Vietnam's urban landscape reflects its commitment to sustainable building practices and advanced management systems.
Vietnam is witnessing significant expansion in its Building Management System (BMS) market, driven by rapid infrastructure development and a focus on energy efficiency. With an increase in green buildings and government initiatives promoting sustainability, BMS solutions are gaining traction. The market is projected to grow at a robust Compound Annual Growth Rate of 16.3%, fueled by urbanization and smart city programs. Major developments and corporate commitments to energy efficiency further enhance the landscape, making the BMS market a key player in Vietnam’s economic growth and sustainability endeavors.
The Vietnamese Building Management System (BMS) market is on the cusp of substantial expansion, driven by the nation’s rapid infrastructure development and a strong focus on sustainability. As Vietnam continues to solidify its position as one of the fastest-growing economies in Southeast Asia, increasing energy efficiency measures within the real estate sector are expected to propel this market forward.
Recent statistics indicate a remarkable rise in the number of green buildings in Vietnam, increasing from 276 in 2022 to 396 in 2023. This sharp growth reflects a growing demand for BMS solutions, as buildings increasingly emphasize minimizing environmental impact and promoting sustainability initiatives. Projections suggest that Vietnam’s BMS market revenues will grow at a significant Compound Annual Growth Rate (CAGR) of 16.3% from 2024 to 2030.
The primary drivers behind this market growth are ongoing infrastructure development and a rising industrial and commercial sector. Urbanization, along with smart city initiatives, is expected to enhance the demand for BMS solutions significantly. Major construction projects in Vietnam, including eight new airports by 2030, are paving the way for increased investments in building management technologies.
The Vietnamese government has been proactive in advancing energy efficiency through its initiatives. The Vietnam Energy Efficiency Programme (VNEEP 3) for 2019-2030 aims to achieve a 8-10% reduction in national energy consumption. Furthermore, the government is committed to reaching net-zero emissions by 2050, encouraging widespread adoption of green building practices. Certification systems like LEED, LOTUS, and Green Mark are integral in promoting sustainability within the BMS ecosystem.
Organizations are increasingly embracing energy-efficient practices as shown by Canon Vietnam, which has effectively reduced its total electricity consumption by 11% from 85,845 MWh in 2019 to 76,054 MWh in 2023. The company is not only focusing on energy efficiency but is also integrating smart BMS connected to mobile devices to monitor energy usage more effectively. Notably, energy consumption per production unit at Canon Vietnam saw a significant 14.4% decrease from 2019 to 2023.
As Industry 4.0 technologies gain traction, managed services in the BMS segment are anticipated to see the highest growth. Additionally, facility management services are projected to expand rapidly, propelled by growth in the hospitality and commercial sectors. Notably, the commercial sector is slated to experience the highest growth, fueled by large-scale projects, including new Grade A and B office developments in Ho Chi Minh City and Hanoi.
Some major ongoing projects worth mentioning include the $2 billion Padaran Mui Dinh development and various commercial development projects in primary metropolitan areas. ABB is also contributing to sustainability efforts by providing energy-efficient solutions at the National Innovation Center (NIC) in Hoa Lac Hi-Tech Park, aimed at operational cost savings. The NIC prioritizes focus areas such as smart factories, smart cities, semiconductors, and environmental technology, aligning with Vietnam’s net-zero ambitions.
Building automation and energy management systems can potentially enhance energy efficiency by 25-67%, leading to reduced operational costs and improved workplace well-being. The adoption of such sustainable practices is becoming increasingly crucial, not only for individual companies but also for the environmental future of Vietnam.
As demand for Building Management Systems continues to rise in Vietnam, it is evident that the combination of infrastructural development and sustainability efforts will shape the future of this growing market.
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