Data Center - Vietnam

Vietnam

Revenue in the Data Center market is projected to reach US$1.83bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.27bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.01%, resulting in a market volume of US$2.40bn by 2028.
In global comparison, most revenue will be generated in the United States (US$99.16bn 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.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Vietnam has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: In Vietnam, customers prefer data centers that offer high levels of security, reliability, and connectivity. They also value data centers that are located in strategic locations, such as major cities or industrial zones. Additionally, customers in Vietnam are increasingly demanding data centers that are energy-efficient and environmentally friendly.

Trends in the market: One of the major trends in the Data Center market in Vietnam is the increasing demand for cloud services. As businesses in Vietnam continue to adopt cloud computing, the demand for data center services is expected to grow. This trend is driven by the need for scalable and flexible IT infrastructure, as well as the cost savings associated with cloud services. Another trend in the market is the growing importance of data privacy and security. With the increasing amount of data being generated and stored in data centers, customers in Vietnam are becoming more concerned about the security of their data. This has led to a greater demand for data centers that offer advanced security measures, such as biometric access controls and 24/7 surveillance.

Local special circumstances: Vietnam has a young and rapidly growing population, with a high rate of internet penetration. This has led to an increase in the amount of data being generated and consumed in the country. As a result, there is a growing need for data centers to store and process this data. Additionally, Vietnam is strategically located in Southeast Asia, making it an attractive location for businesses looking to expand their operations in the region. This has led to an increase in demand for data center services from both domestic and international companies.

Underlying macroeconomic factors: Vietnam has experienced strong economic growth in recent years, driven by a combination of factors such as foreign direct investment, export-oriented manufacturing, and a growing middle class. This has created a favorable business environment for data center providers, as businesses in Vietnam are increasingly investing in IT infrastructure to support their operations. Furthermore, the Vietnamese government has implemented policies to promote the development of the digital economy, including the construction of data centers. These policies aim to attract foreign investment and foster innovation in the country. In conclusion, the Data Center market in Vietnam is experiencing significant growth due to customer preferences for secure and reliable data centers, the increasing demand for cloud services, and the growing importance of data privacy and security. Additionally, local special circumstances such as the young and tech-savvy population and Vietnam's strategic location in Southeast Asia contribute to the market's growth. The underlying macroeconomic factors, including strong economic growth and government policies promoting the digital economy, further support the development of the Data Center market in Vietnam.

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.