LG Innotek aims to grow its vehicle sensing solution business into a 1.4 billion USD operation by 2030. This ambitious plan includes establishing a new LiDAR business, strengthening the vehicle camera module business, and positioning itself as a ‘Vehicle Sensing Total Solution Provider’ to deliver unparalleled customer value.
Key Highlights
- New LiDAR Business Division: Establishing a dedicated LiDAR division to enhance capabilities and operational efficiency.
- Strengthening Vehicle Camera Modules: Through equity investment, product enhancements, and factory expansion.
- Becoming a Total Solution Provider: Offering comprehensive AD/ADAS sensing solutions.
Growth Through Innovation and Strategic Investments
LG Innotek (CEO Moon Hyuksoo) is leveraging its cutting-edge optical technology to drive growth in the vehicle sensing solution business. The company aims to capitalize on its expertise in the mobile camera module industry to build a robust business portfolio.
CEO Moon Hyuksoo stated, “We will identify a new business opportunity where we can leverage our company’s distinctive ‘No. 1 know-how’ in the mobile camera module industry to establish a robust business portfolio.”
Key Focus Areas:
- Autonomous Driving & ADAS: Safety is paramount in the autonomous driving market. Accurate obstacle detection is critical to preventing accidents, prompting significant investment in advanced vehicle sensing solutions.
LiDAR Business Development
High Performance LiDAR has been identified as a key pillar of LG Innotek’s Vehicle Sensing Solution business. The company recently established a dedicated LiDAR division, directly overseen by the CEO. This restructuring aims to enhance capabilities and operational efficiency.
Since 2015, LG Innotek has been strengthening its core capacity in the LiDAR business. Last year, the company acquired 77 US patents related to LiDAR from a US autonomous driving startup, bringing its total to over 300 LiDAR-related patents.
Strengthening Vehicle Camera Modules
Vehicle Camera Modules are another critical focus area for LG Innotek. The company has entered into an equity investment agreement with AOE Optronics to enhance its capabilities. AOE’s expertise in ‘Aspherical Glass Lenses,’ essential for high-resolution cameras, will aid in developing high-value camera modules.
In February 2024, LG Innotek launched a High-Performance Heating Camera Module, designed to defrost vehicle camera lenses quickly in cold weather. The company is also developing modules with a washing function to remove foreign substances from the lens while driving.
To meet growing demand, LG Innotek is expanding its manufacturing capacity. The company purchased approximately 99,173 square meters of land near its subsidiary in San Juan de Rio, Mexico, to expand its factory. Mass production of vehicle camera modules is expected to commence in the second half of next year.
An LG Innotek official commented, “The decision to locate the vehicle camera module production hub in Mexico was driven by our strategy to enhance our ability to serve customers in the North American region, where major car makers are concentrated.”
Becoming a ‘Vehicle Sensing Total Solution Provider’
LG Innotek aspires to become a market leader in AD/ADAS sensing solutions, providing differentiated customer value. The company plans to offer a wide range of sensing components and implement ‘Sensor Fusion’, combining vehicle camera modules and LiDAR through software.
The CEO emphasized that the company aims to foster the vehicle sensing solution business into a 1.4 billion USD operation by 2030, replicating the success formula from the mobile camera module business.
Market Outlook
- Global Autonomous Driving Vehicle Market: Projected to grow from 158.3 billion USD in 2023 to approximately 2.35 trillion USD in 2032, with an annual growth rate of 35%.
- Global Vehicle Camera Module Market: Expected to grow from 6.44 billion USD in 2023 to 10.03 billion USD by 2030, with an annual growth rate of 7%.
LG Innotek’s strategic initiatives and investments position it strongly to capitalize on the burgeoning market for vehicle sensing solutions, driving innovation and safety in the future mobility sector.
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