Answer:

Ms. Duong Nguyen – Senior Research Manager at B&Company

Source: B&Company

According to B&Company’s analysis, Vietnam’s AI-integrated home appliance market is currently experiencing rapid growth. Data cited by NielsenIQ shows that as of November 2024, this segment had grown by 31% compared to the same period in 2023, reaching a market size of approximately VND 43 trillion.

Notably, smart and AI-integrated products accounted for 43% of total volume and 53% of total value in the overall home electronics market. This indicates that more than half of the market revenue already comes from products with smart or AI-related features.

In terms of smart technology integration, air purifiers are among the leading categories, with 63% of products featuring smart capabilities. They are followed by washing machines at 51% and vacuum cleaners at 48%. In the TV category, almost all current models now incorporate smart technology. Meanwhile, refrigerators still show a relatively low level of AI integration, at around 15%, suggesting room for future development and product upgrades.

Question 2: Which AI features in home appliances do Vietnamese consumers really care about, and are they willing to pay extra for these features?

Answer:

Vietnamese consumers are increasingly interested in AI features that provide direct and practical benefits. One of the most important factors is energy saving. This is closely linked to a clear consumer need: reducing electricity bills. AI-supported optimization of energy consumption is therefore becoming relevant not only for air conditioners but also for refrigerators, washing machines, and other household appliances.

Another important group of features includes smart connectivity, remote control, and ecosystem integration. Examples include robotic vacuum cleaners that can operate according to preset schedules, washing machines that automatically select settings based on fabric type, and appliances that can be controlled or monitored through smartphones. Integration with virtual assistants or centralized home systems also helps users manage multiple devices more conveniently.

The key point is that Vietnamese consumers are not interested in AI as an abstract technology concept. They are interested in concrete outcomes. AI features are well received when they help users save time, reduce costs, or simplify daily routines.

Regarding willingness to pay, smart products may cost around 15–30% more than traditional products, but the market response remains positive. However, this willingness to pay depends on whether consumers can clearly see the value of the feature. A product labeled as “AI” is not enough; the feature must solve a real problem.

Question 3: Is the AI home appliance market in Vietnam currently driven by genuine demand, or is it still largely a “trend” fueled by marketing?

Answer:

In B&Company’s view, both factors coexist, depending on the product category and the specific AI features being offered.

For some product groups, AI is closely connected to real consumer needs. For example, AI-integrated air conditioners can automatically adjust temperature based on usage patterns and optimize energy consumption. AI TVs can support voice control and recommend content based on user preferences or viewing history. These applications help turn home appliances from standalone devices into practical “assistants” within the home.

However, in other categories, AI features may still function mainly as marketing additions. For example, smart displays on refrigerators, AI meal suggestions, or mobile notifications for certain appliance settings may appear attractive at the point of sale, but they do not always address a clear or urgent consumer need.

Therefore, the market is undergoing a period of polarization. Brands that invest in AI to genuinely solve user problems are more likely to build a sustainable customer base. On the other hand, products that use AI mainly as a marketing label may face challenges once consumers evaluate their real-life usefulness.

This is especially important because the current core customer base includes Millennials and Gen Z consumers, who tend to be highly aware of product quality, user experience, and practical value. When the actual experience does not match marketing claims, consumers can recognize the gap quickly and share their opinions publicly. This creates pressure on brands, but it also encourages the market to develop in a more sustainable direction.

B&Company’s perspective

The rapid growth of AI-integrated home appliances in Vietnam reflects broader changes in consumer behavior. Urban consumers, especially younger households, are becoming more open to connected and intelligent devices, but their purchasing decisions remain highly practical.

For businesses, the opportunity is significant, but success requires more than adding AI functions to existing products. Companies need to understand local consumer priorities, willingness to pay, product usage behavior, after-sales expectations, and category-specific barriers.

In this context, market research plays an important role. By identifying which AI features consumers truly value and how much they are willing to pay for them, companies can design more effective product strategies, pricing models, communication messages, and distribution approaches for the Vietnamese market.

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