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Bosch is using IoT to drive a digital transformation across its manufacturing operations. The company from Böblingen has developed smart factories by linking machines, sensors, software and employees in real time, which boosts productivity and cuts downtime and energy usage. Its IoT platform Nexeed connects production and logistics data to support faster, more informed decisions on the factory floor.
The solution from Bosch integrates IoT, artificial intelligence, cloud computing, edge devices, and digital twins into a connected manufacturing system. Instead of using individual production systems, the factories gather information from thousands of sensors, which are installed in machines and assembly lines. This information is processed in real time to detect anomalies, predict maintenance requirements and optimize production efficiency.
Nexeed Industrial Application System is a centralized system that integrates equipment from various vendors on a single dashboard. It can also be used for legacy machines, which enables manufacturers to modernize old production lines without having to replace their costly machines.
One of Bosch's biggest IoT use cases is predictive maintenance. In Germany, Nexeed gathers data from over 60,000 sensors at its Blaichach plant to continuously monitor the condition of machines. The software detects when parts are starting to wear out, before they break down, enabling maintenance teams to take measures to repair the equipment.
This has cut disruptions in ESP manufacturing operations by 25%, which has led to more stable production processes, reduced downtime and maintenance costs, says Bosch. IoT software has boosted productivity by up to 25% and machine availability by up to 15% and lowered maintenance expenses by up to 25% in Bosch factories.
Bosch is increasingly combining AI with IoT through what it calls the Artificial Intelligence of Things (AIoT). Production anomalies are detected using AI analysis of sensor data and recommended corrective actions, which are still made by human operators.
The company has also enhanced sustainability by connected manufacturing. Nexeed discovered compressed-air leaks using the meter and sensor readings at its Homburg plant, resulting in a saving of some €800,000 per year. The same plant reduced its power consumption by 40% when optimizing its production processes.
In addition to production, Bosch uses IoT in intralogistics to monitor materials as they are moved within their factories in real time.
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The company recently revealed that it will spend over €2.5 billion on AI by the end of 2027, with manufacturing, predictive maintenance, and supply chain optimization among the main areas of focus. Bosch also anticipates that revenue from factory software will cross €1 billion as manufacturers increasingly adopt Industry 4.0 technologies.
