LG eyes becoming top global HVAC solutions provider

This will be achieved by expanding industrial and commercial B2B sales.

Achieving the goal in five years

LG Electronics (LG) has unveiled its strategic roadmap to transform its ES Company into a top global provider of heating, ventilation, and air conditioning (HVAC) solutions.

The South Korean firm aims to achieve this by 2030.

LG also aims for KRW 20 trillion or around PHP 820 billion in HVAC revenue by 2030 as part of its mid- to long-term growth strategy.

To achieve its goals, LG will expand its industrial and commercial B2B revenue, including from AI data center cooling. It will also provide regionally tailored heating and cooling solutions.

LG also eyes serial acquisitions to enhance core capabilities and diversify its business portfolio in line with its "3B strategy" or Build, Borrow, Buy.

In the B2B sector, LG aims to reach KRW 1 trillion or around PHP 41 billion in sales in the chiller market in two years, establishing the business as a core future growth driver.

Photo from LG

LG's portfolio includes data center-specific cooling technologies and HVAC solutions compatible with direct current power environments. In 2025, the company expects to more than triple orders for its data center cooling solutions compared to the previous year.

The company has established the LG AI Data Center HVAC Solution Lab as a dedicated testbed to develop optimized solutions for AI data centers. A pilot testing recently commenced for a liquid cooling technology in collaboration with LG U+ to further validate and refine its thermal management capabilities.

To fuel its expansion, LG is actively pursuing strategic acquisitions to reinforce its HVAC expertise and broaden its portfolio. This includes the recent 100 percent acquisition of OSO, a Norway-based water heating solutions provider.

LG said it is also making efforts to build its internal capabilities through initiatives like the Air Solution Lab and HVAC Academy (Build), forming R&D partnerships with academic institutions (Borrow), and continuing to identify high-impact M&A opportunities (Buy).

The company is also expanding its presence in the commercial HVAC market, providing solutions to logistics centers, retail complexes, and other large infrastructure projects. This includes the installation of its Multi V i system at a major logistics hub in Tuas, Singapore, and the supply of 28,000 RT of chillers to The Avenues-Riyadh, a major mixed-use complex in Saudi Arabia.

The company is also accelerating growth in non-hardware revenue, aiming to increase its share from 10 percent to 20 percent.

LG is also strengthening its presence in the Global South through end-to-end localized operations that encompass R&D, manufacturing, sales, and maintenance. It is accelerating its B2B expansion in emerging regions by delivering tailored solutions and strengthening its on-the-ground capabilities.

In India, LG is launching a new product development organization this year and establishing a new production line at its Sri City plant, scheduled to open in 2026. This new line will support regional demand with an annual capacity of up to 1.5 million air conditioning units.

Globally, LG is leveraging its HVAC Academy training centers for top service, sales, and engineering talent. It currently operates HVAC Academies in 65 locations across 43 countries and plans to expand the network to 70 locations by the end of 2025.