LG Innotek bets big on digital keys to drive W1.5tr in auto sales by 2030
LG Innotek is stepping up its growth efforts with a next-generation digital key solution, positioning it as a central pillar in achieving 1.5 trillion won ($1.09 billion) in annual sales from automotive connectivity businesses by 2030.
The Korean electronic parts supplier unveiled this vision during a media seminar Tuesday at its headquarters in western Seoul, where it showcased its latest advancements in digital key technology.
'Our next-generation digital key solution is an innovation built on LG Innotek's proprietary wireless communication technology, delivering differentiated value to customers,' said Yoo Byaeng-kuk, head of the company's automotive components business unit, during the seminar.
'It (the 1.5 trillion won target) is not just wishful thinking. It's grounded in orders we have already secured. We aim to become the world's No. 1 supplier of digital key solutions by 2030.'
LG Innotek's digital key solution replaces traditional smart keys with a smartphone-based system that uses Bluetooth and near-field communication to unlock vehicle doors.
In 2024 alone, the company secured orders for 14 vehicle models equipped with an upgraded version featuring ultrawideband technology, which minimizes external interference between the key and the vehicle to enhance security.
Looking ahead, LG Innotek plans to further advance its digital key with a high-precision 3D positioning algorithm and proprietary radar technology, targeting mass production by 2028.
The 3D algorithm reduces the margin of error of 20–30 centimeters in current products to just 10 centimeters. It enables precise detection of whether the user is inside or outside the car, or near specific doors or the trunk, the company said.
Additionally, the radar system enhances safety by sending smartphone alerts in case of external impacts or if a child is left inside the vehicle.
'There are only us and one or two companies in Europe in the world capable of developing a digital key that can recognize positioning within 10 centimeters,' said Nam Hyoung-ki, head of LG Innotek's connectivity development department.
Nam added that the company is working to expand the digital key modules to support autonomous parking, leveraging its high precision to replace multiple complex components that currently handle separate functions.
LG Innotek's enhanced focus on digital key technology comes as the global market is projected to grow from the current 600 billion won to 3.3 trillion won by 2030.
While premium vehicle segments already show an adoption rate of around 70 percent, the company expects broader uptake across other segments, driven by the expansion of car-sharing and leasing services increasing demand for keyless solutions.
With 83 percent of its first-quarter sales of 4.98 trillion won coming from optical solutions, its traditional core business, the company is expanding its portfolio to include the automotive electronic parts sector to capitalize on the anticipated self-driving car boom.
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