Stuttgart and Renningen, Germany – Bosch Group aims to benefit from its innovation power to realize its growth expectations in global markets in the 2026 fiscal year in the face of geopolitical tensions and trade barriers. It is planned that the necessary preliminary investments for important areas of the future will remain at the high level of previous years. In 2025 alone, Bosch allocated approximately €12 billion in research and development and capital expenditure. The technology and service provider plans a turnover increase of 2-5 percent and an EBIT margin from operations of 4-6 percent for 2026. “As a global technology leader, we are determined to shape the trends in automation, digitalization, electrification and artificial intelligence, because this also paves the way for profitable growth in our business. The cost-cutting effects of the structural measures we have initiated and innovations in all business areas are an important prerequisite for this,” said Stefan Hartung, Chairman of the Board of Management of the Bosch Group, referring to the company’s annual figures.
When it comes to innovation power, Bosch stands out as one of the world’s strongest industrial companies and Europe’s most prolific patent applicants. Bosch registered approximately 6,300 patents in 2025, once again becoming a leader in Germany. Despite significant challenges, Bosch managed to achieve a turnover of €91 billion in the 2025 financial year, a slight increase compared to the previous year (2024: €90.3 billion). After adjusting for exchange rate effects, this represents a growth of 4.1 percent. The EBIT margin from operations, which was 2 percent, remained below the previous year’s figure (2024: 3.5 percent). The structural and personnel adjustments required to enhance future sustainability had a significant negative impact on the financial result at a level of €2.7 billion.
Strategy 2030: innovation and differentiation to increase growth
To achieve successful business development in an adverse global economic environment, the company needs to keep its costs at a competitive level. With the conclusion of discussions with employee representatives regarding employment reductions at all affected Mobility locations in Germany, Bosch is improving its future competitive position in the face of increasing price pressure. “The negotiations were not easy, but both sides demonstrated a clear sense of responsibility,” Hartung said. “We are now implementing the agreed measures both quickly and consistently and in as socially acceptable a way as possible.” In the automotive industry, China currently sets the standard for price levels. Hartung therefore sees the expansion of innovation leadership as an important success factor for expanding the business, especially in the automotive market, and implementing the company’s Strategy 2030 ambition. This strategy envisages Bosch becoming one of the top three suppliers in its key markets. Trade barriers and different user expectations are currently both a challenge and an opportunity for regionally adapted solutions. “In international competition, it is not just about costs, but above all about differentiating ourselves,” said Hartung, referring to Bosch’s global footprint and stating that he sees this as a competitive advantage. “We can adapt our offers and supply chains to regional conditions and at the same time deliver quality on a global level,” Hartung also said. He concluded his words by saying.
Economic outlook 2026: creating finance for key areas of the future
Bosch believes that the weak economic course of 2025 will continue in the current fiscal year. High levels of uncertainty, arising primarily from geopolitical developments, are largely offset by a resilient private sector and increased fiscal spending. However, price and competitive pressures remain high. Despite this, Bosch managed to increase its sales in the first quarter of the year compared to the same period of the previous year, after adjusting for exchange rate effects. Bosch expects only moderate growth of 2.5-3 percent for the global economy. “The basis for profitable growth is our competitiveness – that is why we are working hard to increase it even further,” said Markus Forschner, Bosch board member and finance director. “This strengthens our resilience in the face of upcoming challenges and also increases our investment capacity for the future.” As a strategic opportunity and a financial measure, Bosch is expanding its scope accordingly: In order to be able to issue financial instruments such as bonds more flexibly during the year, the company will for the first time publish interim consolidated financial statements and an interim group management report for the first half of the current financial year. On this point, Forschner said: “This increases our ability to access capital markets, even though we already have a strong capacity to finance our business from our own resources.”
Sensor technology: automation and robotics secure sales
Bosch is driving forward numerous innovations in microelectronics and sensor technology. It expects its consistent focus on “technology for life” to deliver significant growth momentum. Experts predict that the global sensor market could reach a value of more than US$440 billion by 2031. Bosch will benefit from this potential growth: Sensors from Bosch are playing an increasingly important role in robotics. For example, the BMI5 sensor platform creates artificial environments in a highly realistic way and helps robots find their way even under challenging conditions. With this product, its most powerful sensor solution to date, Bosch sees itself as well positioned for the rapidly growing segment. In the field of automated driving, inertial sensors are considered an important component of the future and offer additional sales potential. These sensors allow cars to maintain awareness of their whereabouts even when camera or GPS signals are not available. “These sensors work like the sense of balance in the human inner ear for an autonomous car,” said Hartung. According to analysts, the market for smart sensors in automotive applications will nearly double to more than US$80 billion by the middle of the next decade.
Innovations in mobility: algorithms and powertrains drive growth
Bosch expects the automotive software market to be worth approximately €200 billion by 2030. As a result, Bosch chairman Hartung sees huge growth opportunities in software-defined mobility. “Bosch is at the forefront in this field and is now literally bringing AI into the driver’s field of vision,” said Hartung. The new Bosch AI Extension Platform is an artificial intelligence-enabled high-performance computer that, together with an intersensing solution, turns driving into a highly personalized experience. “The vehicle recognizes who is behind the wheel and detects whether there are other passengers, then adjusts everything from the exterior mirrors and vehicle handling to optimized airbag deployment in the event of an accident.” Product innovations in intelligent driver assistance solutions are also creating new jobs in all regions of the world: together with sensor technologies and central vehicle computers, Bosch will receive orders worth €10 billion in 2025. “Of course, the cars of the future will need not only algorithms but also powertrains,” Hartung said regarding the growing business with electromobility. “This year alone, we will deliver more than 7 million solutions and components for electric driving.” Just a few weeks ago, Bosch announced a joint venture with Tata AutoComp Systems in India. From mid-year, it will focus on the development, production and sales of electric axles and motors in the Indian market.
Innovations in consumer goods and services: AI drives business forward
Artificial intelligence also provides significant growth opportunities in the service and product business. For example, a new oven model with an AI-based voice function provides new sales potential for BSH Home Appliances. No external speakers or additional applications required. Overall, the worldwide business with home appliances in the luxury and premium segment is expected to continue growing, especially in North America. Market experts predict that global sales of home appliances will reach approximately 5 billion units by 2030. The use of artificial intelligence is also driving product innovations in the Power Tools segment. Since the beginning of the year, the first 30 tools in the Expert range have been launched and set new standards for professional power tools. These include a new wall scanner that finds objects in different types of walls and uses Bosch radar technology together with AI object detection for the first time. Bosch’s service business is also benefiting from AI: The Bosch Global Service Solutions division also expects double-digit sales growth on average by 2030, thanks to AI-based applications. The service portfolio includes solutions for digital mobility services such as eCall and breakdown assistance, as well as offers for fleet operators and logistics providers.
R&D data for 2025
The R&D rate was 8.7 percent of sales (2024: 8.6 percent). Research and development expenditures reached 7.9 billion euros. Bosch has made significant upfront investments in areas such as electromobility, semiconductors and cutting-edge brake control systems.
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