The role of data spaces in the Internet of Things

Abstract The Internet of Things (IoT), empowered by edge and cloud computing, has driven innovation across numerous sectors by enabling real-time data processing and decision making. However, sectors such as crisis management, energy, and manufacturing can be hindered by the stringent requirements of handling highly sensitive data. To foster innovation in such sectors, modern regulations propose advanced digital services and functionalities to manage sensitive data in a secure, trusted, and transparent manner. For example, the General Data Protection Regulation (GDPR) governs the handling of personal data, the Data Act and the Data Governance Act facilitate data sharing with third parties and intermediation services, and the electronic IDentification, Authentication and trust Services (eIDAS) regulate electronic authentication. Nevertheless, navigating these regulations and designing compliant IoT systems can pose challenges due to the diversity of the stakeholders, the sensitivity of the data, and the criticality of the applications. To tackle such challenges, we propose the integration of data spaces into IoT systems. This approach relies on data policies to share and process data in alignment with regulations, enabling innovation in sectors dealing with highly sensitive information. Moreover, we identify the associated challenges, and we propose future research directions to further advance the IoT.