LG Electronics doubles down on B2B business  

LG Electronics Inc., a leading South Korean home appliance maker seeking to transform into a platform company, aims to double sales of its Business Solutions division in charge of business-to-business displays, commercial TVs and monitors and electric vehicle chargers to 10 trillion won ($7.5 billion) by 2030, the division’s head announced on Thursday.

The latest goal is part of the company’s long-term plan announced in August at its Investors Forum to bolster its B2B business to generate 45% of total sales from its B2B operations by 2030.

In July of 2023, LG Electronics Chief Executive Cho Joo-wan unveiled the company’s vision to achieve 100 trillion won in annual sales by 2030 by transforming into a platform-based tech giant from a traditional home appliance maker.

The company raked in 84.2 billion won in consolidated sales in 2023.

Since Cho's inauguration as the company's CEO in late 2021, LG Electronics has been actively driving the growth of its B2B business to offset weakening demand for consumer electronics. 

“Going forward, we will leverage this expertise to offer tailored services and differentiated solutions to our business customers, further cementing our reputation as a trusted partner in the competitive B2B market,” Jang Ik-hwan, president of LG Business Solutions Company at LG Electronics, said at a press conference on Thursday.

“ LG Business Solutions is seeking to double its current revenue, reaching KRW 10 trillion by 2030.”

LG Electronics is also open to mergers and acquisitions to foster its new B2B growth engines, Jang added.

“I can’t comment on the exact timing but the company would (again) invest in a new growth business like its investment in Bear Robotics Inc. when we are ready." 

BS ON THE FRONTLINE

LG Electronics runs a wide range of B2B operations, including automotive electronics, heating, ventilation and air conditioning (HVAC) systems, built-in appliances, smart factory solutions, commercial displays and mobility solutions.

Of its four business units, Business Solutions is responsible for digital signages, commercial TVs, robots, EV chargers and information technology devices such as laptops and monitors.

Three other divisions are Home Appliance & Air Solution, Home Entertainment and Vehicle Component Solutions.

Under the latest plan, LG Electronics will further enhance its position in the B2B display market with its cash-cow digital signage products backed by its leading commercial display technology.

Its information display business has recorded an average annual growth rate of 7% since 2019.

It will focus especially on premium fine-pitch light emitting diode (LED) digital signage including All-in-One LED and Micro LED models, the company said.

LG MAGNIT Micro LED display will be at the forefront of this expansion after its annual revenue grew nearly two-fold since 2020, according to LG Electronics. 

The company also plans to roll out the next-generation Micro LED displays, which will be powered by artificial intelligence technology to ensure superior image quality, later this year.

For its hospitality TVs, it will add many user-friendly features and software like Google Chromecast or Apple AirPlay to enhance connectivity.

It will also offer various cloud services through its online B2B platform, LG Business Cloud, while accelerating its collaboration with global B2B companies, including the partnership with office solutions provider Ricoh to develop enterprise services.

GLOBAL PLAYER IN NEW GROWTH ENGINES

LG Electronics will also seek sustainable growth of new B2B growth engines, especially EV chargers and medical monitors, the company said.

The Korean electronics giant hopes to command 8% of the US fast charger market by 2030 as a global top-tier EV charging system provider. It opened its EV charger production factory in Texas in January.

LG Electronics has also joined hands with ChargePoint, a leading provider of networked charging solutions for EVs in North America, to reinforce its product portfolio and develop next-generation charging systems.

The Korean company, currently offering six types of EV chargers, plans to launch a 350 kilowatt (kW) ultra-fast charger in the North American market and two slow-charging models – 30 kW and 7 kW – for the European market by the end of this year, it said.

LG Electronics also pins high hopes on medical monitors for its IT business, intending to become a global top three medical monitor provider within the next five years.

Considering the market’s high entry barriers due to the strict medical device regulations of each country and high medical imaging display standards, medical monitors are considered high-value-added products.

According to market research firm Omdia, the global medical monitor market is expected to grow to about $2.5 billion by 2030.

LG Electronics launched its medical monitor business in 2016, and the business has expanded at a double-digit rate every year in North America and Europe since then.

It currently supplies 14 types of medical monitors, including clinical, diagnostic and surgical models, and six different X-ray detectors (DXDs) in 50 countries.

Write to Eui-Myung Park at uimyung@hankyung.com

Sookyung Seo edited this article.