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$304.20m 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.
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).

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Market

Region

Region comparison

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Analyst Opinion

The Public Cloud Market in Vietnam is experiencing considerable growth, driven by factors such as increasing adoption of digital technologies, rising awareness of the benefits of online services, and the convenience offered by cloud solutions. This growth is further fueled by the availability of various sub-markets, each catering to specific needs of businesses and organizations. With a significant growth rate, the market is expected to continue expanding as more businesses turn to cloud solutions for their operations.

Customer preferences: There has been a noticeable increase in consumer demand for cloud-based solutions in Vietnam, driven by the growing popularity of remote work and virtual collaboration. This trend is especially prevalent among younger demographics who prioritize flexibility and convenience in their work and personal lives. As a result, the Public Cloud Market is expected to see significant growth as businesses and individuals embrace the benefits of cloud computing for improved efficiency and connectivity.

Trends in the market: In Vietnam, the Public Cloud market is experiencing a surge in demand, driven by the growing adoption of digital technologies across various industries. With the government's push towards digital transformation and the increasing availability of high-speed internet, more businesses are turning to public cloud services for their data storage and computing needs. This trend is expected to continue, with experts predicting a significant increase in the adoption of public cloud solutions in the coming years. This has significant implications for industry stakeholders, as it presents new opportunities for cloud service providers and technology companies to expand their offerings and cater to the evolving needs of Vietnamese businesses. Additionally, the shift towards public cloud services also highlights the need for robust cybersecurity measures and data protection laws in the country. As more sensitive data is stored and managed on public cloud platforms, it becomes crucial for businesses to prioritize cybersecurity and compliance to protect their data and maintain consumer trust. Overall, the current trends in the Public Cloud market in Vietnam indicate a promising future for the industry, with potential for growth and innovation in the years to come.

Local special circumstances: In Vietnam, the Public Cloud Market is growing rapidly due to the country's strong economic growth and increasing adoption of technology. The government's support for digital transformation and investment in infrastructure has also contributed to the market's growth. Additionally, the Vietnamese market is unique due to its high mobile phone penetration and young, tech-savvy population. This has led to a high demand for mobile-based cloud services and solutions. Furthermore, Vietnam's strict data privacy laws have influenced market dynamics, with companies needing to comply with strict regulations when handling personal data.

Underlying macroeconomic factors: The Public Cloud Market in Vietnam is heavily influenced by macroeconomic factors such as government support for digital transformation, investments in IT infrastructure, and the country's overall economic growth. Vietnam's stable economic conditions and favorable policies towards the adoption of cloud technologies have attracted major players in the market, leading to its rapid growth. Additionally, the increasing demand for cost-effective and scalable solutions, coupled with the growing number of small and medium-sized enterprises, is driving the adoption of public cloud services in Vietnam.

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.