LG Electronics has acquired an 80 percent stake in Athom, a smart home platform company based in the Netherlands, with plans to acquire the remaining 20 percent within the next three years. This acquisition is part of LG’s strategy to enhance its connectivity within smart home ecosystems. LG aims to integrate Athom’s capabilities with its Affectionate Intelligence technology to lead in AI-driven home innovation.
Athom, founded in 2014, is known for its smart home hub, Homey, which connects various appliances and IoT devices. Homey has a strong customer base in Europe and has expanded to markets including Australia, Singapore, the US, and Canada. Homey Pro, Athom’s flagship product, connects over 50,000 devices and supports multiple connection methods, making it highly versatile.
The integration of Athom’s extensive connectivity with LG’s AI-enabled ThinQ platform aims to create AI homes that provide optimal space solutions tailored to customer preferences. LG plans to extend the AI home concept to commercial spaces and mobility environments, enhancing customer experience across various settings.
The Homey App Store, managed by Athom, offers around 1,000 applications for controlling home devices from brands like Philips Hue and IKEA. The community of developers actively contributes to this open platform, expanding the range of devices that can be connected.
LG’s acquisition of Athom is expected to enhance the scalability of its AI home implementation. By integrating Athom’s open ecosystem with LG’s smart home technology, LG aims to incorporate third-party devices and services into its ecosystem. This integration will provide insights into customer usage patterns and expedite the delivery of personalized services.
Even after the acquisition, Athom will continue to operate independently, maintaining its business operations and branding. This approach is intended to maximize Athom’s growth potential while fostering synergies in business, research, development, and platform utilization.
LG’s introduction of the AI home, which combines Athom’s smart home platform with its AI technology, reflects its shift from a hardware-focused to a software-based platform business. In 2021, LG entered the TV platform market with its webOS platform and acquired Alphonso, a US-based technology company specializing in television media, machine learning, and big-data analytics, now operating as LG Ad Solutions.
LG aims to establish continuous relationships with customers through numerous connected devices, ultimately transforming into a ‘Smart Life Solution Company’ that provides differentiated value. According to TechNavio, the global smart home market is projected to grow from USD 81.2 billion in 2023 to USD 260.24 billion by 2028, with an average annual growth rate of 26.23 percent.
LG’s CEO, William Cho, stated that LG is evolving into an intelligent space solutions company and will continue to make strategic investments to shift its business paradigm.