LG Buys Athom in $61 Million Deal to Rule the 1 Growing Smart Home Market ($260 Billion by 2028!)

 

LG Buys Athom in $61 Million Deal to Rule the 1 Growing Smart Home Market ($260 Billion by 2028!)

LG Strengthens Smart Home Market Presence with Athom Acquisition

LG Electronics has acquired an 80% stake in Athom, a smart home platform company based in Enschede, Netherlands, for $61 million. The company plans to purchase the remaining 20% within the next three years. This strategic move aims to enhance LG’s position in the open smart home ecosystem by integrating Athom’s extensive connectivity with LG’s AI-driven ThinQ platform. Through this acquisition, LG seeks to lead innovation in AI-powered home solutions by offering personalized space experiences tailored to users’ needs.

Athom: A Smart Hub for Open Homes

Athom, founded in 2014, is best known for its smart home hub, ‘Homey,’ which connects various appliances and IoT devices while providing cloud-based subscription services. Initially gaining popularity in Europe, Homey has since expanded its presence to Australia, Singapore, the US, and Canada.

The company has built an independent smart home ecosystem powered by its proprietary operating system. Its flagship product, Homey Pro, is compatible with over 50,000 devices and supports multiple connectivity protocols, including Wi-Fi, Bluetooth, Z-Wave, Matter, and Thread. The Homey App Store offers approximately 1,000 applications for managing smart home devices from major brands like Philips Hue and IKEA, with contributions from both official partners and community developers.

LG’s Vision for AI-Driven Homes

By integrating Athom’s open smart home capabilities with its ThinQ AI platform, LG aims to revolutionize the AI home experience. The company envisions extending AI-powered smart environments beyond homes to commercial spaces and mobility settings, advancing the concept of ‘Intelligent Space.’

This acquisition enables LG to incorporate third-party devices and services within its ecosystem, improving customer insights and accelerating the development of personalized smart home solutions. With greater interoperability and expanded IoT connectivity, LG seeks to set a new industry standard for AI-powered living spaces.

Athom to Operate Independently Under LG

Following the acquisition, Athom will continue operating independently, retaining its business model and brand identity. This approach ensures the company can leverage its existing strengths while benefiting from LG’s technological expertise, research and development, and business synergies.

LG’s shift toward a software-driven platform model, as seen in its TV business transition with webOS and its acquisition of Alphonso (now LG Ad Solutions), underscores its long-term vision. With the AI home strategy, LG aims to cultivate lasting customer relationships through a broad ecosystem of connected devices, reinforcing its position as a ‘Smart Life Solution Company.’

Global Smart Home Market Growth and LG’s Strategic Positioning

According to market research by TechNavio, the global smart home market is projected to grow from $81.2 billion in 2023 to $260.24 billion by 2028, with an annual growth rate of 26.23%. LG’s acquisition of Athom aligns with this growth trend, positioning the company to capitalize on the expanding demand for AI-powered smart home solutions.

LG Electronics CEO William Cho highlights the company’s evolution into an intelligent space solutions provider. He emphasizes LG’s commitment to strategic investments that transition the business from hardware manufacturing to platform-based services, citing webOS and AI home solutions as key examples of this shift. By advancing its AI-powered smart home strategy, LG aims to deliver unique value propositions and redefine connected living experiences worldwide.