LG Electronics sets an ambitious B2B sales target to offset declining consumer demand
- LG Electronics wants to expand its B2B offering
- The goal is to reach $7.5 billion in B2B sales by 2030
- The technology giant wants to expand into digital signage and medical monitors
LG Electronics has unveiled plans to intensify its focus on the B2B sector as the company looks to offset declining demand for consumer electronics.
The company’s strategy aims to increase B2B sales to KRW 10 trillion (approximately $7.5 billion) by 2030, with forecasts indicating that B2B sales could account for 45% of total sales by then . This shift is driven by the stability of B2B business compared to consumer markets, as well as the potential for long-term customer relationships that foster mutual growth.
LG plans to expand its offerings in key areas such as digital signage, hospitality solutions and medical monitors, while expanding into new sectors such as electric vehicle chargers and smart factory solutions.
LG B2B transition
LG CEO Cho Joo-wan has since unveiled the company’s ambitious vision to reach 100 trillion won in annual sales by 2030. Since Cho took over as CEO in 2021, the company has actively pursued growth in its B2B business to meet challenges in the consumer sector. segment.
Focus areas for LG’s B2B expansion include automotive electronics, heating and ventilation systems (HVAC), smart factory solutions, built-in appliances and mobility technologies. Of the four business divisions, the Business Solutions unit plays a crucial role in driving growth through products such as commercial displays, EV chargers and robots.
The Business Solutions division will further strengthen LG’s position in the commercial display market by strengthening its digital signage portfolio. Since 2019, LG’s information displays segment has grown at an average of 7% per year, demonstrating consistent demand for its products.
The company’s strategy includes emphasizing high-quality, fine-pitch LED displays such as All-in-One and Micro LED models. While it plans to introduce new AI-powered Micro LED screens later this year, it is also looking to improve its hospitality TVs by adding features like Google Chromecast and Apple AirPlay for better connectivity.
In addition, the South Korean manufacturing giant will expand its cloud-based services through the LG Business Cloud platform, while deepening collaboration with global partners such as Ricoh to develop business solutions.
LG Electronics is also focusing on new growth opportunities in electric vehicle (EV) charging systems and medical monitors, with the aim of becoming a leading player in both markets. The company has set a goal to capture 8% of the U.S. fast charger market by 2030 and has opened an EV charger manufacturing facility in Texas to support these efforts.
The company currently offers six types of EV chargers and plans to roll out more models later this year, including a 350 kW ultra-fast charger for North America and two slower chargers – 30 kW and 7 kW – aimed at the European market. LG’s partnership with ChargePoint, a major provider of EV charging solutions in North America, is expected to strengthen its product offering and drive innovation.
In the medical technology sector, LG aims to be one of the three largest providers of medical monitors in the world within the next five years. Despite high barriers to entry due to strict medical regulations and high display standards, LG has steadily increased its presence in this niche market.
Since entering the medical monitor market in 2016, the company has expanded its product range by double digits annually in North America and Europe. LG currently offers fourteen different medical monitors, including clinical, diagnostic and surgical models, along with six types of X-ray detectors (DXDs) in 50 countries.
According to market research firm Omdia, the global medical monitor market is expected to reach $2.5 billion by 2030, providing LG with significant growth opportunities.
LG’s ambitious B2B transformation reflects its strategy to adapt to changing market trends and reduce its dependence on consumer electronics. However, the company will face a number of challenges and will require investments in innovative solutions and strategic partnerships.
At a press conference, Jang Ik-hwan, president of LG Business Solutions Company at LG Electronics, said the company is open to mergers and acquisitions to fuel its new B2B growth engines.
“Going forward, we will leverage this expertise to offer customized services and differentiated solutions to our enterprise customers, further strengthening our reputation as a trusted partner in the competitive B2B market.”
“LG Business Solutions aims to double its current revenue and reach KRW 10 trillion by 2030… I cannot comment on the exact timing, but the company would (re)invest in a new growth sector, such as its investment in Bear Robotics Inc . we are ready,” Jang added.
Via Kedglobal
