Vietnam Industrial Automation Market is Expected to grow at a robust CAGR of 8.78% through 2030F

The increasing Vietnam industrial automation market is driven by shift toward smart factories and real-time data integration, expansion of robotics and collaborative automation during the forecast period 2026-2030F.

According to TechSci Research report, “Vietnam Industrial Automation Market – By Region, Forecast & Opportunities, 2030F”, The Vietnam Industrial Automation Market was valued at USD 2.52 Billion in 2024 and is expected to reach USD 4.21 Billion by 2030 with a CAGR of 8.78% during the forecast period. One of the most prominent trends in Vietnam's industrial automation sector is the growing adoption of smart factory solutions. Manufacturers are increasingly deploying integrated systems that connect machines, people, and processes in real-time. This trend is being driven by the need for greater efficiency, reduced downtime, and improved product quality. Factories are investing in SCADA, MES, and ERP platforms that enable centralized monitoring and control. Real-time dashboards are becoming standard in large manufacturing facilities, offering visibility into equipment status, energy consumption, and production throughput. Predictive maintenance is replacing reactive approaches, using machine data and sensors to anticipate failures before they occur. The deployment of industrial IoT (IIoT) networks is also rising, allowing machines to communicate autonomously. Manufacturers are integrating barcode and RFID systems for inventory tracking, and automated quality inspection systems are being used for defect detection. As more companies move toward lean manufacturing principles, the demand for real-time data and control systems is expected to grow across both local SMEs and multinational corporations in Vietnam.

Robotics usage is gaining significant traction in Vietnam’s industrial landscape, particularly in high-volume sectors such as electronics, automotive, and packaging. Industrial robots are increasingly being used for welding, assembly, painting, and material handling. What stands out, however, is the rapid rise of collaborative robots—or cobots—which can safely operate alongside human workers without requiring physical barriers. Cobots are especially appealing to small and medium enterprises due to their ease of programming, lower cost, and versatility in handling multiple tasks. The flexibility of cobots allows factories to reconfigure production lines quickly in response to shifting product demands. In sectors like textile and food processing, where full automation is less viable, cobots are filling in labor gaps caused by rising wages and workforce shortages. As robotics manufacturers introduce more user-friendly and compact models, adoption is expanding from Tier 1 suppliers to Tier 2 and Tier 3 Vietnamese manufacturers. Robot-as-a-service models and local training initiatives are further accelerating this trend. Over time, robotics is expected to transition from niche applications to mainstream deployment across various industries.

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Based on component, services is the fastest growing segment in the Vietnam Industrial Automation market during the forecast period driven by the increasing complexity of automation systems and the growing demand for end-to-end implementation, maintenance, and optimization support. As more Vietnamese manufacturers adopt automation solutions to stay competitive, many lack the internal technical capacity to install, integrate, or manage these systems independently. This has created a strong need for external service providers who can offer expertise across design, installation, training, system integration, and after-sales support. Small and medium-sized enterprises (SMEs), which make up a large portion of Vietnam’s manufacturing base, especially rely on third-party services due to limited in-house automation capabilities. These companies increasingly seek consulting and engineering services to assess automation needs, implement modular systems, and ensure smooth interoperability between new and legacy equipment. Moreover, with factories moving toward smart manufacturing, the need for system customization, cloud integration, and data-driven performance optimization is rising—driving demand for advanced services such as predictive maintenance, remote monitoring, and cybersecurity audits.

Even large enterprises are investing in long-term service contracts to ensure minimal downtime and consistent performance of critical systems. As automation moves beyond hardware deployment to continuous improvement, services such as periodic upgrades, software tuning, and workforce training become essential. With Vietnam’s growing adoption of IIoT, AI, and cloud-based platforms, service providers are also playing a key role in enabling digital transformation. Furthermore, industrial automation vendors increasingly bundle services with products as part of lifecycle support packages, including remote diagnostics, digital twin simulations, and real-time analytics. The move toward outcome-based models like "Automation-as-a-Service" also fuels service segment growth, particularly among firms that prefer operating expenses over capital-intensive investments.

Based on region, Central Vietnam is the fastest growing region in the Vietnam Industrial Automation Market during the forecast period driven by its emerging industrial infrastructure, increasing foreign investment, and strategic government initiatives aimed at regional development. While traditionally less industrialized than the north and south, Central Vietnam is rapidly evolving into a manufacturing and logistics hub, particularly in provinces like Da Nang, Quang Ngai, and Thua Thien Hue. The region has witnessed a surge in the establishment of new industrial parks and economic zones, many of which are specifically designed to attract high-tech, export-oriented industries. The Chu Lai and Dung Quat Economic Zones, for example, are attracting major players in electronics, automotive assembly, textiles, and food processing—sectors that are increasingly reliant on automation for quality and cost efficiency.

Government incentives, such as tax exemptions, land lease benefits, and simplified investment procedures, have further accelerated the influx of both domestic and foreign manufacturers. As these companies set up operations, they require automation technologies like PLCs, robotics, SCADA systems, and machine vision to meet international standards and compete in global markets. Moreover, infrastructure upgrades in seaports, airports, and highways have improved connectivity, making Central Vietnam more viable for supply chain automation and smart logistics. Local authorities are also investing in digital infrastructure, including high-speed internet and smart utility management, which supports IIoT and cloud-based automation systems. Workforce development initiatives—such as vocational training centers and public-private partnerships—are addressing the skill gap in automation technologies, enabling smoother implementation and post-installation support. Given its growing industrial base, improving infrastructure, and supportive policies, Central Vietnam is becoming an attractive destination for greenfield automation projects. Its lower land and labor costs compared to the southern region also incentivize companies to automate early, fueling the region’s rapid growth in the industrial automation landscape.

Key market players in the Vietnam Industrial Automation market are: -

• Siemens     
• ABB
• Schneider Electric
• Rockwell Automation
• Honeywell
• Emerson
• Mitsubishi Electric
• Yokogawa
• Omron
• Fanuc  

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“The Vietnam Industrial Automation Market presents strong opportunities driven by rising foreign investments, rapid industrialization, and government support for Industry 4.0 adoption. Increasing demand for smart manufacturing, especially in electronics, automotive, and food processing, is fueling the need for robotics, IIoT, and cloud-based control systems. Small and medium enterprises are also beginning to adopt scalable automation solutions to improve productivity and reduce labor dependency. Infrastructure upgrades, expanding industrial zones, and regional energy partnerships further enhance the market landscape. Additionally, Vietnam’s strategic global integration efforts open doors for international automation vendors, service providers, and system integrators to establish a strong local presence.Top of Form” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.

“Vietnam Industrial Automation Market By Component (Hardware, Software, Services), By Enterprise Size (Large Enterprises, Small & Medium Enterprises), By Industry (Process Industries, Discrete Industries), By Region, Competition, Forecast and Opportunities, 2020-2030F,” has evaluated the future growth potential of Vietnam Industrial Automation Market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Vietnam Industrial Automation Market.

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