Bosch Recorded Sales of 490M Euros in MEA

Bosch, a prominent global provider of technology and services, concluded its 2023 fiscal year with consolidated sales of 490 million euros in the Middle East, marking a 3% increase. Despite the challenges of the year, the company met its sales expectations, driven by contributions from various divisions including Bosch Rexroth, Building Technologies, Mobility Aftermarket, and Bosch Global Software Technologies.

Commenting on the results, Per Johansson, general manager of the Bosch Group in the Middle East, said: “Despite the challenges posed by the market due to geopolitical developments and respective economic impact, Bosch has demonstrated resilience and adaptability. Our associates’ dedication and hard work delivered the best possible results across divisions.” The number of associates employed at Bosch in the Middle East stood at around 485 as of December 31, 2023.

Outlook for 2024 in the Middle East

“At Bosch, we remain optimistic about the future and are committed to driving growth through our technology ‘Invented for life’ and improving the quality of life. We aim to accelerate our growth in 2024 and beyond, with a focus on continued regional expansion,” Per Johansson added.

The Middle East presents diverse stages of development, particularly among the Gulf Cooperation Council (GCC) countries such as Saudi Arabia, UAE, and Oman. These nations are advancing towards economic diversification through long-term governmental visions. The adoption of Artificial Intelligence (AI) is set to unlock investment opportunities across sectors, with a focus on reducing dependence on fossil fuels and enhancing environmental, social, and governance (ESG) strategies. Investing in AI technologies is expected to strategically position the region for future growth.

Development Across Bosch Business Sectors

Bosch’s business sectors showed varied performance in 2023. The Mobility Aftermarket division saw growth, driven by the traditional diesel business and passenger car spare parts like batteries, wipers, and spark plugs. Bosch Global Software Technologies achieved notable success by acquiring new customers in the UAE and KSA, largely due to the rising demand for digital enterprise software solutions including ERP, Cloud, and AI, as well as digital engineering products and services like IoT and product development. Bosch Rexroth contributed significantly through refreshed go-to-market strategies and partnerships in mobile and industrial applications and factory automation. The Building Technologies division also experienced growth, focusing on advancements in video solutions, conferencing, fire alarm systems, and AI-driven building management.

Expansion Plans in the Middle East

In 2024, Bosch plans strategic expansions in Saudi Arabia and Oman, underscoring its commitment to the region. These markets hold significant potential for growth, supported by economic reforms, infrastructure development, and a focus on sustainability. Bosch aims to align its innovative solutions with national development goals, contributing to and benefiting from the dynamic growth of these key markets.

Sustained Investments in Digital Transformation and Hydrogen

Bosch is prioritizing digital transformation and hydrogen as key investment areas, demonstrating its commitment to innovation and sustainability. The Bosch Connected Industry division is leading the shift towards smart factories, integrating IoT, AI, and data analytics to enhance operational efficiency and resource utilization. This supports the region’s industrial modernization and economic diversification goals. In the hydrogen sector, Bosch is investing in technologies for the production, compression, storage, and utilization of hydrogen, aiming to contribute to a sustainable future.

Diversity and Inclusion at Bosch

Bosch champions diversity with over 23 nationalities represented at its Dubai location. This cultural diversity fosters creativity, innovation, and a global perspective. The company actively promotes women in senior positions, aligning with its core values of respect and equal opportunity. By fostering an inclusive environment, Bosch enhances its leadership and ensures a diverse array of viewpoints, driving continued success.

Strategic Course and 2024 Outlook for Bosch Group

Bosch Group increased its sales by 3.8% in 2023 to 91.6 billion euros, with a 5.3% EBIT margin from operations. Stefan Hartung, chairman of the board of management of Robert Bosch GmbH, said: “In the 2023 business year, we achieved our financial targets and strengthened our market position in several business areas, from semiconductors to integrated building systems.” Despite challenging economic conditions, Bosch is implementing its growth strategy. However, the first quarter of 2024 saw a slight decline in sales, though a 2.7% increase was noted after adjusting for exchange-rate effects. The company anticipates challenges in increasing the EBIT margin due to market conditions and upfront investments in strategic areas but aims to rank among the top three suppliers in its key markets globally. “We’re pursuing innovations, partnerships, and acquisitions to ensure we grow as our industries transform – despite economic headwinds,” Hartung said.

In its core mobility business, Bosch is launching around 30 production projects for electric vehicles in 2024. The company expects hydrogen technology sales to reach 5 billion euros by 2030. In heating technology, Bosch grew its business by almost 50% in 2023 and plans to continue outpacing market growth. While consumer goods markets may improve slightly, Bosch’s innovations and international expansion should stabilize its business. Climate action remains central to Bosch’s strategy, with significant investments in technologies for a carbon-neutral future to shape the transformation from the forefront. “There is pressure to cut subsidies for CO2-efficient technologies. But climate action requires sustained investment – from government, from companies, and from each and every one of us,” Hartung said.