LG accelerates smart factory solutions business integrating AI with 66-year manufacturing expertise

LG Electronics (LG) is advancing its smart factory solutions business by integrating artificial intelligence (AI) and digital transformation (DX) with its extensive 66-year history of manufacturing and production expertise.

The Ultimate Fusion of AI and Manufacturing Capabilities

Earlier this year, LG officially entered the smart factory solutions market. The Production engineering Research Institute (PRI), which has been enhancing production and manufacturing competitiveness for LG Group affiliates, is now extending its expertise to external clients. Services offered include production consulting, development of equipment and operation systems and training for technology personnel.

Despite being in its inaugural year, the business has already achieved significant milestones. PRI anticipates securing orders worth approximately KRW 200 billion from external clients for its smart factory solutions.

Major clients include secondary battery manufacturers, automotive parts manufacturers and logistics companies. LG plans to aggressively expand into industries with rapidly growing factory demand, such as semiconductors, pharmaceuticals, biotechnology and food and beverage. The goal is to develop the smart factory solutions business into a multi-trillion KRW enterprise by 2030, excluding revenue generated within the LG Group.

According to market research firm Precedence Research, the global smart factory market is projected to grow from USD 155.61 billion this year to USD 268.46 billion by 2030.

770TB of Manufacturing Data and Over 1,000 Patents

LG has accumulated vast amounts of manufacturing data and know-how through 66 years of factory design, construction and operation. In the past decade alone, the company has amassed 770 terabytes (TB) of manufacturing and production data, equivalent to storing approximately 197,000 high-definition movies (assuming each movie is 4GB). The company's competitive edge also lies in its various core production technologies essential for smart factory configuration, with PRI filing over 1,000 patents related to smart factory solutions. LG aims to set its smart factory solutions apart by integrating its extensive manufacturing data and expertise with AI and DX, leveraging world-class production technologies. These smart factory solutions encompass production system design, monitoring and operation through Digital Twin technology; big data and generative AI-based management of quality, industrial safety and equipment; and the provision of various industrial robots.