Dublin, Nov. 21, 2024 (GLOBE NEWSWIRE) -- The "Vietnam Data Center Storage Market by Region, Competition, Forecast and Opportunities, 2019-2029F" report has been added to ResearchAndMarkets.com's offering.
The Vietnam Data Center Storage Market was valued at USD 0.75 Billion in 2023, and is expected to reach USD 1.54 Billion by 2029, rising at a CAGR of 12.60%
One of the dominant trends in Vietnam's data center storage market is the growing adoption of cloud computing, particularly hybrid cloud solutions. Cloud services are becoming increasingly popular as businesses in Vietnam recognize the benefits of flexibility, scalability, and cost-efficiency. Hybrid cloud models, which combine private and public cloud environments, are gaining traction as they offer the best of both worlds: the security and control of on-premise data storage and the flexibility and scalability of cloud storage.
Many Vietnamese enterprises, especially in sectors like banking, e-commerce, and telecommunications, are opting for hybrid cloud solutions to meet their growing data storage needs. These industries handle sensitive data, such as customer financial information and transaction records, which require strict compliance with data protection regulations. A hybrid cloud model allows companies to store critical, sensitive data on private servers while leveraging public clouds for less sensitive or non-critical operations, like content delivery or analytics.
Furthermore, cloud adoption in Vietnam is being driven by the rapid growth of small and medium-sized enterprises (SMEs) seeking affordable and scalable storage solutions. Cloud services enable these businesses to reduce upfront capital expenditures on physical infrastructure and shift to a more flexible, pay-as-you-go model. Global cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have expanded their presence in the Vietnamese market, offering localized solutions and fostering cloud adoption.
As more organizations embrace digital transformation, hybrid cloud solutions are expected to play a critical role in shaping the data center storage market. Businesses are increasingly recognizing the need for multi-cloud strategies that combine the strengths of multiple providers, enhancing redundancy, disaster recovery, and security. The rise of hybrid and multi-cloud solutions is expected to continue driving demand for data center storage as businesses look for ways to manage complex storage requirements while balancing cost, security, and performance.
This trend is also supported by the Vietnamese government's push for digitalization, encouraging the adoption of cloud technologies to support e-government initiatives, smart cities, and digital public services. As cloud technology continues to evolve, hybrid cloud solutions will remain a cornerstone of the data center storage market in Vietnam.
Increased Focus on Data Security and Compliance
As data generation and storage grow exponentially, another key trend in the Vietnam data center storage market is the increased focus on data security and regulatory compliance. With the rise of cyberattacks, including ransomware and data breaches, organizations are more conscious of the need to secure their data and ensure that storage infrastructure meets stringent regulatory requirements. This focus on security is critical for sectors like banking, healthcare, and government, where sensitive data is stored and processed.
Vietnam has implemented a range of cybersecurity laws and regulations, including the Law on Cybersecurity (2019), which mandates that certain types of data, such as personal and financial information, must be stored within the country's borders. This trend has led to increased demand for localized data centers, as businesses and foreign companies with operations in Vietnam seek to comply with these regulations. Ensuring that data is stored locally is crucial for regulatory compliance and helps to mitigate risks associated with cross-border data transfers.
To address these challenges, data center operators in Vietnam are investing in advanced security technologies, such as encryption, multi-factor authentication, and real-time threat detection systems. Additionally, companies are increasingly adopting zero-trust security models, which assume that all users, devices, and applications, both inside and outside the network, are potential threats and require continuous verification. This proactive approach to security ensures that data remains protected, even as cyber threats evolve.
Regulatory compliance is not only a domestic issue; Vietnamese businesses are also concerned with international standards like the General Data Protection Regulation (GDPR) of the European Union. Companies that handle data from international clients must ensure compliance with these global standards to avoid legal penalties and maintain their reputations.
As data security and compliance continue to gain importance, data center providers that prioritize these factors will have a competitive edge in the market. This trend is expected to shape the future of Vietnam's data center storage market, with security and compliance becoming key differentiators for providers catering to both domestic and international businesses.
Segmental Insights
Storage System Insights
The Cloud storage held the largest market share in 2023. Cloud storage is dominating the Vietnam Data Center Storage market due to several key factors. First and foremost, the increasing adoption of digital transformation across industries, including finance, e-commerce, and telecommunications, has accelerated the demand for scalable and flexible data storage solutions. Cloud storage offers a cost-effective alternative to traditional on-premise storage systems, allowing businesses to scale their storage needs up or down as required without the need for large capital investments in physical infrastructure.
Cloud storage provides enhanced flexibility, enabling businesses to access their data from anywhere with an internet connection, which is particularly important in today's increasingly remote and distributed work environments. This has been especially relevant during and after the COVID-19 pandemic, where remote working and online collaboration became critical. Moreover, global cloud providers such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure have expanded their presence in Vietnam, offering localized cloud storage solutions tailored to the needs of Vietnamese enterprises. This localized approach, combined with the availability of hybrid cloud solutions, allows businesses to store sensitive data on private servers while using the cloud for less critical applications, balancing security and efficiency.
Cloud storage also provides advanced security features, such as data encryption, multi-factor authentication, and automated backups, which help businesses mitigate the risks of data breaches and ensure regulatory compliance. With Vietnam implementing data protection laws such as the Law on Cybersecurity, companies are increasingly turning to cloud providers that can ensure data sovereignty and compliance with these regulations.
Regional Insights
Southern Vietnam held the largest market share in 2023. Southern Vietnam, particularly Ho Chi Minh City and its surrounding areas, dominates the Vietnam Data Center Storage market. Ho Chi Minh City is the economic and financial hub of Vietnam, attracting numerous domestic and international businesses. This concentration of business activity drives a high demand for data center storage solutions to support the burgeoning needs of industries such as finance, e-commerce, telecommunications, and manufacturing. The city's status as the primary economic center ensures that it remains the focal point for data center investments and operations.
The southern region benefits from advanced infrastructure development, including improved connectivity and telecommunications networks. The rollout of 5G technology and high-speed internet in Ho Chi Minh City enhances data transmission capabilities, making it an ideal location for data centers that require robust and reliable network connections. This infrastructure supports the high bandwidth and low latency demands of modern applications and services.
Southern Vietnam's strategic geographic location contributes to its dominance. The region's proximity to international shipping routes and its status as a major logistics hub facilitate efficient connectivity and data transfer with global markets. This is particularly important for multinational companies operating in Vietnam, which require reliable data center services for seamless integration with their international operations. The government's supportive policies and incentives for technology and infrastructure development further bolster Southern Vietnam's position in the data center market. Investment in smart city initiatives and digital transformation projects also drives demand for data center storage solutions in the region.
The presence of leading global and local data center providers in Southern Vietnam amplifies the market's growth. These providers offer a range of advanced storage solutions, catering to the diverse needs of businesses in the region.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 88 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $0.75 Billion |
| Forecasted Market Value (USD) by 2029 | $1.54 Billion |
| Compound Annual Growth Rate | 12.6% |
| Regions Covered | Vietnam |
Report Scope:
Vietnam Data Center Storage Key Players
- Toshiba Corporation
- SAP SE
- Cisco Systems, Inc.
- Oracle Corporation
- Intel Corporation
- Microsoft Corporation
- IBM Corporation
- Hewlett Packard Enterprise Company
Vietnam Data Center Storage Market, By Storage System:
- Direct-Attached Storage
- Network-Attached Storage
- Storage Area Network
- Cloud Storage
- Software Defined Storage
Vietnam Data Center Storage Market, By Storage Architecture:
- File & Object Based Storage
- Block Storage
Vietnam Data Center Storage Market, By End User:
- Media & Entertainment
- Education
- IT & Telecommunications
- Defense & Aerospace
- BFSI
- Consumers
- Others
Vietnam Data Center Storage Market, By Region:
- Southern Vietnam
- Northern Vietnam
- Central Vietnam
For more information about this report visit https://www.researchandmarkets.com/r/t62yai
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