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December 17, 2020 01:51 PM

Bosch, Continental battle to supply the brain of the connected car

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    Bosch_information_domain_computer web.jpg

    Bosch computers currently control functions such as driver assistance systems and motion in cars. The supplier says soon they will be joined by information domain computers, as shown in the picture, for cockpit functions and body electronics.

    Robert Bosch and Continental are the world's No. 1 and No. 4 automotive suppliers respectively, with broad portfolios that generate tens of billions in sales from automakers.

    Now, their competition is moving into the area of in-vehicle computers that have the potential to control all the electronic and software-centric functions in the car.

    Bosch said Wednesday that it had received 2.5 billion euros (US$3 billion) worth of orders for vehicle computers since the summer, when it announced it was creating the Cross-Domain Computing Solutions division to bring together expertise in software, hardware and electronics.

    "Vehicle computers have huge business potential for Bosch," said Harald Kroeger, the Bosch board member overseeing the new division, which starts formal operations in January. Bosch sees the overall market for software-intensive systems at 20 billion euros (US$24.5 billion) now, with annual growth of 15 per cent over the next decade.

    Continental's In-Car Application Server gives the VW ID3 an interface to the internet. Thanks to the separation of hardware and software, the server can integrate and update both VW applications and third-party software.

    Not to be outdone, Continental CEO Nikolai Setzer also announced on Wednesday that his company had landed 4 billion euros ($4.9 billion) worth of central computer orders "from various manufacturers," notably from Volkswagen for the new ID3 and ID4 electric vehicles, VW’s most anticipated launches in years.

    These high-powered computers -- Bosch calls them "the new all-rounders of automotive electronics" -- bundle functions such as safety, driver assistance, connectivity and infotainment. Whereas now all these tasks might be handled by 100 or more electronic control units, central computers will significantly reduce that number.

    That will mean less complex, more secure electronics systems, and even lighter weight, among other benefits, because cars will need less wiring. 

    There is more work to be done in the field. Vehicle computers will be given more and more tasks, so in the future they could even control complicated driving functions such as motion control as well as software updates and data-based services. 

    Bosch, Continental and other megasuppliers are furiously trying to transform their automotive businesses from traditional parts, electrics and internal combustion to software, systems-based electronics and zero-emissions powertrains. At the same time, each is trying to "win the transformation" against competition from technology focused companies as well as fellow suppliers, Setzer said Wednesday, speaking to investors for the first time since taking over as CEO from Elmar Degenhart.

    Continental expects such high-performance central computers and the software that powers them to become a major revenue source by 2025, he said. 

    "Mobility in the future will be marked by the degree of connectivity, safety and comfort," Setzer said, "irrespective of how a car is propelled forward." 

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