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The LS BCG Matrix cuts through the noise to show which products are Stars, Cash Cows, Dogs, or Question Marks—so you can stop guessing and start allocating capital where it matters. This snapshot is useful, but the full report gives quadrant-by-quadrant data, clear strategic moves, and ready-to-present Word and Excel files you can put to work immediately. Purchase the complete BCG Matrix for a practical roadmap to sharpen priorities and drive measurable growth.
Stars
HV/HVDC power cables for renewables
HV/HVDC power cables sit in a high-growth, high-share niche as grids connect offshore wind and utility-scale solar at scale; 2024 forecasts show global HVDC demand growing about 9% CAGR to 2030 and EU targets ~60 GW offshore by 2030. LS’s cable depth and project track record place it repeatedly on bid shortlists, converting wins into a multi-year project pipeline. The business soaks up cash for capacity, testing, and installation vessels, but steady contract awards sustain revenue visibility. Hold share and keep investing — this is tomorrow’s cash cow.
Smart grid automation & substation solutions
Utilities are digitizing rapidly: the global smart grid market reached about 34 billion USD in 2024 with ~9–11% CAGR, and automation/protection gear is riding that wave. A large installed base of IEDs and substation integration know‑how creates strong stickiness and upgrade flows. Growth is brisk but sales are engineering‑heavy so cash conversion is near break‑even. Double down on software layers and services to lock leadership and recurring revenue.
Energy storage components and systems
Storage demand is surging with renewables and peak‑shaving mandates, and LS’s electrical gear and integration chops translate into repeatable ESS packages that win repeat business. Battery pack prices fell to about $120/kWh in 2024, improving project economics; the segment is capital- and warranty-intensive but LS’s share is rising in a fast-growing market. Keep backing it — scale drives unit-cost decline and credibility up.
Industrial electrification solutions
Electrify everything is real in factories — drives, switchgear and power‑quality systems are core growth drivers in 2024; LS’s breadth and proven reliability win complex multi‑plant deals. Growth remains high as manufacturers pursue efficiency and carbon targets. Invest in applications engineering to defend margins while scaling.
- Position: Stars
- Edge: Multi‑plant wins, reliability
- Priority: Scale AE to protect margin
- Market: 2024 accelerating electrification
Materials for grid and e‑mobility
Conductive and insulation materials for cables and EV infrastructure are shifting into growth as charging rollouts and transmission upgrades expand demand; vertical know‑how gives LS measurable cost and performance edge, enabling 10–25% margin improvements in pilot projects and faster time‑to‑certification. Keep capacity tight and certify widely to stay on spec lists and capture share.
- Market: public chargers >1.5M globally in 2024
- Edge: vertical integration reduces costs ~10–25%
- Action: limit capacity, broaden certifications
HVDC cables, smart‑grid, storage: ~9% CAGR, $34B market
LS’s Stars: HV/HVDC cables (global HVDC ~9% CAGR to 2030; EU offshore ~60 GW by 2030) and smart‑grid gear (global market ~$34B in 2024) drive high growth and share; storage (battery ~$120/kWh in 2024) and factory electrification add scale. High capex needs but strong bid conversion, margin upside from verticals (10–25% pilot gains). Priority: scale capacity, certify, expand services.
| Segment | 2024 Metric | LS Edge | Priority |
|---|---|---|---|
| HVDC/Cables | ~9% CAGR to 2030 | Project track record | Capacity & vessels |
| Smart Grid | $34B market | IEDs, integration | Software/services |
| Storage | $120/kWh | ESS packages | Scale & warranties |
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Cash Cows
Standard medium/low‑voltage power cables
Mature, large, and predictable segment with steady utility and construction demand; 2024 activity levels held broadly consistent with prior years. LS retains strong market share and runs efficient plants, supporting solid margins. Capex is modest and targeted automation projects in 2024 improved yields; strategy is to milk cash flows while defending price discipline and service levels.
Legacy industrial control gear
Legacy industrial control gear comprises well-known SKUs with sticky replacement cycles and an installed base in the tens of millions worldwide, driving steady MRO and OEM demand. Market growth is low, typically single-digit (roughly 2–4% annually in recent years), but aftermarket and service revenues exceed 30% of segment income, delivering reliable cash flow. Minimal promotion is needed—availability and inventory wins; maintain SKUs, optimize inventory turns, and bundle service contracts to keep churn low.
Aftermarket service and maintenance contracts
Installed equipment creates recurring revenue: aftermarket services accounted for roughly 20–30% of OEM revenues in 2024 and up to 70% of profits, making this a classic cash cow. Growth is slow but utilization is high and margins are healthy, often 1.5–3x product margins, so workforce planning and parts logistics matter more than marketing. Expanding multiyear agreements and remote monitoring—shown to cut downtime ~25%—can lift yield and lifetime value.
Commodity copper conductors and wires
Commodity copper conductors and wires are price‑sensitive but deliver stable volumes with hedged metal exposure; global refined copper output was about 25 Mt in 2024 and LME copper averaged near $9,000/tonne in 2024, turning throughput into reliable cash for LS. Scale and centralized procurement maintain margin leadership despite flat market growth. Priority remains aggressive cost and waste reduction plus tight working capital.
- High volume, low growth
- Hedged metal exposure
- Scale-driven cost edge
- Tight WC & waste cuts
Basic electronic components for industrial systems
Basic electronic components for industrial systems act as cash cows in the LS BCG matrix: incremental upgrades and steady OEM demand kept revenue stable in 2024 with sector volumes up about 3% YoY, innovation cycles slow, and niche share sustaining gross margins near 18–22%. Low promotional spend (<2% of sales) and engineering support drive repeat orders; focus on quality, SKU trimming and key-account protection preserves margins.
- Maintain quality and technical support
- Trim SKUs (target 10–15% rationalization)
- Protect key accounts (top 20% drive ~70% revenue)
- Keep promo spend minimal, invest in OEM relationships
Stable market leaders: high aftermarket profits, strong cash flow and hedged copper exposure
Mature, high‑share businesses with low growth (2–4%); 2024 aftermarket revenues 20–30% and profit contribution up to 70%, supporting strong free cash flow. Scale and hedged copper exposure (LME ≈ $9,000/t; refined output ≈ 25 Mt in 2024) preserve margins; component gross margins ~18–22% with promo spend <2%.
| Metric | 2024 |
|---|---|
| Market growth | 2–4% |
| Aftermarket rev | 20–30% |
| Aftermarket profit share | up to 70% |
| LME copper | ≈ $9,000/t |
| Refined copper output | ≈ 25 Mt |
| Component GM | 18–22% |
| Promo spend | <2% |
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Dogs
Fossil‑centric equipment lines
Fossil-centric equipment lines face shrinking markets as IEA signaled coal demand likely peaked in 2023 and declined further in 2024, reducing new-build opportunities and political support for legacy thermal projects. Market share is limited—orders and utilization have slumped—while turnarounds consume cash with minimal strategic upside, often delivering negative IRR versus green investments. Recommendation: exit or harvest these lines with minimal new capital expenditure to preserve cash and redeploy into growth segments.
Undifferentiated low‑end connectors
Undifferentiated low‑end connectors sit in a highly commoditized global market (~$54B in 2024), swarmed by low‑cost rivals. Low growth and weak share trap capital in inventory and working capital, with price wars able to shave gross margins to under 8% within 12–18 months. Divest, license, or aggressively consolidate SKUs to free cash for higher‑return initiatives.
Non‑core industrial machinery variants
Non-core industrial machinery variants are niche SKUs with a thin pipeline and limited service pull-through, contributing under 5% of LS revenue in 2024 and generating negligible aftermarket sales. The target markets showed near-zero growth in 2024, and LS lacks a clear competitive edge versus core platforms. Engineering support costs exceeded incremental margins by roughly 2 percentage points in 2024; sunset these SKUs and reallocate R&D to scalable platforms.
Region‑locked legacy product specs
Custom designs tied to aging standards in small markets have limited appeal and typically capture low share outside the home base (often under 10% in comparable niche products in 2024), with no clear growth vector. Support burden is high relative to revenue—support can exceed 30% of product revenue—making retire or migrate to global platforms the rational path.
- Region: small, localized
- Share: <10% outside home base
- Support burden: >30% of revenue
- Action: retire or migrate to global platforms
Obsolete electronic subassemblies
Obsolete electronic subassemblies show dated components, scarce parts and growing compliance headaches; 2024 industry reports continue to flag obsolescence as a major sustainment cost. Market demand is tapering and commercially available replacements exist, shifting these SKUs into Dogs. Retaining them ties up engineering and QA resources; treat as end‑of‑life with managed spares, then close.
- High sustainment burden
- Low market growth
- Available replacements
- Managed spares then retire
Harvest 'Dogs': divest connectors in $54B commoditized market; sunset niche SKUs
Dogs: low growth, low share lines draining cash and engineering; connectors part of a $54B 2024 commoditized market with sub‑8% margins, fossil equipment seeing demand declines post‑2023, niche SKUs <5% of LS revenue in 2024, support often >30% of revenue—recommend exit/harvest and redeploy capital.
| Category | 2024 KPI | Action |
|---|---|---|
| Connectors | $54B market; margins <8% | Divest/consolidate |
| Niche SKUs | <5% revenue; eng costs +2ppt | Sunset/reallocate R&D |
Question Marks
Subsea cable expansion to new geographies
Subsea cable expansion targets a high-growth market as the global offshore wind pipeline exceeded 400 GW in 2024, but LS’s share remains undeveloped in many regions. Entry requires vessel access, local certifications and partnerships, and cash burn is real before marquee projects land. Invest selectively where bid pipelines are deep; otherwise pass.
EV charging infrastructure systems
EV charging is a Question Mark: the global charging infrastructure market was about $21B in 2023 and is forecast to grow ~33% CAGR to 2030, drawing crowded power-electronics players (ABB, Siemens, Delta, ChargePoint); LS has relevant converter and battery–grid tech but brand pull is nascent; wins hinge on network integration and service footprints; recommend focusing on fleet/depot and industrial segments or licensing components to scale.
Battery materials and recycling
Explosive potential tied to regional supply chains—policy tailwinds like the US Inflation Reduction Act (roughly $369 billion in clean-energy incentives) are driving demand, but LS’s market share remains early-stage. Capex is heavy and technology risk non-trivial; recycling and precursor plants face high upfront costs. With offtake agreements and staged capex, the business could pivot into a star; pilot with customers and kill quickly if unit economics lag.
Hydrogen power equipment components
Hype meets uncertainty: global hydrogen demand was about 95 Mt H2 in 2022 (IEA) and green hydrogen targets aim to scale by 2030, but adoption is uneven; projects remain lumpy and subsidy‑driven (US Inflation Reduction Act ~369 billion USD in clean energy incentives to 2022–24 accelerates deals).
LS can supply electrical balance‑of‑plant but market share is nascent; recommend small bets on bankable use cases (industrial feedstock, ports) and wait for standards to settle.
- Tag: Hype vs Uncertainty
- Tag: 95 Mt H2 (2022)
- Tag: Subsidy‑led (IRA ~369B USD)
- Tag: Small bets on bankable use cases
Power electronics for grid‑scale inverters
Power electronics for grid‑scale inverters sit in Question Marks: strong growth driven by renewables but dominated by entrenched specialists; top five suppliers accounted for over 60% of grid‑scale inverter shipments in 2024. LS has adjacent capability yet limited share today; technical certification and long‑term reliability datasets are key barriers. Invest if partnerships unlock OEM channels; otherwise focus on components only.
- Market position: Question Marks (high growth, low share)
- 2024 fact: top 5 >60% share
- Barriers: certification, reliability data
- Decision trigger: partner to access channels; else components-only
Pilot selectively in offshore wind and EV charging; partner, license, exit if economics fail
LS Question Marks: high-growth spaces (offshore wind >400 GW pipeline in 2024; EV charging market ~$21B in 2023, ~33% CAGR to 2030) but LS share is small, capex and certification barriers are large; pursue selective pilots, partnerships, licensing; exit if unit economics fail.
| Market | 2024/2023 | Key metric |
|---|---|---|
| Offshore wind | 2024 | >400 GW pipeline |
| EV charging | 2023 | ~$21B market; ~33% CAGR |
| Inverters | 2024 | Top5 >60% share |