Resilience as the new currency – Part 2: AI, 5G and defence as drivers of industrial transformation
How intelligent edge architectures and secure embedded systems are shaping Europe’s industrial future
As highlighted in the first part of this article, regulation can become a strategic advantage. However, resilience does not arise from compliance alone, but also requires technological depth. This second part explores where AI and 5G deliver their greatest industrial value and why the defence sector has long since become a driver of innovation for the entire industry.
Today, data is not generated in the cloud, but in machines, vehicles, production facilities and critical infrastructure. Those who process it where latency, availability and security are of crucial importance have the advantage. This is precisely what makes the combination of AI and 5G at the edge so powerful.
AI at the Edge & 5G: Intelligence where data is generated
The role of AI and 5G continues to evolve: away from purely cloud-based approaches, towards intelligent, secure edge architectures. Private 5G networks enable real-time industrial applications and highly available communication. AI functionalities are becoming increasingly integrated with embedded systems and secure operating systems.
AI-supported anomaly detection, predictive maintenance and autonomous decision support only deliver their full value if they can be operated in a stable, traceable and cyber-resilient manner. Technologies that work in one sector are increasingly being transferred to other industries. This multiplies innovation and efficiency gains.
A prime example and a strategically important market for Kontron is the rail sector: the Future Railway Mobile Communication System (FRMCS) is creating a new, 5G-based communications infrastructure for safety-critical applications. The end-to-end solutions for the transition from GSM-R to FRMCS – MCx, private 5G core networks and cloud-based management tools – can be directly applied to other highly regulated industries. In doing so, they provide early adopters with a clear competitive advantage.
Defence & security-related applications: Technology as a protective factor
The geopolitical situation and the increasing interconnectivity of critical infrastructure are driving investment in defence and security projects worldwide – and particularly in Europe. Governments are prioritising long-term resilient, secure and interconnected systems that meet extreme requirements for reliability, real-time capability and availability.
There is a demand for modular architectures, open standards and robust embedded computing systems that combine high computing power, stability and cyber resilience. Systems must function reliably in extreme environments – heat, cold, vibration, dust – whilst also working together reliably within complex network structures.
Security at the hardware level, controlled supply chains, local manufacturing and compliance with international regulations are gaining strategic importance in this context. Kontron relies on global development sites, a closely networked team of engineers and local manufacturing in strategically relevant regions. Through ITAR compliance, Kontron ensures that sensitive technologies are supplied exclusively to authorised partners.
Overall conclusion: Resilience as the new currency
The fields of cybersecurity, AI, 5G and secure embedded systems are continuing to converge. Resilience is becoming the new currency – technologically, economically and strategically. Companies that invest today in secure, software-driven and connected solutions are laying the foundations for sustainable growth in an increasingly complex environment.
Success depends on interdisciplinary collaboration and the integration of security, real-time capability and AI into industrial platforms. Kontron is fulfilling its responsibility and supporting customers in designing robust, flexible and future-proof systems.
Missed Part 1? Read about how the Cyber Resilience Act and the EU’s efforts to cut red tape are redefining industrial security strategy.
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.