LG Electronics is integrating artificial intelligence (AI) and robotics into its manufacturing processes as part of its smart factory solutions business. The Production Engineering Research Institute (PRI) at LG, which has traditionally focused on enhancing production and manufacturing competitiveness for LG Group affiliates, is now extending its expertise to external clients. The institute offers services such as production consulting, development of equipment and operation systems, and training for technology personnel.
In its first year, PRI anticipates securing orders worth approximately KRW 200 billion from external clients, including secondary battery manufacturers, automotive parts manufacturers, and logistics companies. LG plans to expand its smart factory solutions into industries with increasing factory demand, such as semiconductors, pharmaceuticals, biotechnology, and food and beverage, with a goal to develop this business into a multi-trillion KRW enterprise by 2030.
According to Precedence Research, the global smart factory market is expected to grow from USD 155.61 billion this year to USD 268.46 billion by 2030. LG has accumulated 770 terabytes of manufacturing and production data over the past decade and has filed over 1,000 patents related to smart factory solutions. These solutions include production system design, monitoring and operation through Digital Twin technology, big data and AI-based management of quality, industrial safety, and equipment, and the provision of various industrial robots.
In LG’s smart factory setup, AI and robotics play a crucial role in minimizing delays and errors in production processes, directly impacting business profitability. For example, at LG’s refrigerator production line in Changwon, a 10-minute delay would result in a production shortfall of 50 refrigerators, leading to a significant financial loss. The company’s approach to smart factory solutions covers the entire process for clients, from factory planning to design, construction, and operation. Digital Twin technology enables the creation of virtual replicas of factories, allowing for the optimization of production and logistics flows. Additionally, real-time data analysis aids in detecting bottlenecks, defects, and malfunctions, thereby improving productivity and operational efficiency.
