Press Release

Vietnam Data Center Rack Market is Expected to Register a CAGR of 8.87% Through 2029

Expansion of Telecom & Network Infrastructure, Growth of cloud computing & digital transformation and increase in data generation & storage requirements are likely to propel the market during the forecast period.


According to TechSci Research report, “Vietnam Data Center Rack Market – By Region, Competition, Forecast and Opportunities, 2019-2029F”, Vietnam Data Center Rack Market was valued at USD 101 Million in 2023 and is expected to grow at a CAGR of 8.87% during the forecast period.

Government initiatives and investments in IT infrastructure play a crucial role in driving the data center rack market in Vietnam. The Vietnamese government has recognized the importance of developing a robust IT infrastructure to support economic growth, digital transformation, and technological innovation. As a result, various policies and investments are being implemented to enhance data center capabilities and promote the development of data center infrastructure.

One of the key government initiatives is the promotion of smart city projects and digital economy strategies. These initiatives aim to modernize urban infrastructure, improve public services, and drive economic growth through the integration of advanced technologies. To support these projects, there is a growing need for data centers that can provide reliable storage, processing, and management of data generated by smart city applications. This increased demand for data center services drives the need for high-quality racks that can support advanced IT equipment and ensure efficient operation.

Additionally, the Vietnamese government has been working to attract foreign investment in the IT and data center sectors. Incentives such as tax breaks, subsidies, and favorable regulations are being offered to encourage both local and international companies to invest in data center facilities. This influx of investment contributes to the growth of the data center rack market by increasing the number of data centers being established and expanding the demand for data center racks.

Government support for research and development (R&D) in technology and IT infrastructure also influences the data center rack market. By fostering innovation and technological advancements, the government helps drive the development of new data center solutions and encourages the adoption of cutting-edge technologies. This, in turn, creates a demand for advanced data center racks designed to accommodate the latest technological innovations.

 

Browse over XX Market data Figures spread through XX Pages and an in-depth TOC on " Vietnam Data Center Rack Market.” 


Based on Data Center Size, The Large Data held the largest market share in 2023.  Large data centers dominated the Vietnam Data Center Rack Market due to several key factors driving the demand for extensive IT infrastructure. The rapid expansion of cloud computing and digital services in Vietnam significantly contributes to the dominance of large data centers. Major cloud service providers and technology firms require substantial data storage and processing capabilities to support their growing customer bases and service offerings. These large data centers house a high density of servers, storage systems, and networking equipment, necessitating a significant number of data center racks to manage and organize this infrastructure effectively. The increasing adoption of big data analytics, artificial intelligence, and advanced computing applications further fuels the need for large data centers. These technologies require substantial computational power and data storage, which large data centers can provide. The integration of high-performance computing resources within these facilities drives demand for high-density racks that can accommodate sophisticated IT equipment and ensure optimal cooling and power distribution. Large data centers benefit from economies of scale, which make them more cost-effective compared to smaller facilities. By consolidating IT resources in a centralized location, large data centers can achieve greater operational efficiencies, lower per-unit costs, and enhanced resource management. This economic advantage attracts significant investments from both domestic and international players, reinforcing the dominance of large data centers in the market. Furthermore, Vietnam's focus on developing digital infrastructure and smart city initiatives contributes to the growth of large data centers. Government policies and investment in technological advancements drive the expansion of data center facilities to support these initiatives, increasing the demand for large-scale data center solutions.

Based on region, the Northern Vietnam is fastest growing region in the Vietnam Data Center Rack Market. Northern Vietnam, particularly the Hanoi region, has seen rapid economic growth and industrialization. As the political and economic center of the country, Hanoi is a hub for major corporations, financial institutions, and government agencies. This economic dynamism drives the demand for advanced data center infrastructure to support business operations, data management, and digital transformation initiatives. The Vietnamese government has prioritized infrastructure development in the northern region, including the expansion of digital and IT infrastructure. Investments in smart city projects and digital transformation initiatives are concentrated in Northern Vietnam, creating a favorable environment for data center growth. Government policies and incentives aimed at boosting technology adoption and improving IT infrastructure further accelerate market expansion in this region. Northern Vietnam's strategic location, with proximity to China and other key markets, enhances its appeal as a data center hub. Improved connectivity and transportation infrastructure, including major ports and highways, facilitate the establishment of data centers that cater to both domestic and international clients. The region’s connectivity supports the growth of data center services that require reliable and high-speed data transmission. As businesses in Northern Vietnam increasingly adopt cloud computing and advanced IT solutions, the demand for data center racks and infrastructure grows. The proliferation of technology-driven businesses, startups, and digital services in Hanoi and surrounding areas fuels the need for modern data center facilities to support these innovations.

 

Major companies operating in the Vietnam Data Center Rack Market are:

  • Schneider Electric SE
  • IBM Corporation
  • Cisco Systems Inc.
  • Eaton Corporation Plc
  • Siemens AG
  • Intel Corporation
  • Hewlett Packard Enterprise Company
  • Huawei Technologies Co., Ltd

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“The Vietnam Data Center Rack Market presents significant growth opportunities driven by increasing demand for digital infrastructure, cloud computing expansion, and the rise of smart technologies. As enterprises and service providers seek to optimize their IT environments, there is a growing need for high-density, modular, and energy-efficient racks. Government initiatives supporting digital transformation and smart city projects enhance market potential. Investing in advanced data center rack solutions that offer scalability, integrated smart features, and robust security will position companies to capitalize on these trends and address the evolving needs of Vietnam's burgeoning data center industry.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

Vietnam Data Center Rack Market, By Rack Type (Cabinets/Enclosed Racks, Open Frame Racks), By Data Center Size (Small & Mid-sized Data Centers, Large Data Centers), By Rack Height (Below 40U, 41U up to 50U, Above 51U), By Industry (BFSI, Retail, IT & Telecom, Government, Healthcare, Others), By Region, Competition, Forecast & Opportunities, 2019-2029F”, has evaluated the future growth potential of Vietnam Data Center Rack Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Vietnam Data Center Rack Market.

 

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