Despite slowdowns in certain industries, Vietnam’s automation and control systems market is witnessing stable growth, according to a report by Frost & Sullivan.
Robust expansion in the manufacturing and construction sectors plus increased foreign direct investment, growing end-user need to optimize processes and improve efficiency, and development of special economic zones are factors fuelling growth.
Nonetheless, barriers to market entry are high. To succeed in a fiercely competitive ecosystem, automation vendors must embrace new technologies, such as Internet of Things, collaborate with developers of machine-to-machine technologies, and become one-stop integrated solution providers.
Tarun Roy, Frost & Sullivan’s industrial automation and process control consulting analyst, says: “The expansion of sectors such as power generation, food and beverage, and automotive is generating demand for new automation and control solutions, such as Industrial Internet of Things and smart sensors. However, with the proliferation of new solutions, the chances of a cyber-attack are high.
“As end users try to adopt IIoT-enabled solutions, it will be imperative for automation providers to collaborate or partner with cybersecurity firms to help their customers secure industrial networks from potential cyber threats.”
In its report, Growth Opportunities in Vietnam for Automation and Control System Manufacturers, Frost & Sullivan finds that the total automation and control market in Vietnam will be worth $184.5 million by 2021.
The management consultancy says the strategic imperatives for success and growth in Vietnam’s automation and control systems market include:
Embracing change in both the short and long terms through new business models that offer scope for implementation of IIoT technologies;
- Reforming business strategies and tailoring solutions that focus more on discrete manufacturing rather than providing process control;
- Enabling optimum planning and utilization of resources through factory automation systems to help minimize waste and reduce capital and operating costs;
- Developing an integrated product and solutions portfolio through acquisition of or partnership with select key players;
- Considering enterprise-level device management solutions to collect and analyze sensor health for more reliable and efficient operations; and
- Addressing the challenges of vulnerability management and increased attack surface in connected industrial environment using intelligent network zone segmentation.
Roy says: “As end users increasingly look towards liaising with total solution and service providers, automation companies possessing main automation contractor capabilities will be preferred and will potentially have a competitive edge over other vendors.”
Frost & Sullivan’s study covers automation market segments such as programmable logic controller, distributed control system, supervisory control and data acquisition, human machine interface, and safety systems.
The market share and competitive analysis of major suppliers, such as Siemens, Yokogawa Electric, Rockwell Automation, Honeywell, ABB, and Mitsubishi Electric are also discussed.