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Significance
The draft legislation, which has been in development since September 2021, seeks to introduce mandatory cybersecurity requirements for digitally connected products that last for the duration of their lifecycle. The legislation is a response to growing security concerns over the proliferation of the Internet of Things (IoT) devices across the EU and other markets.
Impacts
Smaller IoT manufacturers will have to restructure significantly to ensure compliance with new IoT rules.
The global shortage of cybersecurity professionals will increase recruitment costs for IoT manufacturers.
Faced with high inflation, consumers may be unwilling to buy discretionary IoT devices if manufacturers pass on the cost of cybersecurity.
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2022
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