LG Announces Ambition to Become Top-tier Global Hvac Solution Provider

Al Bawaba

22-07-2025

LG Electronics (LG), at a recent press conference held at LG Sciencepark in South Korea, 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 EraLG 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 ExpansionAs 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 GrowthLG 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 LeadershipWith 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.'