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

The Poland Data Center Physical Security Market size is estimated at USD 19.20 million in 2024, and is expected to reach USD 38.60 million by 2029, growing at a CAGR of 14.5% 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 Polish data center market is expected to reach more than 560 MW by 2029.
• Under construction raised floor space: The country's construction of raised floor area is expected to increase above 3.7 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach above 187K units by 2029. Warsaw is expected to house the maximum number of racks by 2029.
• Planned submarine cables: There are close to 2 submarine cable systems connecting Poland, and a few 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, the ongoing trend of 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 lead to the adoption of physical security products and propel the country's data center physical security market growth.

Poland Data Center Physical Security Market Trends

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

• Cloud services are growing in popularity in Poland. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
• Cloud has software and databases installed on servers located in data centers that can be accessed through the internet. Cloud computing helps businesses reduce their IT costs by managing physical servers and running software applications. For instance, employees working in different geographic locations could easily access their files that are already stored in the cloud. The market share for cloud as an end user is expected to reach around 24% by 2029 from the market share of 23.12% in 2022.
• The increased flexibility and ease of accommodating website traffic fluctuations have led businesses to gain an inclination toward cloud service. Seeing the numerous benefits offered by cloud infrastructure, companies have increasingly adopted cloud services, leading to their growth.
• Website traffic during online shopping events has led companies to experience a sudden surge in traffic, which can lead to crashing their website. Adopting cloud services by the companies has helped these websites easily accommodate these fluctuations in website traffic and conduct monetary transactions smoothly.
• The retail industry is the major adopter of cloud services and is expected to reach an annual value of USD 2.3 billion by 2030. The adoption of cloud technology infrastructure by the retail sector is expected to make a contribution of 3.3% to Poland's GDP by 2030. These factors suggest the growing need for data centers in the country; consequently, the demand for DC physical security solution providers rises.

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 when the staff is 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 Poland. 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 in the studied market.
• In April 2023, Poland's most prominent service providers set up a Data Center Association to support the development of the Polish data processing market. The association operates as an industry organization to educate the market about physical and cyber security improvements, training future staff in a current lack of specialized professionals who are required to maintain the infrastructure of colocation facilities.
• Furthermore, infrastructural developments in the country are expected to pave the way for better 5G adoption in the future. Major telecom service providers like T-Mobile introduced about 3,000 5G base stations to cover about 25% of Poland by September 2021 and further claimed to have reached about 40% of the population with 5G services by August 2022. The country would greatly benefit from initiatives by service providers, facilitating faster data transfer rates for higher transfer of data sets, thus boosting the demand for data storage facilities, which results in the rising need for data center physical security products and services 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 March 2023, Honeywell installed 7000 AI video cameras as a part of Bengaluru's Safe City project. The Safe City project also includes data centers.

Poland Data Center Physical Security Industry Overview

The upcoming DC construction projects in the country are expected to increase the demand in the Polish data center physical security market in the coming years. The 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 2022: Johnson Controls acquired Security Enhancement Systems LLC (SES), which provides keyless access control products and services used in critical infrastructure.

Additional Benefits:

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

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