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International News
LG UNVEILS AMBITIOUS GLOBAL HVAC GROWTH STRATEGY
By Eamonn Ryan
LG Electronics has set its sights on becoming a global leader in the HVAC industry by 2030, targeting revenues of USD14.6-billion through strategic expansion, acquisitions and innovative solutions tailored to regional and emerging markets.
In late July, the company outlined a comprehensive roadmap for its energy solutions division, with a sharp focus on growing its commercial and industrial B2B operations. Key areas include advanced cooling technologies for AI data centres and customised heating and cooling systems that address specific regional demands.
Central to LG’ s approach is its‘ 3B’ strategy – Build, Borrow, Buy – which emphasises internal development, strategic partnerships and targeted acquisitions. By enhancing its product portfolio across both traditional HVAC hardware and digital / non-hardware services, LG aims to cement its position as a premier provider of energyefficient climate solutions over the next five years.
GROWTH IN AI DATA CENTRE COOLING In response to the rapidly growing demand for AI-driven infrastructure, LG is increasing its investment in cooling solutions for data centres. With the global chiller market forecasted to reach USD12-billion by 2027, LG is aiming for USD720-million in revenue from data centre cooling systems within the next two years.
The company offers a range of technologies including direct liquid cooling and chiller-based air solutions, with systems designed to operate in direct current( DC) environments. LG anticipates tripling its order volume in this segment by year’ s end.
Earlier in 2025, LG opened a specialised testing facility at its Pyeongtaek chiller plant, designed to replicate various AI server conditions for rigorous product evaluation. The facility is currently trialing liquid cooling systems developed in partnership with LG U +, a prominent South Korean digital services firm.
As part of its long-term expansion, LG is actively pursuing acquisitions. Most recently, it acquired OSO, a leading Norwegian manufacturer of water heaters, enhancing its capabilities in thermal and water heating technologies.
LG has also been expanding its commercial HVAC footprint. Notable recent projects include the installation of its advanced Multi V i VRF system at a large logistics hub in Tuas, Singapore, and the delivery of 28 000RT of chillers to The
Avenues-Riyadh, a major mixed-use development in Saudi Arabia.
NON-HARDWARE AND AI INTEGRATION The company is placing greater emphasis on nonhardware revenue streams, with the goal of growing this portion of its business from 10 % to 20 %. Key offerings include BECON( Building Energy Control) – an AI-driven building
LG equipment featured in a recent RACA Journal project.
management platform, and a forthcoming digital twin solution for data centres. The digital twin system, currently in final testing stages, is designed to simulate heat loads and optimise HVAC performance using predictive AI.
While LG maintains a strong presence in mature markets like North America and Europe, it is actively expanding in highgrowth regions. In India, the company is launching a new R & D division and is building a dedicated HVAC production line at its Sri City facility, set to open in 2026. The line will have a capacity to manufacture up to 1.5 million air conditioning units annually.
To support its global expansion and workforce development, LG operates HVAC Academies in 65 locations across 43 countries. The company plans to grow this network to 70 academies by the end of 2025.
With its aggressive growth targets, strategic acquisitions and technological innovations, LG is positioning itself to become a dominant player in the global HVAC landscape by the end of the decade. RACA
REFERENCE
1. https:// www. lgcorp. com / media / release / 29135
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