LG Electronics acquires premium hot water solutions company OSO (Image courtesy of LG Electronics).
SEOUL, July 1 (Korea Bizwire) — South Korea’s two largest electronics giants, Samsung Electronics and LG Electronics, are aggressively expanding their heating, ventilation, and air conditioning (HVAC) businesses in Europe through high-profile acquisitions, aiming to align with the European Union’s carbon-neutral policies and tap into a rapidly growing market.
LG Electronics announced this week it has acquired 100% of Norwegian hot water solutions company OSO, a move designed to bolster its presence in the European heat pump sector. Founded in 1932, OSO specializes in stainless-steel water storage systems and electric water heaters—technologies that complement LG’s high-efficiency HVAC offerings.
The acquisition targets the growing synergy between heat pumps and hot water systems in Europe, where heat pumps are increasingly favored as a sustainable alternative to fossil-fuel-based heating. Heat pumps, which absorb external heat and convert it for indoor use, are central to next-generation HVAC solutions.
According to consulting firm BRG Building Solutions, Europe’s heat pump market is expected to double by 2030, growing from 1.2 million units in 2024 to 2.4 million. This surge is driven by the EU’s “REPowerEU” plan to reduce fossil fuel dependence and increase renewable energy use as part of its 2050 carbon neutrality goal.
“Europe is moving faster than any other region in adopting carbon-neutral policies,” an LG official said. “This acquisition is part of our strategy to expand a regionally tailored heat pump business.”
The image shows the company flag of Samsung Electronics Co. hoisted in front of its headquarters in Seoul. (Image courtesy of Yonhap)
Meanwhile, Samsung Electronics has taken a different approach, focusing on large-scale infrastructure. In May, the company acquired Germany’s FläktGroup, Europe’s largest HVAC firm, from U.K.-based private equity fund Triton for €1.5 billion (approximately $1.6 billion).
Established in 1918, FläktGroup supplies central air systems to homes, schools, hospitals, offices, and industrial facilities across 65 countries, with annual revenues exceeding €700 million. The deal marks Samsung’s most ambitious push yet into the central HVAC segment.
Samsung’s move comes as the AI boom fuels a surge in data center construction, which in turn is driving demand for advanced climate control solutions. Data centers—known for their high energy consumption and heat generation—require robust HVAC systems to manage thermal loads and maintain operational stability.
As sustainability regulations tighten, Samsung aims to scale up its HVAC offerings in mega-scale facilities like airports and AI data centers, where the global market for HVAC systems is projected to grow at 18% annually, reaching $44.1 billion by 2030.
“The acquisition of FläktGroup significantly strengthens our capabilities in central HVAC,” a Samsung spokesperson said. “With demand rising across high-tech facilities, we’re preparing to lead in a market that’s poised for transformative growth.”
Together, Samsung and LG’s latest moves mark a strategic pivot toward eco-friendly infrastructure in one of the world’s most advanced climate-conscious regions, as HVAC becomes a cornerstone of future-ready technologies.
Kevin Lee (kevinlee@koreabizwire.com)
