LG Electronics is doubling down on B2B.
LG Electronics CEO William Cho recently outlined the company’s 2025 strategy in Las Vegas and emphasized a shift toward business-to-business (B2B) operations as a core growth driver. Its key initiatives include expanding into HVAC, automotive components, and platform services while adapting to evolving global markets.
LG manufactures consumer electronics, home appliances and mobile communications devices. It’s also the world’s second largest television manufacturer.
LG Electronics to invest in B2B growth
LG aims to increase B2B revenue to 45% of total earnings by 2030. That’s up from 35% in 2023. LG reported preliminary revenue of $60 billion for 2024.
The HVAC business, now managed by the LG Eco Solution Company, is a major growth area. The portfolio includes energy-efficient residential and commercial systems, heating solutions to replace fossil fuels, and advanced chillers for data centers critical to AI infrastructure. LG is localizing operations, from R&D to maintenance, to meet regional demands and accelerate growth, the company says.
Other B2B sectors, such as automotive components and smart factory solutions, are integral to LG’s broader business transformation. These efforts reflect a strategic pivot from device-centric operations to integrated solutions for mobility and commercial spaces.
LG’s subscription services have become a significant revenue stream, combining products and care services to offer flexible, recurring solutions. In 2024, subscription revenue grew over 75% year-over-year, exceeding KRW 2 trillion ($US 1.365 billion), with a goal to triple by 2030. The company’s online brand also saw robust growth, with sales up 80% year over year during the Black Friday period.
LG’s platform-based business, driven by the webOS operating system, is another pillar of its strategy. The company plans to increase platform service revenue fivefold by 2030, aiming for 20% of operating profit. The webOS platform will expand beyond smart TVs to IT devices, vehicle infotainment, and AI-powered advertising solutions, positioning LG as a front runner in connected ecosystems.
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