Business in 2024: Market slows down Bosch growth

Bosch, the technology and services provider, is expected to generate sales of 90.5 billion euros in 2024 according to preliminary figures[1]. In nominal terms, the decline is 1% year-on-year, and excluding the effect of exchange rate differences, the result from the previous year is maintained. The EBIT margin from operations is 3.5%. “We are making serious efforts, but Bosch is also subject to economic developments. Nevertheless, we performed well compared to other companies in the industry,” said Stefan Hartung, Chairman of the Board of Management of Robert Bosch GmbH, referring to the company’s preliminary business figures. “Our technologies for mobility and the homes of the future are the key areas of our growth.” He highlighted efforts to strengthen competitiveness and growth in 2024 through strategic portfolio decisions, including both acquisitions and divestments. At the same time, the company also had to make some structural adjustments bieleta antiruliu sidem pret.

Business in 2024: Market slows down Bosch growth

In addition to the weak growth of the global economy, the Bosch Group's business development was adversely affected by the fact that growth markets such as electromobility developed much more slowly than expected. The lack of sales in these areas and the associated underutilized capacity, as well as the continuing high initial costs for future technologies and provisions for the necessary strategic adjustments, had a negative impact on the financial result. Despite all the challenges, Bosch is continuing to strictly follow its ambitious business goals: by 2030, the company will strive to be among the leading suppliers in its areas of activity in key markets. In addition, Bosch is achieving average annual growth of between 6 and 8 percent, with a profit margin of at least 7 percent.

Growth strategy: portfolio management for greater business opportunities

In the past financial year, Bosch systematically implemented its Strategy 2030 and achieved important goals. One of these is the planned acquisition of the HVAC business of Johnson Controls and Hitachi – a transaction worth around USD 8 billion. By purchasing this business, Bosch intends to expand its presence in emerging markets such as the USA and Asia. “Despite headwinds, we are strictly following our growth strategy and will continue to resolutely drive forward the technologies that are crucial for tomorrow’s world,” said Hartung. With the successful sale of large parts of the Energy and Building Technology sector’s product business for security and communication technology, Bosch will focus on the systems integration business and continue to grow. With these moves, the company is aiming to achieve a better balance between the business sectors, improve its sustainability and make its portfolio viable for the future.

Technologies of the Future: Innovations Creating the "Technology of Life"

To achieve its growth goals, Bosch is driving innovation in areas of future importance. “Electromobility, hydrogen and sustainable technologies will grow and are therefore the focus of our innovations,” said Hartung, referring to ongoing climate change. He gave the example of the cryogenic pump that Bosch is currently testing in the USA. It compresses up to 600 kg of liquid hydrogen per hour and in just 10 minutes, trucks can be filled with enough hydrogen for the next 1,000 km. Bosch is also a leader in household appliances. In just a few weeks, it will debut an energy-efficient built-in XXL refrigerator with freezer, which will be the first household appliance in the world to be ready for manufacturer-independent connectivity via the new Matter standard. Around 5,000 AI experts at Bosch are working on integrating AI into everyday life. One example – the new AI-assisted emergency call service, through which elevator users can request assistance in their native language through simultaneous translation, but does not require retrofitting the elevator.

Digital solutions: artificial intelligence boosts core business

Intelligent software and digital services are already an important pillar of Bosch’s core business. “We are increasingly using AI in processes, improving quality and productivity both in our factories and in 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 with software and services by the beginning of the next decade, two-thirds of which will be in the mobility business sector. “At Bosch, AI has been playing an important role in assisted and automated driving for years,” said Hartung. “But we are also developing software-defined mobility outside the field of AI, and this makes Bosch an ideal partner for the world’s major technology players.” One example is the VehicleMotion Management system solution. It implements brake-by-wire braking systems, where the 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 growth. According to Hartung, action is needed to strengthen competitiveness and attractiveness as a place to do business. “A strong EU means less regulation and more investment, as well as fewer barriers and greater market liberalization,” he said. Given the high energy prices, bureaucracy and lack of infrastructure investment in Germany, the company’s home market, Hartung hopes to see a rapid shift from talk to action after the country’s upcoming elections. “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 always, Bosch wants to do its part to achieve this goal: next year, around 40 percent of the company’s global investments will be directed at its German locations.

Business Development in 2024: Market Trends Affecting Sales by Business Sectors

The sales figures for the Bosch business sectors clearly reflect the general market trends. “Overall, 2024 was quite different, as all of our focus markets performed poorly,” said 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 business sector almost reached the previous year’s level. Despite the market downturn, sales revenue remained virtually unchanged after adjusting for exchange rate effects. In the Industrial Technology business sector, sales revenue amounted to 6.5 billion euros, which is 13 percent less than in the previous year in nominal terms or minus 12 percent excluding exchange rate effects. The weak mechanical engineering sector hit the core markets in Europe, China and the USA particularly hard. 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, there was actually growth of 3% compared to the previous year. This means that Bosch is growing again in the consumer goods business – for the first time since the decline in demand at the end of the coronavirus pandemic. Sales revenue in the Energy and Building Technologies business sector amounted to 7.5 billion euros. This corresponds to a decline of 3%, both in nominal terms and after adjusting for exchange rate effects. This is mainly due to the depressed mood in the European heating market.

Business development in 2024: slowed sales growth in the regions

The economic situation affected sales revenue to varying degrees by region. “Business in Europe was particularly affected by the economic situation,” explained Forschner. Sales revenue in Europe amounted to 44.5 billion euros, a decrease of 5% year-on-year in nominal terms and after adjusting for the effect of exchange rates. Developments in North America and China had an impact, and sales revenue growth in the Americas and Asia-Pacific was also weaker. In North America, sales revenue grew by 5% to 16 billion euros. Sales revenue in South America amounted to 1.8 billion euros. This is a nominal increase of 6% or 12%, excluding the effect of exchange rates. In the Asia-Pacific region, sales revenue grew to 28.1 billion euros. Nominal growth was 1%, or 3% after adjusting for the effect of exchange rates.

Staff development in 2024: requirements for employee reduction

As of December 31, 2024, the Bosch Group employed around 417,900 employees worldwide – around 3 percent fewer than in the previous year (-11,500). There were significant regional changes in Europe and Asia. In Germany, the number of employees also fell by around 3 percent (-4,400) to just over 129,800.

Outlook for 2025: Weak economy will put more pressure on spending

The Bosch Group is also facing many challenges this year. “We are forecasting moderate growth globally,” said Forschner. “We do not expect the global economy to pick up again before 2026.” Given the current state of affairs, Bosch is assuming that the economy will grow by just 2.5 percent in 2025. In order to implement its growth strategy, the company is remaining focused on its financial targets. “Even in the face of persistently unfavorable conditions, we want to increase our sales and earnings in fiscal 2025,” said Forschner. According to him, only profitable growth will allow the company to continue its strong and meaningful development. Bosch will strive 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 suitable structures for a promising portfolio. “Smart savings and targeted investments ensure that we have the necessary room for maneuver,” added Forschner, warning that this will not be easy. Such a plan will require great effort and does not exclude painful decisions.

[1] Rounded figures may differ from those published in subsequent consolidated financial statements.

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In addition to the weak growth of the global economy, the Bosch Group's business development was adversely affected by the fact that growth markets such as electromobility developed much more slowly than expected

Growth strategy: portfolio management for greater business opportunities