Bosch is reorganizing its Mobility Solutions business sector, giving it more autonomy within the huge supplier's corporate structure, and forecasting a surge in revenue to $88 billion by the end of this decade.
The change reflects the auto industry's global shift away from the parts and hardware that make up vehicles powered by internal combustion engines, a business that has made Bosch a global leader over the past century. In the coming decade, automakers will increasingly rely on technologies that can update and alter a vehicle's performance or improve its safety.
The German company's unit will be called Bosch Mobility and led by Markus Heyn, chairman of Mobility Services since January 2022, the supplier said. The change will be effective Jan. 1, 2024.
Its expected growth engines will include automotive software, which Bosch says has been growing by "double digits" in recent years. The company estimated the segment will have a global market value of just under $220 billion by 2030, three times what it is now.
"For some time now, Bosch has also seen itself as a mobility software company," Heyn said in a statement. "Now, in response to customer requirements, our structure is changing to reflect this and to open up further growth."