LG Electronics seeks to become smart home manufacturer

LG Electronics Inc.’s H&A Division head Ryu Jae-cheol announces at a press briefing held at 2023 IFA Berlin, on Sep. 2 (local). [Courtesy of LG Electronics]

LG Electronics Inc. recently revealed its goals to enter the smart home market.

LG Electronics will venture beyond merely offering home appliances and aims to sell complete residences equipped with energy storage systems (ESS), heating and cooling solutions, and a range of home appliances.

The plan was unveiled by H&A Division head Ryu Jae-cheol during a press briefing held at 2023 IFA Berlin, the world’s largest consumer electronics and home appliances trade show.

“LG Electronics will use our new strategy to change the global landscape of home appliances,” Ryu said.

The Korean tech manufacturer unveiled Smart Cottage, a new modular residential space that houses various intelligent equipment. The concept was devised in collaboration between LG Electronics and Danwood Plc, a Poland-based manufacturer of turn-key houses.

The Smart Cottage produces electricity from 4-kilowatt solar panels on the rooftop and saves the excess into the residential ESS located inside. The energy is used to power LG’s key technologies and products equipping the house, such as air-water heat pump Therma V Monobloc.

The Smart Cottage will come in various sizes, but the exact prices have yet to be disclosed.

“We found in this latest exhibition that there is plenty of demand for our Smart Cottage from European companies,” Ryu said.

He added that the smart home will be available in South Korea initially before tapping overseas markets.

LG Electronics is also on track to enter the residential and industrial air handling units markets. “LG has long held a highly competitive edge in inverter technology, a key component in the air-handling segment,” Ryu said.

LG‘s heat pump cooling and heating systems are projected to rise by 30 percent in year-to-year sales from Europe in 2023.

The tech manufacturer also announced its premium built-in appliances at the IFA trade show with the aim of broadening its presence in the European market. Europe is the world’s largest market for built-in units with a market share of around 40 percent, or 32.2 trillion won ($24.4 billion).