Bosch generated sales revenue of 90.5 billion euros in 2024, roughly the same as in the previous year, after adjusting for exchange rate effects. The operating margin of profit before interest and taxes (EBIT) was 3.5 percent. “Despite our efforts, Bosch was not completely immune to economic developments, but we had a respectable share compared to our industry peers,” said Stefan Hartung, Chairman of the Board of Management of Robert Bosch GmbH, regarding the company’s published preliminary sales figures.
“Our technologies for mobility and the homes of the future remain key areas of development for us.” He highlighted efforts to strengthen competitiveness and growth in the 2024 financial year through strategic portfolio decisions involving both acquisitions and divestments, and added: “The company also had to make certain structural adjustments.”
In addition to weak global economic growth, the Bosch Group’s business development was negatively affected by the fact that growth markets such as electromobility developed much more slowly than expected. The decline in sales volumes in these areas and the associated underutilized capacity, as well as the continued high upfront costs for future technologies and provisions for the necessary strategic adjustments, had a negative impact on the results. But despite all the challenges, Bosch is continuing to consistently pursue its ambitious business goals: by 2030, the company aims to be among the top suppliers in its core markets. In the pulse, the company plans to achieve average annual growth of between 6 and 8 percent, with a margin of at least 7 percent.
Portfolio development to improve business opportunities
In the last financial year, Bosch systematically implemented its Strategy 2030 and achieved important milestones. One of these is the planned acquisition of the HVAC business of Johnson Controls – Hitachi, worth around 8 billion US dollars. By acquiring this business, Bosch intends to expand its presence in growth markets such as the USA and Asia. “Despite the current turbulence, we are consistently pursuing our development strategy and will continue to resolutely promote technologies that are vital for the world of tomorrow,” said Hartung. With the sale of large parts of the Building Technologies product division for security and communication technology, Bosch will focus on the system integration business in the future and continue to develop. With these moves, the company aims to ensure a better balance between its divisions, increase its robustness and make its portfolio viable for the future.
Technologies of the future: Innovations create “technology for life”
To achieve its development goals, Bosch is driving innovation in areas of great importance for the future. “Electromobility, hydrogen and sustainable technologies remain a growth business and the focus of our innovations,” said Hartung, referring to the ongoing challenge of climate change. He gave as an example a cryogenic pump that Bosch is currently testing in the USA, which compresses up to 600 kilograms of liquid hydrogen per hour. In just 10 minutes, such a pump will provide trucks with enough hydrogen to cover the next 1,000 kilometers. Bosch is also a leader in household appliances. In just a few weeks, it will launch an energy-efficient XXL built-in refrigerator-freezer combination. Complying with the new Matter standard, it will be the world’s first household appliance with manufacturer-independent connectivity. Around 5,000 Bosch experts are working to make artificial intelligence suitable for everyday use, such as a new AI-assisted emergency call service that allows elevator users to call for help in their native language, but does not require elevators to be upgraded.
Digital solutions: Artificial intelligence strengthens core business
Intelligent software and digital services have now become an important pillar of Bosch’s core business. “We are increasingly using artificial intelligence in our processes, improving quality and productivity in both our factories and our offices,” said Hartung. “AI has also become an integral part of our products and solutions.” Bosch expects to generate sales of more than 6 billion euros in software and services by the beginning of the next decade, two-thirds of which will be generated in the Mobility sector. “At Bosch, artificial intelligence has been playing an important role for years in assisted and automated driving,” said Hartung. “But we are not just promoting software-defined mobility in terms of AI, and this makes Bosch an ideal partner for the world’s leading technology players.” One example is the Vehicle Motion Management system solution. Among other things, this enables brake-by-wire braking systems, in which an electronic brake pedal operates without a mechanical connection.
Economic policy: Competitiveness for a strong Europe
Bosch is looking for new policy frameworks in Germany and the EU to stimulate development. According to Hartung, action is needed to strengthen their competitiveness and attractiveness as places to do business. “A strong European Union requires less regulation and more investment, as well as fewer barriers and more market liberalization,” he said. Given the high energy prices, bureaucracy and lack of infrastructure investment in Germany, the company’s home market, Hartung hopes that after the country’s upcoming elections, there will be a rapid shift from talk to action. “Anything that makes it easier to do business is a step in the right direction,” he said. “Then Germany and Europe can continue to be among the world’s economic and technological leaders in the future.” As before, Bosch intends to make its contribution to this: in the coming year, around 40 percent of the company’s global investments will continue to be directed at its locations in Germany.
Market developments affect sales figures for the business sectors
The sales figures for Bosch’s business sectors clearly reflect the general market trend. “Overall, 2024 was an exception, with all of our target markets performing poorly at the same time,” said Dr. Markus Forschner, member of the board of management and chief financial officer of Robert Bosch GmbH. With sales revenue of 55.9 billion euros, the Mobility sector almost reached the previous year’s level. Despite the declining market, sales revenue remained virtually unchanged after adjusting for exchange rate effects. In the Industrial Technology business sector, sales revenue reached 6.5 billion euros, which is 13 percent less in nominal terms than in the previous year, or minus 12 percent after adjusting for exchange rate effects. The weak mechanical engineering sector particularly affected the core markets in Europe, China and the USA. In the Consumer Goods business sector, sales revenue increased by 2 percent in nominal terms to 20.3 billion euros. After adjusting for exchange rate effects, they were actually 3 percent higher than in the previous year. This means that Bosch is growing again in the consumer goods sector for the first time since the decline in demand at the end of the coronavirus pandemic. Sales revenue in the Building and Energy Technology business sector amounted to 7.5 billion euros. This corresponds to a decline in sales revenue of 3 percent, both in nominal terms and after adjusting for exchange rate effects. This was mainly due to the gloomy outlook for the European heating market.
Personnel development in 2024: Reduction in the number of employees
As of December 31, 2024, the Bosch Group employed around 417,900 people worldwide, which is around 3 percent fewer than in the previous year (-11,500). In Germany, the number of employees also fell by 3 percent (-4,400) to just over 129,800.
Outlook for 2025: Weak economy, putting more pressure on costs
The Bosch Group expects to face an extremely challenging environment this year as well. “Globally, we expect only moderate growth,” said Forschner. “We do not expect the global economy to recover before 2026.” In the current situation, Bosch assumes that the economy will grow by just 2½ percent in 2025. In order to implement its development strategy, the company remains focused on its financial targets. “Even in the face of consistently adverse conditions, we want to continue to improve our sales and achieve better results in the 2025 financial year,” said Forschner. In his opinion, only profitable growth will allow the company to continue its strong and significant development. Accordingly, Bosch aims to achieve its target margin of 7 percent by 2026. The goal is to further increase competitiveness at all levels, from attractive products and acceptable costs to appropriate structures for a forward-looking portfolio. “Sensitive savings and focused investments provide us with the necessary room for maneuver,” Forschner said, but he warned that this will not be easy. Such a plan will require a great deal of effort and will not exclude painful decisions.
