For Bosch, the changes in the market and technology environment being ushered in by connectivity, automation, and electrification in particular, along with the growing importance of sustainability, will serve as growth drivers in the years ahead. Additional demand in emerging regions such as the ASEAN countries will open up further market growth. Against this backdrop, Stefan Hartung, chairman of the board of management of Robert Bosch, believes that the company is well positioned with regard to the economic and energy policy situation. However, the energy shortages driving inflation might negatively impact consumption, and thus monetary stability, over the long term. For this reason he welcomed the introduction of a restrictive monetary policy by the central bank. At the same time, he warned against the formation of global economic blocs. “A fragmentation of economic systems threatens innovative strength and prosperity for everyone,” Hartung said. “Most importantly, climate action needs international cooperation.”
Hartung sees the further development of renewables as a way of resolving the conflicting goals of environmental and economic sustainability. “The transformation of energy systems needs to remain affordable, must not lead to power supply failures in businesses or households, and should leave fossil fuels behind wherever possible.” Bosch is playing its part in this, he said, and upping the pace in fuel-cell and hydrogen technology. “Where electromobility is concerned,” Hartung said, “we are registering a consistently high order intake.” As a result, Bosch expects to register sales of 6 billion euros in this segment by as early as 2026. In China, business with e-axles and motors is already forecast to turn a profit this year.
Climate-neutral technology: energy crisis driving demand
Notwithstanding all the challenges it presents, the energy and climate crisis is increasing global demand for climate-neutral technology. This is opening up a variety of new perspectives for Bosch as well: the company already generates sales of more than 20 billion euros with products for the home. “Our product portfolio can positively influence around 90 percent of energy consumption in the home,” said Dr. Christian Fischer, deputy chairman of the Bosch board of management, who is also responsible for the company’s home and building technology business. “Of this figure, 85 percent relates to heating and hot water and 15 percent to home appliances.” In Germany, Bosch already increased its unit sales of heat pumps by 50 percent in 2022. The European heat-pump market is expected to grow by an annual 25 to 35 percent between now and 2025, and by nearly 40 percent at Bosch, enabling it to gain market share. That is why the company is expanding its manufacturing capacity for heat pumps in Europe: since the beginning of the year, a further production facility has been ramping up in Eibelshausen, Germany. Bosch sees further growth potential in the transformation of energy systems. “However, this transformation must be affordable,” Fischer said. “In buildings, the cost of renovation and retrofitting should not be underestimated.” This explains why Bosch is focusing on hybrid heating systems consisting of heat pump and gas boiler. For the future, the Bosch deputy chairman sees additional potential in the combined optimization of energy flows in vehicles and buildings: “We’re electrifying everything, from bicycles to hydraulics – and we know our way around buildings as well as around cars.”
Employer attractiveness: sustainability attracts skilled workers
Bosch also made progress in implementing its own sustainability and climate targets in the 2022 business year. Over the course of the year, the company increased the share of renewables in its electricity consumption from 89 to 94 percent. “2022 saw us reach nearly half the 1.7 terawatt-hour energy-saving target we have set ourselves for 2030,” said Filiz Albrecht, member of the board of management and director of industrial relations at Robert Bosch GmbH, who is also responsible for sustainability. “At the same time, our commitment to sustainability makes Bosch a more attractive employer.” According to Albrecht, the company’s sustainability strategy is an increasingly important consideration for applicants. In times when skilled workers are in short supply, finding the best talent around the world is also becoming more difficult for Bosch, she said. She pointed out that India is gaining in importance in the competition for software experts. Bosch has 17,000 such associates there, and worldwide their number has risen from 38,000 to 44,000. The need for software developers remains high; the company expects to add around 10,000 by the middle of the decade. “Bosch will soon employ more than 50,000 people in software development,” Albrecht said. The Bosch Group is also developing the digital skills of its assembly-line associates: this year, for example, will see the launch of “LernWerk,” an initiative in the Mobility Solutions business sector. Its initial aim is to improve the skills that will be needed to work in the “factory of the future” at all locations in Germany.
Business developments in 2022: mobility business posts highest sales growth
“Despite semiconductor shortages and a weak economy, all business sectors were able to increase their sales,” said Dr. Markus Forschner, member of the board of management and chief financial officer of Robert Bosch GmbH. At 52.6 billion euros, the biggest business sector, Mobility Solutions, once again generated the highest sales in 2022. The 17 percent increase in sales came to 12 percent after adjusting for exchange-rate effects. “The good news is that our sales thus grew faster than automotive production,” Forschner said. Nonetheless, Bosch cannot be satisfied with its profitability: margins were burdened by cost increases along the entire supply chain as well as upfront investments for the transformation of the company’s mobility business, he said. The Industrial Technology business sector achieved sales growth of 14 percent to 6.9 billion euros. After adjusting for exchange-rate effects, sales growth was 11 percent. According to Forschner, the purchase of HydraForce and the acquisition of Elmo are important milestones for Bosch’s industrial technology business. The Consumer Goods business sector managed to increase sales slightly despite significant consumer reluctance to buy home appliances and power tools, Forschner said. It increased its sales by 2 percent to 21.5 billion euros. After adjusting for exchange-rate effects, this figure rises to 3 percent. In the Energy and Building Technology business sector, on the other hand, growth reflected the unabated high demand for energy-efficient home and building technology. Forschner reported that sales increased to 7 billion euros. After adjusting for exchange-rate effects, the increase of 15 percent amounts to 13 percent.
