Austria Cybersecurity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Austria Cybersecurity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Austria Cybersecurity Market is expected to register a CAGR of 9.86% during the forecast period. The adoption of cybersecurity solutions is expected to increase with the increasing penetration of the internet throughout Austria. Also, the expanding wireless network catering to mobile devices has improved data vulnerability.

Key Highlights

• Cyber attacks are attempts based on the internet to damage or disrupt information systems and hack critical information using spyware, malware, and phishing. Cybersecurity solutions help enterprises to detect, monitor, report and handle cyber threats to maintain data confidentiality.
• The Austrian Strategy for Cybersecurity 2021 – referred to as "the Strategy" or by its German acronym "ÖSCS 2021". It is developed to guide Austria's efforts to meet cybersecurity challenges as effectively as possible. The vision behind the strategy is to create secure cyberspace over the long term and to make Austria and the European Union more resilient against cyber threats by adopting a national approach to cybersecurity.
• According to the International Trade Administration, the cyber security market is one of Austria's fastest-growing ICT subsectors, valued at USD 590 million and expected to grow annually by 6-9% from 2020 through 2023. The cybersecurity market in Austria is increasing rapidly due to a rise in cyber attacks, cyber breaches witnessed during the remote work environment, and the development by the Australian government.
• Furthermore, the widespread adoption of advanced technologies such as AI, machine learning, and blockchain, among others, for ensuring cyber security is expected to create lucrative opportunities for market growth during the forecast period.
• Besides, the growing need to monitor and manage in-house and external threats across organizations is expected to spur market growth over the next few years. However, the need to conform to the cyber security standards, norms, and regulations can slow down the market growth through 2027.

Key Market TrendsRapidly Increasing Cybersecurity Incidents and Regulations Requiring its Reporting

• Network security is one of the important components of any cybersecurity framework, and compromising network security may lead to irreversible negative effects. A prominent share of attacks are directed at networks, which leads to huge amounts of data breaches; also, attacks on the web are difficult to recognize and, in some cases, are recognized later in time and difficult to recover from.
• As claimed by the European Union Agency for Cybersecurity, 623 ransomware incidents were witnessed from May 2021 to June 2022 with the data gathered from government and security companies' reports.
• The country is witnessing severe cyber breaches. For instance, in May 2022, the BlackCat ransomware group targeted the Austrian Federal state of Carinthia. The attack has significantly affected government services in the state, including passport issuance and traffic violation ticketing systems. This compelled the state to shut down nearly 3,700 administrative systems as a preventive measure.
• Personal data is valuable, which prompts cybercriminals to a crimes. Personal information is being sold on the dark web for as little as USD 5 for a credit card number, USD 30 for an entire identity, or USD 1,000 for medical records.
• Owning to the increased cyber attacks in the country, In July 2022, the Austrian government announced a strategic partnership with Israel for security, cyber matters, health and pandemic response, tourism, climate crisis action, trade, and more.
• Under initiative broadband 2030, In April 2021, the Austrian government approved a broadband funding budget of USD 1.4 billion; by the end of December 2021, another USD 25 million in funding commitments were released for further expansion of broadband networks. This expansion will promote the development and establishment of organizations in the country, further leading to the exposure of their data on the web.

IT and Telecommunication Drives the Market Growth

• IT and telecommunication companies are major segments of any country's critical infrastructure, and various industries depend on them to be operational. Therefore, the impact of a cyber-attack can be vast and far-reaching if it impacts the IT and telecommunication industry. Even false alarms can lead a company to shut down critical services to the consumers and businesses.
• Telecom enterprises store personal information, such as names, addresses, and customers' financial data. Information-sensitive data targets insiders or cyber-criminals are looking to steal money, identity theft, blackmail customers, or launch further attacks.
• The telecom sector is booming with opportunities for operators to transform their revenue models by introducing new and innovative digital services related to IoT, 5G, e-commerce, data, content, OTT communications, and mobile payments or managed services. The increase in IT infrastructure components, such as desktops, servers, information systems, data centers, and virtual machines, further adds to the demand.
• For instance, 5G networks can be sliced into uniquely purposed slices, and each virtual network slice could demand unique security capabilities based on various usage scenarios. Security of 5G network infrastructure should also considerably evolve alongside the standard.
• For instance, In June 2022, Amdocs, a provider of software and services to communications and media companies, announced its partnership with A1 Telekom Austria Group to complete an end-to-end 5G network slicing Proof of Concept (PoC). The PoC demonstrates the ability of Amdocs' end-to-end service and network orchestration offering to drive next-generation experiences and on-demand connectivity for consumers and enterprises through the deployment, management, and monetization of 5G network slices. Such instances will drive the cybersecurity market in Austria.

Competitive Landscape

The Austria Cybersecurity market is moderately competitive due to several regional players offering cybersecurity solutions. The market players view strategic partnerships and acquisitions as a lucrative path toward expanding their market share. Also, several global cybersecurity providers are expanding their presence and strengthening their foothold in the European region.

• June 2022 - Accenture has announced the acquisition of Allgemeines Rechenzentrum GmbH (ARZ), a technology service provider focused on the banking sector in Austria. Accenture plans to invest USD 4 billion in the acquisition, which will help the company to expand its footprints in Austria.
• April 2022 - Bystronic Austria GmbH has partnered with NanoLock, a leading device-level cyber security provider, to develop a software solution and protect systems against cyber attacks. To mitigate the exposure of customer systems to potential cyber risks at these interconnections, Bystronic and NanoLock are developing new security solutions to ensure that Bystronic smart machines are trustworthy data sources and secure cyber devices.

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• The market estimate (ME) sheet in Excel format
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