German auto supplier Bosch investing heavily in automation, robotics

German auto supplier Bosch is investing heavily in automation and humanoid robotics as it seeks to adjust to the crisis in the country's automotive sector. 

"Bosch is shaping the future - on wheels and with arms," said the company's head of digital, Tanja Rückert, at the industry event Bosch Connected World in Berlin on Wednesday.

Chief executive Stefan Hartung argued that with the advent of humanoid robots, the demand for Bosch solutions is rising rapidly. He held out the prospect of developing this segment into a “business worth billions.”

The supplier is pursuing a clear division of roles. Bosch does not intend to act as a manufacturer of humanoid robots itself, but rather to supply the “brain and nervous system” for these systems as a partner.

Microelectromechanical systems (MEMS sensors), in which Bosch is already the global market leader, play a key role by giving robots a sense of touch, enabling them to distinguish a delicate glass object from a robust one, for example.

It is a highly lucrative business, with estimates suggesting that the market volume for MEMS sensors is set to grow to over $19.2 billion by 2030.

To accelerate industrialization, the group has established a new unit, Robert Bosch Robotics GmbH, and is consolidating its activities for the Asian market at the new Bosch Robotics Centre China. 

Partnerships with start-ups such as the German company Neura Robotics are intended to drive the development of cognitive robots. Bosch is using a data treasure trove - unique in the industry - from over 230 of its own plants worldwide as the basis for training artificial intelligence.

The optimistic presentation in Berlin took place against a bleak backdrop. The company's results for 2025 reveal that Bosch is in a crisis, posting a post-tax loss of €363 million ($419 million) for the first time since 2009. Turnover rose only slightly to €91 billion.

The causes of the slump are manifold: a weakening global economy, new US tariffs and massively intensified competition from Chinese suppliers are weighing on the business. 

By its own admission, Bosch is no longer competitive in many areas. Future-oriented projects such as electric mobility or hydrogen-powered vehicles are not yet yielding sufficient returns, while its consumer goods division - including washing machines from home appliances subsidiary BSH and power tools - is suffering from persistent market weakness.

To restore competitiveness, management is planning an unprecedented round of job cuts. 

In the supplier sector alone, around 22,000 jobs are set to be lost in the coming years, with further cuts are planned at BSH and in the power tools division. 

By the end of 2025, the German workforce had already shrunk by over 5% to 122,968 employees. The massive costs of these redundancies dragged down the 2025 annual result, with around €2.7 billion set aside for settlements.