Data Center - Vietnam

Vietnam

Revenue in the Data Center market is projected to reach US$2.16bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.54bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.62%, resulting in a market volume of US$2.58bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). 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 Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center Market in Vietnam is experiencing subdued growth due to various factors such as slowing economic growth, limited IT infrastructure, and high costs of data center construction. However, the growing demand for data storage and increasing adoption of cloud computing could drive the market's growth in the coming years. Additionally, the government's initiatives to promote digitalization and the rising need for data security are also expected to positively impact the market.

Customer preferences: As the use of technology becomes more prevalent in Vietnam, consumers are increasingly seeking out digital solutions for their fitness and well-being needs. This has led to a rise in demand for wearable devices and health tracking apps, as well as online doctor consultations. This trend is driven by the convenience and timeliness of digital healthcare options, as well as the need for remote monitoring and management of chronic conditions.

Trends in the market: In Vietnam, the Data Center Market is experiencing a surge in demand due to the increasing adoption of cloud computing and digital transformation by businesses. This trend is expected to continue as the country's economy grows and more companies embrace technology to remain competitive. The significance of this trend lies in the potential for improved efficiency and cost savings for businesses, as well as the growth opportunities for data center providers. However, it also poses challenges for stakeholders, such as the need for skilled IT professionals and ensuring data security. As the digital landscape in Vietnam evolves, it is crucial for industry players to stay informed and adapt to these trends to stay ahead in the market.

Local special circumstances: In Vietnam, the data center market is experiencing rapid growth due to the country's strategic location, favorable government policies, and increasing demand for cloud services. The country's young and tech-savvy population is also a driving force, with a high adoption rate of digital technologies. Additionally, Vietnam's unique geography, with a long coastline and mountainous terrain, poses challenges for data center construction and maintenance, making it a key factor in market dynamics. Furthermore, the Vietnamese government's efforts to promote foreign investment and improve infrastructure are fueling the growth of the data center market in the country.

Underlying macroeconomic factors: The Data Center Market in Vietnam is heavily influenced by macroeconomic factors such as the country's economic growth, government policies, and investment in infrastructure. As Vietnam's economy continues to grow, so does the demand for data center services to support the expanding digital landscape. The government's initiatives to improve the country's digital infrastructure and attract foreign investment are also driving the growth of the data center market. Additionally, the increasing use of cloud computing and the rise of e-commerce in Vietnam are creating a need for reliable and secure data storage solutions, further fueling the demand for data centers in the country.

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.