Cybersecurity as a megatrend of the European railroad market?

Markets are subject to trends that drive and fuel their development. The railroad market is no exception. Whether political, technological, economic or social, trends have the power to influence markets in the short, medium or long term. As such, they also have a direct impact on our society.

In today’s Topic of the Week, we explain what megatrends are, what impact they have on markets and societies, and the importance of cybersecurity within the European rail market.

What are megatrends?

The?Zukunftsinstitut?describes megatrends as “avalanches in slow motion” – megatrends develop slowly, but have an enormous impact. Since they affect all levels of society, they influence companies, institutions and individuals alike.

Megatrends name and describe highly complex change dynamics and at the same time help to make these dynamics tangible and understandable.

According to the Zukunftsinstitut, there are clear criteria by which megatrends can be identified:

Duration – Megatrends have a duration of at least several decades.

Ubiquity?– Megatrends permeate all areas of society.

Globality?– Megatrends are global phenomena which, although they may vary from region to region, can be observed globally sooner or later.

Complexity?– Megatrends are multi-layered and multi-dimensional.

How megatrends affect markets and societies

Due to their great impact, megatrends generate epochal changes that shape the economy and society in the medium and long term. Even if the effects sometimes unfold over decades, they can be the basis for rapid breakthroughs in markets. They reshape societies in the long term and in some cases force industries to realign structures and business models.

Megatrends in the rail market

Urbanization, digitalization, increased mobility, the introduction of new technologies such as ERTMS, increased environmental awareness, an improvement in the political framework, the creation of a uniform European rail market, and the liberalization and deregulation of rail transport are current drivers of the European rail market.

Cybersecurity is shaping the European rail market

With increasing digitalization and connectivity of on-board, passenger systems and signaling, the risk of cyber attacks on rail systems is also rising. In 2020, a Swiss railroad manufacturer and the Spanish railroad infrastructure operator Adif were victims of cyberattacks – successful cyberattacks on railroad infrastructure can not only cause traffic chaos, but also have life-threatening consequences. Financial and regulatory implications should also not be ignored.

Cybersecurity has always been an issue in recent years thanks to increasing technology and digitalization – with an increasingly high priority.

If you look at the professional publications, especially of the last year, it is striking that topics around cybersecurity dominate.

The dominance of topics is already no longer limited to the world of trade media. Companies like?Cervello?are currently touring all the major trade shows and events in the rail industry. The founders and investors of the Israeli company recognized one thing early on: Without effective solutions in the field of cybersecurity, the digitization and networking of rail systems cannot progress any further. And: This is where a great deal of market potential lies hidden.