German engineering and tech major Bosch recently organised its ‘Tech Day 2024’, where the company highlighted its strategic shift towards software development. Currently, Bosch’s software solutions are deployed across a variety of sectors, including industrial production lines, automotive repair shops, medical equipment, and even space missions aboard the International Space Station (ISS).In fact, the company boasts over 48,000 associates dedicated to software programming, with a substantial 42,000 programmers focused on the mobility sector alone.
We recently spoke with Markus Heyn, Chairman, Bosch’s Mobility business sector, as he spoke on the company’s future direction in the realm of softwares, its R&D investments and the critical role of India.
Heyn anticipates a shift towards software-defined vehicles in the automotive sector, which will revolutionise how cars will interact with the digital world. This transformation promises to equip vehicles—from cars to trucks and e-bikes—with enhanced safety and convenience features. “Cars will be seamlessly integrated into the digital world, becoming ‘updateable’ through over-the-air software updates,” he said.
When asked if he foresees a significant increase in R&D spending over the next few years, especially with Bosch’s new focus on software, and what role will India play in this shift, he explained “That’s going to happen for sure. We are not afraid of spending R&D efforts, which I think is good, as long as we generate sufficient profit to afford it,”
“As for India, we benefit from our very competent and large team in India. Services in India started in a little bit different mode, where the main focus was on supporting the divisions with additional software services, which basically were outsourced to India. Today, I would say, our Indian team has developed very strongly and is very competent, so from that point of view, it’s a big asset for us in the transformation and we would like to make use of it,”
“Working with Indian OEMs is crucial for success because they understand local circumstances and customer needs. We focus on R&D projects with them due to their openness to collaboration, which we highly appreciate.” he noted.
Bosch’ Mobility business sector reported an 11.1 percent increase in product sales during the fiscal year 2023-24, driven by a 4.8 percent growth in the overall automotive sector. Domestic sales for the company also rose by 13.2 percent. “We will make all the efforts to grow further in the Indian market and carry on the growth momentum and we do believe that we are in a really good position to excel further if we do it the right way.”
Bosch, in collaboration with Qualcomm, recently introduced a vehicle computer, which has reduced the number of ECUs from 100 to about 10, achieved by combining the ADAS and infotainment ECUs. This innovation not only simplifies vehicle architecture but also promises significant cost reductions for automakers. Over the past three years, Bosch has generated nearly four billion euros in sales from advanced vehicle computer systems.
On being asked if there are other major areas where the company has plans to consolidate technology into a single ECU, he said, “We are looking at migrating classical domains into high-performing computers. In an architecture of less than 10 computers, 3 to 5 could be central, while others will be high-performing zone computers located in specific vehicle zones to reduce cable distance and improve efficiency. These zone computers will consolidate tasks currently handled by individual ECUs, like window lifts, into fewer, more capable units.”
In other developments, the company has developed special software that enables cars to stop smoothly, like a skilled chauffeur. This “eBrake to Zero” function enhances comfort in stop-and-go traffic and reduces the risk of motion sickness. While a typical car now operates with around a hundred control units from various manufacturers, upcoming software-defined vehicles will consolidate these functions into fewer than a dozen advanced vehicle computers, integrating domain-specific capabilities efficiently.
The shift towards software is a key focus for the future and Bosch is all set to tap in the growing market. However, this also raises questions about the hardware sector’s future, particularly for Bosch with its strong hardware expertise, and for small suppliers in markets like India that currently focus on hardware. What happens to these hardware-only companies if they don’t transition? Heyn explained “The good news is, we will always need hardware. Hardware won’t die, and there will continue to be innovations in this area. As a company rooted in hardware with embedded software, we look at both sides. While software is becoming more important, success requires balancing both. Those who think it’s software only are mistaken, especially in automotive. There will be companies focusing on software and those on hardware, but the real advantage lies in doing both. The influence of software has increased, but hardware remains crucial.”
We recently spoke with Markus Heyn, Chairman, Bosch’s Mobility business sector, as he spoke on the company’s future direction in the realm of softwares, its R&D investments and the critical role of India.
Heyn anticipates a shift towards software-defined vehicles in the automotive sector, which will revolutionise how cars will interact with the digital world. This transformation promises to equip vehicles—from cars to trucks and e-bikes—with enhanced safety and convenience features. “Cars will be seamlessly integrated into the digital world, becoming ‘updateable’ through over-the-air software updates,” he said.
When asked if he foresees a significant increase in R&D spending over the next few years, especially with Bosch’s new focus on software, and what role will India play in this shift, he explained “That’s going to happen for sure. We are not afraid of spending R&D efforts, which I think is good, as long as we generate sufficient profit to afford it,”
“As for India, we benefit from our very competent and large team in India. Services in India started in a little bit different mode, where the main focus was on supporting the divisions with additional software services, which basically were outsourced to India. Today, I would say, our Indian team has developed very strongly and is very competent, so from that point of view, it’s a big asset for us in the transformation and we would like to make use of it,”
“Working with Indian OEMs is crucial for success because they understand local circumstances and customer needs. We focus on R&D projects with them due to their openness to collaboration, which we highly appreciate.” he noted.
Bosch’ Mobility business sector reported an 11.1 percent increase in product sales during the fiscal year 2023-24, driven by a 4.8 percent growth in the overall automotive sector. Domestic sales for the company also rose by 13.2 percent. “We will make all the efforts to grow further in the Indian market and carry on the growth momentum and we do believe that we are in a really good position to excel further if we do it the right way.”
Bosch, in collaboration with Qualcomm, recently introduced a vehicle computer, which has reduced the number of ECUs from 100 to about 10, achieved by combining the ADAS and infotainment ECUs. This innovation not only simplifies vehicle architecture but also promises significant cost reductions for automakers. Over the past three years, Bosch has generated nearly four billion euros in sales from advanced vehicle computer systems.
On being asked if there are other major areas where the company has plans to consolidate technology into a single ECU, he said, “We are looking at migrating classical domains into high-performing computers. In an architecture of less than 10 computers, 3 to 5 could be central, while others will be high-performing zone computers located in specific vehicle zones to reduce cable distance and improve efficiency. These zone computers will consolidate tasks currently handled by individual ECUs, like window lifts, into fewer, more capable units.”
In other developments, the company has developed special software that enables cars to stop smoothly, like a skilled chauffeur. This “eBrake to Zero” function enhances comfort in stop-and-go traffic and reduces the risk of motion sickness. While a typical car now operates with around a hundred control units from various manufacturers, upcoming software-defined vehicles will consolidate these functions into fewer than a dozen advanced vehicle computers, integrating domain-specific capabilities efficiently.
The shift towards software is a key focus for the future and Bosch is all set to tap in the growing market. However, this also raises questions about the hardware sector’s future, particularly for Bosch with its strong hardware expertise, and for small suppliers in markets like India that currently focus on hardware. What happens to these hardware-only companies if they don’t transition? Heyn explained “The good news is, we will always need hardware. Hardware won’t die, and there will continue to be innovations in this area. As a company rooted in hardware with embedded software, we look at both sides. While software is becoming more important, success requires balancing both. Those who think it’s software only are mistaken, especially in automotive. There will be companies focusing on software and those on hardware, but the real advantage lies in doing both. The influence of software has increased, but hardware remains crucial.”
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