(BPT) - AI is rewriting the rules across industries, and HVAC is no exception. What was once about cooling and heating is now central to energy efficiency, sustainability and industrial competitiveness. At LG Electronics, our HVAC business sits right at the center of that shift. By anticipating change and moving beyond hardware alone, we're not just adapting to the AI era — we're helping shape it.
LG's HVAC journey began with residential and commercial solutions. Today, it has expanded into high value-added areas such as industrial sites, power plants and specialized facilities. Along the way, our portfolio has grown to include air quality and water temperature management — marking a clear transition from standalone products to integrated, end-to-end solutions.
Execution With Speed and Focus
From residential air conditioners and air care solutions to commercial system air conditioners, VRF systems and chillers, LG HVAC has built a strong foundation of technological leadership and customer trust. This has supported steady growth in global market share.
As competition intensifies, execution matters more than ever. Last year, our focus was on establishing a stable growth base following the launch of the Eco Solution (ES) Company. This year, we are accelerating — prioritizing speed, sharper execution and a stronger market position.
To support this, we are placing R&D, sales and engineering closer to our customers, while operating our global production footprint more efficiently. This approach allows us to respond faster and deliver solutions that reflect local market needs, creating a more sustainable growth structure.
Building "Winning Tech" Through Global R&D
LG HVAC's proprietary technologies and advanced R&D capabilities are key to developing "Winning Tech" — solutions that deliver clear, differentiated value and a sustained competitive advantage in real-world operating environments.
Innovation runs across our entire portfolio, driven by a global R&D network and regional HVAC academies that enable solutions tailored to specific climates and market requirements.
Initiatives such as the LG HVAC R&D Center at Changwon National University focus on advanced HVAC technologies, while the Global Heat Pump Consortium validates performance in extreme environments — from Alaska and Oslo to Saudi Arabia. Testing under real-world conditions strengthens reliability and accelerates innovation.
Strengthening Local Value Chains
We are reinforcing local value chains by integrating product planning, R&D, manufacturing and sales in key markets. While strengthening sales capabilities across the Global South, we are expanding infrastructure in North America, Europe and India.
In the second half of 2026, a new product development center and India's third air conditioner factory will open near Noida and Sri City. The product development center, in particular, will serve as a core development hub alongside Changwon, Korea — underscoring our commitment to local development and production.
AI is now a core pillar of HVAC competitiveness. It is embedded not only in our products, but across R&D, manufacturing and services. Our Digital Twin technology models the physical conditions of data centers in a virtual environment, forecasting server heat generation and enabling automated optimization of operations. Combined with AI-driven HVAC control that reduces energy consumption, these capabilities are accelerating our AI Transformation (AX) journey.
Moving Forward as a Total HVAC Solution Provider
As LG continues to evolve from a product manufacturer into a global HVAC Total Solution Provider, we are expanding end-to-end solutions in maintenance and services across the U.S., Europe and other major markets.
New growth opportunities are emerging as demand rises for high-efficiency cooling solutions in AI data centers, unitary systems and heating applications. Strategic partnerships play a critical role in these growth areas — particularly in clean-tech domains such as advanced cooling and heat pump solutions.
This expanding ecosystem is also opening pathways to next-generation thermal management technologies, such as chip-level cooling for data centers and advanced commercial heat pumps.
The future of HVAC will be shaped by how effectively companies execute, how deeply technology is embedded across the value chain and how closely solutions reflect local market needs.
By accelerating Winning R&D, strengthening local value chains and advancing AX, LG HVAC is moving beyond hardware toward a more integrated, solution-driven model. Through disciplined execution and continuous innovation, we are building a more efficient and sustainable future — powered by the growing potential of AI.
By James Lee, president of the LG Electronics ES Company
