[Click eStock] "LG Innotek Expected to Become a Beneficiary of Big Tech Metaverse Competition"

Exclusive Position in Core Components for 3D Stereoscopic Video for Metaverse
Global IT Giants like MS, Apple, Facebook Benefit from Metaverse Competition

LG Innotek Metaverse Recruitment Briefing

LG Innotek Metaverse Recruitment Briefing Session

[Asia Economy Reporter Minwoo Lee] There is a prospect that LG Innotek's metaverse (extended virtual world) customer base could expand to include global mega tech companies such as Microsoft (MS), Apple, and Meta (formerly Facebook).

On the 20th, KB Securities maintained its 'Buy' investment rating and target price of 500,000 KRW for LG Innotek. The closing price the previous day was 371,500 KRW.

The reason for the outlook on LG Innotek's expansion of its metaverse customer base is that LG Innotek has secured a monopolistic market position in essential components (3D sensing cameras, ToF modules) for implementing 3D stereoscopic images, a core function of metaverse hardware devices. From a mid- to long-term perspective, LG Innotek's sales growth aligns with the growth direction of the metaverse market.

Already on March 8 last year, LG Innotek signed a memorandum of understanding (MOU) with MS for the development and supply of core components, 3D sensing cameras and ToF modules, to implement mixed reality (MR) with 3D stereoscopic images in the metaverse. The day before, MS acquired Blizzard, the world's third-largest game company after Tencent and Sony, for 82 trillion KRW, and is expected to make a full-scale entry into the B2C (business-to-consumer) metaverse market based on game content with easy online scalability, moving beyond the existing B2B (business-to-business) metaverse centered on medical, industrial, and defense sectors. KB Securities researcher Juyoung Park said, "Accordingly, MS is expected to significantly enhance the 3D stereoscopic image function in the upcoming metaverse hardware device 'HoloLens 3,' increasing the likelihood of LG Innotek benefiting."

According to market research firm Counterpoint Research, demand for metaverse hardware devices is expected to exceed 100 million units by 2025. This represents about a tenfold increase compared to 11 million units last year, with an average annual growth rate of 82% until 2025. Additionally, there are limitations to implementing 3D stereoscopic images using only cameras, so demand for 3D sensing cameras and ToF modules is also expected to surge simultaneously in the future.

Researcher Park analyzed, "With MS's acquisition of Blizzard as a trigger, competition among big tech companies such as Apple and Meta for dominance in metaverse platforms is intensifying, and they will significantly increase shipments of metaverse hardware devices in the future. Demand for metaverse hardware devices may accelerate beyond research firm forecasts, potentially approaching 100 to 200 million units within three years."

This content was produced with the assistance of AI translation services.