Samsung Electronics is ramping up its heating, ventilation, and air conditioning (HVAC) business. This year, the company has participated in major exhibitions in North America and Europe, secured large overseas contracts, and launched heat pumps domestically, all aimed at developing a new growth engine to counteract poor performance in its device experience (DX) division.
On August 9, Samsung announced a partnership with the Oak Ridge National Laboratory under the U.S. Department of Energy to develop next-generation heating technology that operates reliably in temperatures below -30 degrees Celsius. The company plans to unveil a demonstration site for its next-generation 'EHS All-in-One' system in Jeju on August 10.
In April, Samsung officially launched its air-source EHS heat pump boiler in South Korea, expanding its previously Europe-centric heat pump business into the domestic market as the government pushes for electrification of heating.
The company is also accelerating its overseas market penetration. In June, it agreed to supply over 3,000 system air conditioners to a luxury residential complex in Gurugram, India, and last month announced plans to provide over 1,000 HVAC solutions to more than 100 mosques across eight cities in Saudi Arabia. This marks a shift from residential air conditioning sales to a broader B2B approach, supplying complete HVAC systems for construction projects.
Samsung is focusing on enhancing its brand recognition. After participating in the AHR Expo in the U.S. in February, it set up a booth at MCE, Europe’s largest HVAC exhibition, in March. The company also showcased its first joint exhibition with Flakt Group, which it acquired last year.
Industry analysts view Samsung's recent moves as an effort to catch up with LG Electronics, which has been leading the B2B HVAC market with its chillers and heat pumps for data centers and commercial and industrial applications. Samsung's strategy to gain ground involves acquisitions and partnerships. In North America, it established a joint venture with Lennox to strengthen its distribution network and product competitiveness, and the acquisition of Flakt has expanded its offerings to include central air conditioning for large commercial facilities and data centers.
The ultimate goal is to establish the HVAC business as a new growth driver for the DX division. While home appliances are significantly affected by economic conditions and replacement demand, the HVAC sector can secure substantial contracts and maintenance revenue as investments in buildings and data centers continue. The expansion of AI data centers is also a factor driving market growth.
An industry insider noted, "Since LG has been developing B2B HVAC as a future business first, it will be difficult for Samsung to close the gap by simply adding a few products. The recent push for simultaneous acquisitions, technology development, and overseas contracts indicates that HVAC has become a high priority within the DX division."
* This article has been translated by AI.
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