85% of German manufacturers aren’t fully ready for the EU Cyber Resilience Act, shows Trade with Estonia’s research. Nine Estonian companies at Hannover Messe showed what closing that gap looks like in practice.

To remain competitive, Europe’s industrial engine — led by Germany — needs to adapt to new challenges arising in the age of digitalisation and AI. Estonia is ready to help. A new survey commissioned by Trade with Estonia has laid bare the scale of preparation still needed among German industrial companies ahead of a looming EU cybersecurity deadline — and points to where the expertise to close that gap may lie.

The EU Cyber Resilience Act (CRA) — legislation requiring manufacturers of connected products to demonstrate verifiable cybersecurity across a product’s entire lifecycle — becomes binding in December 2027. Non-compliance means losing access to the EU market. Yet only 15 per cent of German industrial companies surveyed are fully prepared. The findings come from a poll of 200 decision-makers across manufacturing, mechanical engineering, electronics, and industrial technology, conducted by SPLENDID RESEARCH GmbH alongside the Hannover Messe trade fair in April 2026. What’s behind the numbers, and could Estonia’s digital excellence help to bridge the gap?

A cyber reset

For most companies, the challenge is structural. Some 62 per cent are still working through implementation, and nearly one in five have not started at all. More telling is the portfolio impact: 69 per cent of respondents say that a significant share — or even the bulk — of their current connected products will need technical revision to meet CRA standards. Affected categories span industrial control systems, IoT devices, and networked machinery of all kinds.

“The CRA shifts responsibility for cybersecurity from the IT department into product strategy,” said Leana Kammertöns, Business Development Manager at Enterprise Estonia. “Cybersecurity becomes part of industrial competitiveness — and a decisive factor in decisions about products, partners, and development processes.”

Talent shortage driving demand for external expertise

A third of companies cite a lack of qualified in-house specialists as their primary obstacle — rising to 37 per cent among smaller firms with under 250 employees. Supply chain complexity involving third-party components is the most commonly named practical challenge (27 per cent), followed by securing legacy products already in the field and the cost of potential hardware redesigns, both at 21 per cent.

Marco Spielmann, CEO of Proekspert, captures the dilemma: “Many manufacturers face the task of securing existing products without interrupting ongoing production. It’s like refitting a ship at sea — you have to keep it seaworthy while modernising it. When internal specialists are also missing and large parts of the portfolio are affected, external support becomes the most pragmatic option for many.”

EU-based partners are the clear preference

The survey confirms a strong pull towards European partnerships: 89 per cent of respondents prefer a technology partner based within the EU, with one in three treating it as a hard requirement rather than a preference. Mid-sized and large corporations are the most insistent on this point.

“For German manufacturers, it is no longer simply a question of whether a partner can offer a technical solution,” said Kammertöns. “What matters is whether they can think together regulatory requirements, industrial processes, and long-term product security. That is precisely where Estonian companies bring relevant experience.”

Estonia’s smart industry ecosystem at Hannover Messe

Nine Estonian companies exhibited at Hannover Messe 2026 under the Trade with Estonia banner, covering much of the industrial value chain that the CRA touches.

• Proekspert develops mission-critical embedded software and IoT solutions for manufacturers including Danfoss and Stiebel Eltron, specialising in CRA and IEC 62443 compliance — and operates a German subsidiary, Sensorise GmbH, in Bremen.
• 1oT provides multi-carrier eSIM connectivity powering 3.5 million IoT devices across 173 countries.
• Eliko offers ultra-wideband real-time location tracking with centimetre-level precision, used by Bosch and others to optimise manufacturing workflows.
• FORECR supplies ruggedised edge AI computing hardware built on NVIDIA’s Jetson platform.
• Inission Tallinn is a full-service electronics and mechanics contract manufacturer certified across four ISO standards.
• Radius Machining handles serial CNC turning and milling for industries from machine building to energy.
• Valdek fabricates precision sheet metal components using automated robotics, supplying ABB, Starship, and Ensto among others.
• Thorsteel manufactures custom stainless steel process equipment for food, chemical, and biotech industries.
• TB Works is a contract manufacturer of conveying and process equipment with deep ties to Scandinavian industrial suppliers.

Together they represent a cross-section of what Estonia’s industrial technology sector has built over three decades: engineering rigour, digital-native thinking, and the scale to work as genuine partners.

The survey data reflects this: 55 per cent of German respondents rated Estonian technology providers as trustworthy in cybersecurity and industrial innovation, and 53 per cent said they would consider partnering with an Estonian company for digital transformation or CRA compliance work.

This project is funded by the European Union – NextGenerationEU – and carried out in cooperation with the Ministry of Foreign Affairs of the Republic of Estonia.

Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing services for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.