The LG Electronics Turbo Chiller (Image courtesy of LG Electronics)
SEOUL, May 2 (Korea Bizwire) – LG Electronics has announced that its large-scale chillers, designed for cooling industrial facilities, have emerged as a driving force behind the company’s growth in the commercial heating, ventilation, and air conditioning (HVAC) sector, with sales increasing by nearly 40 percent annually over the past three years in overseas markets.
The chillers, a key product for LG Electronics, work by circulating chilled water through heat exchangers to supply cool air. They are primarily installed in large buildings, factories, and industrial facilities.
In 2011, LG Electronics entered the chiller business by acquiring the air conditioning division of LS Mtron. Since then, the company has established a comprehensive lineup spanning residential and commercial air conditioners, central air conditioning chillers, chillers for nuclear power plants, and building management solutions.
Over the past three years, LG Electronics’ chiller business has achieved annual sales growth exceeding 15 percent in both domestic and international markets. Last year alone, the company reported nearly 30 percent year-over-year sales growth.
While initially focused on the Asian market, including South Korea, LG Electronics has expanded its chiller business to the Middle East, Europe, and South America. The company has been actively targeting newly constructed battery and material manufacturing plants, as well as nuclear power facilities abroad. Recently, LG Electronics secured a new order for a battery plant being built in North America, further accelerating its growth in overseas markets.
The company’s chillers incorporate heat pump technology utilizing high-efficiency compressors and heat exchangers, reducing energy consumption and operational costs. The LG Electronics Turbo Chiller, for instance, boasts an industry-leading refrigeration and heating performance coefficient (COP) of 6.5 according to the Korean Standards certification, indicating exceptional energy efficiency.
Additionally, the chillers are designed for easy maintenance, with convenient component replacement and inspection, which is considered a significant advantage.
During last year’s unveiling of LG Electronics’ “2030 Vision,” CEO Cho Joo-wan emphasized strengthening the company’s business-to-business (B2B) capabilities as one of three key growth drivers.
LG Electronics’ internal research indicates that the global chiller market was worth approximately $9.5 billion last year, accounting for around 15 percent of the overall HVAC market. By 2027, the chiller market is expected to grow to $12 billion, outpacing the overall HVAC market with an annual growth rate exceeding 6 percent.
Lee Jae-sung, president of LG Electronics’ air solution business unit, stated, “We will continue to target the global air conditioning market with differentiated HVAC solutions, including large-scale chillers, aligned with the trends of decarbonization and electrification.”
Kevin Lee (kevinlee@koreabizwire.com)
