All data are based on the daily closing price as of May 22, 2024

LG Electronics Invests $60 Million in Bear Robotics, Eyeing Leadership in Service Robotics Market

Expanding its technological frontier, LG becomes the principal shareholder in Bear Robotics, reinforcing its commitment to innovation in AI-driven service robots
South Korea
l 066570.KO Blue Chip 150 Tech 350 OM 60
Share this on

LG Electronics Inc., a South Korean tech behemoth, announced a strategic investment of $60 million in Bear Robotics Inc., a Californian startup specializing in service robots, signaling a significant pivot towards robotics as a core growth area. This investment positions LG as the largest shareholder, underscoring its long-term vision in the robotics domain rather than mere short-term gains.

Founded in 2017 by ex-Google engineer John Ha, Bear Robotics has carved out a niche in the AI-powered autonomous service robot sector. Their flagship robot, Servi, is already operational in multiple countries, enhancing efficiency in restaurants and other indoor venues with its advanced robotics software, fleet management technology, and cloud-based solutions.

LG’s move aligns with its strategic focus to dominate the service robotics market, particularly emphasizing delivery and logistics solutions. LG CEO Cho Joo-wan, at CES 2024, highlighted the company’s meticulous approach toward equity investments and mergers and acquisitions in the robotics sector, aiming to spearhead the industry’s transition to software-defined robotics (SDR). This concept mirrors the transformative impact of software in the mobility sector, advocating for a standardized, open architecture software platform that can adapt to diverse operational environments.

SDR champions the standardization of robot platforms, which could democratize the market and lower entry barriers, similar to Android’s impact on the mobile industry. LG’s investment in robotics is not new; it has been visible since deploying CLOi guide robots at Incheon International Airport and expanding to various commercial applications. The company’s commitment is further evidenced by its robot production facility at LG Future Park in North Gyeongsang Province.

The service robotics sector is on the brink of exponential growth, with projections suggesting a surge from $15.9 billion in 2022 to $187.3 billion by 2030. LG’s Chief Strategy Officer, Lee Sam-soo, envisions the robotics venture as a future growth pillar, integrating advanced technologies like embodied AI and robotic manipulation.

LG’s innovation trajectory also includes the development of residential robots, exemplified by their “Smart Home AI Agent,” set for mass production next year. Meanwhile, competitors like Samsung are advancing in collaborative robots, with their AI-driven robot Ballie and investment in Rainbow Robotics, showcasing the escalating race in robotics technology among global tech giants.

This competitive landscape extends to robotics operating systems, where players like Naver Corp. and big tech firms Google and Amazon are actively developing platforms, illustrating the burgeoning potential and strategic importance of robotics in the tech industry’s future.

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top