Village Connect
LG Electronics (LG) has unveiled an ambitious roadmap to transform its ES Company into a top-tier global HVAC solutions provider by 2030, blending industrial innovation, strategic acquisitions, and localized strategies to meet rapidly evolving global demands. At the heart of this vision is a plan to grow its B2B HVAC portfolio, particularly by tapping into AI-driven data center cooling and delivering region-specific heating and cooling solutions—underpinned by LG’s “3B strategy”: Build, Borrow, and Buy.
A cornerstone of LG’s strategy is strengthening its industrial B2B presence as demand surges for advanced cooling systems that keep modern AI data centers and large commercial hubs running efficiently. LG projects sales in this space to reach KRW 1 trillion within two years, supported by cutting-edge technologies like liquid cooling systems and chiller-based solutions tailored for direct current environments. This momentum is reinforced by the LG AI Data Center HVAC Solution Lab, a dedicated testbed simulating real-world AI server conditions, and pilot projects with partners like LG U+ to refine and validate next-generation thermal management solutions.
Strategic acquisitions are equally central to LG’s growth blueprint. Recent moves include the acquisition of Norway’s OSO, a water heating leader, boosting LG’s presence in Europe’s competitive heating market. Alongside these acquisitions, LG continues to build in-house capabilities through initiatives like the Air Solution Lab and HVAC Academy, and collaborates with academia to advance R&D, ensuring it remains at the forefront of innovation.
LG is also deepening its footprint in the Global South, establishing localized R&D, manufacturing, and service hubs. In India, for instance, a new product development unit is being launched this year, supported by a production line at the Sri City plant set to produce up to 1.5 million air conditioning units annually by 2026. LG’s HVAC Academy, now spanning 65 locations across 43 countries, plays a pivotal role in training talent and supporting expansion, with plans to grow to 70 locations by end-2025.
Beyond hardware, LG aims to double its non-hardware revenue share through smart platforms like BECON and digital twin systems, delivering AI-powered, energy-efficient solutions tailored to local needs. As James Lee, president of LG ES Company, summed up, “Leveraging decades of expertise, LG is poised to lead HVAC innovation in the AI era.”
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