A corner of a shop selling smart-home products. The market is attracting many foreign and local companies due to its potential. — VNS Photo
The smart-home market is attracting much interest from foreign and local companies due to its enormous potential, with experts estimating it to grow into a behemoth worth millions of dollars.
According to a report by Statista, the German company providing market and consumer data, this year the market is expected to be worth US$184 million.
The revenue is expected to show an annual growth rate of 25.01 per cent, resulting in a projected market volume of $449 million by 2025.
The average revenue per smart home currently is expected at around US$77.56.
The market is expected to grow to US$330 million in 2022, cybersecurity firm BKAV estimated.
BKAV was quoted by Investment Review as saying 500,000 households were equipped with smart-home systems by 2018.
Experts said smartphones and the internet, especially 5G technology, have becoming more and more popular among Vietnamese consumers, and increasing incomes have encouraged middle-class consumers to opt for smart-home technologies.
K. M. Leong, general manager for Southeast Asia of Xiaomi International told Viet Nam News: “Viet Nam is definitely a promising and dynamic market in the region and the smart-home and IoT landscape is certainly growing.
“As smart homes become more popular it encourages major developers to use smart technology. Amid the technology 4.0 trend, we think the time has certainly come for this industry.”
The Government’s development directions on Industry 4.0 directly enable the advancement of technology through a number of platforms such as smartphones and common apps such as wallets, health trackers, translation, and maps.
“Support from the Government will also open up a lot of opportunities for the market and companies and enable consumers to experience smart living.”
According to Leong, Viet Nam leads the world in the growth of smartphone traffic and number of millennials, and the latter’s growing tech-savviness will boost user preference for technology.
Seeing the potential, many major domestic and foreign players like Schneider, Hager, Legrand, Smartg4, Xiaomi, WattStopper, TIS Smart Home and Crestron, My Home, Kawa, Broadlink, Bluetech, Bkav Smart Home, LumiAcis Viet Nam, E-smart Home, and Gamma have flocked to the market.
A Bkav spokesperson was quoted by Vietnam Investment Review as saying the smart-home market would soon boom.
A VNPT representative agreed, saying the market has great potential and is huge with millions of clients.
Many companies have launched a slew of new products.
VNPT Technology has launched the ONE Home solution.
Xiaomi has continued to strengthen connectivity across devices on its AIoT platform.
It plans to invest further to create better strengthen connectivity between devices on AIoT. — VNS