LG Electronics Inc. is set to expedite its efforts to become a leading supplier of heating and cooling solutions and built-in home appliances in the European market, according to a senior executive at the IFA tech trade show in Berlin. The company is aiming to be a top-tier player in this market by 2030, with a particular focus on the HVAC sector, which currently stands as their largest business-to-business commerce.
In a year that has seen a 30% surge in sales of LG’s low-carbon home heating and cooling solutions in Europe, the company is capitalizing on the increasing demand for energy-efficient appliances. This comes at a time when European countries are actively seeking sustainable and more affordable energy solutions amidst the ongoing Russia-Ukraine war. The IFA 2023 has been a platform to showcase environmentally friendly products that save energy and enhance convenience in people’s lives.
LG Electronics Targets Top Spot in European HVAC and Home Appliances Market
LG Electronics Inc. is ramping up its efforts to establish itself as a leading provider of heating, ventilation, and air conditioning (HVAC) solutions and built-in home appliances in the European market, according to Lyu Jae-cheol, president of LG’s home appliance and air solution division. Speaking at the IFA tech trade show in Berlin, Lyu highlighted that HVAC is their largest business-to-business sector and their goal is to become a top-tier player in the market by 2030.
A Surge in Low-Carbon Home Solutions Sales
LG anticipates a 30% year-on-year increase in sales of its low-carbon home heating and cooling solutions in Europe this year. This growth is driven by the rising demand for energy-efficient home appliances. The IFA 2023 tech trade show emphasized environmentally friendly products that not only conserve energy but also enhance convenience in people’s lives. This focus reflects the ongoing efforts by European nations to secure sustainable and affordable energy sources amidst the prolonged Russia-Ukraine conflict.
LG’s Smart Cottage: A Vision of Sustainable Living
In line with its commitment to smart, sustainable living, LG unveiled the Smart Cottage, a prefabricated home. This two-story, studio-style house integrates the company’s advanced HVAC technologies, and a 4-kilowatt solar panel on the roof for air conditioning, floor heating, and hot water supply. The company’s premium home appliances in the house are interconnected through the LG ThinQ application, which has eco-friendly features to minimize energy consumption. The company describes this "all-inclusive, ready-to-go home solution" as a lifestyle choice that prioritizes the planet.
LG’s Response to European Climate Goals
In response to the European Commission’s "Fit for 55" plan, which aims to reduce greenhouse gas emissions by at least 55 percent by 2030, LG plans to collaborate with local players who have a deep understanding of the European living environment and climate. This initiative will support LG’s expansion in the European HVAC market. Lyu also stated that the South Korean consumer electronics giant will diversify its product offerings to cater to a wider customer base in Europe’s $24.4 billion built-in home appliances market.
At the IFA, LG unveiled a new premium built-in kitchen package featuring an oven, a dishwasher, and a refrigerator, all equipped with energy-saving features. This move is part of LG’s broader strategy to expand its presence in the North American and European built-in home appliance markets, which constitute more than 70% of the global market.
Conclusion
LG’s strategic focus on the European HVAC and built-in home appliances market is clear. Their commitment to environmentally friendly and energy-efficient solutions aligns well with Europe’s sustainability goals. By collaborating with local players and diversifying their product range, LG is poised to strengthen its footing in the European market. The success of this strategy, however, will largely depend on how effectively LG can meet the unique needs and preferences of European consumers.
