LG Electronics sets an ambitious B2B revenue goal to counteract declining consumer demand.

LG Electronics has announced its intention to strengthen its focus on the B2B (business-to-business) sector, aiming to compensate for the decline in consumer product demand. The company aims to achieve revenues of KRW 10 trillion, approximately $7.5 billion, in the B2B sector by 2030. B2B sales are expected to account for 45% of total revenue during this period. This decision is driven by the greater stability that B2B operations offer compared to the consumer market, as well as the potential to establish long-term relationships with clients that foster mutual growth.

Key areas where LG plans to expand its offerings include digital signage, hospitality solutions, and medical monitors, while also venturing into new sectors such as electric vehicle chargers and smart factory solutions. Cho Joo-wan, CEO of LG, has articulated the ambitious vision of achieving annual revenues of 100 trillion won by 2030. Since his appointment in 2021, he has driven growth in B2B operations as a way to mitigate challenges in the consumer segment.

Priority areas for expansion include automotive electronics, heating and ventilation systems (HVAC), smart factory solutions, integrated appliances, and mobility technologies. The Business Solutions unit plays a crucial role in this growth, promoting products such as commercial displays, electric vehicle chargers, and robots. In particular, the Business Solutions division is expected to strengthen its position in the commercial display market through improvements in its digital signage portfolio.

Since 2019, LG's information display segment has grown at an average annual rate of 7%, demonstrating a steady demand for its products. The plan includes a focus on high-quality LED displays, as well as the introduction of new AI-driven Micro LED models. Improvements in hospitality televisions are also anticipated, adding features such as Google Chromecast and Apple AirPlay to optimize connectivity.

The South Korean giant will also expand its cloud services through the LG Business Cloud platform and establish partnerships with global partners like Ricoh to develop business solutions. In the field of medical technologies, LG aims to become one of the top three suppliers of medical monitors worldwide within the next five years. Since entering this sector in 2016, it has expanded its product range at a double-digit growth rate in North America and Europe, currently offering 14 different types of medical monitors as well as six types of X-ray detectors in 50 countries.

According to market projections, the global medical monitors market is expected to reach $2.5 billion by 2030, representing a significant opportunity for the company. Despite the entry barriers it faces, LG is committed to its B2B transformation, reflecting its strategy to adapt to evolving market trends and reduce its dependence on consumer electronics. However, the company will need to address challenges and require investments in innovative solutions and strategic partnerships.

In a press conference, Jang Ik-hwan, president of LG Business Solutions, highlighted that the company is open to mergers and acquisitions to drive its new B2B growth initiatives. “In the future, we will leverage this experience to offer personalized services and differentiated solutions to our business clients, further solidifying our reputation as a trusted partner in the competitive B2B market,” Jang stated.