Vietnamese data centre market to grow at 14.64 per cent a year until 2026

July 31, 2021 | 18:52
The Vietnamese data centre market stood at $858 million in 2020 and is forecast to grow at a compound annual growth rate of over 14.64 per cent until 2026.
Vietnamese data centre market to grow at 14.64 per cent a year until 2026
The Vietnamese data centre market is forecast to grow almost four-fold between 2016 and 2026. Source: Researchandmarkets.com

The growth in the Vietnamese data centre market is driven by government projects and initiatives in the country. Data protection is a matter of global concern and is becoming an important issue on the agenda of the Vietnamese government as well.

The data localisation requirement under the Cybersecurity Law, plus the need for better processing speed to assist Vietnamese users are the main drivers, which are anticipated to significantly enhance the demand for data centres in Vietnam. The Vietnamese government's inclination toward digitalisation has further bolstered the demand for data centres across the country.

Furthermore, the Vietnamese data centre market is driven by the shifting of enterprises' data to cloud platforms. This has led to an increase in the adoption of data storage solutions, which in turn is expected to positively influence the growth of the market.

Additionally, the growing adoption of big data solutions, the Internet of Things, and cloud-based solutions, among others, is expected to propel market growth through 2026. Increased investment in building effective data centre infrastructure and technological advancements are expected to create lucrative opportunities for market growth until 2026.

The Vietnamese data centre market is segmented based on solution, type, end-user industry, and region. Based on solutions, the market can be segmented into IT Infrastructure, general infrastructure, electrical infrastructure, mechanical infrastructure, and other infrastructure. The IT Infrastructure dominated the market in 2020 with a share of 65.62 per cent on account of increased demand for digital infrastructure projects in sectors including banking/financial services (fintech), telecommunications, energy, smart agriculture, and government.

Following the global trend for cloud technology, there is growing interest and demand from Vietnamese companies for cloud services. Opportunities for service providers within IT services include IT technical training and IT consulting, management, software/enterprise applications (ERP and CRM system, finance and accounting software), data centres, and data storage as well as web services.

Based on type, the market can be bifurcated into corporate and web hosting. Here, the corporate segment dominated the market in 2020 with a share of 61.56 per cent and is expected to continue dominance throughout the forecast period owing to the growing demand for data storage solutions among corporations. Furthermore, the increasing volumes of data being generated every day across enterprises is further expected to drive segmental growth.

On the basis of end-user industry, the market can be bifurcated into IT and telecommunications, government, banking, financial services, and insurance, healthcare, and others. Vietnam was rated as one of 10 emerging markets in the global data centre market, with impressive growth, international-standard service delivery capacity, and large capacity of organisations and enterprises.

Some of the major players in the Vietnamese data centre market include FPT Corporation, Viettel-CHT Ltd. Co., Vietnam Posts and Telecommunications Group, KDDI Corporation, Hitachi Asia (Vietnam) Co., Ltd., Hewlett Packard Enterprise, SAP Vietnam Co., Ltd., IBM Vietnam Co., Ltd., Microsoft Vietnam LLC, and Amazon Web Services Vietnam. The companies are developing advanced technologies and launching new products and services to stay competitive in the market. Other competitive strategies include mergers and acquisitions and new product and service developments.

By Markets and Research

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