Resilience as the new currency – Part 1: When regulation becomes a competitive advantage
How the Cyber Resilience Act and the EU’s drive to cut red tape are redefining Europe’s industrial security strategy
In 2025, we saw cyberattacks becoming increasingly complex and regulations ever more extensive, while the pressure on businesses are mounting. Yet those who view regulation as a strategic opportunity can derive genuine competitive advantages from it. What does the Cyber Resilience Act (CRA) mean in concrete terms for industry, and why does it seem progress is being made within the EU on the issue of bureaucracy? This is the focus of the first part of this two-part article.
Cybersecurity is evolving from an isolated IT discipline into an integral part of industrial value creation. With regulations such as the Cyber Resilience Act, NIS-2 and RED, the EU is responding to a threat scenario that has become significantly more severe in recent years. Global tensions, fragile supply chains and intensifying technological competition highlight just how vulnerable critical infrastructure in Europe has become.
Cyber Resilience Act & Cybersecurity: Security is becoming a strategic imperative
Attacks on industrial infrastructure and connected devices are becoming not only more frequent but also more complex in nature as a result of automation and AI. The economic impact is enormous: analyses estimate the annual damage caused by cyberattacks in Europe at over 200 billion euros. At the same time, regulatory requirements are driving demand for secure digital products designed with compliance and security in mind.
The new EU regulations establish a clear framework for how secure digital products must be developed, operated and secured throughout their entire lifecycle. This includes, amongst other things, integrity protection, encrypted data communication, continuous updates and threat monitoring.
Kontron supports manufacturers with a portfolio of CRA-ready components: KontronOS (hardened, CRA-compliant operating system), KontronGrid (centralised compliance monitoring), KontronAIShield (AI-powered threat detection) and suitable edge hardware platforms. These solutions help to meet the requirements of the EU’s regulations – whilst also creating a robust foundation for connected systems, from embedded devices to edge platforms.
Bureaucracy in flux: first signs of relief
Despite the growing security-related challenges, there is at least one ray of hope: even at EU level, there is a growing awareness that excessive bureaucratic complexity can hinder innovation and efficiency. Initiatives to simplify reporting obligations, digital compliance processes and the harmonisation of standards show that economic competitiveness and regulation are not mutually exclusive.
For businesses, the direction is clear: those who integrate regulation strategically at an early stage can gain efficiency, predictability and tangible competitive advantages.
Conclusion: Compliance as a Foundation
In 2026, cybersecurity is no longer an optional extra, but a central component of every industrial strategy. EU regulation mandates investment, but also provides clarity and predictability. Companies that invest now in secure, CRA-compliant infrastructure are laying the foundations for a future that goes far beyond mere compliance.
The second part of this article will explore how AI and 5G are transforming the industrial edge and why the defence sector is becoming a driver of innovation for the entire industry.
About the Author:
Hannes Niederhauser is CEO of Kontron AG and, since March 4, 2024, also CEO of the majority-owned KATEK SE. After completing his studies in electrical engineering at the Graz University of Technology, the Austrian-born manager began his career as a microchip developer and in the embedded computer segment. Before joining Kontron (then S&T), Hannes was the principal shareholder and CEO of the then Kontron AG from 1999 to 2007, during which time the company developed into the world’s largest provider in the field of embedded computing solutions. Hannes consistently drives Kontron’s strategic positioning as a leading provider of IoT solutions.