Bosch Plans Billion-Euro Business with Factory Software

The company has ambitious goals for its industrial technology division: By the early 2030s, Bosch aims to generate around one billion euros in revenue from software and software-related services.

“Bosch is one of the world’s largest manufacturing companies. We understand factories inside and out, and this expertise directly informs our software development,” says Tanja Rückert, a member of the board of management at Robert Bosch GmbH, responsible for the Industrial Technology division. This division includes Bosch Rexroth, Bosch Manufacturing Solutions, and Bosch Connected Industry.

According to the company, Bosch has the expertise and know-how for fully software-driven manufacturing. Its software solutions integrate seamlessly at both the operational management and control levels. Additionally, Bosch Manufacturing Solutions offers AI-powered process optimization for existing production environments.

Ahead of the Hannover Messe, which kicks off at the end of March, Bosch is sharing key highlights of its presence at the event. Here are some of the main focus areas:

Factory Automation

With ctrlX Automation, Bosch Rexroth has developed an open automation system for factory operations. Since its launch five years ago, the number of customers has grown to over 2,000. The associated partner network, ctrlX WORLD, now includes more than 100 partner companies, expanding the ecosystem with software and hardware solutions.

The ctrlX OS operating system is also gaining momentum. Its open interfaces and standards allow seamless integration of a wide range of automation technologies and partner solutions.

“The increasing digitization of industry requires new solutions that enable seamless system connectivity while remaining open and adaptable. Co-creation and open ecosystems allow companies to combine their strengths, develop innovations together, and respond much faster to market changes,” says Thomas Fechner, head of factory automation at Bosch Rexroth.

Through its ctrlX OS Store, Bosch now offers more than 80 apps, covering everything from communication and IoT solutions to advanced vision and engineering applications. Each app is validated according to strict Bosch Rexroth guidelines. About half of these apps are developed by third-party providers, reinforcing the growing role of co-creation in industrial automation. ctrlX AUTOMATION can also be integrated with NEXEED, Bosch’s Industry 4.0 platform.

Smart Factory

Bosch Connected Industry’s Nexeed software optimizes production by improving raw material and resource efficiency. It detects and addresses defects early, enables predictive maintenance, and enhances machine performance. As a result, factories can become up to 25% more productive, machine availability can increase by up to 15%, and maintenance costs can be reduced by up to 25%.

With Nexeed, all stakeholders in manufacturing have access to the exact information they need. Employees are supported directly at the machine, including AI-driven assistance. In the future, workers will be able to use voice input via an app to report issues at a workstation, search for similar past incidents, and request solution suggestions.

The software is already in use by international customers such as Sick and Osram, as well as in approximately 150 Bosch plants. Thanks to its open interfaces, Nexeed can be integrated into common industrial platforms and existing infrastructures. It also allows data to be leveraged in other applications, enhancing overall operational efficiency.

Data Management

"Companies are sitting on a treasure trove of data, but very few know how to use it. We have the key to unlocking its value," says Norbert Jung, Managing Director of Bosch Connected Industry.

Bosch’s Semantic Stack software creates a semantic data layer, making product data understandable for both humans and machines throughout its lifecycle. By linking data to a digital twin, it ensures consistency and reliability, enabling smarter business decisions.

Unlike conventional data storage solutions, the Bosch Semantic Stack provides meaning to data, eliminating redundant processing and integration. Bosch itself has already created over 400 million digital twins across its operations. These digital twins facilitate secure and seamless data exchange, even across different companies.

A key example of this technology in action:
Starting in 2027, the EU will require a digital battery passport for all electric vehicles, light transport devices, and industrial batteries over two kilowatt-hours. This passport must document key lifecycle data, including CO₂ emissions from production, battery performance metrics, and material composition for recycling. Bosch offers a Battery Passportmodule within its Semantic Stack, which automates compliance with these regulations by generating the required battery passports using digital twins, ensuring full data transparency across the entire lifecycle.

Model Factory

To showcase the impact of software-driven manufacturing, Bosch Rexroth has established a model factory in Ulm. This facility demonstrates how factories can be digitally transformed efficiently and cost-effectively—even in existing production environments. The model factory highlights solutions for industries such as automotive, battery production, consumer goods, and semiconductors.

Manufacturers can flexibly adapt their production to fluctuating demand while efficiently producing customized variants or even small-batch products. Powered by Bosch software, machines and systems communicate seamlessly with one another and with higher-level management systems using open standards, ensuring smooth data exchange and fully orchestrated production.

By integrating automation, AI, and data-driven decision-making, Bosch is shaping the future of smart manufacturing—where efficiency, sustainability, and flexibility go hand in hand.