At Bosch, software development is becoming a cornerstone of the company’s growth strategy. By the end of the decade, Bosch aims to generate billions in sales through software. “Bosch has long been a software company,” said Dr. Stefan Hartung, chairman of the Bosch board of management, at the Bosch Tech Day 2024 in Renningen. “Our extensive domain expertise allows us to integrate software directly into our products, enhancing our customers’ lives with technology that is ‘Invented for life.’”
Bosch’s software is already widespread, found in industrial production lines, car repair shops, medical equipment, and even on the ISS. It helps drivers avoid wrong-way collisions, protects assets, controls building technology, and more. Currently, 48,000 Bosch associates are software programmers, with 42,000 working in the Mobility sector alone. “Software will revolutionize the automotive industry,” Hartung said. Dr. Markus Heyn, member of the board of management and chairman of the Mobility sector, added, “Future cars will be updateable, receiving new functions via over-the-air software updates.” This updateability extends to trucks, motorbikes, and e-bikes. Since launching its smart system for e-bikes in 2021, Bosch has released around 70 new features through the eBike Flow app.
Software and digital services are now critical to Bosch’s success, driving innovation across industries. Bosch’s expertise in mobility, manufacturing, and building technology makes it a valuable partner for leading IT companies. “To leverage software and AI’s potential, partnerships are crucial. Open-source software helps pool expertise, save costs, and create standardized solutions,” Hartung said.
Policymakers also play a role. In AI development, companies need regulatory certainty, which includes the AI Act recently passed by the EU. “The EU must implement the AI Act quickly to ensure it doesn’t stifle innovation,” Hartung noted.
In the automotive sector, the trend of software-defined vehicles is gaining momentum. A McKinsey study estimates the global market for automotive software and electronics will reach $462 billion by 2030. Bosch aims to be a key player in this market. “We’re at the dawn of the software-defined vehicle era,” Heyn said. Bosch’s dual expertise in hardware and software positions it uniquely in this space. Solutions like Vehicle Health help fleet operators avoid breakdowns, and the Bosch L.OS digital platform streamlines logistics operations. The “eBrake to Zero” function ensures smooth, jolt-free braking, enhancing comfort and reducing travel sickness.
Software-defined mobility will also reshape vehicle architecture, moving from a domain-specific IT structure to a centralized one with fewer but more powerful computers and sensors. Currently, a car might have around one hundred control units; future vehicles will need fewer than a dozen. Bosch and Qualcomm recently introduced a vehicle computer that combines infotainment and driver assistance functions, reducing installation space, cables, weight, and costs by up to 30 percent.
To ensure seamless communication between diverse software and hardware, the Bosch subsidiary ETAS provides middleware that connects a vehicle’s physical components with its application software. As Bosch continues to innovate, it’s clear that the cars of the future will be deeply integrated with Bosch technology and software.
