LG targets $144m in smart factory orders this year
South Korean electronics giant LG believes its smart factory division, which only launched this year, can become a 'multi-trillion' South Korean won (KRW) enterprise by 2030.
It says that, just a few months into its operation, its Production Engineering Research Institute (PRI) unit has already started offering production consulting, development of equipment and operation systems and training for technology personnel. As a result it anticipates securing orders worth approximately USD 144 billion from external clients in 2024.
The division's existing customers include battery-makers, automotive parts manufacturers and logistics companies. LG plans to expand into fast-growing sectors such as semiconductors, pharmaceuticals, biotechnology, and food and beverage.
Market research suggests the smart factory market is growing fast. According to Precedence Research, it will be worth USD 155.61 billion this year and USD 268.46 billion by 2030.
An official press release updating LG's plans reported that the company aims to cover the entire journey from factory planning to design, construction and operation. It will diagnose existing factories and identify areas for improvement, establishing an automation roadmap and offering services such as production consulting, equipment development and training. The new business will draw on LG’s experience at more than 60 production facilities around the world.
“We will offer optimal smart factory solutions at every stage – from planning and design to construction and operation – becoming the ideal partner that supports our clients throughout their entire production journey,” said Head of PRI, Jeong Dae-hwa.
