LG Accelerates B2B HVAC Growth Through Industrial Expansion, Acquisitions, and Localized Operations
SEOUL, July 8, 2025 — LG Electronics today outlined its ambitious vision to transform its Energy Solutions (ES) Company into a global powerhouse in the heating, ventilation and air conditioning (HVAC) market by 2030. At a press briefing at LG Sciencepark in Seoul, the company announced a multi-pronged strategy focused on industrial and commercial B2B growth, AI-driven data center cooling, regional customization, and strategic acquisitions.
With a revenue target of KRW 20 trillion by 2030, LG is doubling down on both its hardware and digital HVAC solutions, leveraging decades of technological expertise and its “3B strategy” — Build, Borrow, Buy — to expand its global footprint.
Industrial B2B Growth Fueled by the AI Boom
LG is prioritizing data center cooling solutions as AI adoption fuels massive demand for reliable thermal infrastructure. The company expects its data center cooling orders to triple in 2025, supported by offerings like:
- Liquid cooling systems using coolant distribution units (CDUs)
- Chiller-based air cooling systems
- Solutions optimized for DC power environments
To accelerate innovation, LG has launched the AI Data Center HVAC Solution Lab at its Pyeongtaek facility, where it tests technologies under simulated server conditions. Pilot testing is also underway with LG U+ to refine its liquid cooling systems.
The global chiller market is projected to hit USD 12 billion by 2027, and LG is targeting KRW 1 trillion (USD 720 million) in sales from this segment within two years.
Acquisitions and R&D to Expand Core Capabilities
To strengthen its HVAC portfolio and enter new markets, LG continues to make targeted acquisitions. A recent 100% stake purchase in OSO, a Norwegian water heating firm, solidifies LG’s European presence.
Through its 3B strategy, LG is:
- Building in-house talent via the Air Solution Lab and HVAC Academy
- Borrowing innovation through R&D partnerships
- Buying growth with acquisitions that complement its vision
Localization and Non-Hardware Revenue Push
LG is aggressively expanding in commercial HVAC sectors—deploying solutions in logistics centers and retail developments. Notable installations include:
- Multi V i™ system at a logistics hub in Tuas, Singapore
- 28,000 RT of chillers for The Avenues–Riyadh, Saudi Arabia
To diversify revenue streams, LG is targeting non-hardware services such as:
- BECON, its AI-powered building energy management platform
- A forthcoming digital twin platform to simulate heat generation in data centers and optimize system performance
The company plans to grow its non-hardware share from 10% to 20% of total HVAC revenue.
Scaling in the Global South
LG is reinforcing its presence in the Global South through end-to-end localized operations—including R&D, production, and service networks. In India, LG will:
- Launch a new product development organization
- Establish a manufacturing line in Sri City by 2026 with capacity for 1.5 million AC units annually
LG also continues investing in global talent via its HVAC Academy, now active in 65 locations across 43 countries, with plans to expand to 70 centers by end-2025.
“The rapid rise in data center infrastructure worldwide is driving demand for intelligent HVAC solutions,” said James Lee, President of LG ES Company. “With our technological legacy and market insight, LG is well-positioned to lead the HVAC transformation in the AI-driven future.”
