Market Trends of Japan Data Center Physical Security Industry
The Video Surveillance Segment Holds Significant Share
- Sensitive and important data are stored in data centers, so security is a top priority. Data center operators use video surveillance systems to ensure that security standards and regulations are met. This allows one to monitor access, detect unauthorized access, and maintain compliance.
- Data protection laws set strict requirements for data center operators. Video surveillance can help maintain compliance by improving physical security measures.
- With the advent of online shopping platforms, small and medium-sized businesses are also switching to online payment methods and a digital presence in the world of e-commerce. Even large, well-established companies are integrating e-commerce platforms with traditional forms of business.
- This leads to an increase in data traffic and, thus, an increase in data centers and, in turn, an increase in the demand for video surveillance. This helps prevent malicious or erroneous operations in the user's data center and provides evidence to identify those responsible in the event of an incident.
- Internet users in Japan increased by 844 thousand (+0.7%) between 2021 and 2022. Internet traffic increased 1.6x in 2020 compared to pre-COVID-19 levels in 2019 as the pandemic led to a surge in home video conferencing, distance learning, and video streaming. In addition, the increased use of connected devices and smart homes increased the demand for digital data and improved network traffic. This makes the country one of the pioneers of mobile commerce in the region. This means an increase in data consumption across data centers, thereby boosting the data center physical security market.
- Since the beginning of 2021, Japanese mobile phone companies have been accelerating the rollout of 5G. The Ministry of International Communications wanted to advance Japan's 5G experience further. The goal was to achieve 98% 5G population coverage by the end of March 2024. Overall, Japan wants to increase the number of frequencies available for its 5G services. The growth of the telecommunications industry is increasing the size of data centers, thereby increasing the need for video surveillance. Video surveillance has a powerful deterrent effect, reducing the likelihood of physical attacks and unauthorized access to critical data.
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The IT and Telecommunication Segment Holds the Major Share
- Japan is home to major ICT organizations such as Sony, Panasonic, Fujitsu, NEC, and Toshiba, which continue to play a key role in the country's expansion as a major center for ICT.
- In addition, the orderly development of numerous modernization and expansion projects in the country, along with increasing government spending on maintaining high-quality and advanced infrastructure, are also driving the growth of the market.
- The Japanese government is making efforts to accelerate the digital transformation of the private sector and support emerging SMEs Similarly, guidelines on implementing AI, cybersecurity, and secure cloud services were also published in the same year.
- The Government of Japan's Digital Agency promotes the utilization of cloud services for both central and local government offices. For instance, the Digital Agency announced in October 2022 that the government agencies would adopt "Government Cloud" services for the fiscal year.
