German industrial conglomerate Bosch says it is ramping up efforts to grow its industrial software business, aiming to surpass €1 billion in annual sales by 2026 from its factory automation solutions.
The announcement underscores the company’s ambition to become a leading provider of industrial software, particularly in manufacturing automation.
At the core of this push is Bosch’s Manufacturing Execution System (MES), part of its Nexeed Industrial Application System.
The MES software coordinates and optimizes production processes in real time and is currently in use at over 200 Bosch plants and 100 external customer sites.
The software has already helped Bosch reduce production costs by 25 percent and increase productivity by 15 percent, the company says.
“Software is a key enabler of efficient, resilient, and sustainable manufacturing,” said Rolf Najork, member of the Bosch board of management.
“We are expanding our portfolio to provide customers with integrated solutions that go beyond hardware.”
Bosch is also integrating generative AI tools into its software systems to further enhance factory operations.
These AI applications will support tasks such as quality inspection, predictive maintenance, and energy management, helping manufacturers improve efficiency and sustainability.
The company is positioning its industrial software offerings as central to the future of smart manufacturing, where digital solutions, AI, and automation converge.
Bosch’s broader digital and automation strategy aligns with its internal use of these tools across its own production network, creating a cycle of development and validation for customer-facing products.
