LG Announces Ambition to Become Top-Tier Global HVAC Solution Provider

Accelerating B2B HVAC Leadership Through Industrial Solutions, Strategic Acquisitions and Localized Value Chains

LG Electronics (LG) presented a strategic roadmap aimed at transforming its ES Company into a top-tier global provider of heating, ventilation, and air conditioning (HVAC) solutions by 2030. To achieve this goal, the company plans to drive growth by expanding its industrial and commercial B2B revenue, including from AI data center cooling, and by providing regionally tailored heating and cooling solutions. In line with its “3B strategy” (Build, Borrow, Buy), LG will also pursue serial acquisitions to enhance core capabilities and diversify its business portfolio.

By strengthening its competitiveness in both high-efficiency HVAC hardware and non-hardware solutions, LG aims to achieve KRW 20 trillion in HVAC revenue by 2030 as part of its mid- to long-term growth strategy.

Boosting Industrial B2B Sales as Demand Surges in the AI Era
LG continues to scale its presence in the B2B sector, supplying advanced chiller systems for data centers and large-scale commercial buildings. With the global chiller market expected to reach USD 12 billion by 2027, the company aims to reach USD 720 million (KRW 1 trillion) in sales within two years, establishing the business as a core future growth driver.

LG’s portfolio includes diverse data center-specific cooling technologies, such as liquid cooling systems using coolant distribution units to directly cool server chips, chiller-based air cooling systems, and HVAC solutions compatible with direct current power environments. In 2025, LG expects to more than triple orders for its data center cooling solutions compared to the previous year, marking it as a key growth engine.

To develop optimized solutions for AI data centers, LG established a dedicated testbed – the LG AI Data Center HVAC Solution Lab – at its Pyeongtaek chiller plant earlier this year. The facility simulates a wide range of AI server environments to conduct systematic performance testing of LG’s advanced cooling solutions. Most recently, the company began pilot testing its liquid cooling technology in collaboration with LG U+, a leading South Korean telecommunications and digital services provider, to further validate and refine its thermal management capabilities.

Strategic Acquisitions Fueling HVAC Capabilities and Portfolio Expansion
As part of its growth strategy, LG is actively pursuing strategic acquisitions to reinforce its HVAC expertise and broaden its portfolio. Most recently, the company acquired a 100 percent stake in OSO, a leading Norway-based water heating solutions provider, to solidify its position in the European heating market.

Guided by its 3B strategy, LG is simultaneously building internal capabilities through initiatives like the Air Solution Lab and HVAC Academy (Build), forming R&D partnerships with academic institutions (Borrow), and continuing to identify high-impact M&A opportunities (Buy).

Expanding B2B Reach via Deep Localization and Non-Hardware Revenue Growth
LG is rapidly expanding its presence in the commercial HVAC market, delivering solutions to logistics centers, retail complexes, and other large infrastructure projects. Recent highlights include the installation of its high-efficiency Multi V i™ system at a major logistics hub in Tuas, Singapore, and the supply of 28,000 RT of chillers to The Avenues-Riyadh, a major mixed-use complex in Saudi Arabia. These projects showcase LG’s ability to meet local regulations and customer requirements through tailored, region-specific solutions.

The company is also accelerating growth in non-hardware revenue, aiming to increase its share from 10 percent to 20 percent. This includes offerings such as Building Energy Control (BECON), an AI-based integrated building management platform that provides real-time energy analytics. LG is also nearing commercialization of a digital twin system for data centers that can accurately predict server heat generation and optimize HVAC efficiency using AI-powered control systems.

Strengthening Global South Presence to Achieve Global Leadership
With strong localization at its core, LG is strengthening its presence in the rapidly expanding markets of the Global South through end-to-end localized operations that encompass R&D, manufacturing, sales, and maintenance. While maintaining a strong presence in North America and Europe, the company is now accelerating its B2B expansion in emerging regions by delivering tailored solutions and strengthening its on-the-ground capabilities.

In India, LG is launching a new product development organization this year and establishing a new production line at its Sri City plant, scheduled to open in 2026. This new line will support regional demand with an annual capacity of up to 1.5 million air conditioning units.

Globally, LG is leveraging its HVAC Academy training centers to cultivate top-tier service, sales, and engineering talent, while also using these facilities as strategic hubs to support regional expansion. The company currently operates HVAC Academies in 65 locations across 43 countries and plans to expand the network to 70 locations by the end of 2025.

“HVAC demand is rising in tandem with the growing number of data centers being built worldwide,” said James Lee, president of the LG ES Company. “Leveraging decades of experience and core technological excellence, LG is committed to becoming a leading HVAC solution provider in the AI era.”

Life isn’t just about having the latest technology—it’s about the meaningful experiences it creates and the impact it brings to our everyday lives. Discover more at www.lg.com/ph/business/hvac/commercial-end-user/ and stay connected by following LG HVAC Solutions Philippines (@LGHVACSolutionsPH) on www.facebook.com/LGHVACSolutionsPH, and www.linkedin.com/company/lg-hvac-solution-philippines/about/, as well as LG Global (@lgphilippines) on www.facebook.com/lgphilippines, www.instagram.com/lgphilippines/, www.tiktok.com/@lgphilippines.

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LG CEO Announces Bold Vision to Transform LG into "Smart Life Solutions Company"

Company Aims to Advance Business Portfolio by Transitioning to Platform-based Service Business Model, Accelerating B2B Business and Procuring New Growth Engines

Mr. William Cho, LG CEO

LG Electronics (LG) declared its vision to transform from its current position as a top global home appliance brand to a “smart life solutions company” that can connect and expand customers’ diverse experiences while driving for global annual revenues of KRW 100 trillion by 2030.

In a landmark speech today at the LG Sciencepark in Seoul, South Korea, CEO William Cho outlined the bold vision built on three growth engines: pursuing new platform based service businesses through advancement of business portfolio, accelerating business-to-business (B2B) and exploring new business areas such as electronics vehicle charging and digital health. The CEO identified electrification, servitization and digitalization as key inflection points LG will focus on to achieve rapid mid- to long-term growth.

“LG will continue to pursue its bold vision to transform and leap forward as a smart life solutions company that connects and expands customers’ various spaces and experiences, rather than resting on its current position as the best home appliance brand that provides quality products,” said CEO Cho. “We will establish a brand-new LG by reinventing the way we work and communicate toward this goal.”

The CEO also highlighted the company’s financial objectives. “We will achieve Triple 7, which encompasses an average growth rate and operating profit of 7 percent or more as well as enterprise value to EBITDA ratio of 7,” said the CEO. “With the goal of raising sales from KRW 65 trillion last year to KRW 100 trillion by 2030, we will establish ourselves as a company that is properly recognized by the market and customers.”

Cho said LG will focus on the transition to the platform based service business model, acceleration of B2B areas and procurement of new growth engines based on competitive edge as three pillars to focus on customer experience. By 2030, the proportion of these three pillars in sales and operating profit is expected to increase to more than 50 percent.

The company plans to invest more than KRW 50 trillion by 2030 for the qualitative growth of the business, including the advancing of the business portfolio led by the three new growth engines. This includes an R&D investment of more than KRW 25 trillion, facility investment of more than KRW 17 trillion and strategic investment of KRW 7 trillion.

The company is also accelerating the expansion of its B2B business, the CEO explained. LG’s rich understanding of customers as well as the know-how to communicate and empathize with customers that have been accumulated in the B2C business, which has seen continuous innovation over the past 65 years, will be fully expanded to commercial, mobility and virtual spaces.

Cho highlighted how LG is accelerating company-wide changes from corporate culture to brand communication at every customer contact point with the ultimate goal of becoming a brand that warms the hearts of customers and puts smiles on their faces while enabling customers to feel the value and philosophy of Life’s Good. The company is also driving ESG management activities to fulfill its responsibilities as a global corporate citizen.

Life's about more than having the latest technology, rather, it's about the experiences technology creates that impact our lives. LG Electronics Philippines delivers consumer electronics through top-of-the-line home entertainment, home appliances, and air solution products that prepare Filipinos for their greatest moments. LG promises to bring "Innovation for a Better Life" nationwide - from Luzon, to Visayas, and Mindanao.

For more information about LG products in the Philippines, visit the official website at lg.com/ph. You may also follow the official social media accounts @LGPhilippines on Facebook, Instagram, Youtube and Tiktok.

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