- To newly establish a LiDAR business organization directly
under the CEO recently
- To strengthen Vehicle Camera Module business capability via
equity investment, product enhancement, and factory
expansion.
- To become a 'Vehicle Sensing Total Solution
Provider'…providing differentiated customer values
SEOUL, South Korea,
July 3, 2024 /PRNewswire/ -- LG
Innotek (CEO Moon Hyuksoo) is poised
to accelerate growth in the vehicle sensing solution business by
leveraging its leading-edge optical technology to drive innovation
in the future mobility sector.
At a press conference held in March, LG Innotek CEO Moon,
Hyuksoo outlined his plans, stating, "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."
The sensing solution business for AD (Autonomous Driving) &
ADAS (Advanced Driver Assistance System) is one of the most
promising areas where the CEO's management strategy can be
implemented with the greatest impact.
The paramount concern in the autonomous driving market, which is
emerging as a key area for future vehicles, is the safety of both
drivers and pedestrians. If a vehicle cannot accurately detect
obstacles that hamper driving, it may lead to a serious accident.
This is the reason why car makers are investing in advanced vehicle
sensing solutions.
- To newly establish a LiDAR business organization directly
under the CEO recently
LG Innotek has identified 'High Performance LiDAR' as a key
pillar of its Vehicle Sensing Solution business and is pursuing a
targeted approach to the LiDAR market.
In particular, LG Innotek has recently established a dedicated
business division for LiDAR, reporting directly to the CEO. The
development and business of LiDAR, previously dispersed across the
existing optical solution business division and CTO, have been
consolidated under the LiDAR business division. This organisational
restructuring was driven by the CEO's strong desire to oversee the
LiDAR business directly and to enhance capabilities and operational
efficiency.
LG Innotek has been consistently strengthening its core capacity
to engage in the LiDAR business since 2015. Last year, LG Innotek
acquired 77 US patents related to LiDAR from a US autonomous
driving startup company. The company currently holds over 300
patents related to LiDAR.
- To strengthen Vehicle Camera Module business capability via
equity investment, product enhancement, and factory
expansion.
Another product line that LG Innotek has identified as a key
pillar is high-value added vehicle camera modules.
The majority of camera modules mounted on vehicles that have
been commercialised to date tend to fulfil only the basic function
of filming and have low added value as products. However, as we
enter the era of autonomous driving, the vehicle camera modules
must take on the role of the eyes of a driver. It is therefore
vital that vehicle camera modules are equipped with enhanced
sensing capabilities.
In line with such trends, LG Innotek has entered into a contract
for equity investment with AOE Optronics (hereinafter referred to
as 'AOE') to enhance its capabilities in the vehicle camera module
business.
Recently, there has been a notable increase in demand for
'Aspherical Glass Lenses', a key component for high-resolution
cameras in the autonomous driving vehicle industry. AOE has
considerable expertise in manufacturing technologies for this
specific area. By working closely with AOE, LG Innotek is able to
accelerate the development of high-value camera modules.
Furthermore, in February 2024, LG
Innotek launched a 'High-Performance Heating Camera Module',
designed to rapidly defrost vehicle camera lenses in cold weather
conditions. This module maintains its original size while adding a
heating function to offer customers enhanced value.
LG Innotek is currently developing a high heat-generating
material that can accelerate heating even faster than the current
product. The company intends to conduct performance verification on
the ultra-high-speed heating camera modules incorporating this
material.
Moreover, LG Innotek is developing camera modules with a washing
function to remove foreign substances like dust from the lens while
driving. These will enable the company to expand its
high-value-added vehicle camera module portfolio.
The company is also investing in facilities to occupy the
vehicle camera module market.
In addition, LG Innotek purchased approximately 99,173 square
meters of land near its manufacturing subsidiary in San Juan de Rio, Mexico, with the intention of expanding its
factory last year. The newly expanded factory is scheduled to
commence mass production of vehicle camera modules in the second
half of next year.
An official from LG Innotek 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, by making good use of the
geographical proximity."
- To become a 'Vehicle Sensing Total Solution
Provider'…providing differentiated customer values
LG Innotek aims to become a market leader in AD/ADAS sensing
solutions by offering differentiated customer value as a 'Vehicle
Sensing Total Solution Provider' that encompasses vehicle interior
and exterior solutions.
It is well-known that global car manufacturers developing
autonomous driving vehicles have established various strategies for
adopting different sensing components.
LG Innotek intends to continue improving the performance of
vehicle camera modules in response to customers who are interested
in adopting only vehicle camera modules.
Furthermore, the company is actively seeking to attract
customers by implementing 'Sensor Fusion', which combines vehicle
camera modules and LiDAR through software.
This will enable the company to offer customers a wider range of
sensing parts for installation on a vehicle's exterior and a
'In-Cabin Vehicle Camera Module' that can be employed for various
purposes inside a vehicle, such as teleconferencing, entertainment,
and infant monitoring.
The CEO stated that, based on the formula for becoming No. 1
learned from the mobile camera module business, the vehicle sensing
solution business will be fostered into a business with annual
sales of 1.4 billion USD by 2030 and
developed as another top-ranking business.
[Reference 1] Outlook on size of global autonomous driving
vehicle market
According to the global market research firm,
'Precedence Research,' the global autonomous driving vehicle market
is forecasted to grow by an annual average of 35% from 158.3 billion USD in 2023 to approximately
2.35 trillion USD in 2032.
[Reference 2] Outlook on size of global autonomous driving
LiDAR market
The global autonomous driving vehicle market
is forecast to grow by an annual average of 35% from 158.3 billion USD in 2023 to approximately
2.35 trillion USD in 2032, according
to the global market research firm, 'Precedence Research'.
[Reference 3] Outlook on size of global vehicle camera module
market
The market research firm S&P Global and LG
Innotek's internal analysis indicates that the global vehicle
camera module market will grow at an annual average of 7% from
6.44 billion USD in 2023 to
10.03 billion USD by 2030 due to the
advancement of autonomous driving technology.
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