LG ANNOUNCES AMBITION TO BECOME TOP-TIER GLOBAL HVAC SOLUTION PROVIDER
Strategic Roadmap Targets B2B Growth, AI Data Center Cooling, and Acquisitions
At a press conference held on July 8 at LG Sciencepark in South Korea,
LG Electronics unveiled a bold strategy to transform its ES Company into a
top-tier global HVAC (Heating, Ventilation and Air Conditioning) solutions provider by 2030.
The company will leverage industrial growth, localized solutions, and its 3B strategy
Build, Borrow, Buy to expand and diversify its global presence.
Targeting KRW 20 Trillion in HVAC Revenue
LG aims to reach KRW 20 trillion in HVAC-related revenue by 2030 by enhancing both
its hardware efficiency and non-hardware offerings, forming a critical pillar
of its mid-to-long-term growth strategy.
Riding the AI Wave: Boosting B2B Cooling Solutions
With the rise of AI and data center demand, LG is scaling its B2B HVAC business.
The global chiller market is forecasted to hit USD 12 billion by 2027, and LG plans
to capture USD 720 million in HVAC sales within the next two years.
LG’s cooling solutions portfolio includes:
Liquid cooling systems for direct chip cooling
Chiller-based air cooling systems
HVAC solutions compatible with DC power environments
By 2025, LG expects data center cooling orders to triple, confirming the segment
as a core growth engine.
AI-Centric Testing and Development Hub
LG established the LG AI Data Center HVAC Solution Lab in Pyeongtaek to simulate
various AI server environments and test performance. The company has also launched
pilot trials for liquid cooling with LG U+, validating next-gen thermal management.
Acquisitions Powering Portfolio Expansion
LG is pursuing strategic acquisitions to enhance its HVAC capabilities.
Its most recent move was acquiring OSO, a top water-heating solutions provider
in Norway, strengthening LG’s position in Europe’s heating market.
Under its 3B framework:
Build: Internal labs and HVAC Academy
Borrow: R&D partnerships with universities
Buy: Targeted M&A to expand expertise
Localized Growth and Software-Driven Revenue
LG is gaining momentum in commercial HVAC markets with localized solutions.
Notable projects include:
Multi V i installation in Tuas, Singapore
28,000 RT of chillers delivered to The Avenues-Riyadh in Saudi Arabia
Meanwhile, LG is doubling down on non-hardware revenue, aiming to grow
from 10% to 20%, with offerings like:
BECON: An AI-based energy management platform
Digital twin solutions: Predictive analytics for data center cooling
Deepening Presence in the Global South
LG is expanding in emerging markets with fully localized operations.
In India, the company will:
Launch a new product development unit
Open a production line in Sri City by 2026 with 1.5 million unit annual capacity
Globally, LG runs HVAC Academies in 65 locations across 43 countries, planning to
grow to 70 locations by 2025, serving as both training centers and strategic expansion hubs.
A Vision for HVAC in the AI Era
“HVAC demand is rising in tandem with the growing number of data centers being
built worldwide,” said James Lee, President of LG ES.
Leveraging decades of experience and core technological excellence,
LG is committed to becoming a leading HVAC solution provider in the AI era.”
