Asia continues to be Bosch's focus in 2016

Asia Pacific is a region in transition: growth rates are reaching a sustainable level; in emerging markets such as China, India, and ASEAN member countries, the middle class is growing; and with it the demand for quality products and smart technologies – established markets such as Japan and South Korea have long been global innovation leaders in this segment.

The Bosch Group can see a number of ways of actively helping to shape this change. “Especially when it comes to connectivity, we can see huge potential in Asia Pacific. Thanks to its broad footprint, Bosch is ideally positioned to offer cross-domain solutions from a single source,” said Peter Tyroller, the member of the Bosch board of management responsible for the region, ahead of the 14th German Industry Asia Pacific Conference (APK) in Hong Kong from November 3 to 5, 2016.

In 2015, Bosch generated sales of €19.2 billion ($21.31 billion) in the region, and thus roughly 27 per cent of its global sales.

Asia Pacific therefore remains a significant driver of growth for the supplier of technology and services. This is also reflected in its activities in the region: “For the present year, we plan investments in our Asian locations totaling some €1.2 billion ($1.33 billion),” Tyroller said.

Bosch is pursuing a policy of localisation in the region, having already invested some €2.5 billion ($2.78 billion) – or roughly one-quarter of all Bosch Group investments in that period, which was €10 billion ($11.10 billion) – in the previous three years. The company, which has had a presence in Asia Pacific for more than 100 years, now operates more than 60 locations in 18 countries in the region.

Market for the internet of things is growing rapidly

“The market for the internet of things (IoT) is also growing rapidly in Asia Pacific,” Peter Tyroller said. “We forecast that the region as a whole will have the world’s greatest IoT market potential by 2020, at 37 per cent.”

According to a study, the market for the Industrial IoT in Asia Pacific alone should grow fivefold between 2015 and 2020. It is expected that urbanisation and industrialisation will accelerate Asian countries’ development, and connected technologies can play a part in this.

Apart from connected industry, Asian countries are above all investing in smart-city projects. Bosch offers mobility concepts as well as solutions that can connect power grids, lighting systems, traffic infrastructure, and buildings, helping to improve cities’ economic and energy efficiency. Pilot projects in this area are already running in India and Singapore.

In Vietnam, the discussion of becoming a smart economy has been on the rise. Joining the Vietnam Summit 2016 in Ho Chi Minh City on November 3rd, 2016, Vo Quang-Hue, managing director of Bosch Vietnam, discussed the future of manufacturing and the prospect for Industry 4.0 in the country.

“When we talk about the fourth generation of the technological revolution (in manufacturing) we have more - and new - requirements for human capital,” Hue said. Therefore, the company has been putting strong focus on the development of its research and development workforce in this market.

Localisation as the key to success

Bosch believes that its proven “local for local” approach is the key to success, especially in its connectivity business. One important element of Bosch’s successful localisation strategy is the development of products and solutions that are tailored to each market’s requirements. Roughly 20,800 (or nearly one-third) of its research and development associates are based in Asia Pacific.

In Vietnam, Bosch has more than 1,100 associates working at its two R&D centers in Ho Chi Minh City – namely Bosch Automotive R&D Center and Robert Bosch Engineering and Business Solutions Vietnam.

The growing regional workforce – great demand for dual education

Bosch is an important employer in the region, employing more than 104,000 people. At present, therefore, roughly one-quarter of all Bosch associates work in Asia Pacific – more than twice as many as ten years ago. “We expect this workforce to grow to 120,000 by the end of 2016,” Tyroller said.

For more than 50 years, Bosch has been pursuing the proven dual education system in Asia. In Vietnam, the dual education system was introduced in 2013 and up to now Bosch has been training 93 Vietnamese apprentices. All in all, more than 850 Bosch apprentices receive training each year at seven locations in the Asia Pacific region.

RELATED CONTENTS:
	Bosch expands footprints in Southeast Asia
	Bosch Security Systems takes part in Secutech Vietnam 2016
	Bosch innovation reduces road fatalities
	Bosch enjoys strong growth in Vietnam
	Bosch expects sales growth of 3-5 per cent in 2016
	Bosch introduces smart city solutions in Vietnam