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LG Shifts Robotics Focus to Component Supply, Targeting Actuator Market
LG Electronics is pivoting its robotics strategy from direct robot sales to becoming a key supplier of actuators, crucial components in humanoid and industrial robots. The company, has developed the CLOiD home robot system.
LG Targets Robotics Actuator Market
LG Electronics has developed a humanoid home robot called CLOiD, capable of navigating a house, interacting with appliances, and performing basic tasks. While the company initially aims for commercialization by 2030, a larger financial opportunity may lie beyond direct robot sales. LG intends to become a primary supplier of actuators—the motor and gear systems essential for robot movement—positioning itself within the robotics supply chain.
Youngjae Kim, head of LG's robotics platform research, confirmed the company's intent to sell its actuators to other robot manufacturers. This strategy leverages LG's decades of experience in motor technology, providing a competitive advantage in the emerging robotics sector.
Strategic Shift to Component Manufacturing
LG's shift to component manufacturing mirrors its existing business model, where it supplies critical components for televisions, refrigerators, and washing machines. The company's display panels and camera modules are used in smartphones, while its batteries and electric powertrain systems are supplied to automakers globally.
To support its robotics ambition, LG is replicating its successful AXIUM actuator platform. This platform integrates a motor, gearbox, and drive unit into a compact package. Actuators represent a significant cost driver in robot production, estimated to account for 40-60% of a robot's total cost. This high-value component market offers substantial potential for profitability.
Market Opportunity and Competitive Edge
The number of companies capable of high-performance actuator manufacturing at scale remains limited, creating an attractive opening for suppliers with deep engineering and manufacturing capabilities. LG believes its long history in robotics, spanning over two decades—from early home-cleaning machines to commercial service robots, warehouse automation systems, and robotic arms in its own factories—positions it favorably.
This extensive experience has built both the hardware expertise and operational know-how required to compete effectively. While CLOiD remains integral to LG's robotics vision, the greater business opportunity lies in the B2B supply of key components. As the robotics industry evolves, mirroring the growth trajectories of smartphones and electric vehicles, component suppliers like LG stand to capture a substantial share of the industry's value, even as major brands dominate public attention.
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