Acquiring Johnson Controls’ HVAC business positions Bosch for growth and market leadership by 2030.
The Bosch Group has achieved a major milestone in its Corporate Strategy 2030, reinforcing its commitment to sustainable growth and market expansion. On 31 July, the company successfully completed its largest acquisition to date: the residential and light commercial heating, ventilation, and air conditioning (HVAC) business from Johnson Controls, along with the acquisition of the Johnson Controls-Hitachi Air Conditioning joint venture. This milestone acquisition, valued at $8 billion USD (7.4 billion euros), strengthens Bosch’s position in the growing HVAC sector and accelerates its ambitious global expansion plan.
Stefan Hartung, Chairman of the Bosch Board of Management, expressed his enthusiasm for the strategic move, stating, “With the largest acquisition in our company history, we are accelerating our growth, expanding our global footprint, and balancing our business by strengthening our energy and building technology, this makes Bosch more powerful and robust, in line with our corporate strategy 2030.”
The deal, which was signed approximately one year ago, propels Bosch’s Home Comfort division to new heights, nearly doubling its size. The division now boasts over 25,000 associates and more than €8 billion in annual sales. This acquisition significantly enhances Bosch’s footprint in key markets, particularly in America and Asia, positioning the company as one of the largest global suppliers in the HVAC market for both residential and light commercial buildings.
Strengthening the Bosch Home Comfort Division
The acquisition will make Bosch a leading player in the HVAC industry, positioning the company to better capitalize on market opportunities and technological advancements in the rapidly changing heating, ventilation, and air conditioning landscape. As Hartung notes, “The entire HVAC industry is in a state of upheaval, and the market and technologies are changing. Bosch is systematically taking advantage of its opportunities and is now moving up to the Champions League in the heating, ventilation, and air conditioning solutions business.”
Christian Fischer, Deputy Chairman of the Bosch Board and responsible for strategic growth initiatives, added, “Bosch wants to be one of the leading companies in each of its industries by 2030 and is expanding its business with strategic investments in growth areas, among other things. Acquisitions are also part of the strategy.” This acquisition strategically complements Bosch’s existing portfolio, enabling the company to offer a full range of HVAC solutions from a single source.
Along with the primary acquisition, Bosch has also gained key investments and joint ventures, including strategic shares in component manufacturers and sales partners. These investments are expected to contribute significantly to the division’s financial growth and will help Bosch enhance its product offering across a broader range of HVAC technologies.
Expanding Global Reach and Sales Channels
One of Bosch’s primary goals with the acquisition is to increase its global market share and accelerate sales growth. By tapping into strong brands such as York in the USA, Hitachi in Asia, and Buderus in Europe, Bosch aims to bolster its presence in key regions and drive revenue growth through its expanded portfolio. The company has also secured long-term licensing rights to use these brand names, ensuring consistent global branding and recognition.
As part of the integration process, Bosch’s global production network will expand from 17 to 33 plants, while the number of development sites will rise from 14 to 26. This expansion will play a critical role in cost-saving initiatives, as integrated purchasing and joint development of product platforms are expected to drive efficiencies across the company. The integration of these newly acquired units into Bosch’s Home Comfort division will be completed by 2027.
The Growing Global HVAC Market
The global demand for heating, ventilation, and air conditioning systems is booming, and Bosch is well-positioned to meet this demand. According to Bosch analyses, the HVAC market was valued at over €150 billion in 2024, with air conditioning systems alone accounting for nearly two-thirds of that total. As global temperatures rise, demand for air conditioning units is expected to grow substantially. By 2030, sales of air conditioning units worldwide are projected to increase to over 200 million units per year, a nearly 20% rise from 2024 levels.
The demand for energy-efficient HVAC solutions is particularly high, as global warming drives the need for better cooling systems. Frank Meyer, responsible for energy and building technology at Bosch, stated, “We want to help shape this market and use energy-efficient solutions to ensure that people can make their everyday lives comfortable and healthy, even on increasingly hotter days, whether at home, at work, or while shopping.” As climate change accelerates, the demand for more efficient and sustainable cooling systems is expected to grow exponentially.
Focus on Regional Markets
Bosch’s acquisition also aligns with the company’s strategy of regionalizing its operations to better meet local needs. In the USA, the company plans to focus on ducted systems, where air is routed through central ducts to heat or cool all rooms at once. In Asia, Bosch will leverage its expertise in ductless systems, where indoor units are installed in individual rooms, as well as variable refrigerant flow (VRF) systems for larger commercial applications, such as retail stores, hotels, and hospitals.
The Europe/Middle East/Africa (EMEA) region presents a diverse set of needs. In Northern and Western Europe, heat pumps and electrification technologies are in demand, while in the Middle East and Africa, air conditioning solutions and water heaters are the primary focus. Bosch is adapting its product offerings to meet the unique demands of each region, ensuring it remains at the forefront of the HVAC industry.
Strengthening Leadership and Global Presence
With the completion of the acquisition, Bosch has restructured its leadership to strengthen regional operations. Jan Brockmann, currently the President of Home Comfort, will become the President of the future global organization, overseeing the Europe/Middle East/Africa region. David Budzinski, previously President at Johnson Controls, will take on a leading role for the Americas region. Meanwhile, Ulrich Lissmann will head the Asia-Pacific region, ensuring Bosch remains agile and responsive to local market dynamics.
In the Middle East, the region’s growing demand for energy-efficient HVAC solutions has made it a key focus area for Bosch. Ahmed Aqel, General Manager for Bosch’s Home Comfort Group in the Middle East, emphasized, “With strong regional demand for cooling and a clear push toward energy efficiency, the Middle East HVAC market presents a significant opportunity for deploying innovative heating and cooling systems.” Bosch is committed to working closely with local governments and partners to promote sustainable HVAC technologies in the region.