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LG Electronics in 2025: Diversification, Market Leadership, and Innovation

General Report April 26, 2025
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TABLE OF CONTENTS

  1. Summary
  2. Diversified Product Portfolio
  3. Strong Financial Performance and Market Share
  4. Smart and Sustainable Innovations
  5. Competitive Positioning Against Samsung
  6. Future Outlook and Market Forecasts
  7. Conclusion

1. Summary

  • As of April 26, 2025, LG Electronics has reinforced its status as a diversified technology leader within the competitive landscape of consumer electronics, home appliances, display panels, and B2B components. In the first quarter of 2025, the company achieved an exceptional milestone with consolidated revenue reaching KRW 22.74 trillion (approximately USD 15.9 billion), which not only marks a record for any first quarter but also signifies the sixth consecutive year of surpassing an operating profit of KRW 1 trillion during that period. LG's remarkable performance can be largely attributed to its strategic innovations, including the expansion of subscription services for home appliances in Southeast Asian markets and the introduction of cutting-edge products such as LG PuroTec, an antimicrobial glass powder, reflecting a forward-looking agenda aimed at addressing contemporary consumer needs and enhancing user convenience. Furthermore, market data reveals that LG holds over 50% market share of the global OLED TV segment, further emphasizing its dominance in display technology driven by sustained investments and innovation, which have positioned OLED products as crucial to its revenue streams.

  • In addition to these successes, LG is making notable strides in its B2B operations, particularly in the sectors of vehicle parts and HVAC systems, which reported impressive year-over-year profit increases in Q1 2025. This diversification strategy not only showcases LG's adaptability but also aligns with broader trends emphasizing the importance of energy-efficient technologies. Moreover, robust market forecasts for smart appliances, projected to grow at a CAGR of 11.5% through 2032, as well as for outdoor LED lighting and green logistics, highlight LG's potential for sustained growth in the years ahead. Overall, LG's commitment to incorporating sustainable practices alongside technological advancements ensures that it remains at the forefront of innovation and market leadership.

2. Diversified Product Portfolio

  • 2-1. Home appliances: washing machines, refrigerators, air conditioners

  • As of April 2025, LG Electronics continues to lead the home appliances market with innovative products characterized by energy efficiency and advanced technology. Recent offerings include a range of washing machines equipped with Smart Inverter Technology and TurboDrum, enhancing performance while minimizing energy consumption. For instance, LG's 7 kg and 8 kg automatic washing machines have seen significant price drops, making these high-efficiency models more accessible for consumers; effectively priced around ₹11, 719 and ₹13, 064 respectively after discounts. This pricing strategy aligns with LG's commitment to affordability in a competitive market. In refrigeration, LG promotes models that emphasize energy efficiency and smart features, specifically targeting family-oriented consumers. These products integrate advanced cooling technologies that maintain optimal freshness while reducing energy usage. With air conditioners, LG has introduced energy-efficient models designed to cater to the rising demand for home comfort solutions, particularly in regions experiencing hotter climates. Collectively, LG's emphasis on sustainability and smart technologies puts it at the forefront of the home appliance sector.

  • 2-2. Display panels: OLED TV leadership and LG Display profitability

  • LG Display remains a significant player in the OLED panel market, with the company reporting a consolidated revenue of 6.0653 trillion won in Q1 2025 and an operating profit of 33.5 billion won. This marks LG Display's successful transition towards an OLED-focused business model, with OLED products now constituting 55% of its revenue, reflecting an 8 percentage point increase year-over-year. The high demand for OLED panels has allowed LG Display to achieve profitability in a traditionally slow season for the display industry. The company's strategic initiatives, including the cessation of large LCD production and increased investment in OLED technology, have led to enhanced product offerings for various applications—ranging from televisions to automotive displays. These decisions not only consolidate LG Display's leadership in high-definition and high-value display markets but also align with the broader industry shift towards OLED technology, which is projected to dominate the display landscape.

  • 2-3. B2B components: vehicle parts and HVAC systems

  • In its B2B segment, LG Electronics is experiencing robust growth, particularly in the vehicle parts and HVAC systems sectors. Q1 2025 data revealed that the Vehicle Solution Company and Eco Solution Company reported record quarterly revenue and profits, with a combined year-over-year operating profit increase of over 37%. This growth is attributed to an expanding demand for electric and hybrid vehicles, necessitating sophisticated climate control systems and premium automotive parts. LG's proactive strategy in the B2B market demonstrates its capability to leverage manufacturing expertise from consumer electronics to industrial applications. Furthermore, the ongoing development of advanced HVAC systems focuses on improving energy efficiency and functionality, catering to both commercial and residential markets. LG's emphasis on technologies that facilitate smart building solutions positions it well within the competitive landscape.

  • 2-4. Subscription-based services in Thailand and Singapore

  • LG is reshaping consumer engagement through its subscription-based home appliance service, LG Subscribe, which launched in Thailand in October 2024 and has since seen encouraging uptake. This model offers over 70 products across 14 categories, including essential appliances like washing machines and air conditioners. By providing flexible payment plans, maintenance services, and warranty coverage, LG Subscribe caters effectively to the needs of urban professionals and young families who prioritize convenience and affordability. With projections targeting annual sales of US$100 million and a planned expansion from 25 to 150 stores, LG's strategic goals for its subscription service demonstrate a forward-thinking approach to modern consumer needs. This service represents a significant shift from traditional ownership models, aligning LG with contemporary trends favoring accessibility and utility in product offerings. As LG sets benchmarks in this innovative service space, it solidifies its position as a leader in Hungary and possibly other Southeast Asian markets.

3. Strong Financial Performance and Market Share

  • 3-1. Q1 2025 consolidated revenue and operating profit

  • In the first quarter of 2025, LG Electronics reported a significant milestone by achieving consolidated revenue of KRW 22.74 trillion (approximately USD 15.9 billion) and an operating profit of KRW 1.26 trillion. This performance marks LG's highest revenue in any first quarter to date and represents the sixth consecutive year in which the company has exceeded an operating profit of KRW 1 trillion during this period. The notable growth has been attributed to qualitative expansion across its business segments, particularly within B2B operations including its Eco Solution division, which encompasses vehicle components and HVAC systems. This segment has shown remarkable improvements, achieving a 37.2% increase in operating profits compared to the previous year.

  • 3-2. Record first-quarter revenue milestones

  • LG Electronics' record performance in Q1 2025 highlights its strategic emphasis on diversifying revenue streams, particularly through subscription services and its webOS-based advertising platform. The home appliance sector played a crucial role in this success, reporting significant growth with its premium products. Additionally, the HVAC and Vehicle Solution companies have contributed positively, benefiting from a focused approach to operational efficiencies and strong demand in global markets. Notably, the independent operation of the HVAC business initiated in this quarter has led to improved profitability due to enhanced resource allocation and tailored strategies to meet customer needs.

  • 3-3. LG Display’s return to profitability

  • On April 24, 2025, LG Display reported an impressive turnaround with a consolidated revenue of 6.0653 trillion won and an operating profit of 33.5 billion won for Q1 2025. This achievement marks its second consecutive quarter of profitability, despite traditionally slow market conditions. The company's focus on improving its business structure while transitioning towards OLED technology has significantly boosted its revenue share from OLED products to 55%, showcasing the effectiveness of its strategic initiatives. Overall, LG Display's return to profitability is a critical part of LG's broader financial performance and market strength.

  • 3-4. Global OLED TV market share leadership in 2024

  • As of 2024, LG commanded over 50% of the global OLED TV market, solidifying its leadership position within this segment. This achievement is part of a broader trend wherein LG has strategically positioned itself to benefit from the increasing demand for high-quality display technology. The concerted efforts in product innovation, coupled with an emphasis on expanding their OLED portfolio, have been key drivers in maintaining this market share dominance. The transition to OLED technology not only enhances picture quality for consumers but also supports LG's financial performance through higher margin products.

4. Smart and Sustainable Innovations

  • 4-1. Subscription-based home appliances model

  • As of April 2025, LG Electronics has successfully launched its subscription-based home appliance service, LG Subscribe, in Thailand, following its initial introduction in South Korea, Malaysia, and Taiwan. This innovative model is designed to transform the conventional ownership paradigm of household appliances, aligning with modern consumer needs for flexibility and hassle-free living. The service, which debuted in Thailand in October 2024, offers an extensive range of products across 14 categories, featuring more than 70 models including washing machines, air conditioners, and premium televisions. Subscribers benefit from regular maintenance and warranty coverage throughout the contract period, allowing them to enjoy appliances without the financial burden of large upfront payments.

  • LG's strategy positions this service to resonate particularly well with urban professionals and young families, who appreciate its affordability and convenience. The program aims to expand further, with goals of reaching annual sales of US$100 million within three years and increasing its store network from 25 to 150 locations nationwide by year-end 2025. This expansion reflects LG’s commitment to accessibility and customer-centric solutions, reinforcing its strategy to provide a comprehensive home appliance selection coupled with professional care services.

  • 4-2. LG PuroTec antimicrobial glass powder

  • Additionally, LG is advancing its B2B material offerings through the development of LG PuroTec, an antimicrobial glass powder that showcases the company's commitment to innovation in advanced materials. First introduced in 2023, this product exhibits strong antibacterial and anti-fungal properties and is designed for applications across various industries, including construction, textiles, and medical devices. LG demonstrated PuroTec's versatility at Chinaplas 2025, a key international exhibition for industrial materials, where it highlighted its applicability for enhancing the hygiene and durability of products used in everyday environments.

  • PuroTec can be seamlessly integrated into existing materials, enhancing their performance and durability while maintaining a competitive edge in manufacturing. The product is part of LG’s broader strategy to expand its footprint in the global advanced materials market, with plans for further showcasing its potential at upcoming events, including K 2025 in Düsseldorf.

  • 4-3. Design excellence and Red Dot awards

  • In terms of design innovation, LG has celebrated significant recognition, winning a total of 35 Red Dot Awards as of April 2025, which include prestigious titles such as Best of the Best and Best Innovation. These awards underscore LG’s commitment to delivering exceptionally designed products that enhance user experiences. Among the standout products is the LG Signature OLED T, a groundbreaking display that combines wireless technology with a transparent screen feature, which received the Best of the Best award. This is particularly significant in the context of current design trends that prioritize both functionality and aesthetic appeal. Additionally, the Mobile AI Home Hub was awarded for its innovative interaction features, leveraging LG’s advanced AI technologies to create a more intuitive living environment. This commitment to design excellence not only fosters brand loyalty but also positions LG as a leader in merging style with functional technology.

  • 4-4. Corporate responsibility and environmental initiatives

  • Finally, LG’s corporate responsibility efforts and environmental initiatives are intrinsically linked to its innovation strategies. The company emphasizes sustainability in its product design and manufacturing processes, striving for energy efficiency and reduced environmental impact. Initiatives encompass investments in green technologies and materials while integrating advanced AI in appliances to optimize energy use and enhance user convenience. As consumer preferences evolve towards more sustainable options, LG’s focus on environmentally responsible innovations enhances its market positioning and aligns its product offerings with the values of eco-conscious consumers. These elements reflect a holistic approach to innovation that prioritizes sustainability, social responsibility, and customer satisfaction.

5. Competitive Positioning Against Samsung

  • 5-1. OLED TV segment comparison

  • As of April 2025, LG Electronics has firmly established itself as the leader in the OLED TV market, commanding a significant portion of the global market share—over 50%—in 2024. This dominant position contrasts sharply with Samsung, which, while being the second biggest TV brand worldwide, has focused primarily on QLED technology. LG's commitment to OLED technology is evident in its innovative range of products, which include not only high-quality displays but also advanced features such as self-lighting pixel technology that enhances picture quality and provides more vivid imagery. This technological prowess has enabled LG to outpace Samsung, particularly in premium market segments where consumers are increasingly prioritizing picture performance and viewing experience.

  • 5-2. Participation in outdoor LED lighting market

  • The outdoor LED lighting market is experiencing rapid growth, projected to reach USD 83.26 billion by 2033, driven by the global shift towards energy-efficient solutions and urban infrastructure development. LG is strategically positioned to capitalize on this trend, differentiating itself from Samsung by focusing on innovative LED technologies that promise longer lifespans and lower maintenance costs. While Samsung also participates in this market, LG's established reputation in the lighting sector and its advanced technology integration into smart urban environments give it a competitive edge. Notably, LG's emphasis on alignment with sustainability initiatives further enhances its market positioning, appealing to consumers and municipalities prioritizing eco-friendly practices.

  • 5-3. Differentiation through smart appliances and services

  • LG is also gaining ground over Samsung in the smart appliances segment. The company has introduced subscription-based smart appliances in markets like Thailand and Singapore, allowing consumers to experience cutting-edge technology without significant upfront costs. This service-oriented approach not only increases accessibility but also fosters ongoing customer engagement, solidifying brand loyalty. In contrast, Samsung has primarily focused on standalone product sales without a robust subscription model, potentially limiting its ability to adapt to evolving consumer preferences. By leveraging its innovations in both smart appliance technology and service delivery, LG effectively differentiates itself in a closely contested marketplace, driving its competitive advantage against Samsung.

6. Future Outlook and Market Forecasts

  • 6-1. Smart appliances market forecast to 2032

  • The smart appliances market is projected to experience robust growth, reaching an estimated value of $93.03 billion by 2032. This represents a compound annual growth rate (CAGR) of 11.5% from 2025. The driving forces behind this growth include the increasing demand for energy-efficient solutions, the integration of artificial intelligence (AI) and the Internet of Things (IoT) in home appliances, and rising consumer expectations for convenience and connectivity. Emerging markets, particularly in Asia-Pacific, are expected to play a significant role in this growth, fueled by urbanization and an expanding middle class eager to embrace smart home technologies.

  • 6-2. Outdoor LED lighting market prospects through 2033

  • The outdoor LED lighting market is poised for significant expansion, projected to increase from $27.50 billion in 2024 to approximately $83.26 billion by 2033. This growth translates to a CAGR of 13.10% from 2025 to 2033. Key factors contributing to this increase include growing environmental consciousness, urbanization pressures demanding efficient infrastructure, and technological advancements in smart lighting systems. Government regulations promoting energy-efficient technologies further bolster adoption rates as municipalities and businesses look for sustainable solutions, aligning with global sustainability goals.

  • 6-3. Green logistics growth trajectory

  • The green logistics market is expected to witness substantial growth with a projected value increase from $2.226 trillion in 2025 to $3.319 trillion by 2030, reflecting a CAGR of 8.32%. The push towards sustainability is reshaping logistics operations, as companies strive to meet decarbonization commitments. Emerging trends include the adoption of alternative fuels, optimizing transportation routes, and enhancing energy efficiency in warehouses. Notably, initiatives like India's PM GatiShakti National Master Plan aim to integrate sustainability in logistics infrastructure, promoting multi-modal connectivity and clean energy practices.

  • 6-4. Manufacturing automation trends and ROI

  • Automation in manufacturing is on the rise, enabling companies to enhance operational efficiency and maximize return on investment (ROI). The evolution of smart factories characterized by advanced technologies such as AI, machine learning, and real-time data analytics is setting a new benchmark for productivity. The Gartner report anticipates that the integration of automation will significantly reduce operational costs, improve consistency, and foster innovation. Companies are leveraging automation to streamline production processes, thereby minimizing human errors and amplifying production capacity. As industries continue to embrace Industry 4.0, the emphasis on optimizing labor dynamics and enhancing workforce skillsets will become increasingly critical.

Conclusion

  • The comprehensive range of LG Electronics' offerings, which encompass high-end OLED TVs, energy-efficient home appliances, B2B components, and innovative subscription services, has established the company as a market leader, particularly emphasized by its record-breaking financial performance in Q1 2025. As LG diverges into service-driven growth strategies with models like LG Subscribe, it reflects a profound shift from traditional product-centric approaches to more accessible and customer-focused solutions. Coupled with investments in sustainability through initiatives such as LG PuroTec, the company's direction indicates a well-considered response to prevailing market demands for eco-friendly practices.

  • Looking toward the future, LG is well-positioned to capitalize on robust growth forecasts within the smart appliance sector, as well as in outdoor LED lighting and automation, further fortifying its competitive edge over rivals, particularly Samsung. To enhance its strategic positioning, LG should prioritize deeper integration of artificial intelligence across its products, continue to grow its subscription and B2B service platforms, and maintain unwavering support for environmental sustainability in design and manufacturing processes. These initiatives will not only secure continued resilience but will also bolster shareholder value, ensuring that LG Electronics remains a pivotal player in the technology landscape as consumer preferences evolve.

Glossary

  • LG Electronics: A South Korean multinational electronics company that has established itself as a leader in consumer electronics, home appliances, and display technology. As of April 26, 2025, LG has reported record financial performance and maintains a strong market position, particularly in OLED TVs and smart appliances.
  • OLED TV: Organic Light Emitting Diode television technology known for delivering superior picture quality, contrast, and color accuracy. LG holds over 50% of the global OLED TV market as of 2024, driven by continuous innovation in display technology.
  • Smart Appliances: Home devices equipped with internet connectivity and smart technology to enhance user convenience. LG's smart appliances are projected to grow significantly, with a compound annual growth rate (CAGR) of 11.5% through 2032, reflecting market demand for energy-efficient and connected home solutions.
  • Subscription Service: A business model that allows consumers to access products without outright purchasing them, often involving a monthly fee. LG's subscription service, LG Subscribe, provides over 70 home appliance options with flexible payment plans, launched in Thailand in October 2024.
  • PuroTec: An antimicrobial glass powder developed by LG that utilizes advanced materials technology to impart antibacterial and antifungal properties. First introduced in 2023, it aims to enhance product hygiene and durability across various industries.
  • Q1 Financials: Refers to the financial performance of LG Electronics in the first quarter of 2025, where it reported a consolidated revenue of KRW 22.74 trillion (approximately USD 15.9 billion) and operating profits exceeding KRW 1 trillion, marking a record achievement for the company.
  • Market Share: The percentage of an industry or market's total sales that is earned by a particular company over a specified time period. LG Electronics commands over 50% of the global OLED TV segment, signifying its leading position in this technology sector.
  • Innovation: The act of introducing new ideas, products, or methods. LG has been recognized for its strategic innovations such as subscription-based services and advanced materials like PuroTec, which cater to contemporary consumer needs.
  • Automation: The use of technology to perform tasks with reduced human intervention, enhancing operational efficiency and productivity. LG is focusing on manufacturing automation as part of its strategy to optimize processes and reduce costs.
  • LED Lighting: Light Emitting Diode lighting technology that is energy-efficient and long-lasting. LG's involvement in the outdoor LED lighting sector is growing rapidly, with significant market prospects projected through 2033.
  • B2B Components: Business-to-Business components refer to products and services sold from one business to another, as opposed to directly to consumers. LG’s B2B segment, including HVAC systems and vehicle parts, has shown substantial revenue growth as of Q1 2025.

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