Consumer electronics manufacturer from South Korea, LG is anticipating a Rs 2,000-crore business below its business-to-business (B2B) segment this year while maintaining a 30 percent year-on-year growth, a company official stated. LG Electronics India’s B2B sector, which has been reinstated as Business Solutions, now contributes approximately 10 percent to the company’s total profit.
The Business Solutions segment sees enormous growth potential primarily in two sections — display and air solutions — from large government buyers such as Indian Railways. “This time, we are targeting Rs 2,000 crore from this market. We are looking at 30 percent growth year-on-year…we are aiming for next year also,” Vice-President and Business Head (Business Solutions), LG Electronics India, Hemendu Sinha said.
Sinha further notes that the B2B market is growing in India faster than the other segments. The government is contributing a significant amount of money for citizen assistance, public spaces, Sinha said, adding that government investments account for almost 30 percent of the total sales.
Asked whether the continuing slowdown into the B2C (business-to-customer) panel market has any impression on the B2B business of LG, Sinha said it was mostly unaffected. TV sales in India are down almost 10 percent this year and not expected to pick up. Strengthening its holdings of display solutions in the B2B division, LG Electronics India recently inaugurated new products, which include a transparent OLED, 130 all-in-one LED screens, interactive digital boards, and a new outdoor display.
An increasing customer base and improved penetration of consumer durables have offered enough scope for the growth of the Indian electronics sector. Consumer electronics is expected to be the primary driver for the Indian electronics business in the following financial year.
Increased broadband penetration in the country will contribute to additional avenues of growth for the electronics industry. The high demand for communication and broadband facilities, which constitute mobile handsets and their assistants, will likely to push the need for electronic components and materials.
Progressive miniaturization and the enhancing of multiple functions are key trends to watch. The miniaturization of commodities has resulted in the creation of mini accessories or components, while convergence has led manufacturers to combine multiple methods. Miniaturization is assumed to recapitulate and will affect the traditional component business, as chip components and associated circuits will displace most of the standard parts.
Here’s a comprehensive look at what are the trends in the consumer electronics space in 2019:
5G converts mainstream
Thanks to the increasing need for speed, telecom professionals are beginning to expand fifth-generation cellular networks this year. As a technology, 5G is assumed to bolster security, establish extensive connectivity between devices, along with many other benefits. Though 5G network services are far away from being rolled out, tech events and seminars displaying a slew of 5G powered products present a glimpse into what the future holds. Tech colossi like Verizon, Qualcomm, Intel, and AT&T have announced 5G approved products and technology resolutions soon to be available for consumers and businesses this year. In fact, MWC 2019 saw names like Samsung, Huawei, Xiaomi, LG and ZTE, announce that their 5G equipped models will be off the conveyor girdle and in the consumer’s hands this year itself.
Artificial Intelligence (AI)
With modifications in predictive technology, speech recognition, and big data analytics AI has been generating ripples in the consumer technology area. Virtually plugged into all piece of IoT technology like wearables and smart appliances, AI is continually unfolding new market opportunities. It also took center stage at CES 2019, displaying how the technology will be implanted into the most routine movements of human lives. Notable companies like Intel, Hisense, LG, and Mercedes took the lead in announcing their plans at the event. LG announced the Home Brew AI-enabled beer producer, while Hisense revealed three new quantum dot-technology TVs embracing AI chips. NVIDIA also announced that it would be designing the AI architecture required to help Mercedes Benz engineer self-driving cars.
Voice-assisted individual entertainment systems
As for the most advanced innovations in personal entertainment, 8K TVs are gearing up to extend a world of a difference in image tone, clarity, and resolution. However, businesses who offer intelligent plug-in systems into their newest designs will steal the spotlight. LG’s latest Signature Series OLED R is a rollable television that rises out of a box on the touch of a button. It will bolster Google Assistant, Amazon’s Alexa, and also Apple AirPlay 2. Apple, on the other hand, started up its ecosystem to partner with a plethora of TV manufacturers to provide passage to their AirPlay 2 and iTunes platforms.
Growth of smart homes
Smart homes are a reality thanks to remote connectivity among smartphones and Wi-Fi enabled homes and improved voice recognition technology. With the increasing availability of connected appliances, from fundamental security monitoring to smart illumination and entertainment systems, the smart home market looks promising. Technology giants like GE, Google, and Amazon, have created smart products that produce traffic updates, climate and calendar appointment notifications, and smart lighting. For example, the Capstone Connected Home’s Google-enabled smart mirror allows users to access Google Assistant and view videos from YouTube through voice and touchscreen capacities.
As consumer choices shift and technologies proceed to evolve, the consumer electronics industry will benefit from a host of new business possibilities. Based on the most modern innovations, it’s evident that 5G, IoT, and AI-powered voice assistant technologies will push the market. Businesses engaging in this space need to make informed investment judgments to ensure the sustained benefit of their products.