Accelerating B2B HVAC Leadership Through Industrial Solutions, Strategic Acquisitions and Localized Value Chains
LG Electronics (LG) has unveiled an ambitious roadmap to transform its Electronics Solutions (ES) Company into a top-tier global HVAC (heating, ventilation, and air conditioning) solutions provider by 2030. Anchored by its signature “3B strategy” – Build, Borrow, Buy, LG aims to accelerate industrial and commercial B2B growth, especially in AI-driven data center cooling and region-specific HVAC solutions. The goal: to reach KRW 20 trillion in HVAC revenue within the decade.
🔧 Scaling Industrial B2B in the Age of AI
With global demand for high-performance cooling systems rising, especially for AI data centers and commercial infrastructure, LG is aggressively expanding its B2B portfolio. The company is targeting KRW 1 trillion (USD 720 million) in chiller sales by 2026, tapping into the projected USD 12 billion global chiller market.
From liquid cooling systems with direct-to-chip technology to chiller-based air solutions and DC power-compatible HVAC setups, LG’s innovations are redefining data center cooling. Orders for its solutions are expected to triple in 2025—a clear signal of momentum.
To fast-track development, LG established the AI Data Center HVAC Solution Lab at its Pyeongtaek plant. This state-of-the-art facility simulates complex AI server environments to test and refine LG’s technologies. In partnership with LG U+, the company has already begun pilot testing its liquid cooling systems, setting the stage for wider deployment.
📈 Strategic Acquisitions Drive Innovation and Market Reach
As part of its 3B growth strategy:
- Build: LG develops internal capabilities through its Air Solution Lab and HVAC Academy.
- Borrow: It forges R&D alliances with academic institutions to co-develop emerging technologies.
- Buy: LG pursues acquisitions to accelerate expertise and portfolio diversity.
A recent example is the acquisition of Norway-based OSO, a leader in water heating solutions, reinforcing LG’s footprint in Europe’s heating market.
🌍 Localized B2B Expansion and Smart Energy Solutions
LG is amplifying its presence in large-scale infrastructure projects through regionally customized solutions. Notable wins include:
- The installation of Multi V i™ systems at a key logistics hub in Tuas, Singapore
- Supplying 28,000 RT of chillers to The Avenues-Riyadh, one of Saudi Arabia’s largest mixed-use developments
LG is also boosting its non-hardware revenue, targeting an increase from 10% to 20% by focusing on digital and service-based solutions such as:
- BECON – an AI-powered building energy control platform
- A soon-to-launch digital twin system that uses AI to optimize HVAC performance by simulating heat patterns in data centers
🌐 Strengthening Global South Operations for Sustainable Growth
With localization as a core pillar, LG is deepening its operations across the Global South, particularly in high-growth markets like India, where it is:
- Launching a new product development team
- Opening a new production line in Sri City by 2026, with a capacity of 1.5 million units annually
Globally, LG is scaling its HVAC Academy network to train top-tier talent in service, sales, and engineering. Currently operating in 65 locations across 43 countries, the network will expand to 70 locations by end-2025, strengthening regional support capabilities.
“HVAC demand is rising in tandem with the growing number of data centers being built worldwide,”
said James Lee, President of 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.”
LG’s transformation journey isn’t just about technology — it’s about delivering smart, sustainable, and meaningful solutions that shape better experiences in homes, businesses, and data centers around the world.
🔗 Learn more: www.lg.com/ph/business/hvac/commercial-end-user
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