LG takes over OSO: strong momentum for European water heating!

LG takes over OSO: strong momentum for European water heating!

An exciting development in the heating industry is in full swing: South Korean company LG has just announced its full takeover of Norwegian water heating specialist OSO. This acquisition could have a significant impact on the European heating, ventilation and air conditioning (HVAC) market. OSO, which has been in business since 1932, brings valuable experience and technology, while LG plans to combine this with its own heat pump technologies. Together they are mastering the challenges of the impressively growing market, which has a volume of 15 billion dollars (approximately 13.7 billion euros), reports stadt-bremerhaven.de.

Another highlight of this acquisition is that OSO will continue to operate as an independent company and will be able to maintain its OEM partnerships. With this strategy, LG aims to significantly increase automation and productivity, based on its 60 years of manufacturing experience. The European market for air-to-water heat pumps is currently booming, with BRG Building Solutions forecasting annual sales to double from 1.2 million units in 2024 to 2.4 million by 2030.

Strategic acquisitions in the heating sector

But it's not just LG that is expanding! Bosch also has big ambitions. The company plans to acquire Johnson Controls' heating, ventilation and air conditioning business for approximately 7.4 billion euros. This strategic decision, which includes a joint shareholding with Hitachi, aims to close a gap in its own product portfolio, particularly in the area of ​​heat pumps and air conditioning systems. Through this acquisition, Bosch would like to strengthen its market position in North America and Asia sueddeutsche.de reported.

The Johnson Controls business areas to be taken over achieved sales of around four billion euros in 2023 and employed around 12,000 people. In the USA the focus is on central air conditioning solutions, while in Asia more individual heating and cooling devices are in demand. The integration into Bosch's Home Comfort Group means that almost 26,000 employees will work under the company's umbrella once the acquisition is completed.

Market growth forecasts

The global market for heat pumps is also moving. According to recent studies, the market size is expected to grow from $75.44 billion to $120.40 billion by 2029, a CAGR of 9.8%. The European market in particular is showing increasing demand for energy-efficient devices as society places increasing value on sustainability. The EU target calls for 65% of commercial buildings to be heated electrically by 2030 mordorintelligence.com.

These developments clearly show that the demand for air conditioning technology is growing rapidly. However, in the first quarter of 2024, 52% fewer heat pumps were sold than in the previous year, which has a double surprise effect: on the one hand, the large companies like Daikin continue to be market leaders, and on the other hand, the general market dynamics are promising. Despite short-term declines, growth forecasts are proving to be consistently positive, supported by changing consumer habits and policy measures.