In a move to accelerate the development of its commercial service robots, LG Electronics has invested $60 million in Bear Robotics, a prominent Silicon Valley-based startup specializing in AI-driven autonomous service robots. LG is strategically investing in Bear Robotics as it prepares for a transition towards software-defined robots and seeks to secure a competitive edge in the growing service robot market.
“We will seek to develop our robot business into a new growth engine, exploring various opportunities through the integration of cutting-edge technologies such as Embodied AI and robotic manipulation,” said Lee Sam-soo, chief strategy officer at LG Electronics.
Bear Robotics, founded by former Google senior software engineer John Ha, has gained recognition for its AI-powered indoor delivery robots in markets across the US, Korea, and Japan. LG is particularly interested in Bear Robotics' expertise in the platformization of service robotics software, robot fleet management technology, and cloud-based control solutions.
Recognizing the importance of standardized open platforms in the robot market, LG is committed to developing scalable service robots on an open architecture software platform. This approach will allow LG to cater to a variety of environments and significantly reduce market-entry costs by spearheading efforts in standardizing robot platforms.
LG views its robot business as one of the core pillars of its portfolio. The company first deployed its guide robots at Incheon International Airport in 2017 and has since introduced tailored solutions for diverse commerce settings, including delivery and disinfection services. LG is actively pursuing global expansion, with a dedicated production facility for service robots at the LG Future Park in Gumi, North Gyeongsang Province, and a presence in markets such as the US, Japan, and Southeast Asia.
The global service robotics market is expected to grow from $36.2 billion in 2021 to $103.3 billion by 2026. By investing in Bear Robotics and focusing on software-defined robots, LG is positioning itself for significant growth in this rapidly expanding industry. This strategic partnership has the potential to revolutionize the service robot market, paving the way for enhanced operational efficiency and fostering synergies.
LG Electronics CEO Cho Joo-wan discussed the company’s plans for the service robotics market, stating, “In the service robotics market, we’re focusing primarily on areas such as delivery and logistics. However, we are carefully considering future directions, keeping open the possibility of equity investments or mergers and acquisitions.”
With this latest investment in Bear Robotics, LG is showcasing its commitment to innovation and staying ahead of the curve in the field of service robots. Exciting developments are on the horizon, and LG is well positioned to lead the way in shaping the future of this rapidly evolving industry.
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