IoT and embedded software connects physical devices to digital systems: sensors, gateways, controllers, smart meters, building and factory equipment, vehicles and consumer products. It covers device firmware and operating systems, device management and updates, connectivity, cloud platforms that collect telemetry, and dashboards or analytics on top. AWS IoT and Azure IoT are common non-EU reference points.
Here the sovereignty questions are physical as well as digital. A device can stop working when a vendor's cloud is shut down or a licence changes, and data from machines and buildings can reveal how a business operates. The EU Data Act gives users of connected products rights to access the data generated by their use and to share it with third parties, and sets out switching rules for data-processing services. In practice, this only helps if the device exposes data in documented formats. Firmware update channels matter too, since whoever signs updates controls the device for its entire life.
When choosing a European option, check whether devices can operate locally without a permanent cloud connection, whether data is available through open protocols such as MQTT, and who holds the update signing keys. Ask how long security updates are promised, where telemetry is processed, and whether the platform can be self-hosted or replaced without swapping the hardware.