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Press Release
Corporate
THE NEW TREND OF HVAC SYSTEM IN MULTI-FAMILY RESIDENTIAL FOR MILLENNIALS, THE MAIN TARGET FOR THE HOUSING MARKET
12/05/2020
THE NEW TREND OF HVAC SYSTEM IN MULTI-FAMILY RESIDENTIAL FOR MILLENNIALS, THE MAIN TARGET FOR THE HOUSING MARKET
Importance of the home IoT and indoor environmental quality to Millennials, who are the biggest consumers of multi-family residential
SINGAPORE. May. 12, 2020 – As Millennials become leading players in the world’s economic activity, they are attracting the attention of the housing market. Due to the global financial crisis and its aftermath, the spending power of Millennials is relatively weaker than Baby Boomers, which makes them late in buying homes. This is driving a new trend in the construction market called ‘Build-to-rent’. America’s National Association of Home Builders (NAHB) demonstrates this new trend by stating that, as of 2020, 93% of all multifamily residences were built for rent while 7% were built for sale.1
The housing industry must then ask what factors play the largest role in Millennials’ housing choice. Two major considerations can be found at the convergence of sustainability and convenience. The need for all industries to make progressive steps toward more sustainable, connected products and practices can no longer be considered a nice-to-have but is a must-have in order to respond to the urgent need to combat climate change and to meet the priorities of today’s target consumers.
A home development project that invests in connectedness, sustainability and more would have traditionally been geared toward buyers looking for long-term investments with a different set of standards; however, nowadays, companies must make the same type of investment in ‘Build-to-rent’ projects in order to meet the standards of a new generation of renters.
Where convenience meets sustainability
The UK-based smart home systems provider, Smart Homes Company, has reported that the Millennial generation—those between the ages of 27 and 36—is enthusiastic about smart home technology and 38% has already chosen smart homes or installed smart home technology.2 A similar survey by the same company reports that 72% of this generation is even willing to pay an additional £1,000 for a home equipped with smart technology.
A smart home is an innovative house connected to the Internet of Things (IoT), which refers to connectivity between home appliances, lighting, heating, air conditioning, security, and other devices. Data is then collected and applied to the automatic measurement of home conditions, management of home appliances, control of home access and more.
1 “Single-Family Starts Will Gain Ground in 2020,” NAHBNow, last modified Jan 21, 2020, accessed Apr 29, 2020, http://nahbnow.com/2020/01/single-family-starts-will-gain-ground-in-2020
2 “Why millennials are demanding more smart technology in their homes,” smarthomescompany, accessed Apr 29, 2020, https://smarthomescompany.co.uk/blog/why-millennials-are-demanding-moresmart-technology-in-their-homes
1 “Single-Family Starts Will Gain Ground in 2020,” NAHBNow, last modified Jan 21, 2020, accessed Apr 29, 2020, http://nahbnow.com/2020/01/single-family-starts-will-gain-ground-in-2020
2 “Why millennials are demanding more smart technology in their homes,” smarthomescompany, accessed Apr 29, 2020, https://smarthomescompany.co.uk/blog/why-millennials-are-demanding-moresmart-technology-in-their-homes
Millennials, characterized as Digital Natives, have been exposed to the digital environment from a very young age, so the utilization of digital devices has become an integral part of life. This generation and digital devices go together since the beginning of the digital age which has made huge technological advancements over the past 30 years. Not surprisingly, 92% of Millennials own smartphones; hence, familiarity with digital technologies is closely associated with technological advancements inside the home.3
Moreover, Millennials are more interested in the reduction of carbon emissions, as they are certainly more eco-sensitive than previous generations.
According to Nielsen’s Global Corporate Sustainability Report, 66% of global respondents say that they are willing to pay more for products and services that come from companies with a commitment to having positive social and environmental impact.4 The home IoT learns users’ patterns, measuring and regulating energy consumption, in order to automatically react to prevent energy waste.
Moreover, Millennials are more interested in the reduction of carbon emissions, as they are certainly more eco-sensitive than previous generations.
According to Nielsen’s Global Corporate Sustainability Report, 66% of global respondents say that they are willing to pay more for products and services that come from companies with a commitment to having positive social and environmental impact.4 The home IoT learns users’ patterns, measuring and regulating energy consumption, in order to automatically react to prevent energy waste.
Quality assurance with IEQ and IAQ
Indoor Environmental Quality (IEQ) is another buzzword in the multi-family residential market. IEQ mainly refers to indoor air quality, noise level and illumination level of the interior.
The World Health Organization (WHO) announced that air pollution and climate change are two critical issues of its “Ten threats to global health in 2019”. Furthermore, according to “Building certification schemes and the quality of indoor environment,” a research paper published by Technical University of Denmark (DTU), IEQ is a growing priority for Millennials as they shift to a more adaptive and healthy lifestyle.5
Indeed, more than two-thirds of housing developers are using practices designed to improve indoor air quality and water efficiency according to the Green Single Family and Multifamily Homes 2020 Smart Market Brief, the latest in a series of studies conducted by Dodge Data & Analytics in partnership with the NAHB.6 As such, capabilities that enhance the IEQ and Indoor Air Quality (IAQ), a subset of IEQ, are now emerging as major considerations.
LG HVAC's residential solutions for Millennials
3 “Tech Update: Mobile & Social Media Usage, by Generation,” marketing charts, last modified May 9, 2018, accessed Apr 29, 2020, https://www.marketingcharts.com/Demographics-and-audiences-83363
3 “Tech Update: Mobile & Social Media Usage, by Generation,” marketing charts, last modified May 9, 2018, accessed Apr 29, 2020, https://www.marketingcharts.com/Demographics-and-audiences-83363
4 “GREEN GENERATION: MILLENNIALS SAY SUSTAINABILITY IS A SHOPPING PRIORITY,” Nielsen, last modified May 11, 2015, accessed Apr 29, 2020, https://www.nielsen.com/uk/en/insights/article/2015/green-generation-millennials-say-sustainability-is-a-shopping-priority/
5 Da Silva, Nuno Alexandre Faria, Building certification schemes and the quality of indoor environment,
5 Da Silva, Nuno Alexandre Faria, Building certification schemes and the quality of indoor environment,
23
6 “Study: Builders Increasingly Focusing on High-Performance Building Practices,” NAHBNow, last modified Jan 21, 2020, http://nahbnow.com/2020/01/study-builders-increasingly-focusing-on-high-performance-building-practices
LG Electronics, a world-renowned home appliance & HVAC company, has created a line of smart home systems that seamlessly integrates into the residential HVAC and home appliance systems.
The company has introduced Multi V and a VRF system that perfectly align with the megatrends associated with multi-family residential segments, like sustainability and connectivity.
Multi V’s product lineup can provide cooling, heating, and hot water with a single energyefficiency unit that uses eco-conscious refrigerant. Multi V’s Ultimate Inverter Compressor boasts a more powerful performance while consuming less energy. It also autonomously reacts to shifts in weather conditions and provides increased indoor air flow with less energy output.
This product lineup is also integrated into smart home systems through ThinQ, LG’s smart management system, providing users with convenient and efficient functionality such as user-friendly remote access, and energy monitoring.
In addition to managing HVAC systems, LG ThinQ interconnects home appliances, providing users with solutions that fit their lifestyles. Furthermore, users can monitor cumulative power consumption in present, weekly, and monthly phases. By monitoring these, users can efficiently control heating and air conditioning devices according to outside weather conditions for cost and energy savings.
In addition to smart home technology, LG’s products include sensor technology which optimizes indoor air and environmental quality. They are equipped with dual sensing control, an exclusive automatic control function that detects both temperature and humidity, to maximize indoor comfort based on both conditions simultaneously.
“The multi-family residential market will change its paradigm with a generational shift of priorities toward eco-friendly solutions and connected smart homes,” says Junhyuk Seong (Justin), Head of the Product Management / Air Solutions, LG Electronics Singapore. “Whether residential developers are building for renters or buyers, today’s consumers will consider connectivity and sustainability in their decision. LG’s residential HVAC lineup with Multi V, and ThinQ technology has been developed as a direct response to the multi-faceted needs of today’s consumers.”
The company has introduced Multi V and a VRF system that perfectly align with the megatrends associated with multi-family residential segments, like sustainability and connectivity.
Multi V’s product lineup can provide cooling, heating, and hot water with a single energyefficiency unit that uses eco-conscious refrigerant. Multi V’s Ultimate Inverter Compressor boasts a more powerful performance while consuming less energy. It also autonomously reacts to shifts in weather conditions and provides increased indoor air flow with less energy output.
This product lineup is also integrated into smart home systems through ThinQ, LG’s smart management system, providing users with convenient and efficient functionality such as user-friendly remote access, and energy monitoring.
In addition to managing HVAC systems, LG ThinQ interconnects home appliances, providing users with solutions that fit their lifestyles. Furthermore, users can monitor cumulative power consumption in present, weekly, and monthly phases. By monitoring these, users can efficiently control heating and air conditioning devices according to outside weather conditions for cost and energy savings.
In addition to smart home technology, LG’s products include sensor technology which optimizes indoor air and environmental quality. They are equipped with dual sensing control, an exclusive automatic control function that detects both temperature and humidity, to maximize indoor comfort based on both conditions simultaneously.
“The multi-family residential market will change its paradigm with a generational shift of priorities toward eco-friendly solutions and connected smart homes,” says Junhyuk Seong (Justin), Head of the Product Management / Air Solutions, LG Electronics Singapore. “Whether residential developers are building for renters or buyers, today’s consumers will consider connectivity and sustainability in their decision. LG’s residential HVAC lineup with Multi V, and ThinQ technology has been developed as a direct response to the multi-faceted needs of today’s consumers.”
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About LG Electronics Inc. LG Electronics Inc. is a global innovator in technology and manufacturing with operations in 140 locations and a workforce of over 70,000 around the world. With 2018 global sales of USD 54.4 billion, LG is composed of five companies – Home Appliance & Air Solution, Home Entertainment, Mobile Communications, Vehicle Component Solutions and Business Solutions. LG is a world-leading producer of TVs, refrigerators, air conditioners, washing machines and mobile devices, including premium LG SIGNATURE and LG ThinQ products featuring artificial intelligence. For the latest LG news, go to www.LGnewsroom.com.
About LG Electronics Air Solution Business UnitLG Electronics’ Air Solution Business Unit is a global leader in HVAC and energy solutions with a comprehensive portfolio of proven expertise and performance. Launching Korea’s first residential air conditioner in 1968, LG has paved the way for total HVAC solutions over the last five decades through strategic utilization of advanced technologies. With a well-established production base and industry-leading capacity, the company provides effective HVAC solutions for both the commercial and residential sectors. Its wide range of cutting-edge systems for heating, ventilation and air conditioning truly represent LG’s initiative in offering the most optimized solutions for a variety of uses. Pursuant to its mission of “Innovation for a Better Life,” the company offers solutions boasting high energy efficiency and reliability based on its state-of-the-art knowhow and technologies to ensure the most optimal environment for users. For more information, please visit www.LG.com.
About LG Electronics Singapore Pte LtdLG Electronics Singapore Pte Ltd (LG Electronics Singapore) is a fully-owned subsidiary of LG Electronics Inc., the pioneer and market leader of the Korean electronics industry. LG Electronics Singapore operates three business units – Home Entertainment, Mobile Communications and Home Appliance & Air Solution. In recognition of its vision to enrich people’s life with smart technologies and innovative design, LG Electronics Singapore has been recognized with prominent local and international accolades, such as the CNET Asia Editor’s and Readers' Choice Awards, HWM+HardwareZone.com Tech Awards, Red Dot Design, and GfK No. 1 Awards. For more information, please visit www.lg.com/sg.
Media Contacts:
Valerie Ong
LG Electronics Singapore
Mark Juan
Asia PR Werkz
Tel: +65 9005 3361
Pearlene Wong
Asia PR Werkz
Tel: +65 9271 7890