Embedded Systems How Cybersecurity and AI Influence the Industrial Future

The past year was marked by economic, geopolitical, and technological changes that are sustainably transforming industry, infrastructure, and critical sectors. Action is required.

Global tensions, fragile supply chains, and increasing technological competition highlight the vulnerability of Europe's critical infrastructures. At the same time, the digital transformation, cyber threats, and new technological paradigms such as artificial intelligence (AI) and modern communication standards like 5G and FRMCS are accelerating the process of change in manufacturing and communication. Forecasts suggest that over 60% of all organizations will strategically deploy AI this year, while the demand for secure, highly available networks continues to grow.

This development requires more than just technical expertise. Topics such as technological sovereignty, resilience, security, and data sovereignty are increasingly coming to the forefront of corporate decision-making. In this dynamic environment, the ability to design IT and OT infrastructures to be secure, robust, connected, and more adaptable is becoming a key competitive factor.

Gallery

Gallery with 7 images

Cyber Resilience Act and Cybersecurity: Security Becomes a Strategic Obligation

Cybersecurity is increasingly evolving from an isolated IT discipline into an integral part of industrial value creation. With regulations such as the Cyber Resilience Act (CRA), NIS-2, or RED, the EU is responding to a threat landscape that has significantly intensified in recent years. Attacks on industrial infrastructures, critical networks, and connected devices are not only increasing quantitatively but are also becoming qualitatively more complex through automation and AI.

The economic impacts are significant: analyses now estimate the annual economic damages caused by cyberattacks in Europe at over 200 billion euros (approx. $215 billion). At the same time, regulatory requirements are driving demand for secure digital products focused on compliance and security.

The new EU regulations provide a clear framework for how secure digital products must be developed, operated, and safeguarded throughout their entire product lifecycle—from the required integrity protection to encrypted data communication and continuous updates and threat monitoring.

Kontron supports manufacturers with a range of CRA-ready components such as KontronOS (a hardened, CRA-compliant operating system), KontronGrid (central compliance monitoring), KontronAIShield (AI-based threat detection), and suitable edge hardware platforms. These solutions help meet the requirements of upcoming EU regulations while simultaneously creating a robust foundation for connected systems—from embedded devices to edge platforms.

Cybersecurity

7 Nasty Hacker Tricks—And How to Finally Counter Them in 2026

AI at the Edge and 5G: Intelligence Where Data is Created

The role of AI and 5G is shifting further—away from purely cloud-based approaches toward intelligent, secure edge architectures. Data is generated in machines, vehicles, production facilities, and critical infrastructures. It must be processed where latency, availability, and security are crucial. Private 5G networks are becoming enablers for industrial real-time applications and highly available communication.

AI functionalities are increasingly integrated with embedded systems, edge platforms, and secure operating systems. Solutions such as AI-powered anomaly detection, predictive maintenance, or autonomous decision support only realize their full value when they can be operated in a stable, explainable, and cyber-resilient manner. Technologies that work in one area are increasingly transferable to other industries, multiplying innovations and efficiency gains.

An example—and a strategically important market for Kontron—is the railway sector. With FRMCS (Future Railway Mobile Communication System), a new 5G-based communication infrastructure for safety-critical applications is being developed. It exemplifies highly regulated environments, long life cycles, and maximum requirements for security and availability. End-to-end solutions for the safe transition from GSM-R to FRMCS, such as MCx, private 5G core networks, and cloud-native management tools, can also be applied to other industries, giving providers like Kontron an early competitive advantage.

Safety-Critical Applications: Technology as a Protective Factor

The geopolitical situation and the increasing interconnectedness of critical infrastructures are driving rising investments in defense and security projects worldwide, particularly in Europe. States are prioritizing long-term resilient, secure, and connected systems that meet extreme requirements for reliability, real-time capability, and availability. Modular architectures, open standards, and robust embedded computing systems that combine high computing performance, stability, and cyber resilience are in demand. Security at the hardware level, controlled supply chains, local manufacturing, and compliance with international regulations are becoming strategically significant.

Technologies that have proven themselves in sectors such as rail or energy are increasingly being applied in safety-critical environments. Modular architectures, open standards, and robust embedded computing systems that combine high computing performance, stability, and cyber resilience are in demand. Systems must reliably operate in extreme environments – such as heat, cold, vibration, or dust—and function stably within complex network structures. With its extensive experience in embedded computing, Kontron focuses on global development sites, a tightly networked engineering team, and local manufacturing in strategically important regions. Kontron already offers ITAR compliance, ensuring that sensitive technologies are delivered only to authorized partners.

Bureaucracy in Transition: Initial Signals for Relief

A silver lining despite growing challenges: At the EU level, awareness is increasing that excessive bureaucratic complexity can hinder innovation and efficiency. Initiatives to simplify reporting obligations, implement digital compliance processes, and harmonize standards demonstrate that economic competitiveness and regulation do not have to be contradictory. For companies, the direction is clear: those who strategically integrate regulation early can gain efficiency, predictability, and competitive advantages.

2026 will be the Year of Conscious Decisions

2026 will not be a year of restraint but a year of conscious decisions. Cybersecurity, AI, 5G, and secure embedded systems will continue 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 foundation for sustainable growth in an increasingly complex environment.

Interdisciplinary networking and the integration of security, real-time capability, and AI into industrial platforms will determine who remains successful. Kontron also lives up to its responsibility here, taking a key role by supporting customers in making their systems robust, flexible, and future-proof.

*Hannes Niederhauser is CEO at Kontron.

Secure Authentication Strategies

Passwordless MFA for Modern Cybersecurity