LG Electronics Inc. has announced a strategic investment of US$60 million in the Silicon Valley-based startup Bear Robotics, aimed at enhancing its presence in the burgeoning market of AI-based service robots.
Through this investment, LG Electronics will become the largest single shareholder in Bear Robotics, emphasizing a long-term growth strategy over short-term returns. Founded in 2017 by former Google software engineer John Ha, Bear Robotics specializes in AI-driven autonomous service robots, offering indoor delivery robot services in the United States, South Korea, and Japan.
Bear Robotics is recognized for its expertise in platformizing service robotics software, robot fleet management technology, and cloud-based control solutions. LG Electronics sees this investment as aligned with its broader strategy to transition from a hardware-centric to a software-oriented company, particularly following its exit from the mobile phone manufacturing business in 2021.
This move also echoes LG Electronics CEO Cho Joo-wan’s January announcement, highlighting the company’s intention to explore investments or mergers and acquisitions within the service robotics market.
LG Electronics has already made strides in the service robotics sector, with initiatives such as operating a guide robot service at Incheon International Airport since 2017 and introducing delivery and disinfection solutions for various commercial settings.
The global service robotics market is projected to witness substantial growth, from $36.2 billion in 2021 to an estimated $103.3 billion by 2026, according to LG Electronics.