Bosch acquires residential and light commercial HVAC business from Johnson Controls and Hitachi

Innovative, energy-saving solutions

The current transformation of technology and market conditions in the field of HVAC solutions opens up huge opportunities to provide innovative and energy-efficient solutions to mitigate global warming and to switch to alternative energy sources. Heating technology is moving away from fossil fuels such as oil and gas towards heat pumps and hybrid heat pump solutions. At the same time, air conditioning technology is gaining importance both in Europe and worldwide.

Frank MeyerBosch Board Member responsible for the Energy and Building Technology business sector, and thus also for the Bosch Home Comfort Group and the integration of the new unit, says: “Bosch aims to actively shape the innovative and growing market for energy and building technology and to take a leading position worldwide. With this acquisition, we are strengthening our position, particularly in the area of ​​air conditioning. In addition, we will be able to expand our heat pump business globally and achieve greater economies of scale. With our technology and our products, we can work together to make a greater contribution to energy efficiency and to provide more comfort and a better quality of life for many people in the face of global warming. This is ‘invented for life’ in the truest sense of the word.”

Complementary portfolio, Established brands

Bosch intends to integrate the acquired businesses into the Home Comfort Group. The 14,600 employees of the existing Bosch Home Comfort Group generated sales of around €5 billion in 2023. Home Comfort is ideally positioned in the core segments of the heating market, the heat pump market, and the hybrid heat pump market, which includes a heat pump and a fossil fuel-fired boiler for peak loads.

Following the transaction, the new division will employ over 26,000 people and will be able to benefit significantly from economies of scale and a complementary portfolio in the heating and cooling segment. Jan BrockmannCEO of Bosch Home Comfort Group, says: “Thanks to our successful heating technology in Europe, we already have a strong team and a solid foundation. Now is the right time to take a bold step towards a global presence. Demand for air conditioning solutions is growing particularly rapidly.

“For example, in the USA, Bosch expects growth of more than 50 percent by the end of the decade, and in Europe, strong growth of around 30 percent is also forecasted by 2030. Together, we will be able to build on strong, well-established brands. We look forward to shaping the future of the Bosch Home Comfort Group with our future colleagues and their innovations and ideas,” adds Brockmann.

The HVAC business, which Bosch plans to acquire from Johnson Controls, has a particularly strong presence in the United States and Asia. In the United States, its portfolio focuses on ducted solutions, in which air flows from a central source through ducts to heat or cool all rooms at the same time.

In Asia, it primarily sells ductless solutions, in which the indoor units in each room can heat or cool individually, as well as modern air conditioning systems based on variable refrigerant flow (VRF) systems. This technology is used in commercial applications, from light commercial premises such as retail stores to large projects such as hotels and hospitals. The portfolio in these regions is complemented by efficient air-to-water heat pumps, which Johnson Controls offers primarily in Europe.