[Edaily Reporter Yun Junghoon ] With the deadline for stricter environmental regulations in the European automotive market just two months away, domestic cybersecurity companies are stepping up their efforts. This is because, starting November 29, the European Union’s (EU) new automotive environmental regulation, “Euro 7,” will be fully implemented for new vehicle models, making the automotive industry’s demand for data tampering prevention and cybersecurity even more critical.

#Autocrypt Co., Ltd., a South Korean company specializing in physical AI security, plans to accelerate its expansion into the European automotive and automotive electronics markets by highlighting its full-stack capabilities—ranging from regulatory compliance and security design to European type-approval evaluation qualifications.

European Market Facing Multiple Regulations… “Emissions and Battery Data Security Are Essential”

According to industry sources on the 29th, Euro 7 goes beyond simply reducing emissions; it focuses on preventing the tampering of monitoring devices and strengthening durability standards for electric vehicle batteries. Automakers must strictly manage emissions and fuel economy measurement devices to prevent them from being arbitrarily deactivated or data from being falsified or altered, and they must also verify battery performance degradation in real time. Failure to meet these standards will result in the denial of type approval and sales registration in the European market.

Although Euro 7 is not a direct cybersecurity regulation (such as UN R155), the importance of a robust security framework has rapidly risen, as ensuring the reliability of emissions control data is essential amid the shift toward software-defined vehicles (SDVs). According to a survey by the European Automobile Manufacturers’ Association (ACEA), the EU is a massive market where new passenger car registrations alone are projected to reach approximately 10.82 million units in 2025.

Autocrypt Co., Ltd. has been quick to capitalize on these market trends. According to a report published by global market research firm Frost & Sullivan, Autocrypt Co., Ltd. was the only Korean company listed among the top 18 European automotive technology service providers. This achievement follows its previous selection as one of the “Top 3 Global Automotive Cybersecurity Innovators of 2024.”

Autocrypt Co., Ltd. stated, “Ahead of the implementation of Euro 7, we are seeing a surge in inquiries from European automakers and parts suppliers regarding the security design and verification of electronic systems,” adding, “While compliance with the existing UN R155 regulation was previously the main focus, the scope of security reviews is now expanding to include functional and data verification—areas that are part of the strengthened Euro 7 requirements.”

From Early-Stage Security Development to Certification Evaluation… Targeting “End-to-End” Solutions

Autocrypt Co., Ltd.’s greatest strength lies in its ability to provide comprehensive support from “Security by Design”—implemented in the early stages of vehicle development—through to the final European type-approval assessment.

The company has already established capabilities including AI-based automated Threat Analysis and Risk Assessment (TARA) technology, as well as security monitoring to prevent data tampering and forgery in real-time On-Board Monitoring (OBM) for Euro 7 compliance, and an Intrusion Detection System (IDS). Furthermore, in May 2024, it became the first Asia-Pacific company to obtain accreditation as a vehicle cybersecurity type-approval assessment body from the Dutch Vehicle Registration Authority (RDW), enabling it to directly conduct certification assessments for vehicles intended for sale in Europe right there on the ground.

The company’s world-class technological capabilities and track record have also been proven. Last month, Autocrypt Co., Ltd.’s Red Team took first place out of 83 participating teams at the Def Con 34 automotive hacking competition in the U.S., and as of the first quarter of this year, its security software has been installed in over 8 million vehicles worldwide. The company has signed mass-production contracts with 21 global automakers and holds 135 patents (as of the end of June 2026).

Substantial royalty revenue is expected to begin in 2028

The securities industry anticipates that an increase in new projects driven by the introduction of Euro 7 will accelerate Autocrypt Co., Ltd.’s path to improved profitability. In addition to revenue from consulting and testing during the development phase, Autocrypt Co., Ltd. receives royalties proportional to production volume whenever vehicles equipped with its security solutions enter mass production.

According to Korea Investment & Securities, Autocrypt Co., Ltd.’s revenue for the second quarter of this year reached 7.5 billion won, a 37.4% increase year-over-year. Royalty revenue alone surged 154% to 1.67 billion won in the first half of the year. Daol Investment & Securities also cited expanding demand for vehicle cybersecurity, along with high-margin royalty revenue set to take off in earnest starting in 2028, as key growth drivers.

However, whether global automakers have established existing security partnerships and the actual mass production schedules of client companies remain variables.

A securities industry official stated, “For the Euro 7 momentum to translate into actual earnings, it is necessary to continuously monitor the number of new orders, the number of vehicle models transitioning to mass production, and the quarterly growth trend in royalty revenue.”