Market Intelligence
Cybersecurity Austria

Austria Cybersecurity

Despite of the economic downturn and overall cuts in IT budgets, the demand for cyber security solutions in Austria continues to grow by 6-9% per year and offers a range of opportunities for innovative U.S. companies.

Austria’s cyber security market, estimated at $550 million (2020), is one of the country’s fastest growing ICT subsectors projected to grow 6-9% annually through 2023. Cyber services including managed services, integration, consulting, education and training represent 56% of Austria’s cyber market, according to IDC data, with cyber security software (at 26%) and hardware (at 18%) covering the rest. U.S. and UK companies dominate either through Austrian presence or regional offices in Germany.

The Austrian government focus on cyber security including through their 2013 National Cyber Security Strategy followed by policy and infrastructure responses elevated Austrian society awareness of cyber threats. High profile 2019/20 cyber attacks on the Ministry of Foreign Affairs and leading internet services provider A1 further drew attention to cyber threats. According to the Federal Criminal Police Office, the total number of reported cyber security breaches in Austria grew steeply by 215% from 9,000 in 2014 to 28,400 in 2019. KPMG`s 2020 cyber security report concluded that 57% of the 650 Austrian companies surveyed confirmed that they have been attacked in the last 12 months.

A recent Ernst Young survey showed that 81% of the 200 decision makers surveyed expect a further increase of cyber-attacks and data theft; however, only 43% have prepared a detailed crisis plan to address this threat. In the wake of elevated cyber threats especially during the COVID-19 crisis, the Austrian government is actively expanding its cybersecurity public awareness campaign by alerting about phishing/malware threats and launching an end-user focused cyber security awareness app.

The COVID-19 remote work environment further advanced private sector concern about cyber threats. A recent survey by Deloitte of 535 Austrian private sector decision makers showed that since the mid-March 2020 Austrian COVID-19 shutdown time, 40% report increased employee use of private devices, 25% registered an increase in cyber-attacks, and 60% perceived their employees as an increasing risk factor. Austrian manufacturers have largely reopened with many services-oriented and tech-based firms remaining in telework status through 2020 and possibly into 2021.

This survey also showed that these companies have already implemented a number of measures: 72% increased the usage of VPNs, 46% increased their focus on employee awareness and training, 44% increased their cyber monitoring, 34% adopted user two-factor authentication, and 32% have updated and tested crisis plans. Looking ahead, 40% of these businesses are planning to roll out new regulations and solutions for mobile devices, 31% want to change their hardware and software, and 27% want to prioritize the overall role of cyber security.

Despite overall cuts in IT budgets anticipated due to the economic impact of the COVID-19 crisis, the increasing threat of cyber-attacks has led the Austrian government and the private sector to prioritize investments in innovative IT security solutions.

Key Cyber Security Solutions Opportunities in Austria include:

  • Outsourcing of entire cyber security or procurement of managed security services including services to detect and close security loopholes;
  • Preferences for full platforms compared to point solutions as a result of ever-growing talent shortage & vendor fatigue;
  • Security measures to comply with implementation of cross-industry EU legislation including GDPR and the NIS Security Law, as well as, industry-specific legislation such as Basel 3 (financial sector) or the roll out of SCADA systems for critical infrastructure;
  • Cyber defense solutions targeting phishing, malware and ransomware, social engineering and overall data leakage;
  • Endpoint hardware and software security for private devices and security monitoring also for remote workers;
  • End-user awareness & continuous cyber security training;
  • Solutions for IoT specifically in the industrial sector;
  • Cyber insurance (2/3 of Austrian companies are not insured);
  • Other innovative solutions in the fields of verification services, threat intelligence, online reputation, artificial intelligence, deep fakes and email compromising.

To find out how the U.S. Commercial Service can help you enter the Austrian market, contact jan.bruckner@trade.gov

10/09/2020