Vietnam Data Center Physical Security - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Vietnam Data Center Physical Security Market size is estimated at USD 15.90 million in 2024, and is expected to reach USD 37.38 million by 2029, growing at a CAGR of 18.5% during the forecast period (2024-2029).
The security measures can be categorized into four layers: perimeter security, facility controls, computer room controls, and cabinet controls. The first layer of data center security is to discourage, detect, and delay unauthorized personnel entry at the perimeter. In case of any breach in the perimeter monitoring, the second layer of defense restricts access. It is an access control system using card swipes or biometrics.
The third layer of physical security further restricts access through diverse verification methods, including monitoring all restricted areas, deploying entry restrictions, such as turnstiles, providing VCA, providing biometric access control devices to verify finger and thumbprints, irises, or vascular patterns, and using radio frequency identification. The first three layers ensure entry of only authorized personnel. However, further security measures to restrict access include cabinet locking mechanisms. This layer addresses the fear of an 'insider threat' such as a malicious employee.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Vietnamese 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 seven submarine cable systems connecting Vietnam, and many are under construction. One such cable, Southeast Asia-Japan Cable 2 (SJC2), was estimated to start service in 2023. It stretches over 10,500 km and has landing points from Quy Nhon, Vietnam.
Vietnam Data Center Physical Security Market Trends
Video Surveillance is Anticipated to be the Largest Segment
The rising demand for the video surveillance market in Vietnam has been driven by several factors, including increased construction activity, expected new data centers, and rising digitization rates.
The Vietnamese video surveillance market is expected to grow in the coming years due to the implementation of smart city projects, such as North Hanoi's and Xuan Mai's smart cities. Vietnam's government has announced that it will invest USD 123.5 billion in public investment by 2025, which will also help the video surveillance market grow in Vietnam.
The National Data Centre Project will build a national data center for storing Vietnamese government information. As Vietnam moves towards more digitization in its governmental sector, a much larger volume of information must be kept and secured. Therefore, the data center shall have a state-of-the-art facility that meets the most stringent technology and safety standards.
Further, the increasing data center upcoming projects in the country would drive the segment's growth. For instance, in March 2022, QD.TEK worked with NTT GDC through HCMC1 (data center), a joint venture company to be established in Vietnam, QD.TEK, a local ICT company providing services to a wide range of clients, including the Vietnamese government, major financial institutions, telecommunications companies, IT companies, and manufacturers, will provide services through this collaboration.
IT & Telecommunication is Anticipated to be the Fastest Growing Segment
Over the last few years, the Vietnamese ICT market has been growing steadily. It is regarded as one of the leading markets in Southeast Asia for information and communication technologies, with an excellent internet infrastructure and a large tech-savvy population. The government of Vietnam took several initiatives aimed at encouraging development. According to a report from Economy Southeast Asia, the Vietnam digital economy is expected to exceed USD 50 billion by 2025, which could create new growth opportunities in the ICT market.
The need for cloud computing technologies has increased over the past years because solution providers offer a range of benefits but also pose severe risks to hosted data, such as privacy and identity theft. For instance, as part of national goals for digitalization, the Ministry of Information and Communications (MIC) focuses on expanding the market share covered by domestic CSPs (cloud service providers) to 70% by 2030.
The ongoing market growth trend in the Indian telecommunications services sector is supported by increased network infrastructure, e.g., fixed and mobile broadband. For instance, in May 2022, Casa Systems signed a memorandum of understanding (MoU) with Vietnam Posts and Telecommunications Group (VNPT) to introduce next-generation 5G technologies, such as cloud-native 5G Core, RAN, and fixed wireless access (FWA) solutions in Vietnam.
Additionally, the government plans to expand network coverage from 3G and 4G networks to 5G networks. For example, the Ministry of Information and Communications (MIC) reported that it has installed its 5G stations, each using open radio access network (ORAN) technology with download speeds of 900 Mbps and upload speeds of 60 Mbps. Thus, increasing infrastructure to support growth in data centers would drive the physical security market in the country.
Vietnam Data Center Physical Security Industry Overview
The Vietnamese data center physical security market is moderately competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, such as ABB Ltd, Securitas Technology, Bosch Sicherheitssysteme GmbH, Schneider Electric, and Honeywell International Inc. in the market, are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In April 2023, Schneider Electric launched a new services offer, EcoCare for Modular Data Centers services membership. Members of this innovative service plan benefit from specialized expertise to maximize modular data centers' uptime with 24/7 proactive remote monitoring and condition-based maintenance. Members benefit from exclusive support, which includes a dedicated customer success management team, who become their go-to coach, orchestrating remote and on-site services teams addressing infrastructure and maintenance needs at a system level rather than a fragmented approach for each asset only when problems arise.
In April 2023, Securitas signed an expanded 5-year agreement to provide data center security for Microsoft in 31 countries. It includes risk management, comprehensive security technology as a system integrator, specialized safety and security resources, guarding services, and digital interfaces.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
The security measures can be categorized into four layers: perimeter security, facility controls, computer room controls, and cabinet controls. The first layer of data center security is to discourage, detect, and delay unauthorized personnel entry at the perimeter. In case of any breach in the perimeter monitoring, the second layer of defense restricts access. It is an access control system using card swipes or biometrics.
The third layer of physical security further restricts access through diverse verification methods, including monitoring all restricted areas, deploying entry restrictions, such as turnstiles, providing VCA, providing biometric access control devices to verify finger and thumbprints, irises, or vascular patterns, and using radio frequency identification. The first three layers ensure entry of only authorized personnel. However, further security measures to restrict access include cabinet locking mechanisms. This layer addresses the fear of an 'insider threat' such as a malicious employee.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Vietnamese 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 seven submarine cable systems connecting Vietnam, and many are under construction. One such cable, Southeast Asia-Japan Cable 2 (SJC2), was estimated to start service in 2023. It stretches over 10,500 km and has landing points from Quy Nhon, Vietnam.
Vietnam Data Center Physical Security Market Trends
Video Surveillance is Anticipated to be the Largest Segment
The rising demand for the video surveillance market in Vietnam has been driven by several factors, including increased construction activity, expected new data centers, and rising digitization rates.
The Vietnamese video surveillance market is expected to grow in the coming years due to the implementation of smart city projects, such as North Hanoi's and Xuan Mai's smart cities. Vietnam's government has announced that it will invest USD 123.5 billion in public investment by 2025, which will also help the video surveillance market grow in Vietnam.
The National Data Centre Project will build a national data center for storing Vietnamese government information. As Vietnam moves towards more digitization in its governmental sector, a much larger volume of information must be kept and secured. Therefore, the data center shall have a state-of-the-art facility that meets the most stringent technology and safety standards.
Further, the increasing data center upcoming projects in the country would drive the segment's growth. For instance, in March 2022, QD.TEK worked with NTT GDC through HCMC1 (data center), a joint venture company to be established in Vietnam, QD.TEK, a local ICT company providing services to a wide range of clients, including the Vietnamese government, major financial institutions, telecommunications companies, IT companies, and manufacturers, will provide services through this collaboration.
IT & Telecommunication is Anticipated to be the Fastest Growing Segment
Over the last few years, the Vietnamese ICT market has been growing steadily. It is regarded as one of the leading markets in Southeast Asia for information and communication technologies, with an excellent internet infrastructure and a large tech-savvy population. The government of Vietnam took several initiatives aimed at encouraging development. According to a report from Economy Southeast Asia, the Vietnam digital economy is expected to exceed USD 50 billion by 2025, which could create new growth opportunities in the ICT market.
The need for cloud computing technologies has increased over the past years because solution providers offer a range of benefits but also pose severe risks to hosted data, such as privacy and identity theft. For instance, as part of national goals for digitalization, the Ministry of Information and Communications (MIC) focuses on expanding the market share covered by domestic CSPs (cloud service providers) to 70% by 2030.
The ongoing market growth trend in the Indian telecommunications services sector is supported by increased network infrastructure, e.g., fixed and mobile broadband. For instance, in May 2022, Casa Systems signed a memorandum of understanding (MoU) with Vietnam Posts and Telecommunications Group (VNPT) to introduce next-generation 5G technologies, such as cloud-native 5G Core, RAN, and fixed wireless access (FWA) solutions in Vietnam.
Additionally, the government plans to expand network coverage from 3G and 4G networks to 5G networks. For example, the Ministry of Information and Communications (MIC) reported that it has installed its 5G stations, each using open radio access network (ORAN) technology with download speeds of 900 Mbps and upload speeds of 60 Mbps. Thus, increasing infrastructure to support growth in data centers would drive the physical security market in the country.
Vietnam Data Center Physical Security Industry Overview
The Vietnamese data center physical security market is moderately competitive and has gained a competitive edge in recent years. In terms of market share, a few major players, such as ABB Ltd, Securitas Technology, Bosch Sicherheitssysteme GmbH, Schneider Electric, and Honeywell International Inc. in the market, are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
In April 2023, Schneider Electric launched a new services offer, EcoCare for Modular Data Centers services membership. Members of this innovative service plan benefit from specialized expertise to maximize modular data centers' uptime with 24/7 proactive remote monitoring and condition-based maintenance. Members benefit from exclusive support, which includes a dedicated customer success management team, who become their go-to coach, orchestrating remote and on-site services teams addressing infrastructure and maintenance needs at a system level rather than a fragmented approach for each asset only when problems arise.
In April 2023, Securitas signed an expanded 5-year agreement to provide data center security for Microsoft in 31 countries. It includes risk management, comprehensive security technology as a system integrator, specialized safety and security resources, guarding services, and digital interfaces.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Innovation in Video Surveillance among the Market Players
4.2.2 Increasing Data Center Projects
4.3 Market Restraints
4.3.1 The High Costs Associated with Physical Security Infrastructure
4.4 Value Chain/Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of the COVID-19 Impact
5 MARKET SEGMENTATION
5.1 By Solution Type
5.1.1 Video Surveillance
5.1.2 Access Control Solutions
5.1.3 Other Solution Types (Mantraps, Fences, and Monitoring Solutions)
5.2 By Service Type
5.2.1 Consulting Services
5.2.2 Professional Services
5.2.3 Other Service Types (System Integration Services)
5.3 End User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Healthcare
5.3.5 Other End Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Securitas Technology
6.1.3 Bosch Sicherheitssysteme GmbH
6.1.4 Johnson Controls
6.1.5 Honeywell International Inc.
6.1.6 Siemens AG
6.1.7 Schneider Electric
6.1.8 Cisco Systems Inc.
6.1.9 Dahua Technology Co. Ltd
6.1.10 Hangzhou Hikvision Digital Technology Co. Ltd
6.1.11 Convergint Technologies LLC
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Innovation in Video Surveillance among the Market Players
4.2.2 Increasing Data Center Projects
4.3 Market Restraints
4.3.1 The High Costs Associated with Physical Security Infrastructure
4.4 Value Chain/Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of the COVID-19 Impact
5 MARKET SEGMENTATION
5.1 By Solution Type
5.1.1 Video Surveillance
5.1.2 Access Control Solutions
5.1.3 Other Solution Types (Mantraps, Fences, and Monitoring Solutions)
5.2 By Service Type
5.2.1 Consulting Services
5.2.2 Professional Services
5.2.3 Other Service Types (System Integration Services)
5.3 End User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Healthcare
5.3.5 Other End Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Securitas Technology
6.1.3 Bosch Sicherheitssysteme GmbH
6.1.4 Johnson Controls
6.1.5 Honeywell International Inc.
6.1.6 Siemens AG
6.1.7 Schneider Electric
6.1.8 Cisco Systems Inc.
6.1.9 Dahua Technology Co. Ltd
6.1.10 Hangzhou Hikvision Digital Technology Co. Ltd
6.1.11 Convergint Technologies LLC
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
