LG Electronics dramatically expanded its business footprint in 2025, establishing a record 30 new legal entities, signaling a significant strategic shift towards business-to-business (B2B) operations. This expansion, heavily focused on robotics and HVAC (heating, ventilation, and air conditioning), reflects a broader company pivot underscored by comments from LG CEO Ryu Jae-cheol regarding potential mergers and acquisitions. The move positions LG to capitalize on growing demand in these sectors and solidify its position as a key player in the evolving technology landscape.
According to LG Electronics’ 2025 business report, the creation of 30 new subsidiaries marks the largest annual increase since the company’s inception following a restructuring in 2002. This brings the total number of LG Electronics’ affiliated companies to 177. The surge in new entities isn’t simply about growth; it’s a deliberate restructuring designed to prioritize and accelerate investment in key B2B areas. This strategic realignment is already impacting LG’s financial performance, with B2B operations becoming an increasingly vital component of the company’s overall revenue.
The composition of these new subsidiaries reveals the depth of LG’s B2B commitment. Excluding two sales and marketing entities, the vast majority fall within strategic growth areas: five are dedicated to robotics, 17 to HVAC, three to on-device AI, and three to healthcare. This focused approach is a direct result of LG’s recent acquisitions and investments in these sectors. In 2024, LG increased its stake in Bear Robotics, an AI service robotics startup, eventually acquiring full ownership. The same year, LG acquired 100% of OSO, a Norwegian premium hot water solutions company, bolstering its HVAC capabilities.
A Rising B2B Share
This strategic shift is demonstrably improving LG’s overall business profile. The proportion of B2B revenue within LG Electronics’ total sales has risen from 27% in 2021 to 36% in 2025. Analysts suggest the company is well-positioned to achieve its goal of reaching 50% B2B revenue by 2030. This growth is fueled not only by acquisitions but also by substantial investments in research and development, particularly in software and IT, which are slated to increase by more than 40% this year.
Robotics and HVAC: The Core of Expansion
LG’s ambitions in robotics were showcased earlier this year at CES, where the company unveiled a prototype of the “LG CLOi” home robot. CES provided a platform to demonstrate the integration of data from its robot vacuum business with the navigation technology refined by Bear Robotics in commercial settings. While the CLOi is still in development, LG is accelerating its progress, aiming for field deployment in 2026. CEO Ryu Jae-cheol recently shared on social media that the company is leveraging Google’s Gemini AI to enhance contextual understanding and collaborating with Nvidia to train and test robots in digital twin environments, highlighting a commitment to advanced AI integration.
Alongside robotics, LG is also strengthening its position in the HVAC market. In December 2025, the company established the ‘Applied Business Division’ within its ES Business Unit, consolidating industrial cooling solutions for data centers and power plants with ventilation, refrigeration, and freezing operations. This reorganization reflects the growing demand for advanced cooling solutions, particularly within the rapidly expanding data center market. Simultaneously, the creation of an ‘ES M&A Task Force’ signals LG’s intent to actively pursue further investment and acquisition opportunities within the HVAC sector.
Looking Ahead: Continued Investment and Growth
Industry observers anticipate continued expansion in B2B-focused legal entities and investments from LG Electronics. The company’s recent acquisition activity and strategic restructuring suggest a long-term commitment to these sectors. LG’s focus on robotics and HVAC, coupled with substantial investments in AI and software, positions it for continued growth and innovation in the years to come. The next key indicator will be the company’s performance in the second half of 2026, as it begins to fully integrate its recent acquisitions and roll out new B2B solutions.
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