Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Samsung, LG Electronics set to debut at IAA Mobility 2023
A concept image of LG Electronics vehicle infotainment system installed in the cockpit of a car / Courtesy of LG Electronics
By Kim Hyun-bin
By Kim Hyun-bin
Samsung Electronics and LG Electronics are set to debut in the IAA Mobility 2023, an international motor show taking place in Munich, Germany, from Sept. 5 to 10, as part of attempts to seize the future market of automotive electronic components.
In response to the growth of future mobility alternatives, including electric and self-driving vehicles, both companies are eager to step up their businesses to become more competitive in the car component sectors.
The automotive component sector is expected to grow at an annual average rate of 14 percent until 2029. This is due to the rapid growth of the electric vehicle (EV) market, leading to an increase in the incorporation of high-value components such as semiconductors, cameras, sensors, communication and displays.
The automotive component market, which was around 70 percent of the size of the smartphone component market in 2017, is expected to surpass the smartphone component market this year.
In line with this, both companies are participating in the IAA Mobility for the first time, aiming to strengthen their automotive component businesses. IAA Mobility is one of the four major motor shows in the world where global car manufacturers and suppliers come together to unveil the latest innovative technologies and design the future of mobility.
Samsung Electronics will participate in IAA Mobility alongside Samsung Display and Samsung SDI.
LG Electronics will participate in IAA Mobility as a sponsor and will hold a press conference on Sept. 4, the day before the opening, to reveal its future vision for mobility.
"At IAA Mobility, we will present a vision for the future in-car experience for the first time and propose an advanced mobility ecosystem to customers and partners," an LG Electronics official said.
Samsung Electronics' power and audio subsidiary, Harman, recorded sales of 3.5 trillion won ($2.67 billion) and an operating profit of 250 billion won for the second quarter of this year. Compared to the same period last year, sales grew by 17.4 percent and operating profit by 150 percent.
Last year, Harman also achieved its all-time-high performance with annual sales of 13.21 trillion won and an operating profit of 880 billion won. The achievement is based on the expansion of its in-vehicle infotainment (IVI) system to high-end vehicles.
Harman plans to expand its orders in the areas of digital cockpit and car audio, combining Samsung's information and communication technology (ICT) capabilities with vehicle functions and enhancing the in-cabin experience (ICX). Samsung Electronics also plans to actively target the vehicle semiconductor market, which is expected to show about 30 percent growth range over the next five years.
LG Electronics' automotive component business has shown an average annual growth of around 30 percent over the past decade, centered on three businesses: vehicle infotainment systems, electric vehicle powertrains and vehicle lighting systems.
LG Electronics plans to respond to trends such as vehicle electrification and connected services by exploring new opportunities in future mobility, including autonomous driving, software and content.