Samsung and LG Compete in B2B Market with HVAC and Modular Homes

Samsung Electronics and LG Electronics are intensifying their competition in the lucrative business-to-business (B2B) market, focusing on heating, ventilation, and air conditioning (HVAC) systems and modular homes as future growth areas.

According to industry reports, Samsung achieved a record 54% share of its sales from B2B channels last year, up from 50% the previous year. B2B sales involve supplying products based on contracts with businesses or institutions. LG Electronics also increased its B2B revenue share from 27% in 2021 to 36% in the first quarter of this year, with a goal of reaching 45% by 2030.

Both companies are heavily investing in the HVAC market. The growing demand for cooling solutions driven by the expansion of artificial intelligence (AI) data centers has positioned HVAC as a key growth sector. Samsung has strengthened its dedicated HVAC organization and actively pursued the acquisition of Europe’s largest HVAC specialist to expand its business. LG has also restructured its operations, transferring its HVAC business to the Energy Solutions division by the end of 2024, while expanding its data center cooling solutions and large chiller business.

Competition has also intensified in the emerging sector of modular homes, which is seen as a new business opportunity that can integrate their core offerings in appliances, AI, and HVAC.

Samsung aims to differentiate itself by applying AI technology to its appliances and smart home platform, SmartThings. In February of last year, it signed a memorandum of understanding with Yuchang E&C to develop modular housing for multi-family units. At the International Consumer Electronics Show (IFA) in Germany last year, Samsung collaborated with Samsung C&T to unveil a modular home solution targeted at B2B clients. Recently, it introduced the "Samsung AI Modular Home," a product that incorporates AI features, in partnership with the modular housing company Space Production.

LG Electronics has also entered the modular housing market directly. In 2024, it plans to launch the "LG Smart Cottage," which integrates AI appliances and HVAC technologies, and has begun selling modular housing products. Last month, LG established strategic partnerships with Swedish modular housing firm SIBS and Australian housing company Greater Homes.