Bosch, the world’s largest supplier of car parts, is preparing for a future where fewer cars are sold. The company has developed a survival plan that involves repositioning itself as a provider of a broad range of Internet of Things (IoT) services. The company aims to utilise its expertise in sensors and software to offer solutions for smart homes, connected mobility, and connected industry. Bosch has also invested in a new semiconductor plant in Dresden to produce chips for cars and IoT devices.
The company’s shift towards IoT has been driven by a decline in the automotive industry, which currently accounts for 60% of its revenue. Bosch is betting on a future where cars will be less about mechanical engineering and more about software and services. The company has already started to build a portfolio of IoT services, including a system that lets drivers pay for fuel from their car.
Despite the challenges, Bosch is optimistic about its future in the IoT market. The company believes that by 2020, every product it manufactures will have some internet connectivity. Bosch’s transition into an IoT company is a risky move, but it is a necessary one for the company’s survival in a rapidly changing market.
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