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Vietnam Data Center Rack Market Size (2024 - 2029)

The Vietnamese data center rack market is experiencing growth driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments by domestic players. This growth is reflected in the market's expansion in terms of IT load capacity, raised floor space, and the number of racks planned for installation. Additionally, the development of submarine cable systems is enhancing connectivity, further supporting the market's expansion.

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Market Size of Vietnam Data Center Rack Industry

Vietnam Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Volume (2024) 32.48 Thousand units
Market Volume (2030) 50.69 Thousand units
CAGR (2024 - 2030) 7.70 %
Market Concentration Medium

Major Players

Vietnam Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Vietnam Data Center Rack Market Analysis

The Vietnam Data Center Rack Market size in terms of production volume is expected to grow from 32.48 Thousand units in 2024 to 50.69 Thousand units by 2030, at a CAGR of 7.70% during the forecast period (2024-2030).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Vietnam data center market is expected to reach 240 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 870K sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 43K units by 2029. NCR Ho Chi Minh City is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 20 submarine cable systems connecting Vietnam, and many are under construction. One such submarine cable that is estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 Kilometers with landing points from Quy Nhon, Vietnam.

Vietnam Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The Vietnamese Data Center Rack Market is Segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Vietnam Data Center Rack Market Size Summary

The Vietnam data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments from domestic players. The market is characterized by a shift towards cloud services, with companies like Vingroup migrating their systems to platforms like Google Cloud to enhance operational efficiency. The telecom sector is also expanding, with investments in 4G and 5G infrastructure to support the growing digital economy. This expansion is expected to boost the demand for high-bandwidth network infrastructure, further driving the need for data center racks. The market is moderately consolidated, with major players such as Eaton Corporation, Rittal GMBH & Co.KG, Schneider Electric SE, Vertiv Group Corp., and Dell Inc. focusing on expanding their regional presence and offering innovative solutions like the Open Compute Project compatible racks.

The demand for data center racks in Vietnam is also fueled by the rapid growth of e-commerce and the increasing adoption of big data analytics and cloud computing. The country's digital transformation initiatives, including the National Digital Transformation Programme, are expected to further stimulate market growth by encouraging the development of fully configured data centers. As companies generate vast amounts of data daily, the reliance on data centers for efficient database and storage management is becoming crucial. The construction of new data centers and the expansion of existing ones are anticipated to increase the demand for racks, with Ho Chi Minh City expected to host a significant number of these installations. The market's growth is supported by foreign direct investments in the e-commerce sector and the expansion of digital infrastructure, positioning Vietnam as a key player in Southeast Asia's digital landscape.

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Vietnam Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 The Increasing Investments for the Expansion of 5G Network by Operators

      2. 1.2.2 Fiber Connectivity Network Expansion in the Country

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Cybersecurity Threats and Ransomware Attacks

      2. 1.3.2 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Vietnam Data Center Rack Market Size FAQs

The Vietnam Data Center Rack Market size is expected to reach 32.48 thousand units in 2024 and grow at a CAGR of 7.70% to reach 50.69 thousand units by 2030.

In 2024, the Vietnam Data Center Rack Market size is expected to reach 32.48 thousand units.

Vietnam Data Center Rack Market Report Snapshots

Vietnam Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)