LG Electronics said Thursday it has set a goal of achieving over 1 trillion won ($724 million) in sales in the smart factory solutions business by 2030, by integrating artificial intelligence and digital transformation technologies as well as manufacturing and production data.

“Despite it being the inaugural year of operation, substantial progress has already been made,” said Song Si-yong, a smart factory business division leader of LG PRI (Production Engineering Research Institute), during a press conference held in Pyeongtaek, Gyeonggi Province on Thursday.

According to the home appliance giant’s production technology research lab smart factory leader, orders for providing smart factory solutions to external companies this year are projected to amount to about 300 billion won, with sales expected to reach around 200 billion won.

LG Electronics CEO Cho Joo-wan highlighted strengthening business-to-business capabilities as one of the three growth engines by announcing the “2030 Future Vision” last year.

Smart factory business is expected to contribute a large portion to the company’s 2030 vision, according to Song.

Its key customers include secondary battery-producing companies, auto parts makers and logistic companies, thanks to the lab’s extensive experience and data in the smart factory solution sector accumulated through LG affiliates.

Regionally, most clients are from North America and Asia, Song added.

The amount of manufacturing and production data accumulated over the past 10 years is 770 terabytes and there are more than 1,000 patents related to smart factory solutions obtained by the lab.

In the near future, LG looks to accelerate business expansion by actively targeting industries where demand for factories is expected to increase, such as semiconductors, pharmaceuticals, the bioindustry and food and beverages.

Citing market research firm Precedence Research data, LG said the global smart factory market is forecast to grow from $155.6 billion in 2024 to $268.5 billion by 2030.

LG Electronics has strength in smart factory solutions, including manufacturing know-how covering various areas, including construction methods and equipment as well as communication technology.

LG combines these strengths with AI and the digital transformation to set up and provide a step-by-step road map for the entire production process from the perspective of automation, digitalization and intelligent manufacturing.

LG’s manufacturing plants in Tennessee, the US and Changwon, South Gyeongsang Province, have been recognized by the World Economic Forum and included in its Lighthouse Factory network.

According to LG officials, this means that smart factory solutions based on know-how verified internally and externally are meaningful in terms of the commercialization of intangible assets.

Following the smart factory transition at the Changwon plant, productivity increased by 17 percent and energy efficiency rose by 30 percent, while costs related to quality issues decreased by 70 percent.

For those potential clients, LG opened an experience center in Pyeongtaek called Smart Factory Acceleration Center, where they can see and experience LG's smart factory solutions applied in actual fields at a glance.

Since it is the only LG center available in the world, the venue has received more than 6,000 visitors from global big tech firms so far, according to the LG official. It offers various programs from production system design and operation and facility process management, to exhibition zones for each solution, such as robot automation and environmental energy.

“We will provide optimal smart factory solutions at all stages, from factory planning to design, construction and operation, and become a partner in our customers' manufacturing journey,” said Jeong Dae-hwa, president of LG PRI.