Network Infrastructure - Vietnam

Vietnam

Revenue in the Network Infrastructure market is projected to reach US$1.54bn in 2024.
Service Provider Network Infrastructure dominates the market with a projected market volume of US$1.19bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.88%, resulting in a market volume of US$1.69bn by 2029.
The average Spend per Employee in the Network Infrastructure market is projected to reach US$26.91 in 2024.
In global comparison, most revenue will be generated in China (US$63,560m in 2024).

Key regions: India, China, Brazil, Indonesia, Japan

Definition:

The Network Infrastructure market focuses on hardware resources essential for service provider and enterprise networks. This market specifically focuses on solutions designed for the complex networking requirements of businesses and organizations, setting aside options like consumer-grade networking hardware products such as basic WIFI routers and network switches. These network infrastructure components are crucial in environments where reliable and secure connectivity, as well as efficient network operations, are paramount, establishing them as a fundamental part of the IT infrastructure in various industries.

Structure:

The Network Infrastructure market is structured in two markets based on the services model provided by the companies.

Service Provider Network Infrastructure covers the hardware resources of telecommunication service companies that enable wired and wireless network connectivity and communication to transfer voice and data.
Enterprise Network Infrastructure covers the hardware resources that enable wired and wireless network connectivity, communication, operations, and management of enterprises.

Additional Information:

The Network Infrastructure market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Network Infrastructure market include companies such as Huawei, HPE, Cisco, and Ericsson.

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Analyst Opinion

The Network Infrastructure Market in Vietnam is experiencing modest growth due to factors such as the increasing demand for digital technologies, rising awareness of the importance of data centers, and the convenience of online services. The subdued growth rate can be attributed to challenges faced by both the Service Provider and Enterprise sub-markets, such as regulatory barriers and limited investment in infrastructure.

Customer preferences: The increasing adoption of cloud computing and the rise of big data analytics has driven the demand for advanced network infrastructure solutions in the Data Center Market in Vietnam. This trend is fueled by the country's growing tech-savvy population, as well as the government's push towards digital transformation. Moreover, the demand for reliable and secure network connectivity has led to a surge in investments in fiber optic networks and 5G infrastructure, reflecting the country's rapid development and modernization.

Trends in the market: In Vietnam, the Network Infrastructure Market within the Data Center Market is experiencing a shift towards modernization and digitization. This is driven by the increasing demand for data storage and processing capabilities, as well as the growing adoption of cloud computing. As a result, there is a rising trend of investing in advanced networking technologies, such as software-defined networking (SDN) and network function virtualization (NFV). This trend is set to continue in the coming years, with significant investments being made by both local and international players. These developments are significant for industry stakeholders as they pave the way for a more efficient and agile network infrastructure, leading to improved performance and cost savings. Additionally, this trend has implications for the data center market, as it requires the deployment of robust and scalable networks to support the increasing demand for data processing and storage. As such, it presents new opportunities for network infrastructure providers and data center operators to collaborate and innovate in order to meet the evolving needs of the market.

Local special circumstances: In Vietnam, the Network Infrastructure Market within the Data Center Market is heavily influenced by the country's growing economy and its strategic location in the Asia-Pacific region. With a large and tech-savvy population, there is a high demand for data center services and network infrastructure solutions. Additionally, Vietnam's government has implemented policies to attract foreign investment in the data center industry, creating a competitive market for both local and international players. Furthermore, the country's unique geographical and cultural factors, such as its fast-growing urbanization and increasing adoption of digital technologies, contribute to the growth of the Network Infrastructure Market within the Data Center Market in Vietnam.

Underlying macroeconomic factors: The Network Infrastructure Market within the Data Center Market in Vietnam is heavily impacted by macroeconomic factors such as government initiatives to promote digitalization, investments in ICT infrastructure, and the country's strong economic growth. Vietnam's rapidly expanding economy and increasing internet penetration are driving the demand for data centers and network infrastructure. Additionally, the government's favorable policies and investments in digital infrastructure are creating a conducive business environment for data center operators and technology companies. With the rising demand for digital services and the government's focus on promoting a digital economy, the Network Infrastructure Market in Vietnam is expected to experience significant growth in the coming years.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.