Bosch Group announced sales of 78.7 billion euros and a pre-tax profit EBIT of 3.2 billion euro, according to a statement received by Energynomics. Bosch also announced investments of 500 million euros in hydrogen by 2030, a market worth 14 billion euros, and orders in the electromobility sector exceeded 10 billion euros for the first time.
Thus, in the financial year 2021, Bosch achieved a significant increase in sales and profit, despite the unfavorable environment. Technology and services vendor revenue increased 10.1 percent to 78.7 billion euros while operating profit (EBIT from operations) increased by more than half to 3.2 billion euro
Dr. Stefan Hartung, Chairman of the Board of Robert Bosch GmbH, believes that the war will slow progress in reducing carbon emissions in the short term. Over the long term, however, it will accelerate the technological transformation in Europe.
“Policymakers could take this as their cue to act with more determination – whether in providing incentives to make existing buildings more energy-efficient, or in massively expanding renewable power generation,” Hartung said.
He believes electrification is the fastest route to climate neutrality, provided it is based on green electricity. That is why Bosch is driving sustainable mobility forward: in 2021, the company’s orders relating to electromobility exceeded ten billion euros for the first time. But Hartung also stressed that hydrogen is needed as well. “Industrial policy should focus on making all sectors of the economy hydrogen-ready,” he said.
“Electricity-based solutions have priority, but hydrogen-based solutions also need to gain more momentum. We’ll need both if we are to live sustainably on our blue planet.”
At the same time, the Bosch chairman announced that, over the next three years, the company will be investing another ten billion euros in digitally transforming its business.
“Digitalization also has a special role to play in sustainability – and our solutions start from this premise,” Hartung said. Examples of such solutions in the Bosch portfolio include the smart home energy manager and the connected manufacturing energy platform.
Hydrogen electrolysis: Entering a market of 14 billion euro
In order to support the effective fight against climate effects, Bosch is entering the business dedicated to components for hydrogen electrolysis. The company plans to invest around 500 million euro in this new business by the end of the decade, half of which will be invested until its launch in 2025.
“We have a solid foundation on which to start developing hydrogen-based technologies and we want to take hydrogen production further in Europe,” Hartung added.
“We expect the global market for electrolyzer components to reach almost 14 billion euro by 2030.” Bosch is supplying the stack – the core of the hydrogen electrolysis system – which combines with power electronics, sensors, and a control unit to create a smart module. The stacks for H2 generation are expected to go into production as early as 2025.
Sustainability: Social responsibility during shift to new energy sources
Bosch supports the European Union’s Green Deal and sees itself as bearing a special responsibility regarding sustainability: with its 400 company locations worldwide, Bosch has been carbon neutral since 2020. As for the quality of its carbon neutrality, the company is making better progress than anticipated. Bosch has already realized one-third of the energy savings that it set out to achieve by the end of the decade. “Sustainability is no longer a peripheral topic; it has to be part of the core business of every company,” said Filiz Albrecht, member of the board of management and director of industrial relations at Robert Bosch GmbH. Bosch’s corporate social responsibility encompasses the trio of economic, social, and ecological concerns. “It’s not easy to keep these three things in balance. In times of change, social responsibility for us means taking as many associates as possible with us into new areas of business.” As Albrecht pointed out, Bosch is developing climate-neutral technology primarily at locations that had previously produced combustion systems. Reskilling programs and the in-house job placement platform mean that a full 1,400 associates in powertrain operations have already taken on new jobs in fields such as software and electromobility. “By the end of the year, nearly 2,300 associates will be working on mobile and stationary fuel cells with almost all of them recruited internally,” Albrecht said, adding: “This is transformation – made by Bosch.” She also reported that the company intends to take on 10,000 new software engineers around the world this year.”
Thermotechnology: 300 million euro for the heat-pump business
“More than one-third of carbon emissions comes from buildings, so climate action has to take place in people’s homes as well,” said Dr. Christian Fischer. As deputy chairman of the board of management of Robert Bosch GmbH, he is also responsible for consumer goods and for energy and building technology. “The transition to alternative heating starts with the heat pump, ideally powered by green electricity.” More and more, the legal requirements for new buildings around the world reflect this: in Germany alone, for example, 65 percent of new heating systems will have to be powered by renewables by 2024. “Bosch will invest an additional 300 million euros in the heat-pump business by mid-decade,” Fischer said, adding: “The market will grow by an annual 15 to 20 percent between now and 2025. We aim to grow twice as fast as the market.” Bosch wants to do its part in existing buildings as well: with its hydrogen-ready gas-fired boilers, the company is easing the switch from natural gas heating systems to hydrogen ones. Moreover, by connecting and integrating building systems, Bosch is simultaneously moving closer to its goal of generating a greater share of recurring revenue from services. “In the building systems business, services already account for almost half of all sales,” Fischer said. “Our strategic objectives – helping shape climate action with technology and expanding our service business – complement each other.”
Industrial Technology: Energy efficiency through digitalization
In industrial production, Bosch is stepping up efforts to improve energy and cost efficiency in its factories. “Digitalizing industrial production makes a contribution to climate action,” said Rolf Najork, the member of the board of management of Robert Bosch GmbH who oversees the Industrial Technology business sector. “Thanks to connected energy management alone, we are reducing the annual energy consumption of our manufacturing operations by an average of 5 percent.” The Energy Platform from the Industry 4.0 portfolio is already in use in 80 customer projects and at 120 Bosch locations. At the same time, the Bosch Group is embracing electrification in its industrial technology, Najork added. The company expects 30 percent of mobile machinery to be electrified by 2030. This translates into an additional market volume for high-voltage systems worth 1.5 billion euros. Bosch also wants to advance electric driving through its industrial technology. “In a project unit with VW, we are working to establish a company that will equip battery-cell factories in Europe,” Najork said. “Our common objective is to be the cost and technology leader in systems for the volume production of batteries.” Experts expect battery-cell production technology to reach a cumulative market volume of 50 billion euro worldwide by 2030.
The transition to alternative mobility: Electrification with battery and fuel-cell powertrains
Bosch expects the EU’s Green Deal to provide a decisive boost to the electrification of road traffic. “All automakers are eager to secure the greatest possible share of the growing electric vehicle market,” said Dr. Markus Heyn, member of the board of management of Robert Bosch GmbH and chairman of the Mobility Solutions business sector. “Bosch sees itself as the number one supplier for electrical powertrains on the road.” A key technical task, he said, is to keep the powertrain, including the battery, at the right temperature and to provide the necessary climate comfort in the passenger compartment. Intelligent thermal management alone can increase the electric driving range by 25 percent, he pointed out. To this end, Bosch has developed a pre-integrated solution: the flexible thermal unit, or FTU. With the FTU, Bosch is tapping into a market that it expects will reach a volume of 3.5 billion euros by the end of the decade. For electric mobility based on fuel-cells, this year Bosch will start production of fuel cell powertrains for trucks. “At the Bamberg site, we aim to be producing stacks with a gigawatt output no later than the middle of the decade,” Heyn said. “By 2030, it should cost no more to operate a fuel-cell truck than a diesel – that’s our goal.” Bosch has once again increased its capital expenditure for mobile fuel cells, to almost one billion euro between 2021 and 2024.
Headcount 2021: Growth across all regions
As of December 31, 2021, the Bosch Group employed 402,614 people worldwide – 7,580 more than the previous year. This increase was seen in all three regions: Europe, the Americas, and Asia. Headcount in Germany remained stable at 131,652. In research and development, headcount grew by 2,949 to 76,121 associates.
