LIfe goes beyond consumers for Life’s Good – LG aims to transform itself into a B2B giant as it eyes smart factories for its future growth
LG plans to go beyond consumer goods and transform itself into a business-to-business (B2B) giant as it eyes smart factories for future growth.
According to The Korean Economic Journal, LG recently launched a Smart Factory division under its research and development center, marking a significant shift from its traditional home appliance brand.
The South Korean giant has identified B2B services specifically for smart factories as its new growth area. It aims to leverage its domestic and foreign factories in combination with its operational expertise. Smart factories offer the promise of fully automated manufacturing processes, from assembly to packaging, while also using big data and deep learning technology to improve work efficiency and energy consumption.
Turnkey services
The company’s Smart Factory division, consisting of dozens of employees, will lead the development of automated technology. This includes mobile robotic systems to manage the sales process, from automated factory design to construction and management knowledge.
Market tracker Statista predicts that the global smart factory market will grow to $244.8 billion this year, up from $153.7 billion in 2019. LG aims to capitalize on this market growth by offering turnkey services for smart factories , covering the entire automation process from planning to design. , building and operating it.
Currently, most Smart Factory projects focus on advising and upgrading parts of production lines. However, LG’s approach is holistic and extends beyond mere construction to provide ongoing advice at factory level.
Smart factories collect and process data in real time via the Internet of Things (IoT), analyzing the information to control each process. As companies worldwide look to improve production efficiency through digital transformation, the demand for smart factories is increasing.
The Korean Economic Journal reports that LG has already converted part of its six home appliance production lines into smart facilities at its main manufacturing base in Changwon, South Gyeongsang Province, and at its home appliance factory in the US state of Tennessee.