Public Cloud - Vietnam

Vietnam

Revenue in the Public Cloud market is projected to reach US$965.00m in 2024.
Infrastructure as a Service dominates the market with a projected market volume of US$324.10m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 22.88%, resulting in a market volume of US$2,704.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$16.86 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

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

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises 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 of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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

Market

Region

Region comparison

Currency

Analyst Opinion

Vietnam is experiencing a significant growth in its Public Cloud market, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Vietnam, customers are increasingly adopting Public Cloud solutions due to their flexibility, scalability, and cost-effectiveness. Businesses are realizing the benefits of moving their operations to the cloud, as it allows them to easily access and manage their data and applications from anywhere. Additionally, the Public Cloud offers a wide range of services, including infrastructure, platform, and software as a service, catering to the diverse needs of different businesses.

Trends in the market: One of the key trends in the Public Cloud market in Vietnam is the growing demand for Software as a Service (SaaS) solutions. Businesses are looking for ready-to-use software applications that can be accessed through the cloud, eliminating the need for complex installations and maintenance. This trend is particularly prominent in industries such as e-commerce, finance, and education, where companies are seeking efficient and cost-effective solutions to streamline their operations. Another trend in the market is the increasing adoption of hybrid cloud solutions. Hybrid cloud combines the benefits of both public and private clouds, allowing businesses to have greater control over their sensitive data while leveraging the scalability and cost advantages of the public cloud. This trend is driven by the need for data security and compliance, especially in industries such as healthcare and banking.

Local special circumstances: Vietnam has a rapidly growing digital economy, with a large number of startups and small and medium-sized enterprises (SMEs) emerging in the market. These businesses often have limited resources and IT infrastructure, making the Public Cloud an attractive option for them. The Public Cloud allows startups and SMEs to access advanced technologies and services without heavy upfront investments, enabling them to compete with larger players in the market. Furthermore, Vietnam's government has been actively promoting digital transformation and the adoption of cloud technologies. Initiatives such as the National Digital Transformation Program and the Vietnam Cloud Computing Association have created a favorable environment for the growth of the Public Cloud market. The government's support and policies have encouraged businesses to embrace cloud technologies, driving the market forward.

Underlying macroeconomic factors: Vietnam's strong economic growth, increasing internet penetration, and rising smartphone usage have contributed to the development of the Public Cloud market. As more businesses and individuals go online, there is a growing need for cloud-based services to support their digital activities. Additionally, the country's young and tech-savvy population is driving the demand for innovative cloud solutions, creating a fertile ground for the growth of the Public Cloud market. In conclusion, the Public Cloud market in Vietnam is experiencing significant growth due to customer preferences for flexible and cost-effective cloud solutions, trends such as the adoption of SaaS and hybrid cloud, local special circumstances including the rise of startups and government support, and underlying macroeconomic factors such as strong economic growth and increasing internet penetration. As Vietnam continues to embrace digital transformation, the Public Cloud market is expected to further expand in the coming years.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. 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 is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

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 is considered at a country-specific level.