This photo provided by LG Electronics Co. shows one of its smart factories. (Image courtesy of Yonhap)
SEOUL, Jul. 18 (Korea Bizwire) — LG Electronics Co. said Thursday it aims to achieve over 1 trillion won (US$725.2 million) in sales from its smart factory solution business by 2030, leveraging its artificial intelligence technologies and manufacturing expertise.
This year, the South Korean home appliance giant entered the smart factory solution market, offering technologies and services to transform traditional manufacturing facilities into automated and digitized smart factories.
LG Electronics highlighted its extensive experience and data in the smart factory solution sector, accumulated through its production technology research lab, LG PRI. The lab has undertaken projects on production customization and manufacturing operation development for LG affiliates, including LG Energy Solution and LG Display Co.
It is part of the South Korean tech company’s recent moves to advance its digital transformation strategy, aiming to evolve into a software-based platform company beyond its traditional hardware focus.
“This year, LG PRI is expected to secure orders worth 200 billion won from companies outside of LG Group,” LG Electronics said. “We aim to expand the smart factory solution business to achieve more than 1 trillion won in sales by 2030.”
The company said its customers include secondary battery producing companies, auto parts makers and logistic companies.
LG Electronics plans to accelerate its business expansion by targeting industries with rising factory demand, such as pharmaceuticals, biotechnologies, and food and beverages.
According to market research firm Precedence Research, the global smart factory market is projected to grow from $155.6 billion in 2024 to $268.5 billion by 2030.
LG Electronics’ manufacturing plants in Tennessee, the United States, and Changwon, South Korea, have been recognized by the World Economic Forum (WEF) and included in its Lighthouse Factory network.
This designation signifies that these plants have implemented Fourth Industrial Revolution technologies, including AI and the Internet of Things (IoT), into their daily manufacturing and supply chain operations.
Following the smart factory transition at the Changwon plant, productivity increased by 17 percent and energy efficiency rose by 30 percent, while costs related to quality issues decreased 70 percent, LG Electronics said.
About 60 manufacturing facilities of LG Group affiliates in 40 countries have adopted LG Electronics’ smart factory solutions, according to the company.
(Yonhap)
