LG Boosts Smart Factory Business with AI Advancements

LG, a renowned name in the electronics industry, made a significant move earlier this year by venturing into the smart factory market. The Production Engineering Research Institute (PRI), known for enhancing production and manufacturing competitiveness within LG Group affiliates, has now extended its expertise to external clients. The services offered encompass production consulting, equipment development, operation systems, and technology personnel training.

Despite being in its inaugural year, PRI has already achieved remarkable milestones. The institute anticipates securing orders worth approximately KRW 200 billion from external clients for its smart factory offerings. Major clients include secondary battery manufacturers, automotive parts manufacturers, and logistics companies. LG's strategic plan involves aggressive expansion into industries with growing factory demand, such as semiconductors, pharmaceuticals, biotechnology, and food and beverage.

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. LG aims to leverage its 66 years of manufacturing data and know-how, along with 1,000 patents related to smart factory technology filed by PRI, to establish a multi-trillion KRW enterprise by 2030.

Smart factory technology focuses on minimizing delays and errors between processes to enhance production efficiency. LG's approach involves a comprehensive implementation covering factory planning, design, construction, and operation. Real-time simulations using Digital Twin technology aid in optimizing production system design, while industrial robots like the Autonomous Mobile Robot (AMR) and Mobile Manipulator (MM) automate various tasks seamlessly.

LG's intelligent autonomous factories in Changwon, South Korea, and Tennessee, USA, have been recognized as Lighthouse Factories by the World Economic Forum. The implementation of smart factory systems led to a 17% increase in productivity, 30% improvement in energy efficiency, and a 70% reduction in quality costs due to defects at the Changwon plant. This transformation of LG's business portfolio is expected to drive rapid growth in the B2B sector, aligning with the company's 2030 Future Vision.