Bosch Makes €7bn Bet to Dominate Home HVAC Market

Bosch has announced its plans to acquire the Johnson Controls-Hitachi Air Conditioning (JCH) joint venture in a monumental €7.4 billion ($8 billion) deal, marking its largest acquisition to date. This strategic move is set to solidify Bosch's position in the global residential heating, ventilation, and air conditioning (HVAC) market.

The acquisition is expected to significantly boost Bosch Home Comfort Group's HVAC sales revenue from approximately €5 billion to €7 billion. With projections indicating a 40 percent growth in the global HVAC market by 2030, driven by technological advancements, climate change initiatives, and evolving regulations, Bosch is poised to capitalize on the increasing demand for HVAC solutions.

As the market transitions from silicon IGBTs to gallium nitride (GaN) and silicon carbide (SiC) power semiconductors, Bosch's acquisition will position the company as a key player in the development and adoption of these technologies. Additionally, the deal will enhance Bosch's utilization of artificial intelligence (AI) in building management systems.

The transaction, expected to be finalized within the next 12 months, includes 16 manufacturing sites and 12 engineering locations across more than 30 countries. The product portfolio of the joint venture encompasses a wide range of HVAC solutions for residential and light commercial buildings, featuring renowned brands such as York, Coleman, and Hitachi.

With a workforce set to expand to over 26,000 employees, the new unit will benefit from economies of scale and a complementary product lineup at the intersection of heating and cooling. Bosch anticipates substantial growth in the US and European markets, with projections indicating over 50 percent and 30 percent growth, respectively, by the end of the decade.