LG Electronics' Ambitious HVAC Vision
LG Electronics has recently outlined a transformative roadmap aimed at becoming a leading player in the global heating, ventilation, and air conditioning (HVAC) industry by 2030. During a press conference at LG Sciencepark in South Korea on July 8, company leaders revealed their plans to significantly enhance their HVAC offerings through a mix of aggressive B2B strategies, localized solutions, and strategic acquisitions.
Strategic Roadmap
The company's roadmap is anchored around a clear objective: to achieve a revenue target of KRW 20 trillion in the HVAC sector by 2030. This ambition hinges on accelerating growth in its industrial and commercial market segments, particularly through innovative solutions designed for data centers and large-scale businesses. By adopting what LG refers to as its “3B strategy” – Build, Borrow, and Buy – the company is poised to enhance its core capabilities while diversifying its business portfolio.
Growth in the AI Era
As global demand for HVAC systems rises, particularly in conjunction with the increase in data centers, LG is strategically positioning itself to cater to this burgeoning market. With the global chiller market predicted to reach USD 12 billion by 2027, LG has set a target of generating USD 720 million in sales in the next two years. The company aims to achieve this by providing innovative cooling technologies tailored for data centers, including liquid cooling systems and chiller-based air cooling solutions.
To this end, LG established the
LG AI Data Center HVAC Solution Lab at its Pyeongtaek facility earlier this year. This dedicated lab simulates various AI server environments, enabling the company to test the performance of its advanced cooling solutions systematically. Recently, LG began piloting its liquid cooling technology in partnership with LG U+, a leading telecommunications provider in South Korea, to validate and enhance its thermal management capabilities further.
Strategic Acquisitions and Expertise
Part of LG's growth momentum will stem from strategic acquisitions aimed at bolstering its HVAC expertise. One notable recent acquisition includes securing a 100% stake in OSO, a prominent Norway-based water heating solutions provider. This acquisition is intended to strengthen LG's foothold in the competitive European heating market.
Guided by the 3B strategy, LG is not only focused on acquiring new companies but also on building robust internal capabilities through initiatives such as the
Air Solution Lab and the
HVAC Academy. Furthermore, they are collaborating with academic institutions to enhance their research and development capabilities.
Expansion and Localized Solutions
In an effort to broaden its reach in the commercial HVAC sector, LG is rolling out tailored solutions for diverse infrastructures, including logistics centers and retail complexes. Recent projects highlight the company’s capability to meet local requirements, such as the installation of its high-efficiency Multi V i™ system in a major logistics hub in Singapore and supplying chillers to a mixed-use complex in Saudi Arabia.
Additionally, LG is aiming to grow its non-hardware revenue from 10% to 20% in the coming years. New offerings include
Building Energy Control (BECON), an AI-based platform for real-time energy management, and advancements towards a digital twin system for data centers, optimizing HVAC efficiency through predictive analytics.
Focusing on Global South Markets
To cement its status as a global leader, LG is enhancing its localized operations in rapidly growing markets, particularly in the Global South. This initiative involves not only enhancing local R&D and manufacturing but also developing products tailored to regional demands. For instance, a new product development organization and production line is set to launch in India by 2026, anticipated to manufacture up to 1.5 million air conditioning units annually.
With HVAC Academies spread across 43 countries, LG is also developing top-tier service and engineering talent worldwide, positioning these centers as strategic hubs for regional expansion.
James Lee, president of the LG ES Company, emphasized the company's commitment to becoming a leading HVAC solution provider in the age of AI, stating, “HVAC demand is rising in tandem with the growing number of data centers being built worldwide.” Leveraging years of experience and technological expertise, LG is set on its ambitious journey toward global HVAC leadership.
For more information on LG’s HVAC solutions, visit
LG Electronics.