 submarine cable systems connecting Hong Kong, and a few more are expected in the future. One submarine cable estimated to start service in 2025 is Asia Cable Link ALC, which stretches over 6,000 km and has landing points from Hong Kong SAR, Mainland China.

Hong Kong 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 monitor access, detect unauthorized entry, and maintain compliance.
• Video surveillance enables easy recording of entries and activities in specific areas. Additionally, the presence of video surveillance can have a strong deterrent effect on attackers. Attackers may have to find a way to bypass video surveillance and abandon their attacks.
• Further, the growth in developing new data centers in Austria would trigger market demand. For instance, in February 2023, Big Data Exchange (BDx) announced that it would develop a new 16MW facility in an emerging high-tech industrial zone developed by the Sino Group. BDx aimed to have the hyper scaler-enabled data center, HKG8, operational by the end of 2023.
• Similarly, in August 2023, APAC data center company AirTrunk planned to develop a second facility in Hong Kong. The Macquarie-backed company announced plans for AirTrunk HKG2 (HKG2), a 15MW data center in the Eastern New Territories. The 11,600 sq. m (124,860 sq. m) facility has 4,400 sq. m (4,7360 sq. m) of technical space and a PUE value 1.25. Thus, the growth in upcoming data centers in the country would drive the demand for the physical security market during the forecast period.

IT & Telecommunication is Anticipated to be the Fastest Growing Segment

• The demand for the cloud segment is expected to increase with the growing demand for analytics, visualization tools, and business services.
• For instance, 75% of Hong Kong's businesses have adopted cloud services as they offer more flexibility and cost-effectiveness. Also, under the smart city blueprint program, government departments have used cloud platforms since 2020. The Hong Kong government is more inclined to use private cloud facilities than outsourced ones. However, data protection, regulatory enforcement, and privacy laws issued by the government have led some businesses to hesitate to adopt cloud services.
• The number of people using the Internet in China was 5.07 million in 2012, and it is expected to increase to 7.05 million by 2029. The average time users in Hong Kong spend on smartphones is approximately 3 hours and 31 minutes. The growing number of smartphone users in Hong Kong is expected to propel the growth of the telecom segment.
• Increasing demand for smart devices, such as smartphones and tablets, to use varying services such as streaming, browsing, and playing games has led to consumers opting for 4G services, thus diminishing the 3G service market over the years. The implementation of 5G is expected to further increase the data speed with the evolving technology over the years, which is expected to cater to the demand as more industries adopt automation in their companies in the manufacturing sector. Such improvements in the market are expected to create more demand for data centers, directly contributing to the growth of physical security accessories in the market.

Hong Kong Data Center Physical Security Industry Overview

The Hong Kong 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, Securitas Technology, Bosch Sicherheitssysteme GmbH, Schneider Electric, and Honeywell International Inc. in the market, are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

In April 2023, Schneider Electric launched a new services offer, EcoCare, for modular data center services membership. Members of this innovative service plan benefit from specialized expertise to maximize modular data centers' uptime with 24/7 proactive remote monitoring and condition-based maintenance. Members also benefit from exclusive support, which includes a dedicated customer success management team, who become their go-to coach, orchestrating remote and on-site services teams and addressing 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

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