LG Electronics establishes standalone HVAC company to accelerate growth in global air solutions market
LG Electronics has announced the formation of a standalone company dedicated to its rapidly growing heating, ventilation, and air conditioning (HVAC) business. Previously clustered under the Home Appliance and Air Solutions (H&A) division, the new entity is part of LG’s broader strategy to aggressively expand its presence in the global cooling systems and air solutions market, which is projected to grow significantly in the coming years.
According to market research firm IBISWorld, the global HVAC market is expected to rise from $58.4 billion (KES 7.6 trillion) in 2023 to $61 billion (KES 8 trillion) by 2028. LG aims to capitalize on this demand through a targeted approach under its newly formed HVAC-focused company.
The establishment of the standalone HVAC company aligns with LG CEO Cho Joo-wan’s vision, outlined earlier this year, to develop new businesses capable of generating over 1 trillion won (KES 93 billion) in annual revenue. Cho emphasized the company’s strategic pivot towards B2B operations, with a specific focus on HVAC products.
Globally, LG is positioning itself as a leader in advanced HVAC technology. The company operates 62 LG HVAC Academy training centers in 43 countries, training over 37,000 engineers annually. In Kenya, LG has partnered with the University of Nairobi to enhance local technical skills, ensuring optimal performance of its HVAC solutions.
The HVAC spinoff is part of a series of organizational changes approved by LG’s board of directors to support its “Future Vision 2030” strategy. The restructuring aims to boost synergy between organizational units, strengthen platform-based service operations, and accelerate growth in promising sectors, including B2B initiatives.
Key changes include the establishment of an Overseas Sales & Marketing Company as a global B2B control tower and the integration of display-based operations, such as TVs and signage, to drive synergies. LG is also rebranding all its business units to include “Solution” in their names, signaling its transformation into a Smart Life Solution provider.
To lead this transformation, LG has appointed a team of seasoned executives with a focus on long-term competitiveness and innovation. These appointments aim to develop high-performing organizations that can adapt to changing market demands and deliver cutting-edge solutions to customers worldwide.
LG’s restructuring and focus on HVAC systems underscore its commitment to meeting increasing global demand while enhancing customer experiences across various environments, from homes to commercial spaces and virtual platforms. The company’s partnership with institutions like the University of Nairobi highlights its dedication to fostering local talent and expertise, ensuring sustainable growth and innovation in emerging markets.
With these strategic moves, LG Electronics is positioning itself to be a dominant force in the HVAC market, leveraging its advanced solutions and global footprint to drive future growth.
