Overview
Austria’s IT sector is well-developed, and the cybersecurity market remains one of the fastest-growing subsectors. The sector’s total industry revenue is projected to reach $9.35 billion in 2025, with an annual growth rate of approximately 5.1% from 2024 to 2029, leading to an estimated market volume of $11.4 billion by 2029. This growth is largely driven by increasing cybersecurity awareness and digital transformation initiatives across both public and private sectors.
Cybersecurity has become an increasingly important issue in Austria. According to the Federal Criminal Police Office (Bundeskriminalamt), the total number of reported cyber-crimes in 2024 was 74,800, which is an increase of 4.3% compared to 2023. 14% of Austrian companies experience daily cyber-attacks in 2024. Despite the rise in attacks, cybersecurity preparedness remains inadequate for many companies. A 2024 survey found that only 26% of companies with more than 50 employees have established comprehensive cybersecurity emergency plans, reflecting a gap in preparedness.
Austria continues to offer growing export opportunities for U.S. companies, particularly in cyber services that represent 60% of the cyber market. Leading cyber services subsegments include managed services, system integration, consulting, education, and training, while cybersecurity software accounts for 26% and hardware 14% of the market. Based on the 2025 Annual Cybersecurity Report of KPMG, the top attack types are malware and spear phishing, which remain the most common attack vectors as reported by 81% companies. Scam calls (65%) and Denial-of-Service (DoS) attacks (55%) are on the rise. The increasing threat of cyber-attacks has led to greater spending on and demand for innovative IT security solutions by both the government and private sector.
Market Segments
Austria’s market can be split into three main segments: small- and medium-sized enterprises (SMEs), large companies, and government. Overall, there is a much higher risk awareness and continuous cybersecurity investment by government institutions and the larger Austrian businesses with over 250 employees. In Austria, 99.7% of all businesses are SMEs totaling 579,500 entities. These SMEs employ over 2.5 million people and train approximately 53,700 apprentices. Most of these SMEs are only minimally protected by cybersecurity measures, still misjudge the danger of security breaches, and dedicate limited IT budgets for services, software, hardware, and additional IT staff. Meanwhile large enterprises, which by organization size held 57% of Austria’s cybersecurity market share in 2024, exhibit much greater maturity: larger budgets, more formal risk-management processes, more staff, and better compliance with regulatory requirement.
In line with Austria’s national security strategy, the Austrian Ministry of Defense has been releasing annual risk assessments. In 2024, Austria introduced a new Crisis Management Law, which created the position of a government advisor for crisis prevention, national security, and state resilience. This law strengthens Austria’s resilience against growing cyber threats.
Market Drivers
The widespread adaption of remote and hybrid working models has significantly increased complexity of cybersecurity in Austria. CEOs and IT professionals have expressed greater concern over the elevated risk posed by personal devices, home networks, and mobile workforces. As a result, organizations are prioritizing investments in securing endpoints and enhancing mobile security.
Moreover, cyber-attacks and disinformation campaigns have become a growing concern. In 2023, 31% of Austrian companies reported being victims of disinformation campaigns, with most of these attacks believed to be politically motivated. Social engineering continues to be a prevalent attack vector, with 86% of companies reporting email-based attacks, and a rising number experiencing social media scams.
The Austrian government has been increasing its efforts to raise cybersecurity awareness, notably through initiatives like the Austrian Trust Circle (ACT) and the Austrian Cyber Security Challenge (ACSC), aimed at improving both individual and organizational preparedness.
Opportunities
Key trends and cybersecurity sub-sectors driving the Austrian cybersecurity market that open excellent opportunities for U.S. companies include:
- Cyber defense solutions: There is an increasing demand for solutions targeting phishing, ransomware, malware, and social engineering.
- Endpoint and mobile security: The rise of remote work has driven demand for mobile and personal device security solutions.
- Regulatory compliance: Solutions for meeting the EU’s NIS2 and DORA regulations are in high demand, particularly in critical sectors.
- AI and Automation in cybersecurity: Companies are looking for AI-powered solutions in areas like vulnerability management, threat intelligence, and user behavior analytics.
- Cyber insurance: With two-thirds of Austrian companies uninsured against cyber threats, there is a substantial gap in the market for cyber insurance services.
Market Entry
- Consider working with an established and qualified reseller, value-added distributor, or systems integrator when entering the Austrian market. In some cases, an existing partner in Germany covers the Austrian market.
- Establish a direct business presence in Austria when pursuing national security projects with the Austrian government and/or projects with larger professional integrators and/or with critical infrastructure end-users.
- Consider securing international ISO 27.000 series certification and the Austrian Cyber Trust quality seal, as well as implementing SCO audit reports when building trust among potential Austrian buyers.
- For public sector procurement contracts, refer to the European Commission’s website.
- Consider translating and adjusting marketing materials into German, the national language.
Resources
Trade Shows & Conferences
- IT Security Herbst: Vienna, AT, October 22, 2025
- ASIS Europe – From Risk to Resilience, Vienna, AT, March 23-25, 2026
- InfoSecurity Europe: London, UK, June 2-4, 2026
- Cyber Crime Forum Wien, Vienna, AT, June 16, 2026
- Technology Talks Austria: Vienna, AT, September 10-11, 2026
- IKT-Sicherheitskonferenz: Vienna, AT, September 16-17, 2026
- it-sa: Nuremberg, DE, October 27-29, 2026
- International Digital Security Forum, Vienna, AT, date to be announced: https://idsf.io
Associations, Interest Groups & Research Institutes
- Austrian Security Board (KSÖ)
- Austria Trust Circle (ATC)
- KIRAS Security Research
- Austrian Institute of Technology (AIT)
- SBA Research
- Association of Austrian Software Industry (VÖSI)
- Cyber Security Austria (CSA) Association
- KPMG’s 10th Annual Cybersecurity Study (2025)
Government Links
- Federal Chancellery (BKA) - Cyber Security Platform (CSP) & Cyber Security Steering Group (CSS): https://www.bundeskanzleramt.gv.at
- Federal Criminal Police Office (Bundeskriminalamt): https://www.bundeskriminalamt.at
- Ministry of Interior (BMI) - Federal Criminal Police Office (BK) & Cyber Crime Competence Center (C4): https://www.bundeskriminalamt.at/en
- Online Security Portal: https://www.onlinesicherheit.gv.at
- CERT Overview: https://www.onlinesicherheit.gv.at/Themen/Erste-Hilfe/CERTs.html
- EU Cybersecurity Regulations (NIS2 and DORA)
- NIS2 Directive (EU site): https://digital-strategy.ec.europa.eu/en/policies/nis2-directive
- DORA (EU site): https://finance.ec.europa.eu/publications/digital-operational-resilience-act-dora_en
U.S. Commercial Service Austria, ICT and Cybersecurity Specialist, Robee Sallegue, robee.sallegue@trade.gov