Vietnam Smart Grid Technology Market Outlook to 2028

Vietnam Smart Grid Technology Market Overview

The Vietnam Smart Grid Technology Market is increasingly growing due to the country's focus on adapting to climate change, improving energy efficiency, and enhancing grid infrastructure. The Global Smart Grid Technology Market Size was USD 61.3 billion in 2023 which was caused by increasing energy demands, government initiatives towards sustainable energy, and the need for modernizing the aging electricity infrastructure.

Key players in the Vietnam smart grid technology market include ABB Ltd., Siemens AG, General Electric Company, Schneider Electric SE, and Honeywell International Inc. These companies have established a strong foothold in the market through continuous innovation, strategic partnerships, and extensive product portfolios.

In 2023, Vietnam Electricity (EVN) announced a partnership with Siemens AG to implement advanced smart grid solutions aimed at improving grid efficiency and reliability. This collaboration includes the deployment of Siemens' Spectrum Power 7, an advanced energy management system, across various regions in Vietnam. This initiative is expected to significantly enhance the country's grid stability and integrate renewable energy sources more effectively.

Ho Chi Minh City, in the southern region of Vietnam, is particularly dominating the smart grid technology market due to its high electricity demand, extensive industrial base, and proactive government initiatives supporting smart grid deployment. The region's strategic importance and economic activity make it a focal point for smart grid investments and developments.

Vietnam Smart Grid Technology Market Segmentation

The Vietnam smart grid technology market can be segmented by various factors like technology, component and region. 

By Technology: The Vietnam smart grid technology market is segmented by technology into Advanced Metering Infrastructure (AMI), Distribution Automation (DA), and Supervisory Control and Data Acquisition (SCADA). In 2023, AMI held the dominant market by the government's push for widespread adoption of smart meters to improve billing accuracy and energy management.

By Component: The Vietnam smart grid market is also segmented by component into hardware, software, and services. In 2023, the hardware segment leads the market, owing to the extensive deployment of smart meters, sensors, and communication devices.

By Region: The Vietnam smart grid market is segmented by region into north, east, west and south. In 2023, the South region leads the market, driven by high electricity consumption and the concentration of economic activities in cities like Ho Chi Minh City.

Vietnam Smart Grid Technology Competitive Landscape 

Company Name

Establishment Year

Headquarters

ABB Ltd.

1988

Zurich, Switzerland

Siemens AG

1847

Munich, Germany

General Electric Company

1892

Boston, USA

Schneider Electric SE

1836

Rueil-Malmaison, France

Honeywell International Inc.

1906

Charlotte, USA

In 2023, ABB Ltd. announced a major contract with Vietnam Electricity (EVN) to supply smart grid components and solutions. This project aims to enhance the efficiency and reliability of Vietnam's national grid, showcasing ABB's pivotal role in the country's smart grid transformation.

In 2024, Schneider Electric SE introduced its Eco Struxure Grid platform in Vietnam, which integrates advanced Io T technologies to optimize grid performance and facilitate seamless integration of renewable energy sources. This innovation underscores Schneider Electric's commitment to driving sustainable energy solutions in the region.

Vietnam Smart Grid Technology Market Analysis 

Vietnam Smart Grid Technology Market Growth Drivers 

Increasing Electricity Consumption: In 2024, Vietnam's electricity consumption is projected to exceed 250 TWh, driven by industrial growth and urbanization. This surge necessitates the deployment of smart grid technologies to enhance efficiency and reliability. The industrial sector alone consumes over 120 TWh, highlighting the critical need for modernized grid infrastructure to support continuous and reliable power supply (source: Vietnamese Ministry of Industry and Trade).

Rising Demand for Renewable Energy Integration: Vietnam plans to add 12 GW of solar and wind capacity by 2025, requiring advanced grid management solutions to integrate these renewable sources effectively. Smart grids facilitate better load management, reducing the intermittency issues associated with renewables. By 2024, the country is expected to have over 5 GW of operational solar capacity, necessitating smart grid technologies for efficiency.

Technological Advancements in Grid Infrastructure: The deployment of Io T and AI in smart grid solutions is driving market growth. By 2024, it is estimated that over 2 million smart meters will be installed across Vietnam, enhancing real-time monitoring and predictive maintenance capabilities. These technologies improve grid reliability, reduce downtime, and optimize energy distribution.

Vietnam Smart Grid Technology Market Challenges 

Lack of Skilled Workforce: Vietnam faces a shortage of skilled professionals required to manage and maintain advanced smart grid technologies. As of 2024, the country needs an additional 10,000 trained technicians and engineers to meet the growing demand for smart grid deployments. This skills gap hinders the effective implementation and operation of smart grid systems, affecting market expansion.

Cybersecurity Concerns: The increasing digitization of grid infrastructure exposes it to cyber threats. In 2024, Vietnam recorded over 500 cybersecurity incidents targeting energy infrastructure. Ensuring robust cybersecurity measures and protocols is essential to protect critical grid systems from potential attacks, which can disrupt energy supply and cause significant economic losses.

Vietnam Smart Grid Technology Market Government Initiatives 

Smart Grid Development Plan 2023-2025: The Vietnamese government has launched the Smart Grid Development Plan 2023-2025. The plan focuses on enhancing grid stability, integrating renewable energy sources, and deploying advanced metering and distribution automation systems.

Renewable Energy Integration Policy: Vietnam's renewable energy policy, implemented in 2024, supports the integration of 10 GW of new solar and wind capacity by 2025. The policy includes incentives for smart grid technologies that facilitate the seamless integration of renewable energy sources, enhancing grid flexibility and reliability.

Vietnam Smart Grid Technology Market Future Outlook 

The Vietnam smart grid technology market is poised for significant growth over the next five years, driven by increasing demand for renewable energy and grid infrastructure.

Vietnam Smart Grid Technology Future Market Trends

Expansion of Smart Metering Infrastructure: By 2028, it is estimated that Vietnam will have over 5 million smart meters installed, driven by government mandates and utility investments. These smart meters will provide real-time data on energy consumption, enabling better demand management and reducing energy losses.

Advancements in Grid Automation: The adoption of grid automation technologies, such as advanced distribution management systems (ADMS) and automated switching, will increase significantly by 2028. These technologies will enhance grid resilience, reduce outage durations, and improve operational efficiency, supporting the growing demand for reliable electricity supply.
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