Smart home refridgerator by LG at the IFA Electronics show
An assistant presents a smart home refridgerator by LG at the IFA Electronics show in Berlin, Germany September 2, 2016.REUTERS/Stefanie Loos

LG Electronics has acquired an 80% stake in Netherlands-based Athom, an industry-leading smart home platform company, a press statement said. 

In the release, LG Electronics said that the company will acquire the remaining 20 percent stake in Athom over the next three years. 

LG set to revolutionize smart home ecosystems

The South Korean firm also noted that this move aims to enhance LG's connectivity within open smart home ecosystems, aligned with the company's goal to lead the AI-driven home innovation era.

"The acquisition of Athom is a cornerstone for our AI home business. By leveraging the synergy between the two companies, we will expand our open ecosystem and external integration services, aiming to provide customers with more diverse and multidimensional space experiences," said Jung Ki-hyun, executive vice president and head of LG's Platform Business Center. 

The press release further noted that LG is poised to significantly enhance the scalability required for implementing AI homes and aims to achieve the highest industry standards. This will be accomplished by integrating its LG ThinQ platform's smart home technology with Athom's open ecosystem and IoT device connectivity. 

Athom to operate independently

The press statement further noted that Athom will continue to operate independently, maintaining its business operations and branding even after the acquisition. This strategy is designed to maximize Athom's growth potential and unique strengths while fostering synergies in business, research and development capabilities, and platform utilization. 

"LG is evolving into an intelligent space solutions company that connects and expands experiences in various living spaces. We will continue to make strategic investments to shift our business paradigm, as evidenced by our successive entries into platform-based appliance services and solutions such as the webOS advertising platform and AI home," said William Cho, CEO of LG Electronics. 

The smart home innovation sector is one of the most promising industries, which is expected to mark significant growth in the coming years. 

According to market research firm TechNavio, the global smart home market is projected to grow from $81.2 billion in 2023 to $260.24 billion by 2028, with an average annual growth rate of 26.23 percent.