Bosch outlook 2026: price pressure, tariffs, and software-driven mobility growth

Robert Bosch GmbH expects competitive and price pressure to intensify through 2026, as higher tariffs take full effect for the first time. According to the Bosch outlook 2026, the company does not expect meaningful improvements across individual markets before 2027, pointing to a challenging near-term operating environment.

Economic outlook and margin expectations

Bosch forecasts global economic growth of 2.3% in 2026, reflecting a cautious view of macroeconomic conditions. Despite this moderate growth outlook, the company remains focused on improving profitability through disciplined execution and structural initiatives. Under its Strategy 2030 framework, Bosch expects to reach its target margin of 7% in 2027. This outlook factors in continued cost management, portfolio optimization, and targeted investments aimed at strengthening competitiveness amid sustained price pressure.

Software-driven mobility momentum

Short-term restraint, long-term acceleration

Bosch projects that market momentum in software-driven mobility will initially remain restrained. However, the company expects a significant acceleration over the coming decade as vehicle architectures increasingly shift toward centralized, software-defined platforms. Its Vehicle Motion Management software, which enables centralized control of brakes, steering, powertrain, and chassis, is receiving positive feedback from the market. This solution aligns with broader industry trends toward integrated vehicle dynamics and enhanced driving functions.

Automated driving and order intake

In 2025, Bosch secured orders worth EUR 10 billion for automated driving solutions. These orders include sensor technologies and central vehicle computers, underlining strong customer demand for scalable, software-centric automotive systems despite near-term market headwinds.

Expansion of artificial intelligence across divisions

Bosch is systematically expanding the use of artificial intelligence across all its business divisions. This effort is supported by a planned investment of EUR 2.5 billion in AI by the end of 2027, reinforcing AI as a foundational technology for future products and internal processes. The Bosch outlook 2026 reflects a strategy that balances caution in the short term with confidence in long-term growth drivers. While higher tariffs and pricing pressure are expected to persist, sustained investments in software-driven mobility, automated driving, and AI are positioned to support performance improvement beyond 2026.