Can a car be used as a personal assistant? Everyone acknowledges the feasibility. The only challenge is who will implement it and how.
The global automotive technology and service supplier Bosch has clearly expressed its commitment to creating a new automotive world with intelligent hardware and software solutions at 'IAA Mobility 2025'. Bosch Group Chairman Dr. Stefan Hartung strongly stated, "Bosch wants to play a key role in leading the industry in the software-driven mobility era."
Bosch emphasized the hardware provided is designed according to the possibilities of software as a single source at IAA Mobility 2025 being held in Munich.
Dr. Stefan Hartung, Chairman of the Board of Bosch and Bosch Group, stated at IAA Mobility, "Bosch is proficient in both software and hardware. Without sophisticated hardware, no matter how smart the car is, it cannot move even 1 millimeter," and added, "Our goal is to provide customized intelligent solutions suitable for the software-driven mobility era and to continue to lead the industry's transformation." Bosch's strength in software is a distinguishing point in the global market.
Initial indicators are pointing to success. Bosch has established its position in a software-driven world.
As an example, Bosch's by-wire system for braking and steering, considered key technologies for software-driven vehicles and autonomous driving, eliminates the need for mechanical connections since software handles the control. This is an important business for Bosch.
Bosch anticipates achieving cumulative sales of over 7 billion euros by 2032 through brake-by-wire and steer-by-wire technologies. The dynamic growth of this core technology market will continue to accelerate into the 2030s. The by-wire technology showcases the future of vehicle manufacturing. Dr. Markus Heyn, President of Bosch Mobility, stated, "In the future, hardware will be designed to meet software requirements."
In the field of software-driven mobility, Bosch Mobility is continuously evolving from hardware with embedded software to independent software fully integrated into the ecosystem by manufacturers and partners.
Dr. Hartung noted, "Bosch can accurately provide what customers want, whether it is independent, interconnected, standardized, integrated, or separated." This clearly holds influence. Despite global vehicle production stagnation, weak demand, and delays in electric vehicles and autonomous driving technologies, Bosch's mobility division is expected to see slight growth this year. The revenue growth rate is projected to be under 2%.
Until now, the car was most current at the moment of delivery. Dr. Hartung stated, "However, the software of cars will continuously be updated and will learn incessantly through AI in the future," adding, "Above all, new mobility is user-centered."
For example, Bosch's Vehicle Motion Management software centrally controls brakes, steering, powertrains, and chassis, adjusting all movements of the vehicle. This enhances the coordination of individual systems and allows the driver to adjust as desired. From smooth driving to dynamic driving, with just one button press, the vehicle can change to feel completely different. Bosch's Vehicle Motion Management is separate from hardware, making it easy to use across various automotive architectures.
This is not just theory; it is happening in reality. Bosch software is used by more than 20 manufacturers in Europe, China, and Japan. Bosch plans to invest a 9-digit euro amount in its Vehicle Motion Management business over the next three years and to expand its modular software and functional portfolio across all domains. Bosch's Vehicle Motion Management solution becomes even more effective when combined with by-wire solutions, as software can independently control each braking and steering actuator, regardless of the driver's actions. This enhances safety and improves convenience and driving dynamics.
Bosch's ADAS product line is also software-driven. For intelligent driver-assist systems, vehicle manufacturers can choose from three preset values, enabling them to establish mass production systems quickly and in line with brand characteristics. In this case, customers can integrate hardware and software according to their needs or purchase them separately. Both options offer the advantages of an integrated approach. Bosch understands the interaction between hardware and software, allowing it to provide optimized individual solutions that can be perfectly integrated into existing environments.
For the latest vehicles designed and developed from a software perspective, there are increasingly fewer vehicle computers used, but they are more powerful vehicle computers. This is the driving force behind Bosch's growth. Bosch's high-performance computer business is currently growing by more than 5% annually, with major customers including automotive manufacturers like the BMW Group.
Bosch also offers central vehicle computers that integrate various functions such as driver assistance and infotainment into a single control unit and a single system on chip (SoC). This can save space, expenses, and energy. These systems have a modular structure and can flexibly integrate software from various manufacturers. Bosch supplies high-performance computers to SAIC-GM for implementing AI-enabled cockpits in China. Thanks to this AI cockpit, drivers can communicate with the car in a natural way, as if conversing with a person.
The software-driven future is fundamentally transforming the automotive industry.
Bosch is well-positioned to seize the opportunities offered by this new world. Few corporations match Bosch in both hardware/software expertise and global presence. This makes Bosch a flexible and reliable partner for developing intelligent connected vehicles. Strategic partnerships are very important, especially for new business models and scalable software systems.
In China, Bosch is already working with WeRide and Horizon Robotics to develop driver assistance and autonomous driving systems. In Europe, Bosch and Volkswagen's subsidiary Cariad are strategic partners in this field. Bosch anticipates that these alliances will become increasingly important and that the share of software in cars will continue to rise.
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