Samsung SmartThings Pro (Image courtesy of Samsung Electronics)
SEOUL, March 17 (Korea Bizwire) — As global consumer electronics sales continue to slump, South Korea’s tech giants are finding new growth in an unexpected direction: business-to-business solutions, particularly in heating, ventilation, and air conditioning (HVAC) systems.
Samsung Electronics has seen its consumer electronics and visual display division revenue stagnate, with annual sales of 60.64 trillion won in 2022, falling to 56.44 trillion won in 2023, and slightly recovering to 56.5 trillion won in 2024.
High inflation and interest rates have dampened consumer sentiment for home appliances and TVs, while intensifying competition has eroded profitability. Yet amid this plateau, the company’s HVAC solutions division has achieved double-digit average annual growth over the past five years.
The surge in HVAC demand is largely driven by climate change concerns and tightening energy regulations across major markets. As energy efficiency management becomes increasingly critical, global demand for HVAC systems continues to rise. Samsung is rapidly expanding its HVAC solutions, including high-efficiency inverters and heat pumps, across residential complexes, public facilities, and commercial spaces.
The company is aggressively expanding its HVAC presence, particularly in North America, the world’s largest HVAC market, where demand for energy-efficient products is surging.
Samsung recently launched its high-efficiency hybrid inverter outdoor unit, Hirex R454B, and plans to expand sales of its EHS residential heat pump from European markets to North American homes this year. The company has set an ambitious target of 30% revenue growth in its HVAC solutions business for the current year.
Meanwhile, LG Electronics’ Home Appliance & Air Solution (H&A) division has shown remarkable resilience, surpassing 30 trillion won in annual revenue for the first time in 2023 and exceeding 33 trillion won last year.
This growth has been supported by both business model innovations, such as expanded appliance subscription services, and steady growth in B2B operations. The company recently established a separate Enterprise Solutions (ES) division to focus on its growing HVAC business, which offers solutions ranging from chillers for AI data centers to commercial air conditioning systems.
LG Electronics CEO Cho Joo-wan, speaking at CES 2025 in January, highlighted the company’s B2B initiatives, including the Smart Cottage – a modular housing solution incorporating AI appliances and HVAC systems – and software-defined vehicle solutions.
During a press conference at CES 2025, Jo addressed LG Electronics’ traditional pattern of stronger performance in the first half of the year, suggesting that increased B2B operations could help stabilize earnings throughout the year.
The shift toward B2B is driven partly by stricter energy regulations worldwide and growing demand for energy-efficient systems.
Both companies are also expanding their B2B portfolios beyond HVAC, with Samsung developing its AI-based integrated management platform SmartThings Pro, and LG offering commercial appliances, hotel TVs, digital signage, and electric vehicle chargers. LG Electronics aims to increase its B2B revenue share from 35% in 2024 to 45% by 2030.
Kevin Lee (kevinlee@koreabizwire.com)
