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Bosch is shaping the CO₂-free future: climate-friendly and attractive solutions  ...

06.09.2021

Presentations

Business/economy

Bosch is shaping the CO₂-free future: climate-friendly and attractive solutions ...

Dr. Volkmar Denner, chairman of the board of management, Robert Bosch GmbH, and Dr. Stefan Hartung, chairman of the Mobility Solutions business sector, at the IAA Mobility press conference in Munich, September 6, 2021 Check against delivery. Ladies and gentlemen, This year’s IAA comes at a time when the automotive industry is facing a challenge on three fronts. To put it briefly, these are the Covid crisis, chip scarcity, and the path to CO₂-free mobility. In this challenging environment, we are holding our own and seizing our opportunities. Together with our customers and suppliers, we are doing all we can to overcome the chip shortages, not least by ramping up our new wafer fab in Dresden. The sales revenue of our Mobility Solutions business sector will grow nearly 10 percent this year. We are a technology leader, and this means business success. This is the foundation that will get us through the next steps in the transformation of mobility successfully. We are not just following this change, but shaping it side by side with our customers. And this is why we are growing – above all in the areas that will shape our future. In 2021, we will grow more than 40 percent with systems and sensors for driver assistance. Our electromobility sales will expand twice as fast as the market. This year, they will already exceed 1 billion euros, and by 2025 they will come to some 5 billion euros. Electromobility will become a core business for Bosch, and CO₂-free mobility a growth area. We are turning challenges into opportunities – that’s how we do things at Bosch. In this context, we see ourselves as a proactive company that shapes the future. We are innovation leaders, especially when it comes to the mammoth task of reducing greenhouse gases from road traffic. The success of our e-bike business shows how much we are capable of – and this in a market that is currently expanding rapidly. In Europe alone, growth is 35 percent. Our innovations have helped e-bikes achieve a breakthrough. Our first e-bike drive debuted in 2011, and was followed in 2014 by the first cycle computer to feature integrated GPS, and in 2018 by the first e-bike ABS. Innovative strength can create new markets. Our aim is to shape the mass mobility of the future. In the future as well, therefore, there will not be any car without a bit of Bosch in it. A 55 percent reduction in the CO₂ emissions from new vehicles by 2030, and 100 percent by 2035 – we will go along with these ambitious targets set by the EU Commission. The mobility of the future must be climate-friendly, but it also has to be affordable and attractive. Only in this way will people and freight stay mobile in the future as well. The approach we take here is a technology-neutral one. What this means is that we have the right solution for every application, tailored to fit the respective policy requirements. No other company in our industry can match our broad diversification – from bicycle drives to construction machinery. We can therefore draw on all the technology we need to benefit from segment shifts in the market such as the current boost being given to electromobility in Europe. That said, there are still some unresolved questions as concerns the electrification of driving – such as the expansion of charging infrastructure and CO₂-free electricity. In this case, statements of intent are not enough. We also need concrete steps. This is a task for industry and politics in equal measure. Our common goal must be to maintain a balance between economic, ecological, and social concerns. For passenger cars, the EU Commission has set a clear course toward electromobility, and now the transformation of the automotive industry has to work. The tight deadlines that have been set will not make this easy. The decisive factor will be acceptance of these ecological goals by as many people as possible, including our own workforce. For this purpose, we are investing in training and re-skilling programs. This is part of our entrepreneurial responsibility. But policymakers that set such strict technological standards also have a duty to preserve jobs in our industry and make mobility affordable. But how will we benefit from the booming new business in electromobility? My colleague Stefan Hartung will go into this in more detail... Electromobility: our next success story … Many thanks, Volkmar! As you just said, diversification is our strength. In electromobility as well, no other company offers as many options as Bosch, from e-bikes to 40-ton trucks. We pave the way for electromobility, whatever the application. And we are confident that electric driving will be the next chapter in the Bosch success story. But to repeat once more: the pace of business developments is one side of the story. The other is the transfer of our associates to this new field of business. Both have been happening at our locations for some time now, but change takes time, and time is especially tight when it comes to the climate emergency. This makes it all the more important to win people over to sustainability. Climate action isn’t just a question of ecology. We have to think about the social climate as well. For electromobility, we have already made upfront investments of 5 billion euros. This year alone, we will spend another 700 million euros. In the end, by making these investments, we anticipated the accelerated ramp-up in the European Union. And we are preparing for increasing demand across the globe. By 2035, it is expected that 60 percent of all newly registered vehicles worldwide will be electric cars. But Bosch sees electromobility in terms of technological alternatives. More precisely, we are investing in battery-electric powertrains, but also in fuel-cell powertrains. We believe that the type of application makes a difference. Especially in heavy trucks and long-haul transport, fuel cells are the first choice. In this area, we are involved in customer projects in China, the United States, and Europe. The first trucks featuring our technology are already on the road in China. When it comes to battery-electric mobility, no other company is working in as many different areas as Bosch. We are helping it to a breakthrough with all kinds of solutions. We supply silicon carbide chips that can improve the efficiency of the battery powertrain by as much as 6 percent. And on the subject of efficiency, our integrated e-axles cannot be beaten. Last not least, we offer drivers access to a network of 200,000 charge spots in Europe. Finding the way to the nearest vacant charge spot and paying without hassle is child’s play – thanks to our internet-based charging service. We believe it is essential to make everyday electric driving easier. On this subject, the cable we are premiering at this year’s IAA is the first to allow cars to be recharged from a regular power socket without the need for a heavy control box. Sustainable mobility should also be uncomplicated – this is the only way it will gain acceptance. With our products and services, we will help electromobility achieve a breakthrough. With our profound knowledge, we are among the frontrunners for all automotive systems, as our show car here at our booth demonstrates. Not least, this is the basis from which we will help bring about automated driving. For an outline of this promising future business field, I will now hand back to Volkmar Denner... Automated driving: we are upping the pace …This is also an area in which we are making progress, ladies and gentlemen. More specifically, it is through driver assistance that we are paving the way for automated driving. Here as well, Bosch is the company for pioneering achievements, from electronic skid control to automatic emergency braking. We are continuing to pursue our “vision zero” – a vision of no more road deaths. Driver assistance makes driving both safer and smoother. This success story is now being continued with new assistance functions for passenger cars. Thanks to Bosch technology, for example, drivers will be able to take their hands off the wheel. We are the market leader in driver assistance, and will grow faster than the market in 2021 as well. Bosch is proficient in all the disciplines needed for automated driving. We pursue a strategy of supplying all the essential elements from a single source: domain control units, sensors, and connectivity. More than 5,000 engineers are working on these areas at Bosch, with more to come. In terms of patents, we are among the frontrunners worldwide – in 2020 alone, we added roughly another one thousand patent applications. When it comes to automated driving, therefore, all roads lead to Bosch. And we are not letting up. One future focus will be on applications in logistics. Driverless trucks moving around distribution hubs – this too will be possible with Bosch on board. However, it will be with driverless parking that everyday automated driving will start. Here again, Bosch is among the frontrunners, and has set standards with pilot projects in Germany and the United States. Above all, the automated valet parking being demonstrated at this year’s IAA is made by Bosch. The key feature here is our idea of a link between vehicles and fixed video cameras in the parking garage. We used our security systems expertise to develop the cameras. Over the next few years, driverless parking will become established in parking garages. Bosch is already working with Mercedes-Benz and other partners on deploying this function in a production vehicle – a world first. In the parking garage at Stuttgart airport, a smartphone command will send cars to their park bay. The new Mercedes-Benz S-Class is the world’s first production vehicle to feature the technology needed for this. Other models will follow, from diverse automakers. By 2025, we expect that several million vehicles and some 1,000 parking garages worldwide will be capable of automated valet parking. Vehicles as internet nodes: our software expertise With functions such as these, ladies and gentlemen, a prediction we made ten years ago is coming true: the vehicle is becoming an internet node. From the car to the cloud – only Bosch is active in all domains of software development. In this connection, we are also collaborating with Microsoft. The software-dominated cars of the future will need companies like Bosch – companies that are equally at home in the world of automotive electronics and of the internet of things, with which cars are connected. These vehicles will have to be equipped with a new electronics and software architecture – and we can supply it. Even the bicycle is becoming part of the internet. Here at the IAA, we are showcasing our new eBike Flow app, which allows the software in our components to be updated, for example. Nearly half the R&D associates in Mobility Solutions are now software engineers. Not least, this is our response to the reshuffling of roles in our industry. More than ever, automakers are developing their own software and employing specialist software and chip suppliers. This means all the more demand for software integration, to ensure that the modules from various sources are compatible in all models. Bosch also has this integrative expertise. Take infotainment computers: they are the most software-intensive systems in a vehicle, and their computing power and software complexity will have doubled once more by 2025. The share of integrated third-party software is especially high here, and can be as much as 90 percent. And here as well, we will post well above-average annual growth of 25 percent between now and 2025. With all our solutions, ladies and gentlemen, we will help shape a new era of mobility, true to the motto displayed at our IAA booth.

Bosch opens new wafer fab in Dresden: fully connected, full of artificial intell ...

07.06.2021

Presentations

Connected mobility

Bosch opens new wafer fab in Dresden: fully connected, full of artificial intell ...

Dr. Volkmar Denner chairman of the board of management, Robert Bosch GmbH, and Harald Kroeger, member of the board of management of Robert Bosch GmbH, at the press conference in the new Dresden wafer fab on June 7, 2021 Check against delivery.Ladies and gentlemen, Welcome to Dresden, and to the heart of the European semiconductor industry. A warm welcome to you from one of the world’s most modern factories. Welcome to Bosch! Once again, an event is being held digitally. The continuing pandemic means that we have to stay physically distanced. Yet there is scarcely a place and an event more suited to a digital format than where we are standing today: in our new factory, we will be making tiny chips that do spectacular things. Semiconductors are the essential building block for the internet of things – only with them is connectivity possible. All of us are taking part in this event digitally – whether by laptop, tablet, or smartphone. All devices that feature chips. And many of these chips were made by Bosch. They were manufactured in our Reutlingen plant. Semiconductors are in demand. More than ever. The current supply shortage for semiconductors is also due to the boost the pandemic has given to digitalization. We have to make sure this boost continues. Semiconductors keep digitalization running. No electronic system will work without them. Demand is rising, the market is growing. This year alone, it is expected to grow 11 percent, to more than 400 billion euros. By building this wafer fab in Dresden, Bosch is leading the way. We are now hitting our stride, and will start production six months earlier than planned. As early as July, the first chips will be installed in our power tools. We have brought forward the start of production of chips for the automotive industry by three months, from December to September. Semiconductors from Dresden will make vehicles safer, more efficient, better. In electric vehicles, for example, they control energy flows and orchestrate the interplay of energy source and horsepower. Semiconductors are the muscles, sensory organs, and brain of the internet of things. In the future, they will be augmented by quantum technology. We will see sensors that can measure 100 times more precisely and help diagnose neurological disorders more accurately and easily. Smartphones, smart homes, smart mobility – microelectronics makes the world go round, and enables progress. Yet the semiconductor industry and its products are not just enablers. Chip production itself is a trailblazer. It is highly automated, at the leading edge of Industry 4.0. Semiconductors are made in smart factories in which production more or less organizes itself. At Bosch, we are taking the next step: we are combining the internet of things with artificial intelligence – a combination we call AIoT. Data gives rise to knowledge. In Dresden, we are opening our first AIoT factory: fully connected, data-driven, self-optimizing. Long before the first coatings could be applied to our wafers, the new wafer fab was the measure of all things. Right from the start, the complete building had its own digital twin, a virtual double. Nearly half a million 3D objects are documented in this model. They include plant, machinery, pipes, cable ducts, and ventilation systems. The factory exists twice – once in digital form, and now also in the real world. The project took three years. Digital solutions helped with the commissioning of plant and machinery. Thanks to augmented reality and data glasses, experts from around the world were able to share their knowledge with the associates on site, and in this way support them. In running operations as well, digital transparency offers concrete benefits: machine maintenance can be done predictively, and complications detected before they crop up. The decisive factor here is artificial intelligence. Connected manufacturing provides data that is evaluated by AI. AI algorithms detect the tiniest errors and every deviation, however small. They are more precise than the human eye, and faster than the human brain. With AI, we are taking production to the next level. In our Dresden plant, we will in the future be relying on solutions provided by the Bosch Center for Artificial Intelligence: at an early stage, our AI-based systems can detect anomalies and malfunctions in the manufacturing process, make learning curves faster, and constantly enhance quality. AI is also used in production scheduling, where it saves time and money as it guides the wafers through as many as 700 process steps at some 100 machines. In our plant, we are permanently collecting and examining data – this data comes to the equivalent of 500 pages of text a second, or 42 million pages a day. Smart algorithms are used to evaluate this data in real time. This too is a key to the rapid rollout of semiconductor production in our new factory. Using methods of artificial intelligence, we can ensure a high level of process stability. This saves our customers time-consuming tests, curtails month-long trials, and speeds up release processes. In this way, we can not only produce earlier, but deliver reliable products earlier as well. With this new factory, Bosch is again demonstrating that high-tech is something Germany does well. And together with our partners, high-tech will be something Dresden does well. “Silicon Saxony” is Europe’s biggest microelectronics location, and the fifth biggest worldwide. One in three of all chips made in Europe is produced here. The region offers perfect conditions for this: here, modern entrepreneurship rubs shoulders with academic excellence and far-sighted industrial policy. The result is a network of suppliers, universities, and public institutions united by the common goal of making microelectronics a core element of digitalized societies. For Bosch therefore, the decision to make the single biggest investment in the company’s more than 130-year history here in this region was a deliberate one: we will have invested roughly a billion euros in this high-tech plant. On 72,000 square meters of floor space, 250 people are already working in the plant. The workforce is set to grow to roughly 700 in the years ahead. The Dresden plant will be an important part of our manufacturing network. With this investment, we are strengthening Germany as a technological and industrial location. In its wafer fabs in Reutlingen and Dresden alone, Bosch has invested more than 2.5 billion euros since 200-millimeter technology was introduced. On top of this, billions of euros have been invested in developing microelectronics. The main beneficiary of all this will be the future of mobility, and my colleague Harald Kroeger will now explain this to you in slightly more detail… … Many thanks, Volkmar! Ladies and gentlemen, On this special day for Bosch, I hope you will allow me to be so bold as to say that chips for vehicles are the ultimate discipline in semiconductor technology. This is because in cars, these small building blocks have to be especially robust. Nowhere else are they subjected to such strong vibrations, and this over many years. And nowhere else do they have to withstand such extreme temperatures – from far below freezing to far above boiling point. In other words, chips have to meet higher standards of reliability – reliability over the entire service life of a vehicle. This means that the development of automotive semiconductors is more complicated than in other applications, and requires specialist expertise. Such expertise is something Bosch has amassed over the course of decades. No other automotive supplier has been working intensively on microelectronics since the 1950s. Today, this staying power is paying off. We understand all the microelectronic components in a vehicle because we develop and manufacture them ourselves. This opens up the possibility of systems that prevent accidents and protect the environment – again, developed and manufactured by us. This dual strength – the combination of chip and systems expertise – is strategically important for Bosch. It is not just us who benefit from our upfront investments in semiconductor technology, but also – and above all – drivers. Many of today’s automotive innovations would not exist without microelectronics. Sensors that register impact and trigger airbags and belt tensioners via integrated circuits, sensors that detect wheels locking up and skidding movements so that digital guardian angels such as ABS and ESP can keep the vehicle on track – these are just two examples of the pioneering work our company has done. So far, ESP has prevented some 450,000 traffic accidents and saved nearly 15,000 lives in Europe alone. Above all, we want to use the semiconductors from our new plant to design applications for the future of mobility: control units equipped with chips from Dresden will make automated and resource-conserving driving possible, as well as occupant protection. More than ever, we regard semiconductor technology as “Invented for life.” Clearly, the market agrees with this assessment. Demand for automotive semiconductors is rising. As recently as 1998, the value of the microelectronics in a new car was just 120 euros. 2023 it is expected to exceed 600 euros. This means that semiconductors are a growth area for our company. In 2016, every new vehicle worldwide had an average of roughly nine Bosch chips on board. In 2019, this figure was already more than 17. In other words, their number had doubled in just a few years. In the years ahead, we expect to see the strongest growth in systems for driver assistance, infotainment, and the electrical powertrain. Bosch leads the way in all these applications – also thanks to its own semiconductors. Chips have remained the basis of our automotive electronics competence. This is why we are systematically expanding both their development and their manufacture – not only in Dresden. Over the next few months, for example, we will extend the share of the clean room in our Reutlingen wafer fab devoted to the processing of 200-millimeter wafers. And further steps are to follow. Our initial investment here will be roughly 50 million euros. The Reutlingen extension will allow us to serve the growing demand for our sensors and silicon-carbide power semiconductors. Because these new power semiconductors reduce loss in electric motors, they extend the range of electric vehicles. Here as well, our customers include automakers from around the world. Ladies and gentlemen, Bosch and semiconductors are inseparable – and have been so for more than 60 years. In others words, we are not just creating additional manufacturing capacity in our wafer fabs. Instead, today’s Bosch Silicon Day is the latest chapter in a long success story – in Dresden, in Reutlingen, and worldwide.

Come and see the future in Dresden: the new wafer fab is giving birth to technol ...

07.06.2021

Presentations

Connected mobility

Come and see the future in Dresden: the new wafer fab is giving birth to technol ...

Dr. Volkmar Denner chairman of the board of management, Robert Bosch GmbH, at the ceremony to open the Dresden wafer fab on June 7, 2021 Minister-President Kretschmer, Ladies and Gentlemen, The opening of this new wafer fab here in Dresden is an event we cannot really celebrate in the usual sense. Our pleasure is unfortunately only virtual, as the pandemic is still with us. And even if we leave Covid-19 aside, the challenges policymakers and businesspeople face could scarcely be more daunting: climate action, digitalization, and not least Europe’s technological sovereignty are the order of the day. All these things call for a response from industry as well. And it is precisely the tiniest electronic components than can help us rise to the greatest challenges. For me, therefore, it is absolutely clear that nothing is more appropriate to this present age and its huge tasks that a new factory for small things. No matter when it happens, the opening of a new manufacturing site is always a positive signal – for a company’s investment clout, for nationwide employment, and finally for the future of all involved. But there is even more at stake here, as the supply shortages in the semiconductor industry already show. This is about the resilience of global supply chains – and also about the stance European industry should take. While it doesn’t need to strive for self-sufficiency, neither must it be dependent on the economic and technological strength of other global regions. So while I’m not saying that this new wafer fab will solve this problem on its own, it can certainly be part of the solution. Any innovations the future brings will also need microelectronics. Without it, there can be no artificial intelligence, making things such as automated driving possible. Without it, there can be no quantum sensor technology, making the diagnosis of Alzheimer’s and Parkinson’s easier and more precise in the future. And without it, there can be no sustainable mobility. Take the silicon-carbide chips Bosch uses in its power electronics. They extend the range of electric vehicles. Semiconductors that are secure and reliable, and that also control and regulate complex environments – that is what all present and future applications need. The impact of this new plant will be felt far beyond our company, and far beyond Dresden. This is where technology for tomorrow’s world will be created. We are glad that the EU Commission, the federal government, and the state government appreciate the strategic significance of microelectronics – and are acting in concert. This joint support is expressed in the synonym IPCEI, which stands for “important project of common European interest.” This is a special subsidy program that had its premiere in the microelectronics industry. It is also thanks to this program that Bosch was able to build this wafer fab in Dresden. At roughly one billion euros, this is the biggest single investment in the history of our company. The building itself was successfully completed within a short timeframe. For that, I would like to thank all involved – our Bosch associates, the construction companies, and the suppliers and installers of the machinery. You could say that it all went to plan in conditions nobody had planned for. In fact, we have begun to roll out production six months earlier than planned. In view of the current supply shortages in the semiconductor industry, this is a team effort that cannot be praised highly enough. But how was this possible? Not least thanks to remote collaboration with the help of 3D data glasses, which kept our installers on site connected with suppliers around the world, as they worked on setting up the machinery. There could scarcely be a better illustration of how valuable digital work is in times of coronavirus – and this too is something that would not work without microelectronics. 3D data glasses, 5G connectivity, the use of artificial intelligence to evaluate machine and product data – all these things will be typical of the high-tech working day in our new wafer fab. This is the first ever Bosch manufacturing facility to be organized from top to bottom as an AIoT factory. AIoT is the combination of artificial intelligence and the internet of things. It is the source of a new kind of efficient production: AI algorithms can detect process anomalies in the countless millions of data generated every day, and optimize the complex sequence of up to 700 process steps that each wafer goes through. And most importantly, in my view, using the methods of artificial intelligence in our fully connected factory allows us to secure a high level of process stability in a short time. This saves our automotive customers the need for the time-consuming trials that would otherwise be necessary before production release. So we can not only produce earlier, but deliver reliable products earlier as well. Here in Dresden, therefore, the future is on view – the vigor of a plant that will be an AIoT factory from the get-go. It is a factory that also brings additional strength to a microelectronic ecosystem that is already unrivalled – Silicon Saxony. I am confident that both our new location and the region as a whole will share in the growth of the German and European semiconductor industry. Of course, this industry will have to hold its own in a global environment that remains challenging. It has got what it takes to do so, provided the right decisions are made. It’s good that there will be a second microelectronics IPCEI – the process has already got underway at EU level, and the federal government has signaled its support. It remains for me to hope that the new program will quickly be put into practice. But when it comes down to it, what is it that really matters? The European semiconductor industry has to preserve its innovative strength in international competition. Above all, it will manage this by combining systems and chip expertise. In other words, it’s not just finer chip structures that are important, but also the future generations of power electronics and micromechanical sensors – and not least, new applications such as quantum sensor technology. The new factory will prove its worth in the global competition for innovation. For Bosch, it is already part of a global engineering and manufacturing network. All the better that the factory’s associates come from 24 countries. And while Bosch may be a company with southwest German roots, it is now more strongly rooted in Saxony as well. But what is the best thing about globalization? It’s that a company like Bosch can bring together people from different cultures. This is also something that can be experienced in our new factory. We wish everyone who works here every success, combined with our sincere thanks to all those who have worked so hard to make this venture possible.

Beneficial AI – building trust together in the digital world

06.01.2020

Presentations

Business/economy

Beneficial AI – building trust together in the digital world

Dr. Michael Bolle, member of the board of management of Robert Bosch GmbH, and Mike Mansuetti, president of Bosch in North America, at the Consumer Electronics Show in Las Vegas on January 6, 2020Check against delivery.2001: A Space Odyssey. The Terminator. The Matrix. Ex Machina. It sounds like we’re sharinga list of our favorite movies. But actually, all these movies have something in common.They all depict a future in which machines have learned to think for themselves – with disastrous consequencesfor humanity. Whether the machines manipulate, enslave, or replace us, the message in the movies is the same: by developing artificial intelligence, we’re opening Pandora’s box. I like science fiction as much as anyone, and portraying AI as the villain has kept audiences entertained for decades. But the time has come to talk about the technology’s true potential – the potential to provide real value, for real people. “How can we make artificial intelligence beneficial? How can it be used to complement human intelligence?” These are some of the big questions at CES this year. So what’s our answer? Artificial intelligence is not science fiction anymore – it’s already an integral part of our daily lives. It’s fundamentally changing how we drive, how we work, how we learn, how we shop, how we travel. At Bosch, it’s also becoming part of the products we make – products that will assist and support us, and make life easier overall. Whether it’s being used in manufacturing, in smart homes, or in self-driving cars, one thing is for sure – in line with our “Invented for life” ethos, we want to make AI safe, robust, and explainable. Where the world of work is concerned, we’re not just facing a technological shift, we’re also facing a critical shortage of skilled workers. So it’s also against this backdrop that it will be essential for humans and machines to work together. At Bosch, we believe this is self-evident. And with this in mind, we’re trying to shape the digital transformation by educating and upskilling our workforce, and investing in our associates as well as in the intelligence of our products and machines. As a society, we must learn to accept a technology that is capable of learning itself. One way to do this is to invest more in our own learning – and that’s exactly what we’re doing. Over the next two years, we will be introducing wide-ranging training programs aimed at making nearly 20,000 of our associates AI-savvy. I’ll tell you more about that later. But the societal benefits of AI go far beyond our daily lives and work. It also holds tremendous potential to benefit our planet and its climate. We intend to use this potential to realize our goal to maintain a balance between our economic, ecological, and social responsibilities. At the end of 2019, we achieved carbon neutrality for all our locations in Germany. By the end of this year, all 400 Bosch locations worldwide will be completely carbon neutral. When this happens, we will be the first major industrial enterprise to have achieved this ambitious goal, all within a little over a year. And to do this, we will be making use of our own solutions as well: our energy platform, for example, already uses intelligent algorithms to monitor consumption in manufacturing. It quickly identifies deviations in individual machines’ energy use and offsets load peaks. This alone has reduced CO2 emissions at individual plants by more than ten percent over the last two years. For a company that has 270 manufacturing sites, that’s some significant savings potential! Our success here has prompted us to market the energy platform externally. And it won’t end there: AI means we’ll be able to forecast and reduce energy consumption over the long term as well.AI is creating markets, but digital trust is indispensable This example underlines that artificial intelligence also offers considerable business potential. A number of different studies support this notion. For example, AI is expected to boost GDP substantially in major economies across the globe by the end of this decade – PWC estimates a 15 percent boost in North America alone. At the same time, global AI software revenue is projected to reach nearly 120 billion dollars by 2025, a twelve-fold increase compared to 2018. And the World Economic Forum predicts that global job losses as a result of AI will actually be offset by the creation of new ones, resulting in a net gain of nearly 60 million new jobs by 2022. As mentioned earlier, these jobs will require significantly new competency profiles, which will necessitate a strong push to reskill and upskill people. It’s indisputable that the impact of artificial intelligence will be huge. However, we must make the benefits of AI comprehensible for people, and even more importantly, establish trust in the digital world. Our CES slogan captures our approach here nicely: “Beneficial AI – building trust together.” In this endeavor, Bosch is pursuing a two-pronged approach. On the one hand, we’re doing the technical groundwork, developing solutions, and using our innovations to open up new areas of business. On the other hand, we will use AI to realize our strategic imperative of creating technology that is “Invented for life,” and in doing so, convince society of the benefits of AI. Remember, it was our engineers that developed lifesaving inventions such as electronic stability control, airbag control units, and anti-lock braking systems for vehicles ranging from passenger cars to motorcycles to e-bikes. This is what we mean by technology “Invented for life” – and our work with AI is no exception. By putting it to use in automated vehicles, for example, it too will be a technology that saves lives, as we will explain in more detail later on.Trust, responsibility, and ethics in AI We take entrepreneurial responsibility seriously, and it defines our approach to new technologies like artificial intelligence. The decisive factor for responsibility in the digital world is trust. This trust will be just as important for our digital business as product quality is for our traditional business. We have to work on developing both AI and trust in AI – without the latter, the former will not be successful in the long run. But how can we establish this trust? By creating AI that is transparent, safe, secure, and robust. When it comes to building trust, another key aspect is data security and data privacy – especially where personal data is concerned. At Bosch, our approach is simple: when it comes to all our smart products and services, users have full transparency and control over the data collected and who gets to use it. Moreover, in order to build trust among our customers and partners, as early as 2015 we established guiding principles for data protection in our IoT business. This was several years before the GDPR regulatory framework was introduced as European standard. We’re now working on a similar set of principles for our future use of artificial intelligence: an AI code which sets out ethical guidelines for the development and usage of AI, especially in cases of doubt and dilemma. Going forward, it will be essential that people remain in control of systems that use AI. Take the example of driver assistance: here, we want to integrate AI in such a way that it can always be overridden by the driver. We don’t want to lock the algorithms from our AI models in a little black box. The rules and parameters behind decisions must remain comprehensible, at the very least for specialists. That said, Bosch and the big tech players differ in our approaches to AI in one fundamentally important way: our focus is on the application of AI for physical objects. Whether it’s deployed in an automotive emergency braking system or in factory production, our AI explains the physical world to machines. Our latest camera for automated driving uses AI to understand what it sees – to infer, say, whether a pedestrianis going to step out into the road or not. This will improve object recognition and make automatic emergency braking more reliable, thereby increasing safety. At Bosch, we want to harness the power of artificial intelligence to improve technology and the performance of our products and machines. We call this industrial AI, and we’re using it to develop smartsolutions in three key domains: mobility, residential, and manufacturing. It’s no coincidence that we emphasize the “things” when talking about IoT. We’re bringing connectivity and intelligence to our own products and machines. We know cars and traffic, factories and buildings, inside and out – no other tech company can match the breadth and depth of our cross-domain expertise. Our own sensors provide us with a massive amount of data. And if we apply AI methods to that data, we can create new services and applications. By the middle of this decade at the latest, each and everyone of our products will either have artificial intelligence itself, or have been developed or manufactured with its help. Ultimately, we plan to teach our products to function as assistants – for our customers, and for our own developers.Investing in AI research and development To achieve this, we want to become one of the global leaders in AI innovation as well. Our research and development activities are all geared toward this goal. Bosch currently invests more than 4 billion dollars annually in software development, and employs around 30,000 software engineers. Established in 2017, the Bosch Center for Artificial Intelligence is already working on more than 150 projects. It employs some 250 AI specialists at seven locations around the globe including two here in the U.S. – in Pittsburgh, Pennsylvania, and Sunnyvale, California. Our U.S. research teams play a key role in our AI development activities, above all in robotics and automated driving. But we’re not working in a vacuum here. Especially where AI is concerned, a technology company like Bosch sees itself as part of the larger scientific community. In Germany, for example, we’re a founding member of the “Cyber Valley” initiative – an AI research alliance between academia and industry. Among other things, as part of this we’re investing more than 110 million dollars in an AI campus, which from late 2022 will be home to 700 AI experts from Bosch as well as from external startups and research groups. Here in the U.S., we’re collaborating closely with Carnegie Mellon University on AI research. Carnegie Mellon has been working on artificial intelligence for 60 years, since the technology’s earliest days. They have been responsible for pioneering innovations in areas like self-driving cars, facial recognition, and language processing. As we see it, industry and academia each have an essential contribution to make. And we highly value the transfer of knowledge between our developers on both sides of the Atlantic.SoundSee hears what’s broken in space – with AI from Bosch A great example of an exciting collaboration with one of our U.S. partners is currently deployed about 240 miles above the Earth’s surface. It’s an innovative AI-based sensor system called SoundSee. This little device will be playing quite a big role in outer space. The SoundSee technology will be used to perform deep audio analytics on the ISS. Using highly-sensitive microphones, it will capture ambient noise emitted from the station’s systems and equipment, and then use AI to spot potential anomalies from the audio patterns. Basically, SoundSee will hear if something on the station is broken – and can tell whether it needs to be repaired or replaced. We developed this system together with the aerospace company Astrobotic Technology Inc. In November, it was sent into orbit and will be integrated into the Astrobee robot shortly. Of course, the new sensor system will also be very useful down here on earth. In manufacturing, for example, it can improve predictions about machine downtimes, thus helping to reduce maintenance costs and increase productivity. But on board the ISS, this technology could even be lifesaving.Virtual visor – a U.S. idea is a “Best of Innovation” award winner We’re showcasing another example of the ingenuity of our American workforce here at CES – and this world premiere also underlines their lateral thinking. Some of our engineers came up with a digital solution for a common and often dangerous hazard that drivers frequently face. It’s an innovation that replaces a nearly 100-year-old automotive product: the sun visor. According to a study by NHTSA, sun glare causes nearly twice as many accidents as any other type of weather-related condition. But we now have a solution: our “virtual visor.” At first glance, it looks like a see-through LCD display mounted at eye level. The special thing about it, though, is that it’s connected with a driver-facing camera equipped with AI facial detection and analysis. Its software calculates both the driver’s line of sight and the angle of the sun in order to strategically darken individual sections of the display. Everything else remains transparent. We think the Virtual Visor is another great example of technology “Invented for life,” and the CTA apparently thought so too. The product was honored with a prestigious CES 2020 Best of Innovation Award – you can test it out for yourself at our booth.3D vehicle display – our second Best of Innovation Award Our new 3D vehicle display also won a CES Best of Innovation Award – and I’ve been told it’s no small feat to win two of those. Vehicle displays in general offer huge business potential – after all, the global market volume is set to more than double by 2025, to 30 billiondollars. Our award-winning display uses a multi-view 3D technology which is especially affordable, since it works without the need for eye tracking and 3D glasses. To describe how it works, let’s go back to the movies for a moment. We’ve all seen 3D films, where the technology makes our experience more vivid and entertaining. Inside a vehicle, 3D performs a similar but more useful function: it helps people understand information more quickly. The display’s depth of field means drivers can grasp important visual information faster, whether it’s an alert from an assistance system or a hazard warning. Alerts seem to jump out of the display and are much more obvious and urgent, as well as far harder to overlook. I don’t know about you, Michael, but anything that tells me what I really need to be paying attention to is a win in my book.Interior monitoring – technology that can help keep children safe Think of the dangers posed by fatigue and distraction – the longer we’re behind the wheel and the more technology is present in the cockpit, the greater they are. Here, our driver monitoring system uses artificial intelligence to identify these distractions through cameras which recognize the driver’s line of sight, head position, and blink rate. When it determines a critical point has been reached, it reacts by sounding an alarm or providing driving assistance, depending on the automaker’s wishes, and also legal requirements. In the EU, this kind of system is set to be standard in new vehicles from 2022. This technology will also play an important role in automated driving. After all, the next few development stages will still require drivers to remain alert and ready to take over in critical or tricky situations. To ensure drivers are able to do this, the monitoring system calculates how ready they are to respond at any given time, and the transfer of driving responsibility is then timed accordingly. Depending on the design, some systems can also monitor the car’s other occupants and enhance their safety, for example by detecting changes in passengers’ sitting positions and adjusting their airbags and seatbelt tensioners for optimal crash protection. Or by identifying the presence of children inside parked cars. In 2018, parked cars claimed the lives of more than 50 children in the United States, either because they had been left inside for longer than intended or had climbed in unnoticed. Bosch’s new system can recognize the presence of children and warn parents in a flash by sending a message to their smartphone. In a critical situation, it can also alert the emergency services. As the Hot Cars Act currently being debated in Congress shows, there is considerable interest in solutions to prevent these tragedies. Once again, our technology doesn’t just make life better, it can help to save lives. Looking ahead, we plan to extend our interior monitoring systems to encompass in-vehicle sensing and deploy this inridesharing fleets. In-vehicle sensing will allow us to detect when a passenger leaves something behind in a shared car, for example, or if they need help in a critical situation. For us, offering real benefits is what it’s all about. Nearly all our driver assistance systems enhance both safety and convenience. We are one of the automotive industry’s leading suppliers in this field. In 2019, our sales rose by 12 percent to some 2.3 billion dollars. From a technical point of view, we’re using driver assistance as a stepping stone to automated driving. By 2022, we will have invested some 4.7 billion dollars in developing this technology and increased our workforce of dedicated engineers to 5,000. To this end, we’re working on making lidar sensors production-ready. Alongside our new video camera with AI and radar and ultrasonic sensors, Bosch will soon offer the complete sensor portfolio needed for automated driving. Few automotive suppliers worldwide have as much expertise in this area as Bosch. Our lidar will be the first of its kind that is suitable for use in automotive applications, since it’s scalable and can be manufactured in large volumes. It’s also the first lidar technology to be suitable for automated driving functions at SAE levels 3-5, offering long-range sensing capabilities in combination with a wide field of view and an exceptionally high resolution. Working together, our multiple sensor types will help to ensure extremely reliable environment recognition. To surmount the many challenges on the road to fully-automated driving, Bosch is bringing together its profound expertise in sensors and systems and that’s the type of expertise that only an automotive company can have. We’re already testing automated driving in a range of environments, including one that is widely regarded as the final frontier: city streets. I’m happy to report that our pilot project with Mercedes-Benz for an on-demand ride-hailing service with automated vehicles is now up and running. Automated S-Class vehicles are now providing an app-based shuttle service in California between West San José and downtown for selected users. Ultimately, the aim of this project is to gain valuable insights for the development of automated driving, and to answer the question of how self-driving cars can best be integrated into a multimodal mobility system. Our development work on this project encompasses both the use of AI as well as simulations and tests designed to address the kind of driving situations that occur very rarely in road traffic. We’re not just using our mobility solutions to teach cars how to drive. We’re also using them to make electric and connected driving a reality. This is enabling us to open up new areas of business and forge partnerships with new customers. For example, we’re developing a hydrogen powertrain for the heavy-duty trucks made by U.S. startup Nikola Motor Company. We’re also suppling our solutions to mobility service providers such as DiDi and Lyft. For DiDi, we’ll soon be providing a cloud service that helps to extend the service life of car batteries. When it comes to urban mobility for the future, you can experience our vision in an IoT concept shuttle at our booth. This year we’re showcasing what we offer mobility service providers to help them operate safe and efficient automated ridesharing and ride-hailing businesses.Bosch MEMS technology – for smart glasses without the sci-fi look Beyond this, we’re also using our expertise in everything related to mobility as the basis for innovation in other domains. The best example of this is sensors based on micromechanical systems – called MEMS for short. We’re the market leader for these sensors, which are used for automotive applications as well as smartphones. Our latest development in this area is being showcased here at CES: our light drive system for smart glasses. The smallest of its kind, it’s nearly a third slimmer than existing ones on the market and can be integrated into nearly any type of frame, becoming part of your everyday glasses. It uses a MEMS-based laser scanner and holographic mirror to project an image on the wearer’s retina. This image can contain any kind of text message – for example from the navigation system or your personal calendar. And you, in turn, can be kept constantly up to date – without looking like you’re on the way to a Star Trek convention every time you put them on. Another domain where AI has the potential to deliver enormous benefits is healthcare. Here, our Indian engineers have developed a cutting-edge innovation called Vivalution (brand name was changed) which is a CES® innovation award honoree. In a nutshell, it’s a smart pathology platform for medical diagnostics powered with advanced machine learning algorithms. With the help of AI, it analyzes human cells’ form, shape, and structure for deviations, thus providing physicians with information on possible diseases. And it does so in minutes, which dramatically shortens the testing process. Helping people diagnose health issues quicker and more accurately – this is also what we mean by technology “Invented for life.”AIoT to benefit everyone – training for tomorrow’s work As we see it, the IoT and AI should benefit everyone. To do this, they must be more than technological gimmicks and actually make people’s daily life and work easier. This is true for all our domains: connected mobility, connected homes, and also connected industry. Especially in the world of manufacturing, artificial intelligence can supplement human creativity, and more crucially, relieve workers of routine tasks. On every new path we tread, we take our workforce with us. On our way to creating the factories of the future, we want to prepare our associates for the work they’ll be doing in the future. This brings us full circle to our AI training program, which I mentioned earlier. It consists of three parts: First, we’re training roughly 16,000 executives on the business aspects of AI. Our digital transformation is enabling us to master a balancing act: on the one hand, remaining an industrial enterprise, and on the other, becoming a leading IoT and AI provider. For this, our leadership will have to be capable of making the right decisions, which is why we’re building up their AI expertise. Second, we’re expanding our AI learning platform. This platform is similar to an online university, but uses examples and exercises from real-life operations at Bosch. More than 1,500 of our engineers are already using the platform, a number that will likely double by next year. Some of its notable features are the exchange of experience our AI learning platform facilitates, as well as the use of best-practice examples and competitions. Third, we’re training nearly 500 experienced engineers in AI development methodology. This is the highest level of our training program, what is effectively a supplemental course of study in things like data engineering and data analysis. We’re not just increasing the number of AI engineers by hiring dedicated specialists; we’re also doing it by reskilling our existing people. All told, this will get 20,000 of our associates up to speed on the technology. As we see it, it’s not only part of our corporate responsibility to offer this kind of training, it’s also in our strategic interest.Conclusion Ladies and gentlemen, it’s clear that developing artificial intelligence will require us to focus on more than just technological innovation. On one hand, we need to invest heavily in human intelligence, and on the other, we need to convince people of the true potential of this technology. “Beneficial AI: building trust together” – it’s more than just a nice catchphrase we’re using here at CES. We truly believe that AI holds the key to making our lives safer, easier, and more eco-friendly. Please come visit our booth in the Central Hall to see some examples of this in action. And together, let’s work to dispel any doubts and usher in a new era of real-life science fiction, where AI is the hero.

Emissions-free mobility is coming – provided the solutions are affordable and fa ...

10.09.2019

Presentations

Business/economy

Emissions-free mobility is coming – provided the solutions are affordable and fa ...

Dr. Volkmar Denner chairman of the Bosch board of management, at the IAA press conference in Frankfurt on September 10, 2019 Check against delivery.This year’s IAA, ladies and gentlemen, is a catalyst – energizing not only the automotive industry and its customers, but also kindling debate and demonstrations. And more than ever, society is faced with critical questions: What could eco-friendly mobility look like? How can the technological progress we need be achieved economically? And how, finally, can we handle the social consequences of climate-friendly transport policy? We will have to find a new position that harmonizes the interests of ecology, economy, and society. There are no simple solutions, and no one person exclusively holds the key. We will have to hammer out a solution in an open debate. We’re here at a motor show, yet questions such as these are just as much on people’s minds as the latest models on four wheels. Our response to them has two parts. First, we want mobility that helps keep our planet healthy and the air in our cities clean. Bosch will be the first industrial enterprise to make all its locations worldwide carbon neutral within one year. And we’re applying the same determination to deliver efficient powertrains, from combustion engines to fuel cells. Second, what is ecologically correct must not be socially and economically incorrect. Emissions-free mobility is possible – if it remains affordable for people and its benefits capture their imagination. Only in this way can we make it a market success. That said, for some time now we’ve regarded mobility as much more than people driving their own cars. As we see it, tomorrow’s mobility will not only be electrified and automated, but also connected and personalized. And it is above all this personalized form that will be about much more than driving. For us, it means services that find the best way for each individual to get to their destination, whether on two or four wheels, by road or by rail. Supporting multimodal mobility is also a response to the critical issues surrounding road traffic. Key to the future: three billion euros annually for software But first, we’re developing the technological foundations for the mobility of the future. Our open sesame for all this is our profound expertise in electronics and software. Even now, our Mobility Solutions business sector employs some 14,000 software developers, and its annual software engineering expenditure comes to nearly 3 billion euros. The upshot is significantly more powerful vehicle electronics and software architecture, which is important for connected driving as well as automated and electrified driving. Computing power will increase by a factor of at least 1,000 at the start of the next decade. What we will be seeing is high-performance vehicle control units of the kind Bosch is already creating for the integration of infotainment systems and driver assistance functions. With computers such as these, vehicles will increasingly act as players on the internet of things. Growth at last: electromobility is turning the corner But how will they drive on tomorrow’s roads? We foresee a gradual transformation of the automotive powertrain. First of all, there’s still some mileage left in the combustion engine. In 2030, three-quarters of all new vehicles will feature a diesel or gasoline engine, whether with or without a hybrid option. For this reason alone, further refining these engines is environmentally expedient. Thanks to Bosch’s new exhaust technology, diesel engines’ NOx emissions have been almost completely eliminated, as independent tests have already shown. Our solution is already in production, and features in a number of vehicles being presented at this show. Our next goal is the reduction of particulates from gasoline engines. More specifically, this means 70 percent less particulate matter than permitted by the current Euro 6d standard – both on the road and at the test bench. But that’s not all. We can also reduce brake dust by more than 90 percent, whether with regenerative braking systems or with our iDisc brake disc. We are coming ever closer to our goal of road traffic that no longer pollutes the air in our cities. The electromobility market is also gaining speed at last. It is becoming ever more obvious that the electrical powertrain will be Bosch’s next success story. Both technologically and commercially, we lead the way. We lead the way in the efficiency of our components, and have a broader footprint than other suppliers – from bikes to trucks. And growth is on its way. In 2018, we acquired orders for 30 electromobility projects worth 8 billion euros, and the first half of 2019 has already seen a series of further orders worth 5 billion euros. The total value of the electromobility orders we have won in the last 18 months thus amounts to 13 billion euros. As early as 2020, our sales in this area will pass the one-billion-euro mark. For 2025, we have set ourselves a sales target of 5 billion euros – a target which we will surpass. Our products are finding a market, and our upfront investments are paying off. At the same time, we are commercializing the fuel-cell powertrain. To achieve this, we are preparing to manufacture a Bosch stack. More specifically, we are further refining the stack made by our partner Powercell, which already offers the highest power density in the market. The task now is to manufacture it cost-effectively. We will do this not only through economies of scale, but also through simultaneous engineering of the product and the manufacturing process. This is one of Bosch’s strengths. And one of the ways we will exploit this strength is by deploying engineers experienced in mass-production diesel projects to work on this new technology. We made common rail affordable, and we will do the same for alternative powertrains such as the fuel cell. It starts with parking: automated driving becomes everyday reality We’re also in the lead on the path to automated driving. In this endeavor, we will generate 12 percent growth with driver assistance systems this year, with sales rising to 2 billion euros. Sales of radar sensors alone will grow 20 percent in 2019, and those of video sensors by 30 percent. For the next levels of automated driving, we will invest 4 billion euros up to 2022. The next step is freeway assistants that allow drivers to take their hands off the wheel. We are currently developing such level 2 hands-off systems for the Asian and U.S. markets. At present, it is only there that such systems are legally permissible. We need them to be approved for exactly the same purpose in Europe, so that the next stage of automation can also happen on our roads. After all, we were given approval for the world’s first driverless parking system right here in Germany – for our joint project with Daimler in Stuttgart’s Mercedes-Benz Museum. The project is no longer a prototype, but is going into regular operation. I’ve brought along a film clip to show you how the automated valeting and parking service works. And of course, that’s not the end of the story. Here as well, we will work on costs. One way of doing so is by deploying the video cameras we use in our building technology. By the end of 2021, we will have set up automated valet parking in a dozen further parking garages, and by 2025, we aim to have it available at over one hundred more. But with this first approval, we can say that everyday automated driving starts with parking. Equipped for disruptive trends: projects with new market players Technologically, we are the innovation leader – but how do we foresee new business ideas in our rapidly changing industry? Bosch is deliberately entering into business with new market players that may also be antennae for disruptive trends. For example, we’re working with DiDi, Lyft, and Uber – the three biggest ride-hailing providers, who already arrange more than 50 million rides a day in total worldwide. For DiDi, we are using a cloud service to prolong batteries’ service lives. To give you an idea of the new approaches we’re taking in our collaboration with new providers, as well as of the visions we have for web-based mobility, I’ll now hand over to Stefan Hartung.

More road freight, less impact on the environment and road network: Bosch is enh ...

19.09.2018

Presentations

Business/economy

More road freight, less impact on the environment and road network: Bosch is enh ...

Presentation by Dr. Rolf Bulander and Dr. Markus Heyn, members of the board of management of Robert Bosch GmbH, at the press conference on September 19, 2018, at IAA Commercial Vehicles in Hannover Check against delivery.There are moments, ladies and gentlemen, when we tend to see trucks, the beasts of burden on our roads, as more of a burden than anything else. When they slow down traffic in the freeway fast lane, or block the off-ramps leading to service stations, we see them as more of a curse than a blessing. And as if that were not enough, road freight will increase by another 50 percent by 2040. What can we do to minimize its impact on the environment, people, and the road network? This is one of the most pressing issues of traffic policy. Bosch has some technical solutions, and not just under the hood, but also on the internet. With our hardware and software, we are increasing trucks’ utility. We want them to be beasts of burden, but not a burden for others. More specifically, what are the issues that concern the logistics industry? Let me sketch out six points: The first is climate action. The European Union has announced its first ever CO 2 standards for trucks. Regardless of the powertrain technology used, Bosch systems help improve new trucks’ carbon footprint. The second is clean air. Emissions standards for trucks are becoming tighter – worldwide. In 2020, for example, India will leapfrog from Euro 4 to Euro 6. In the United States, emissions are to be measured in real driving conditions, like in Europe. And the emissions limits will be significantly lower. Bosch offers truck manufacturers the solutions they need to satisfy these ecological demands. Third, urbanization. Today, half the global population lives in cities. By 2050, the share will be two-thirds. Road freight will take on a dual role as a result. While heavy trucks will tend to deliver goods to depots on city outskirts, the final mile will be the job of light trucks and vans. Logistics needs to be reimagined, especially in conurbations. And Bosch has solutions for this new-look urban freight transport, including cargo scooters and cargo bicycles. Fourth, online commerce. In Germany alone, the number of packages delivered topped three billion for the first time in 2017, and market studies expect the figure to reach 3.8 billion by 2020. This development is being driven by the increasing number of orders over the internet. But it is the internet, or rather the internet of things, that is helping Bosch to make deliveries significantly more efficient. Fifth, accident prevention. Trucks are involved in one in ten accidents resulting in personal injury. And when trucks are involved in accidents, the risk of fatalities is twice as high as when only passenger cars are involved. This is reason enough to use Bosch driver assistance systems to make truckers’ lives easier and our roads safer. Sixth, economic considerations, or more specifically cost pressure on logistics companies. Fuel accounts for one-third of trucks’ operating costs, and drivers for roughly another third. Even now, there are 50,000 too few truckers in the United States, and that figure is likely to triple within ten years. There are signs that this lack of drivers will also affect Europe. Bosch’s answer to this is to teach trucks to drive – this will prevent accidents, and the fuel savings will reduce CO 2 emissions. What benefits logistics companies will also benefit people and the environment. It’s a win-win situation. Technology for trucks, services for logistics: Bosch’s dual strength Beyond the question of costs, therefore, the major issues of mobility also concern the commercial-vehicle and logistics industries. The road freight of the future should ideally be as free of emissions, accidents, and stress as possible. To achieve this, we have to increasingly electrify, automate, and connect it. It is not only in passenger cars that we are taking this development path, but also in road freight, with all its peculiar characteristics. We are one of the world’s leading IoT providers, as well as one of the biggest suppliers in the commercial-vehicle industry – few other companies can combine logistics services and truck technology the way we can. For the modernization of freight traffic, Bosch can bring both economic and technological strength to the table. This year, our Mobility Solutions business sector is expected to increase its sales from day-to-day business by four percent, and will thus continue to grow twice as fast as automobile production. It generates every fourth euro of its sales revenue from technology for commercial vehicles, from vans to mega-trucks. Our business with solutions for trucks and off-highway vehicles is growing especially rapidly. Like last year, growth will be between seven and eight percent. Beyond the current year, we will be continuing our growth trajectory by investing in innovations. By the end of the year, Bosch will have over 54,500 R&D associates working on mobility solutions – 5,000 more than at the beginning of the year. This is also the team that will create new solutions for transport and logistics. For example, 2,600 engineers alone are working on the truck powertrain of the future. Diesel, battery, and fuel cell: for Bosch, there is more than one alternative powertrain What will this powertrain be? We can imagine a number of alternatives, but are also deliberately continuing to develop diesel technology. Given that 80 to 90 percent of all trucks will be diesel-powered in 2025, this is not least a matter of necessity. Bosch engineers will play their part in helping diesel-powered trucks meet emissions and consumption standards worldwide. It’s a question of combating global warming and protecting the environment – as we already said, these are the logistics industry’s top two challenges. Every milligram of reduced emissions counts, and every percentage-point reduction in fuel consumption means an average 700 euro reduction in annual operating costs for a long-distance truck. How do we want to go about this? For us, reducing fuel consumption and CO 2 emissions means increasing the efficiency of injection systems. And when it comes to reducing NOx emissions, one of our solutions is the same active management of exhaust-gas temperature we have applied in passenger cars. For us, this is both a technological challenge and a business opportunity. By the start of the next decade, our global business with exhaust-gas treatment systems will have doubled from its 2016 level. And unit sales of our common-rail injection systems grew by one-third in 2017 alone, and even faster in China. In the years ahead, these sales will stabilize on a high level. All this clearly shows that environmental protection is both a challenge and a boost for our truck-diesel business. Nonetheless, there will be a growth in electromobility in freight traffic over the course of the next decade, and Bosch will be involved. By 2030, every fourth new commercial vehicle worldwide – nearly every third in China – will be electrically driven. Initially, these vehicles will mainly be urban buses and delivery vans. This is a field in which we scored business success early on: our powertrain components are to be found in Europe’s largest electric vehicle fleet, the German Post Office’s StreetScooters. It is our objective to be the global market leader for electromobility as well. To achieve it, we offer a wide portfolio for commercial-vehicle electrification – from bicycles, as the smallest delivery vehicles, all the way to 40-ton trucks. The portfolio starts with our 36-volt powertrains for cargo bikes that can weave flexibly through urban traffic. Our e-bike business alone already supplies them to four cargo-bike manufacturers. And in 2019, our 48-volt powertrain system will debut in an e-trike for mail and package deliveries. Here, we make use of a modular system, which means that it takes a maximum of 18 months from the awarding of a contract to start of production. Next in line is our e-axle for vans, which goes into production in 2019. Easy to integrate, this system significantly cuts development times for both established automakers and new market entrants. With this system as well, we are giving urban delivery traffic a new electric look. Indeed, we can even electrify today’s semitrailers. Here in Hannover, we are showcasing an electrified trailer axle that can be integrated into existing truck trailers. During braking, the axle recuperates energy and feeds it back into the trailer power units. In a refrigerated trailer, this saves nearly 10,000 euros a year. This money-saving electromobility feature can also be retrofitted. Finally, the ultimate question to be solved is the electrification of heavy tractor units. For medium-range trucks, we are developing battery-electrical powertrains. But how can heavy, long-haul delivery trucks be electrified? A battery would be too heavy and too expensive, and its range too short – the cost-driven freight transportation business has long regarded trucks that drive electrically over long distances as technically and economically unfeasible. Our solution is the fuel cell. Let’s compare the figures. A 40-ton truck capable of driving long distances electrically would have to have nearly ten tons of state-of-the-art batteries on board. A hydrogen tank for a fuel cell would weigh one-tenth of that. Bosch is using two alliances to take up this technology. The first is with the U.S. start-up Nikola Motors, which wants not only to build the necessary vehicles but also to establish a network of hydrogen filling stations. The second is with the Chinese engine manufacturer Weichai Power. Its prospects are good, not least because one million fuel-cell vehicles are expected to be driving on China’s roads by 2030. Worldwide, we are making new energy available for trucks. For many years to come, the development of commercial-vehicle powertrains will involve a number of disciplines. We would be well advised to approach their electrification with a technologically open mind. And let’s not forget that we also need to tackle synfuels, where alternative fuels are produced using electricity from renewables. Nobody who wants to give heavy trucks a secure future can afford to rule out this option. When driverless trucks shuttle between depots: Bosch is initially focusing automated truck development on the U.S. Electrification is one major growth area in commercial-vehicle technology. Automation is another. In both areas, the signs are set for double-digit market growth over the next decade. Driver assistance systems are a stepping stone on the road to automation. They are crucially important for accident prevention, one of the six main points outlined at the start of our talk. Truck turn assistants, for example, help prevent trucks injuring pedestrians and cyclists. Bosch supplies the necessary radar sensors. Not least, we can interface assistance and steering systems. Our new generation of electronically controlled steering systems, for example, supports lane-keeping functions and automation. It is on show in a number of trucks at this year’s IAA. As we move toward automated driving over the next five years, demand for smart steering systems in heavy trucks will double annually, and Bosch will lead the way. In the United States, Bosch sees huge potential for automation in trucks. It is there that the lack of truckers is greatest, and there that every tenth truck sticks to the same highway routes. First of all, let’s consider what we call “hub-to-hub” automation. By this we mean driverless trucks that shuttle continuously back and forth between two or three depots. This saves labor costs, increases transport volumes, shortens the payback time for investments in vehicles, and provides security – solving several of the industry’s problems in one fell swoop. Even if automation like this is worthwhile, the technical challenges are considerable, whether in terms of computing power, which would have to increase 1,000-fold in a 40-ton truck, or whether in terms of the control center, which would have to resemble air traffic control. Nonetheless, the result could be an unprecedented services business. One other logical development is platooning, or trucks driving in automated fashion in each other’s wind shadow. This saves not only labor costs, but also fuel. However, it also means that legislation, technology, and infrastructure have to satisfy stricter requirements. Bosch is involved in major research projects in the field. And we are developing the telematics components needed for data exchange among platooning trucks. The first prototypes will be tested starting in 2019. We could well see car-to-car communication in trucks before we see it in passenger cars, since platooning is clearly an application that makes economic sense. Where’s the container, where are the goods? Digitally connected logistics solutions, from freeway to front door Especially in trucks, connected driving is more than just an essential requirement for automated driving. The internet offers the possibility of a new efficiency for transport systems, and of relief for our congested roads as well as for logistics companies. It’s our job to exploit this potential – indeed, this was one of the issues we outlined at the start of our presentation. When it comes to the logistics of the future, Bosch can contribute twofold technical expertise. On the one hand, its broad knowledge of the commercial-vehicle domain, and on the other its profound IoT expertise. These two factors allow us to offer digitally connected logistics solutions, from the freeway to the front door. But first, we connect trucks with the outside world. Today, nearly every new truck in Europe and the United States is part of the internet. In this context, we supply truck manufacturers with telematics platforms that make things such as software updates or predictive diagnostics possible. All in all, our sales of connectivity control units for trucks are growing by 15 to 20 percent annually. By means of connected driving, ladies and gentlemen, Bosch is also moving directly into the business of connected services. And it is this business that is taking us beyond our role as a supplier to the commercial-vehicle industry. Even now, our service centers are monitoring the condition of especially critical deliveries of goods around the clock. In some cases, these are vital goods such as blood plasma. Every year, our control centers monitor nearly 40,000 high-value truck loads in transit. In addition, we are expanding our platform that provides secure truck parking along freeways. The Hamburg cruise terminal is the latest example of this. From next month, we will be offering long-haul trucks secure parking spaces there. This service is also intended for truck drivers waiting for their handling slot at one of the container terminals. The internet of things can not only make freight transport more secure than ever – it can also make it even more efficient. If we consider that nearly every fifth truck journey is unladen, there is clearly a lot of potential to be exploited here. Moreover, Bosch is helping to create clarity in what was previously a logistical blind spot. Using the internet of things, we are automating delivery tracking by making a digital track and trace function possible. Our solution uses sensors on goods and containers that transfer information about position, temperature, and vibration to the cloud. Where is the transport container, and how are the goods doing? Finding answers to these questions used to take several hours: now they can be found in a matter of seconds. Initial experience in the field shows that the real-time logistics solutions we offer mean that dispatchers can cut their search and inventory effort by more than half. Moreover, the availability of reusable containers is increased by as much as 30 percent. We call this logistics 4.0. This final point is a perfect illustration of the path Bosch wants to take in the logistics industry. Electrifying and automating trucks is one part of the story. Connectivity also contributes to this, but it can also increase the productivity of road freight as a whole. We are using the internet to reduce the burden on the road network. There is no doubt that more and more goods need to be transported. Bosch solutions are helping to ensure that this demand does not come up against the limits to growth.

Germany, high-tech hub: Semiconductors pave the way for better quality of life.

25.06.2018

Presentations

Business/economy

Germany, high-tech hub: Semiconductors pave the way for better quality of life.

Check against delivery.Ladies and gentlemen, It’s been only roughly a year since we jointly announced the decision to build a new plant for 300 mm wafers. Now here we are, following a complex planning process, laying the foundation stone for Bosch’s chip factory of the future. With it, we are laying the foundation for improving people’s quality of life, the foundation for more safety on the road – and the foundation for a technology crucial to the internet of things and the mobility of the future. Semiconductors are a core component of all electrical systems. Semiconductors are also turning data into a coveted raw material of the future – none of the cars made today would be able to drive without them. They enable automated and efficient driving, and provide the best passenger protection – such as when they are called on to deploy airbags. With the areas of application for semiconductors becoming larger and larger, we are expanding our manufacturing capacity. As a location, we have opted for Germany. With this plant, we are entering into 300 mm wafer production for the first time, in a drive to achieve further significant economies of scale and to bolster our competitiveness. We see Dresden, the capital of Saxony, as a driver of microelectronics in Europe – and thus as the first choice worldwide for our billion-euro investment. I firmly believe high-tech is something Germany does well. By working closely with semiconductor companies, researchers, and universities, we aim to strengthen both our innovative strength and the competitiveness of this high-tech industry – in Germany and throughout Europe. Ladies and gentlemen, every day in our wafer fab, we will use highly automated manufacturing processes to create the future in the shape of semiconductors. But we will be doing more than that: we’ll also be creating prospects for the future in the shape of highly attractive jobs. Our high-tech factory will employ up to 700 people. We are looking for creative minds – people who can bring their expertise to bear on the construction of this state-of-the-art Bosch wafer fab. We are counting heavily on finding specialists here in the region as well as international specialists and experts. Our new construction project is also the biggest single investment in Bosch history. We are putting roughly one billion euros into our new location, and are pleased that the German Ministry for Economic Affairs and Energy plans to support its construction and commissioning. And in addition to the federal government, the state of Saxony and the city of Dresden have also pledged their support. So at this point, I wish to express my thanks to you, Minister Altmaier, and you, Minister-President Kretschmer. It is also thanks to you and your predecessors that things have moved so fast, and we find ourselves here today, ready to lay the symbolic foundation stone together – for better quality of life, for the semiconductor industry in Dresden, and for the competitiveness of Germany as a high-tech location.

Eliminating range anxiety: New services are making electromobility fit for every ...

21.02.2018

Presentations

Business/economy

Eliminating range anxiety: New services are making electromobility fit for every ...

Presentation by Dr. Rainer Kallenbach, president, Connected Mobility Solutions division, at the Bosch ConnectedWorld press briefing on February 21, 2018, in Berlin. Check against delivery.Thank you, Mr. Denner. Ladies and gentlemen, I would like to offer you a closer look at our system!e concept. In technical terms, system!e connects the electric powertrain to the Bosch Automotive Cloud Suite. This yields web-based services that improve the everyday benefits of electromobility – and lowers the barriers to purchasing an electric car. In the future, electric cars with system!e will know precisely when their power will run out, but also where they can find the next charging station. It will also be easier to integrate them into the owner’s home power grid. Let me illustrate this with three specific applications: First, an extended range forecasts. This helps overcome a key concern regarding electromobility. According to all relevant surveys, buying an electric car falls through most often due to “range anxiety” – car buyers rank the limited range of these cars ahead of the high price and long charge times as reasons for their “no.” Our extended range forecasts can allay drivers’ fears that their electric car will leave them stranded somewhere. The forecasts use data from the environment and the vehicle itself – traffic and weather forecasts, current battery charge, energy consumption of heating and air conditioning, tire pressure, and of course the driver’s personal driving style. All this feeds into highly accurate forecasts of the remaining range. Second, a charging assistant for longer journeys. This is another service that seeks to counter range anxiety. It starts with a new kind of route planning, which is based on the extended range forecast and makes suggestions according to when charging stops are required. Additional information about, for example, restaurants, cafés, and shopping options near the stop allow drivers to make the most of the charging time. And because the charging stations are connected to the internet, the service can arrange for payment online. As a result, driving even longer stretches with an electric car is less stressful. Driving electric, yet stress-free – that is the goal. Third, our concept of energy management for charging at home, which can cut costs considerably. Specifically, this means that we will be able to integrate the electric car into the smart home’s electricity grid. Its battery can then, for instance, supplement the stationary storage device for the house’s photovoltaic system. During the day, the car absorbs surplus solar power; the battery feeds it back at night to, say, operate a heat pump. Still, the homeowners will want to drive their electric car again in the morning – all they need to do is tell the car the minimum charge needed for the desired destination. That is an example of how efficiently car and home will work together in the future. Connecting electric cars with the smart home is a prime example of a cross-domain ecosystem, the supreme discipline on the internet of things. Implementing it requires a versatile company – a company like Bosch, whose expertise extends beyond the car. That is why we also see system!e as a toolkit; we will use it to derive solutions for established automakers as well as start-ups. This is no far-off vision, either: together with our customers and partners, we will be able to supply the corresponding services within the next few months. Many talk about the future of mobility. We’re making it ready for the market. For more on what we are launching on the market besides mobility, some of which we are presenting here at Bosch ConnectedWorld, I now turn things over to Stefan Hartung.

A revolution in the everyday: How Bosch is seizing the opportunities of connectivity

21.02.2018

Presentations

Business/economy

A revolution in the everyday: How Bosch is seizing the opportunities of connectivity

Presentation by Dr. Stefan Hartung, member of the board of management of Robert Bosch GmbH, at the Bosch ConnectedWorld press briefing, on February 21, 2018, in Berlin. Check against delivery.Ladies and gentlemen: We just heard it from Mr. Denner: connectivity is the future. And not just connectivity of cars and mobility – the scope is much broader. The opportunities that the internet of things presents for our roads, our workplaces, and our homes are what we are showcasing at Bosch ConnectedWorld. I want to emphasize that we are not presenting far-off visions of the future; instead, we’re demonstrating actual, real-world solutions. A few facts to illustrate this: Bosch has already designed, developed, and carried out 250 IoT projects. We are currently working on 170 of our own IoT projects, in areas as varied as connected mobility, connected buildings, connected industry, and connected agriculture – all of which are running on our own Bosch IoT Cloud. We sold 38 million web-enabled products in 2017. Today, the Bosch IoT Suite connects 6.2 million sensors, devices, and machines with users and company applications. We recognized the potential of connectivity early on, and have been actively shaping the connected world for nearly ten years. We have steadily expanded our software and IT expertise. With over 25,000 software experts, today we are a software company, too. But how do we differ from the internet giants in the U.S. and Asia? Where Silicon Valley connects the digital world, Bosch connects the real world. We have expertise in hardware as well as in software. Above all, our IoT approach is aimed at achieving concrete improvements in people’s real, everyday lives. But what does that mean, exactly? Let me give you some examples: The first concerns the connected city . In just about 30 years, two-thirds of the global population – six billion people – will be living in cities. Cities today already cause 80 percent of all greenhouse-gas emissions and consume 75 percent of the world’s energy. Going forward, the quality of life in cities will depend to a large extent on intelligent and connected solutions. Between now and 2020, the smart-city market will grow 19 percent each year to reach 700 billion euros. In this sector, we can draw on our broad portfolio and cross-domain expertise, while our customers benefit from our concrete solutions in the areas of energy, buildings, mobility, security, safety, and e-governance. The company is currently involved in 14 extensive smart-city projects in places such as San Francisco, Singapore, Tianjin, Berlin, and Stuttgart. It also won’t be the last. Today, we’re signing an agreement with the Chinese property developer Country Garden. Together, we will investigate opportunities for planning and building additional connected cities and smart living labs in China. Country Garden has more than 25 years’ experience in developing residential areas, and Bosch will contribute its IoT and customer expertise. Over in the exhibition area, you can take a look at our activities in the smart city domain. Connected homes: We are also showcasing the smart kitchen here at Bosch ConnectedWorld. With Bosch’s Home Connect app, users can control a range of models of dishwashers, ovens, refrigerators, and coffee machines. Besides connected appliances, we offer an increasing number of digital services, too. During Mr. Denner’s presentation you saw Mykie, the digital kitchen assistant who understands gestures and spoken language. Say you want to make a casserole, but with lamb instead of bacon. Mykie can adapt the recipe for you – in the future, taking into account what you have in the pantry – and can set the oven to the correct temperature as well. Connected agriculture: Bosch also helps ranchers and farmers with their work. On Fazenda Santa Fé, one of Brazil’s largest cattle ranches, Bosch sensors, software, and services help ranchers to monitor the weight gain of their livestock. Brazil alone has 100 million head of cattle, Argentina has 50 million, and the U.S. has another 100 million. We have also found a wide range of uses for smart agriculture here in Germany: our sensor-based solutions already support farmers who are growing tomatoes, asparagus, or potatoes, and our cloud-based milk monitoring system helps dairies and dairy farmers ensure that their milk doesn’t spoil. We decided to forgo the cattle herds today, but you can still learn about our asparagus and strawberry sensors here. Bosch’s newly formed Connected Industry business unit began operations in January 2018. It brings together the Industry 4.0 activities of our various departments and units, above all those in the software and services business. The unit’s more than 500 associates offer our collective experience in project realization. Our industrial subsidiary Bosch Rexroth is also playing a major role here. It’s working on fully-connected factories. These will be able to do much more than just reduce the power consumption of a single machine, for example. In the future, completely connected machines will be able to independently make decisions and organize themselves thanks to artificial intelligence. Whether as a one-off or in large volumes, connected industry and logistics enable us as well as our customers to produce items flexibly and cost-effectively. In about two years, we’ll be able to show you what this looks like in our reference factory in Xian, China. Between now and 2020, we aim to exploit Industry 4.0 to increase sales by more than a billion euros. Tomorrow, I will join with representatives from our partner companies to speak more about fully connected manufacturing, connected logistics, and especially about new services and business models in my keynote. I look forward to seeing you there. With that, I come to the end of my presentation. We predicted early on that the IoT would change everything. We are visionary thinkers, designers, and partners for multiple aspects of the digital transformation. Thank you very much. We would be happy to answer any questions you may have.

From vision to business: Connected driving is becoming a growth area

21.02.2018

Presentations

Business/economy

From vision to business: Connected driving is becoming a growth area

Presentation by Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH, at the Bosch ConnectedWorld press briefing on February 21, 2018, in Berlin. Check against delivery.Ladies and gentlemen: Connectivity is the future, and the future of mobility in particular. By that I mean not just modernizing the road and rail networks, but connecting all modes of transport via the internet. We are showcasing this and much more here at Bosch ConnectedWorld in Berlin. BCW is one of the world’s largest conferences on the internet of things, and draws players at the forefront of digitalization. Here we can exchange views with nearly 4,000 IoT pioneers and implementers, and display the practical benefits of more than 60 IoT solutions. The German capital is the perfect setting for this: we just opened our IoT campus here one month ago, and the city is also home to 1,000 of the 3,500 e-scooters operated by our sharing service COUP. These Berlin examples demonstrate that we’re not concerned with far-off visions of the connected world and the mobility of tomorrow, but are already delivering pioneering solutions for today’s traffic problems. It is with these solutions that we plan to grow. Creating our new division, Connected Mobility Solutions, sends a clear signal: we’re converting our many service projects for tomorrow’s mobility into a services business. For example, we have collaborated with partners in developing a multimodal mobility assistant that enables the planning, booking, and payment of car- and bike-sharing, rail, and bus services. And this year, our technology is making connected parking a reality for the first time – whether it is cars driving themselves to free spots in parking garages, or using their sensors to detect available curbside parking and feeding that information into an online map. Both of these solutions make city life easier. For realizing services such as these, we have our own software platform: the Bosch Automotive Cloud Suite. We are pooling all of this in our new division, which will be the new home for more than 20 services from shared mobility, multimodal mobility, and connectivity-based service offerings for drivers. Bosch has over 600 associates in Connected Mobility Solutions at five locations in Germany and China. The business potential arises from the growing fleet of connected vehicles, which is expected to number more than 470 million by 2025. Digital and mobility services aim to tap that potential. Their worldwide market volume is projected to grow from 47 to 140 billion euros within five years, meaning between 2017 and 2022. It is still a fragmented market. Bosch aims for significant double-digit growth with the solutions we offer. One part of this plan is an acquisition in the U.S., which I would like to announce today. Bosch is entering the business of web-based ridesharing services: we have acquired the U.S. start-up SPLT, which offers such services specifically for commuters. This kind of connectivity also helps solve traffic problems of the here and now – problems shared by anyone trying to get from A to B. What makes the SPLT service special is that it is a B2B solution aimed not directly at potential carpoolers, but rather at their employers. SPLT operates a platform that can coordinate ridesharing offers for employees of companies, universities, or municipalities. Why does it make sense to offer this solution via the employer? The answer is simple: carpools are based on the idea that multiple people need to get to the same place at the same time. And where and when is that more often the case then on the way to the same workplace? This is precisely where SPLT comes in: an algorithm computes the best grouping of employees for the ride-share as well as the fastest route. Less stress during rush hour, good for the environment and the wallet – these are the objectives. SPLT already has some 140,000 users at companies and public authorities throughout the U.S., Mexico, and Germany – a number that is sure to multiply over the next few years. Connectivity is not the only development path that Bosch is pursuing towards mobility of the future. In fact, we are moving forward on three paths: connecting, electrifying, and automating driving. The goal is to make driving as stress-free, emissions-free, and accident-free as possible. All in all, we have a comprehensive vision of future mobility in which connectivity is intertwined with the other two paths. This is plain to see at this year’s Bosch ConnectedWorld, especially in the interplay between electric and connected driving. Electromobility – from the beginning, Bosch has seen it as more than an alternative powertrain for cars. We first electrified cycling, and today are a leading supplier of e-bike systems in the premium segment. Our goal is to deliver electric drive solutions for everything from bicycles to trucks. In all that we do, we see ourselves as a systems supplier. For example, we have acquired our first orders for the e-axle, which integrates the transmission, electric motor, and power electronics in electric cars. But our systems expertise goes beyond hardware – we also connect electromobility with the 3 S’s so crucial to the internet of things: sensors, software, and services. After all, electric driving, too, is best when connected. To that end, we are introducing a new concept at this Bosch ConnectedWorld: we call it system!e. I would now like to hand over to Rainer Kallenbach, the president of our new Connected Mobility Solutions division, who will tell you more about it.

Simply.Connected. in your neighborhood: How Bosch is boosting the IQ of cities t ...

08.01.2018

Presentations

Business/economy

Simply.Connected. in your neighborhood: How Bosch is boosting the IQ of cities t ...

Introduction [Stefan Hartung] Good morning, everyone. A very warm welcome to all of you, and thank you for joining our press conference. This is the first time I have the honor of representing Bosch at CES. I’m thrilled to finally have this opportunity because I’m probably one of the biggest techies on the Bosch board of management and have been following this event for several years. When we entered the smart home business, I made a point of personally trying out as much of our technology as I could in my own house. Some of my neighbors thought I had gone off the deep end when they saw me installing cameras everywhere and sensors in the doors and windows. [Mike Mansuetti] For all of us, the quality of the environment we live in is very important. And this is particularly true for those who live in cities. That’s why we want to show you today how we’re using our technical strengths to make a mark on cities around the globe. Let me start with a question – what do you imagine when you hear the term “connected” or “smart” cities? [Stefan Hartung] For my part, I think of cities in which we as citizens are more engaged and empowered, thanks to technologies that take care of things for us and save us time, and allow us to move, breathe, and actually LIVE better. Cities that utilize connectivity to help optimize traffic and reduce congestion. Cities in which we can minimize our ecological footprint because energy needs are met primarily by renewable sources. Cities that are full of smart homes that we can operate from anywhere, and buildings that arrange their own maintenance and repair before we even need to care. Cities that employ technology to reduce pollution and fight crime. In short, cities that are intelligent and sustainable, and offer us a safe, energy-efficient, and all-around great place to live. Sounds almost too good to be true, right? You might even say utopian. But it’s not. In fact, technologies to create this kind of urban environment exist, and many are already in use – perhaps even in your neighborhood. Step by step, cities and communities around the world are boosting their IQ. And we know this because we at Bosch are helping them do it. As one of the companies with the broadest and most comprehensive portfolios of smart-city solutions, as well as decades of cross-domain expertise, there’s no one better equipped for this job. [Mike Mansuetti] Market potential of smart cities Globally, the smart city market is booming. Sales are expected to grow by 19 percent each year, reaching as much as 800 billion dollars worldwide by 2020. By 2025, at least 80 urban areas worldwide will be smart. Some places are already synonymous with smart-city initiatives: Barcelona, Seoul, London… or Columbus, Ohio, which as you may know, was the winner of the U.S. Department of Transportation Smart City Challenge. Around the globe, cities of all sizes are investing in and reaping the benefits of these technologies. In fact, the city of Las Vegas recently announced a 500 million dollar investment in smart city infrastructure over the next seven years. [Stefan Hartung] About the smart city market: one reason it’s taking off now is because we have the right technology. The arrival of the IoT a few years ago, with its innovations in sensors, artificial intelligence, big data, and predictive analytics, means that many smart city initiatives are for the first time not only possible, but also economically viable. Perhaps more importantly, though, cities are realizing that technological solutions could hold the key to solving many of today’s pressing urban problems – as well as tomorrow’s. The fact is that our world is becoming increasingly urbanized: by 2025, 34 cities worldwide will have a population of more than 10 million people. By 2050 at the latest, two-thirds of the world’s population will be living in these megacities, putting a tremendous amount of pressure on local infrastructure and the environment – and ultimately on our quality of life, whether the air we breathe, the time we waste in traffic, the energy we consume, or our safety. Smart city technologies offer a way of confronting these challenges, and of mitigating their impact. Above all, they help make cities – and towns, and neighborhoods – better places to live. We’re pursuing exactly this aim in 14 smart-city beacon projects around the world, for example in Tianjin, China, Berlin, Germany, and San Francisco, California. Sensors, software, and services Smart cities begin and end with connectivity. Our solutions not only encompass connected mobility, energy, building, and industrial technology, they enable connectivity at the most fundamental level. Nearly 50 years ago, we introduced semiconductor technology for automotive applications. Today we’re the leading global producer of micromechanical sensors, shipping more than four million a day. [Mike Mansuetti] You could say that our sensors are the eyes and ears of the connected city. In this case, its brain is our software. Of Bosch’s nearly 400,000 associates worldwide, more than 20,000 are software engineers, nearly 20 percent of whom are working exclusively on the IoT. We supply an open software platform called the Bosch IoT Suite, which offers all the functions necessary to connect devices, users, and companies. And we’re increasingly bringing artificial intelligence into play here as well – at the start of last year we even opened a dedicated AI research center, which employs some 100 experts at three locations, one of them in Silicon Valley. Since 2016, we’ve been operating our own IoT cloud in Germany. Over the past 18 months, we have implemented some 100 IoT projects and connected one-point-five million vehicles with our IoT software. Later this spring, we plan to launch the Bosch cloud on this side of the Atlantic. In fact, we intend to make all the electronic products in our portfolio web-enabled by 2020, and offer them with a corresponding service package. Sensors, software, services – these three S’s are not only the building blocks of smart cities, at Bosch they are our core competencies. [Stefan Hartung] And they’re also the basis of our smart city solutions, which I’d like to tell you about now in more detail. What’s important to understand here is that there is no switch that gets flipped to make a city smart. Instead, intelligence comes in stages, as cities start implementing technology to overcome the four major challenges they face, one step at a time. Challenge 1: air quality The first challenge, and one of the biggest currently faced by cities around the globe, is air quality. The importance of this cannot be overstated – it’s fundamental to our mental and physical well-being, wherever in the world we live. We at Bosch believe that there is no single magic bullet that will solve this problem. Instead, what will have a lasting impact on air quality is an array of measures working in parallel. Where mobility is concerned, these include state-of-the-art combustion engines, hybrid solutions, and pure electromobility, as well as connectivity that goes beyond individual vehicles. Another key piece of the puzzle is climate monitoring systems. These gather data about air quality in a particular region which can be used to develop targeted measures for reducing pollution. Here at CES, we’re presenting our innovative new microclimate monitoring system which is flexible, affordable, and easy to deploy. [Mike Mansuetti] And it has a name you can easily remember – Climo. To give you some context, most microclimate monitoring stations are usually roughly the size of shipping containers – not to mention expensive. We’ve packaged ours into this little box, 1/100th of the conventional size, and 1/10th of the cost. In addition to pollution, it also measures humidity and pollen levels in real time – a great advantage for local residents. For cities, the data provided can be utilized in a variety of ways, such as for traffic flow management and as the basis for future policy and planning decisions. The Consumer Technology Association was so impressed with Climo that they gave it one of the coveted CES Innovation Awards in the smart city category – one of three awards we received this year. We recently provided the city of Las Vegas with several Climo systems. During CES, Bosch will be monitoring the local air quality in real time. [Stefan Hartung] Challenge 2: mobility Let’s move on to the second challenge, and another major focus of smart city initiatives – mobility. It’s no wonder: growing populations mean more traffic. In fact, urban traffic is predicted to triple by 2050. To help cities and their inhabitants cope with this, Bosch is developing a wide variety of solutions for the transportation of people and goods. Our vision is to create an urban environment that is free of emissions, stress, and accidents. This is tied to three technological developments: automation, electrification, and connectivity. Today, half of our 14 smart city projects include urban mobility solutions such as connected parking, automated driving, fleet management, multimodal transport, and electromobility. Let’s start with parking, one of the most common frustrations of city life. [Mike Mansuetti] In the U.S., we currently spend over 40 hours a year stuck in traffic, wasting more than 160 billion dollars in time and fuel. The search for parking accounts for more than a third of this wasted time. You have personal experience with this, right? I know I certainly do. Our solutions for connected and automated parking save fuel and time while reducing stress. In one of these solutions, community-based parking, we at Bosch are taking over the search for a parking spot. It works by cars automatically reporting vacant spaces to the cloud as they drive past. After a successful pilot phase, we’re currently planning to launch community-based parking in 20 U.S. cities this year. In places such as L.A., Miami, and Boston, we’ll make real-time information about on-street parking available to car manufacturers. Drivers will be able to see on their navigation systems where there’s a free space and drive directly to it – which will save them time, fuel, and stress, while reducing congestion and pollution in downtown areas. [Stefan Hartung] Our latest innovation is called automated valet parking. We recently won a Frost & Sullivan's 2017 Technology Innovation Award for this solution. It works like this: cars drive themselves into parking garages and find their own spaces at the touch of a button – while you, the driver, can attend to more important things. In cooperation with Daimler, we recently demonstrated this futuristic solution live at the Mercedes-Benz museum in Stuttgart. Speaking about automated mobility, Bosch has over 3,000 engineers worldwide working to make this a reality. In one of our projects, we’re again collaborating with Daimler to bring self-driving robocabs to city streets by the start of the next decade. This will open up new horizons in particular for people with limited mobility – such as the elderly, or those with disabilities. We’re also taking steps to realize another requirement for self-driving cars, namely high definition maps. To this end, we recently acquired a stake in the map provider HERE Technologies, and together with them, we’re working on a manufacturer-independent solution for cars to share traffic information collected by their sensors, which can be used to update maps in real time. We’ll also be working together on applications for this technology beyond the automotive domain – for example in connected industry, where high-definition indoor maps could be used to automate and streamline flows of goods all the way to the production line. [Mike Mansuetti] But to return to mobility: smart cities will also rely heavily on multimodal transportation – in other words, getting from A to B on four wheels, two wheels, or by rail. One way Bosch is facilitating this is with innovative shared mobility services. A great example is our Coup e-scooter sharing service, which we’ve so far successfully launched in Berlin and Paris. We know there is an increasing population of people who want to remain mobile without owning a car, and this kind of service offers them that opportunity. According to Gartner, 250 million cars around the world will be connected by 2020. Along with this development, automotive services are also gaining in importance. Come to our booth to see what we call our connected vehicle platform – it brings together the numerous vehicle services we now offer. From wrong-way driver alert and preventive diagnostics to stolen vehicle tracking and smart-home control from behind the wheel, we’re not only making driving easier, safer, and more convenient than it’s ever been before, we’re turning the car into a new, fully-connected living environment. Our new Telematics eCall Plug is enabling another kind of service that combines safety with savings. The device itself is a plug which fits into a standard 12 volt outlet in any passenger vehicle. In addition to offering our lifesaving eCall emergency accident notification, the plug now also has a sensor that monitors driving behavior. An insurance company could use this information to offer you lower rates when you’re a careful driver. [Stefan Hartung] Challenge 3: energy Energy use presents the third major challenge for cities. Cities already account for some 75 percent of power consumption around the world, with 40 percent going to buildings alone. Smart city technology can not only help reduce consumption, but also make the use of renewables a more viable prospect. This means that ultimately it can help people save money and reduce their ecological footprint – good for cities, and good for their inhabitants. At Bosch, our energy solutions include virtual power plants, which store power or feed it into the grid as needed, and stationary energy storage systems – essentially massive batteries that can store enough energy to power dozens of homes. [Mike Mansuetti] We’re also at the forefront of microgrid technology. Without getting too technical, microgrids are relatively small, independently controlled energy-management systems. Think of them as miniature versions of municipal grids, generating and distributing electricity on a much smaller scale. Their ability to run on a variety of fuel sources, including renewables, means they have excellent ecological credentials. Another major advantage is increased self-sufficiency – microgrids can provide power for local residents and critical facilities if an outage affects the larger grid. In 2015, we outfitted a facility at Fort Bragg in North Carolina with a solar-based microgrid solution that supplies cost-effective, eco-friendly electricity. [Stefan Hartung] Challenge 4: safety and security That brings me to the final challenge, safety and security. Anyone who lives in a city knows that these are already major concerns, and growing populations will only make the situation more acute. At Bosch, we also have a full portfolio of solutions designed to keep individuals and communities safe. For example, our connected surveillance cameras can be used to fight crime, and they can also identify where help is needed in the event of a catastrophe. Another security solution we’re debuting here is our new flood monitoring system. This provides early warning about potential flooding by digitally monitoring water levels in real time. Up to now, such measurements have been made using mechanical means, which means several hours can pass before a warning is issued. Our system uses a combination of ultrasonic sensor probes and cameras to monitor changes to water level, speed, and throughput, and immediately sends out notifications when critical thresholds have been surpassed. A local municipality could install our system on bridges and allow residents to access data and receive alarms, for instance, or a business owner could set up a private system to protect their premises. We currently have a test system in place on the Neckar river near the Bosch headquarters in Stuttgart. Smart homes and buildings will unlock potential of smart cities Looking beyond these major challenges, we believe that in order to unlock the full potential of smart cities, the homes and buildings inside them will need to be intelligent as well. Smart home technologies offer countless benefits: they can take care of time-consuming chores for us, enable us to save energy and money, and make our living spaces more secure. At Bosch, we have been on the forefront of smart-home technology for years. In addition to our ever-growing range of connected appliances, lighting, and indoor climate systems, which by the way, can now be controlled with Amazon’s Alexa, we’re constantly expanding the scope of the smart home’s capabilities. For instance, we have a new robotic vacuum cleaner equipped with AI that can memorize your floor plan, and save you up to 40 hours of work each year. We also received a CES Innovation Award this year for a new acceleration sensor that is small and powerful, yet extremely energy-efficient. Among other things, the sensor can recognize whether windows are open or closed, and automatically adapt heating and cooling systems accordingly. Isn’t that smart? This saves money and power. [Mike Mansuetti] On a public scale, we’re helping to make all types of buildings smart – among them hospitals. For example, sensor-based video technology, lighting, and motion detectors can be used in hospitals to boost safety and security. Connected solutions also provide greater convenience and efficiency for both patients and administrators. Our U.S. subsidiary Climatec is a longstanding partner of the nonprofit provider Banner Health. We currently supply building automation, security, and fire detection equipment for 15 Banner facilities. In the years ahead, we expect continued growth with our global building technology business, and plan to increase our revenue in this sector by more than 20 percent. Beacon projects: SF Shipyard and San Leandro Before we wrap up, I’d like to tell you about a couple of the smart-city projects we’re involved in. Two of them are, in fact, right next door in California. The first is a partnership with the city of San Leandro, in the Bay Area. There, we’ve outfitted 5,000 streetlights with smart LED lighting that will switch on only when needed. The city estimates that this alone will save them more than 8 million dollars over the next 15 years. We’ve also equipped the streetlights with sensors that measure air quality and intelligent cameras that monitor traffic and automatically redirect cars in case of congestion. So besides enhancing quality of life, smart city technology can also save you – and cities – money. The other partnership is in San Francisco. This waterfront site is comprised of two neighborhoods – the former Hunters Point Navy Shipyard and Candlestick Park, where the 49ers used to play. Together, The SF Shipyard and Candlestick are entitled for up to 12,000 homes, five million sf of commercial space and one million sf of retail, all of which are being developed by FivePoint. At The SF Shipyard, we’re providing residents with a state-of-the-art surveillance system. We do this with our intelligent cameras and on-site monitoring systems. Both of these are connected to our smart community app. This app contributes to creating a sense of community and enhances the quality of the neighborhood by helping residents find local business information, check real-time transportation schedules and share information with other community members. A number of other cost-effective and eco-friendly solutions, including a DC microgrid powered by solar energy, are currently being explored. [Stefan Hartung] Conclusion: focusing on the bigger picture As you can see, we have no shortage of cutting-edge solutions for smart cities. With all this talk about technology, though, we shouldn’t lose sight of the bigger picture. We at Bosch are committed to helping make cities smart not just because it makes good business sense, but because it actually improves people’s lives. Smart cities facilitate civic engagement. They allow the use of finite resources to be reduced and renewables to be increased. They enable the elderly and people with disabilities to enjoy more independence. They help protect people’s health and make streets safer. And they take the stress out of many everyday activities. This is what we mean when we say our technology is “Invented for life.” Ladies and gentlemen, in closing let me repeat that the smart city of the future is no utopian vision: it’s already here, and communities around the globe are reaping the benefits. At the same time, though, the challenges faced by cities are formidable. Overcoming them will require pulling out all the stops, both technologically and politically. This is exactly where Bosch has the advantage: not only do we have a truly comprehensive portfolio and cross-domain expertise, we have experience working with municipalities to supply exactly the solutions they need. Solutions that will make life tangibly better for you, me, and everyone living in our neighborhoods. But don’t just take our word for it. Come and visit our booth in Central Hall this week, and experience for yourself Bosch’s connected and life-enhancing solutions for the smart cities of tomorrow – and today. Thank you.