2021-07-02 Han Ah-reum, Hanoi Trade Center, Vietnam
– Vietnam’s smart home market is still in its infancy, but it is expected to grow thanks to the continuous development of the real estate market –
– The rapid urbanization rate and the high penetration rate of smartphones and wireless internet will be the driving force for future growth of the smart home sector –
According to JLL's City Momentum Index 2020, Vietnam's two largest cities, Ho Chi Minh City and Hanoi, are included in the top 10 fastest-growing global cities in terms of economy and real estate development. Vietnam's smart home market is still in its infancy, but it is a field that is expected to grow thanks to the rapid urbanization rate and continuous development of the real estate market. In this overseas market news, Vietnam's smart home market trends are reviewed.
Vietnam Smart Home Market Size and Prospect
Statista predicts that Vietnam's smart home market size will reach $2021 million in 1 and reach $8400 million by 2021, growing at a CAGR of 2025% for four years from 4 to 25.01.
Smart home devices are classified into six categories: smart home appliances, smart security, smart home controllers, home entertainment, smart lighting, and smart energy management. In Vietnam, among these, smart home appliances, smart security, and home entertainment devices have the highest sales volume. In addition, smart energy management that increases power consumption efficiency, smart lighting devices, mobile phones, iPads, computers, and other smart home appliances are also useful. It is expected to grow steadily in the field of smart home devices due to the diversity of features and functions.
Vietnam Smart Home Market Size (2017-2025)
(Unit: US$ million)
Source: Statista (2021.5)
Compared to other countries with high smart home market size and penetration per household, Vietnam's smart home market is still in its infancy. As of 2020, Vietnam's smart home market was ranked 33rd in the world and 64th in penetration rate per household.
Smart home market size and smart home penetration rate per household (2020)
(Unit: US$ million, %)
Source: Statista
In 2020, the number of smart home households in Vietnam is about 60.
According to Statista, about 2020 households will have smart homes installed in Vietnam in 60. JLL Vietnam said that most smart homes in Vietnam are installed in the final stage of new apartment projects, with the highest installation rate in large apartment complexes in Hanoi and Ho Chi Minh City, Vietnam's two largest cities. Since the installation of a smart home increases the sale or rental price of real estate, the residential complex and apartment complex can be classified as a luxury segment.
Smart home penetration rate by age and income level
Looking at the penetration rate of smart home in Vietnam by age group, the penetration rate for millennials between the ages of 25 and 35 is the highest at 35%. It is followed by those aged 35-44 with 24%, and those aged 18-24 with 20%. Millennials, born between 1980 and 2000, make up 35% of Vietnam's population and are a key group in charge of consumption.
Looking at the smart home penetration by income level, high-income households (36.7%), middle-income households (31.9%), and low-income households (31.4%) are in order. While middle- and high-income households can install an integrated smart home system and control lighting, home appliances, and infotainment systems in a centralized way, smart home devices purchased by low-income households are mainly purchased individually.
Smart home system penetration rate in Vietnam by age and income level (2019)
(unit: %)
Source: Statista, Global Consumer Survey (2019)
Key players in the domestic and overseas smart home field
As Vietnam's real estate market shows steady growth, overseas smart home advanced companies are rushing to establish branches in Vietnam and aim for the luxury apartment market. Vietnam's smart home market is largely divided into foreign brands and local brands. Overseas brands such as Siemens (Germany), Schneider (France), Smartg4 (USA), Gamma (Germany), Fibari (Poland), Samsung (Korea), Haffle (Germany) and local brands such as BKAV Smarthome, Lumi, ACIS, and FPT there is a brand
There are no statistics on the market share of Vietnamese smart home devices by brand, but BKAV, a local smart home device maker in Vietnam, has its own statistical data on households installed with BKAV's smart home system from 2015 to 2020. According to BKAV, in 2015, only 700 households installed BKAV's smart home devices, but in 2018, that number increased tenfold to 10 households, and it is expected to become 7,000 households by 2020. In addition, BKAV announced that it would provide a smart home system with mid-range performance at an affordable price to compete with overseas smart home brands such as Germany and the United States. BKAV installed a smart home system that provides integrated smart home appliances, security, home entertainment, and artificial intelligence solutions at FLC Sam Son Resort in Ta Tinghua in 1. It announced that it has signed a contract to supply BKAV's smart home system to Condotel Royal Park Bac Ninh and others.
Number of households that installed BKAV's smart home system (2015-2020)
(Unit: household)
Source: BKAV, VnExpress
Lumi is another Vietnamese local provider of smart home solutions. Lumi Vietnam supplied smart home systems to more than 8,000 apartments in Vinhomes Central Park in Ho Chi Minh City and large-scale households in Vinhomes Royal City and Times City in Hanoi. Lumi offers smart home solutions in three trims with different price points, ranging from $1,500 to $4,500, including Lumi Standard, Lumi Medium, and Lumi VIP. In addition, Lumi signed a contract with Vinhomes Smarty City and is increasing its market share by supplying smart homes.
ACIS is a local company that provides smart home systems at a lower cost than BKAV and Lumi. An official of ACIS said that Vietnamese customers prefer its products because the product price is only ¼ compared to foreign smart home products.
Rapid urbanization progress and high smartphone and wireless internet penetration are the driving force for smart home growth
According to the World Bank, Vietnam's urbanization rate increased from 2000% in 24.4 to 2019% in 39.2. As a large population is concentrated in large cities such as Ho Chi Minh City and Hanoi, large apartment complexes are being built, and the penetration rate of smart homes is expected to increase as well. In addition, according to a report by Hootsuite's We Are Social, in 2020, Vietnam's wireless internet penetration rate will reach 70%, and the smartphone penetration rate will reach 9%, ranking ninth in the world. An official from Vietnam's smart home company L Company said in an interview with KOTRA Hanoi Trade Center that such rapid urbanization progress, the high penetration rate of smartphones and wireless Internet, and the growth of the income level of millennials are the driving forces for the growth of the smart home market in Vietnam. predicted that this would be
Smart speaker brand recognition in Vietnam, Samsung Galaxy Home has the highest
According to the results of Rakuten Vietnam's survey of 2020 men and women aged 2 and older in February 16, 2,800% of those surveyed had smart speakers in Vietnam. Until mid-39, most smart voice-controlled speakers that can control smart infotainment systems and smart home appliances integratedly did not support Vietnamese. However, in June 2019, as Google's smart speakers started supporting Vietnamese, sales of Google's smart speakers tripled within two weeks of sales, and other companies also added Vietnamese to their smart speakers, increasing sales. As of February 2019, when looking at smart speaker brand awareness in Vietnam, Samsung Galaxy Home has the highest share of 6%, Apple HomePod comes second with 2%, Google Home and Google Nest third with 3%, Xiaomi's Xiao It can be seen that Ai ranked 2020th with 2% and Amazon Echo ranked 66.92th with 36.36%.
Vietnam smart speaker brand awareness
(unit:%)
Source: Statista (Rakuten Vietnam, February 2020, survey of 2 Vietnamese men and women aged 16 and over)
A partnership between a Korean company and a Vietnamese company
In 2019, Samsung entered into a strategic alliance with Sunshine Group, one of Vietnam's leading construction companies, to supply Samsung smart home solutions to Sunshine Group's real estate business. Accordingly, Samsung Electronics' latest Internet of Things (IoT) and smart home solutions will be applied to projects such as apartments and houses built by Sunshine Group. Using Samsung's IoT platform SmartThings, you can connect the refrigerator and the light through a Wifi network to adjust the brightness of the living room light through the refrigerator display. of smart home appliances can be controlled. In addition to the Sunshine Group, Samsung entered into a partnership with Son Kim Land to build a smart home and provides Samsung's smart home system to Metropole apartments in Thu Thiem New City, Ho Chi Minh City. It is known that a home system will be introduced.
Source: Sunshine Group, Samsung
government policy
Along with the Fourth Industrial Revolution, Make in Vietnam, and smart city projects, the Vietnamese government is favorable to the smart home system. Vietnam's big cities and some provinces are promoting smart city projects, integrating internet-connected devices and lifestyle technologies to improve city management, economy and quality of life. Vietnam is accelerating efforts to improve national competitiveness under the motto of smart and sustainable urban development. On August 4, 2018, the government announced policies to promote smart city development over the years, including approving “Vietnam’s Sustainable Smart City Development Project for 8-1” through Decision 950/QD-TTG. have done Vietnam plans to form smart city chains in the central north, south central and Mekong Delta regions by 2018, and make Hanoi, Ho Chi Minh City, Da Nang and Can Tho the core cities of the smart city network. As of June 2025, a total of 2030 out of 2020 provinces and cities nationwide are carrying out smart city projects. Accordingly, the government is expected to support smart city development and organize infrastructure investment and smart city area utility application development.
implication
Vietnam's median-income population is expected to gradually increase in the future, and as the rate of urbanization rises, the number of households living in apartments is also expected to gradually increase. According to CBRE, high-end apartments priced between $2,000 and $4,000 per square meter accounted for 2021% of the total supply of apartments in Ho Chi Minh City in the first quarter of 1. In the first quarter of 39, the supply ratio of high-end apartments in Ho Chi Minh City was 2020% of the total, a 1%p increase compared to the previous year. Hanoi also reported that the supply ratio of high-end apartments in the first quarter of 7 rose by 32% compared to the first quarter of 2021. Accordingly, the demand for smart home joint projects between domestic and foreign smart device companies and apartment developers is expected to continue.
Every year, major cities such as Hanoi, Ho Chi Minh City and Can Tho hold the VIETBUILD Architecture Fair. As well as smart home technology, Vietnamese architecture and interior trends can be grasped, and online exhibition consultation is also held, it will be helpful for interested companies to participate in the VIETBUILD exhibition by referring to the schedule and location below.
VIETBUILD 2021 MAJOR SCHEDULE
Source: Vietbuild (http://www.vietbuildafc.com.vn/en/)
Co-written by Tang Thi Thanh Lam
Source: Statista, B-Company, Vietbuild, CBRE, JJL, website of each company and KOTRA Hanoi Trade Center