Vietnam Energy Management Market Research Report: Forecast (2025-2030)

Market Definition

Energy management is a computer-aided system that monitors, measures, conserves, controls, and optimizes energy usage in a building or an organization to achieve greater efficiency in energy consumption.

Market Insights & Analysis: Vietnam Energy Management Market (2025-30):

The Vietnam Energy Management Market size is valued at around USD 200 million in 2024 & is projected to reach USD 320 million by 2030. The market is also estimated to grow at a CAGR of around 10% during the forecast period, i.e., 2025-30. The growth in Vietnam's energy management market is driven by the need for regulatory requirements that demand electricity conservation and preservation from loss measures. This is under the periodic guidelines issued by the government under the National Energy Efficiency Programme that provides its targets. This is because of the country’s massive electricity consumption surge due to rapid industrialization. The electricity demand is so intense that the country faces repeated blackouts due to power shortages. For instance,

• In 2023, due to a power shortage in Northern Vietnam, electricity was supplied on alternative schedules for manufacturing operations and residential areas.

Furthermore, the manufacturing hub in Southern Vietnam, Ho Chi Minh City, will lack more than 10,000 megawatts (MW) of electricity by 2030 according to the Ministry of Industry and Trade of Vietnam. This makes the deployment of energy management solutions that will ensure the efficient use and consumption of electricity in the country.

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Vietnam Energy Management Market Driver:

Government’s Policy for Energy Efficiency – Vietnam’s economy is growing very fast in Southeast Asia on account of rapid industrialization to develop its own service and manufacturing capabilities. Additionally, the country's Foreign Direct Investments (FDIs) are rapidly growing, which is further fueling such developments. For instance, the average FDI each year, since 2019 in Vietnam stands at around USD 21 billion according to Vietnam’s Ministry of Planning and Investment. This rapid industrialization of the country has resulted in a huge increase in the GDP per capita of electricity consumption in the country, surpassing Indonesia and the Philippines. This has led the government of Vietnam to pass the regulation National Energy Efficiency Programme. In compliance with the latest guidelines for the period of 2019-2030, there is a target to reduce the energy loss in the country below 6.5% and increase energy consumption from 5% to 7%. The government has allocated USD 137.8 million for this program.

Furthermore, the global challenge of climate change has led the government to achieve its net zero emission targets by 2050. These developments have been driving the demand for energy management solutions and boosting the growth & expansion of the Vietnam Energy Management Market.

Vietnam Energy Management Market Opportunity:

Growth in the Deployment of Renewable Energy – The world is witnessing an increase in greenhouse gases due to rapid industrialization resulting in climate change phenomena, rapid changes in weather conditions, and extreme weather situations in many parts of the world. Each country intends to reduce its carbon emissions and focus on net-zero targets in a short time by transitioning toward sustainable development and utilizing renewable sources of energy for all of its energy needs. Following the same, Vietnam also targets to achieve net-zero emissions by 2050. 

This has led to the development of energy-efficient policies and massive deployment of renewable energy plants. For instance, Vietnam’s renewable energy output has risen rapidly rising from 997 GWh in 2018 to an impressive 37,865 GWh in 2022. The government of Vietnam has launched an ambitious program, the National Power Development Master Plan (PDP VIII) for its electricity requirements. Under this, the country will double its national electricity output to 129,500 MW by 2030.

These plans align with the country’s emission targets and plan to reduce the dependency on fossil fuels with renewable energy solutions and cleaner options like gas power. These projects will need energy management solutions to reduce energy loss and conserve excess electricity based on the regulatory guidelines. This will boost the demand for energy management solutions in the country.

Vietnam Energy Management Market Challenge:

Rising Cyber Attack in Vietnam – Vietnam has been going through massive digitalization. This has led to the increase in the digital landscape of the country which is now more susceptible to cyber-attacks. These developments have led to a growing number of cyber-attacks on the country's critical infrastructure like power by cyber adversaries. For instance, the country faced around 14,000 ransomware attacks which is an increase of 8.4% compared to last year according to the Ministry of Public Security’s Department of Cyber Security and High-Tech Crime Prevention. These have resulted in massive data leaks and exposed around 12.3 million lines of private data. The adoption of technology such as cloud, AI, and IoT for smart energy management solutions due to the escalating energy needs of the country can increase the cyber risks of the energy sector. This can negatively impact the growth & expansion of the energy management solutions in the country.

Vietnam Energy Management Market Trend:

Growing Usage of AI in Energy Management Solutions – Vietnam is going through rapid digitalization with the adoption of technologies like IoT and AI. The growth in the country's energy usage has increased the need for energy management solutions that will enable enhanced operational efficiency as well as better conservation of energy. Recently, some of the major players in the market have launched smart AI-enabled energy management solutions to enhance the competitiveness of their product offerings and simultaneously keep themselves on par with the evolving digital scenario in the country. The AI integration in energy management solutions can let the user assist in tracking and identifying the trend of energy usage. Additionally, it can also help in predicting the faults in the grids and power distribution. For instance,

• In August 2024, ABB introduces ADAM, a power distribution management solution for Vietnam. This comes with AI capabilities that allow the ADAM to analyze the data and predict the faults that could arise in the power distribution channels.

Vietnam Energy Management Market (2025-30): Segmentation Analysis

The Vietnam Energy Management Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Component:

• Hardware
  • Sensors
  • Controllers
  • Computer Servers
  • Display Devices
  • Others
• Software
  • Supervisory Control and Data Acquisition (SCADA)
  • Advanced Distribution Management Solution (ADMS)
  • Outage Management System (OMS)
  • Generation Management System (GMS)
  • Others
• Service

The hardware segment has the largest market share accounting for more than 50% in the Vietnam Energy Management Market. This is primarily due to the extensive requirement of hardware such as sensors, controllers, smart meters, computer servers, and display devices for effective integration and management of energy management systems. Vietnam is going through a massive industrialization which has raised the economic activities in the country. This escalation in the country’s economy has drastically increased the power consumption of the country. For instance, the Vietnamese Government highlights that the power consumption in the country will grow annually at the rate of around 10-12% till 2030.  

The country is planning to invest around USD 12.8 billion per year till 2030 in its power sector for electricity development. This has led to the massive expansion of power generation sources and plants and the expansion and upgradation of power grids in the country. This expansion will also happen under the guidelines of the National Energy Efficiency Programme. It would lead to the deployment of energy management solutions, thereby expanding the demand for the hardware necessary for energy efficiency and management in the country.

Based on End User:

• Corporates
• Industries
• Retail Malls
• Residential Units
• Government
• Hospitality
• Healthcare
• Educational Institutes
• Others

Industries are the leading segment with a market share of more than 20% in the Vietnam Energy Management Industry. In Vietnam, Industries represent nearly 39% of the contribution towards the country’s GDP and are also responsible for employing around 31% of the country’s workforce. The demand for energy management solutions is driven by the increasing industrialization. For instance, the country has seen a 22% rise in registered enterprises from industry from 127, 340 in 2019 to 155,275 in 2023.

Additionally, the registered manufacturing companies also saw a rise of 20% in the same period to 138,106 in 2023, according to the National Office of Statistics of Vietnam. The rapidly developing manufacturing sector of the country with its burgeoning expansion into electronics due to the China+1 trend because of the rising geopolitical tensions between the USA and China. The electronics industry represents around 30% of Vietnam’s exports and around 18% of the manufacturing industry. This will further boost the demand for energy management solutions in the country due to the regulatory requirement as the industries consume a significant electricity.

Vietnam Energy Management Market (2025-30): Regional Projections

Geographically, the Vietnam Energy Management Market expands across:

• Northern
• Central
• Southern

The Southern Region of Vietnam has the largest market share of more than 39% in the Vietnam Energy Management Market. The southern region houses the biggest portion of the population and the regulatory requirements for electricity conservation and prevention of its loss continue to drive the market demand for energy management solutions. Additionally, the region is also a major industrial hub due to its significant contribution to the country’s GDP representing more than 30% of it. Moreover, the region has also received the highest FDI inflows amongst all three regions with nearly ~36% of the import and export contribution of the country. These scenarios highlight the region's massive power consumption that is bound to grow substantially in the foreseeable future. This indicates the region's huge need for energy management solutions that will continue to rise and drive the growth of the Vietnam Energy Management Market over the forecasted period.

Vietnam Energy Management Industry Recent Development:

• February 2024: Honeywell signed an MoU with the Green Solutions Group Corporation for the first green hydrogen plant in Vietnam. Honeywell will provide the necessary technologies including the energy management technologies such as battery energy storage systems.
• December 2023: ABB deployed energy management solutions and smart building technologies to save energy in Vietnam’s National Innovation Centre.

Gain a Competitive Edge with Our Vietnam Energy Management Market Report

1. Vietnam Energy Management Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Vietnam Energy Management Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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