In order to increase its sales from $51.4 billion (65 trillion won) in 2022 to $79 billion (100 trillion won) in 2030, LG Electronics plans to invest $39.5 billion (50 trillion won) in R&D, facilities, and strategic investments.
The once-dominant name in the smartphone market has changed to become a platform-based digital firm thanks to the new approach adopted by the Korean electronics and appliances powerhouse.
By utilizing its experience in the B2C market, LG will strengthen its business-to-business (B2B) divisions, fortify service platforms on its home appliances like TVs and white goods, and speed up new growth industries like EV charging and digital healthcare.
The announcement by the company comes about two years after LG announced that it would discontinue its loss-making mobile phone business globally in 2021 in order to concentrate on its growth sectors, which include smart homes, connected devices, the Internet of Things (IoT), B2B solutions, EV components, robotics, artificial intelligence (AI), and platforms.
“LG will continue to pursue its bold vision to transform and lead forward as a smart life solutions company that connects and expands on customers’ spaces and experiences, rather than its current position as the best home appliance brand,” stated William Cho, CEO of LG Electronics.
“As we move closer to this objective, we will create a brand-new LG by reinventing the way we work and communicate.”
According to Cho in his speech in Seoul, the company, which sells approximately 100 million hardware goods a year, aims to offer webOS as a service platform provider in addition to producing and selling TV sets.
For instance, LG offers personalized advertising, TV and entertainment content from more than 3,000 broadcast channels and 2,500 partners internationally, including on-demand streaming platforms, on its over 200 million webOS-powered smart TVs.
“We are actively installing webOS in our digital signage and vehicle displays to expand the media platforms,” Cho added. “We are supplying our webOS to various TV manufacturers.”
In order to provide a solution that incorporates HVAC (heating, ventilation, and air conditioning), ESS (energy storage system), and EV charging, LG is also thinking about developing a home energy platform.
Through acquisitions, LG has entered new markets. Among them are ZKW, an Austrian company that makes car lighting and headlight systems, Alphonso, a U.S. ad tech company, Cybellum, a startup in automotive cybersecurity, and AppleMango, a South Korean company that makes electric vehicle battery chargers.
Last month, LG started manufacturing EV chargers in Seoul under the moniker HiEV Charger, replacing AppleMango.
A firm called Vehicle Component Solutions (VS) firm, which produces infotainment, telematics, and Advanced driver-assistance systems (ADAS), was established by the company in 2013.
According to the CEO of the company, LG will collaborate with its internal startup incubator LG Nova in North America and is setting up a venture capital arm to support entrepreneurs in the digital healthcare sector.
The largest revenue in the history of the company, 19.9 trillion won ($15.2 billion), was predicted last week by LG Electronics. At the end of July, the corporation will present its complete results report.