Why the EU Data Act Matters for Connected Manufacturers
What the EU Data Act really changes
How Manufacturers Are Responding
Thank you for reaching out to Sigma Software!
Please fill the form below. Our team will contact you shortly.
Sigma Software has offices in multiple locations in Europe, Northern America, Asia, and Latin America.
USA
Sweden
Germany
Canada
Israel
Singapore
UAE
Australia
Austria
Ukraine
Poland
Argentina
Brazil
Bulgaria
Colombia
Czech Republic
Hungary
Mexico
Portugal
Uzbekistan
The EU Data Act went live in September 2025. Its rollout across Europe has been uneven, with only a few member states having completed the national set-ups. Nevertheless, the regulation is already here and requires action.This article breaks down what the EU Data Act means for manufacturers and explores practical strategies to prepare: from minimal compliance to turning data openness into a growth opportunity.
Why the EU Data Act Matters for Connected Manufacturers
What the EU Data Act really changes
How Manufacturers Are Responding
Connected products generate a lot of operational data: performance metrics, usage hours, energy consumption, error codes, sensor readings, and more.
Yet, according to the European Commission, around 80% of industrial data in Europe goes unused. In other words, most manufacturers are sitting on the value they haven’t figured out how to extract or haven’t had a reason to share.
The EU Data Act 2025 changes the rules. Customers gain the right to access the data their devices generate and, if they want, share it with third-party service providers.
For manufacturers, this means moving from owning product data to enabling its use. That’s not just a legal tweak, but a fundamental shift in how digital products, services, and relationships are built.
The act entered into force on September 12. Earlier this year, several of the region’s largest industrial names (SAP, Siemens, Schneider Electric, and the industry association Digital Europe) asked Brussels to delay implementation. The Commission refused.
Its position is clear: the EU expects the Data Act to add roughly €273 billion to GDP by 2028 through new service models, shared analytics, and cross-manufacturer data value chains.
The penalties vary by country, but the direction is already clear. The Netherlands has set fines of up to €1,030,000 or 10% of EU-wide turnover for industrial-data violations. If any dataset touches personal information, even indirectly, the GDPR tier kicks in: €20 million or 4% of global turnover, whichever is higher.
Beyond fines, non-compliance risks are often more immediate: stalled tenders, blocked renewals, and contract challenges when customers demand data access you can’t yet provide.
To date, most of the EU countries are just setting up national enforcement rules:
No fines, inspections, or audits are happening yet. And realistically, no inspections or fines will hit before mid-2026 in many jurisdictions.
That gap gives manufacturers a short but valuable window. Not to ignore the change, but to prepare for it on their own terms.
There is no single right answer. The key is understanding what changes and defining the path that fits your business strategy best.
The EU Data Act applies to anyone who designs, manufactures, or provides digital services for connected physical products: from industrial equipment and HVAC systems, to building automation and embedded solutions.
Its core rule is simple: data generated by a product should be accessible and reusable by the people who use it, not only the company that built it.
It introduces three main obligations every OEM and service provider needs to understand:
For manufacturers, these requirements demand engineering readiness: authentication layers, audit trails, and data governance workflows that guarantee security, transparency, and consistency.
For most manufacturers, the EU Data Act introduces both constraint and opportunity.
On one side, it adds a new layer of regulatory compliance that demands new processes, ownership clarity, and close coordination between engineering and legal teams.
On the other, it opens a new strategic landscape.
Once every connected product must be interoperable, the idea of an isolated “installed base” starts to fade. If customers choose to share data, service providers can work across multiple brands. That creates room for faster, more adaptable players to gain ground.
Companies that evolve their architectures and service models early will shape customer relationships and capture recurring revenue opportunities. Manufacturers that remain product-focused can still thrive, but their success will increasingly depend on how well those products connect, share data, and integrate into broader digital ecosystems.
Response to this change often depends on where the company stands in its servitization journey and its level of risk appetite. Based on this, we see three different strategies.
“Wait and see” feels natural when adoption is slow, and local enforcement rules aren’t settled. Most teams tell themselves they’re waiting for clarity, and on the surface, that sounds reasonable.
But in practice, it’s usually not the regulatory uncertainty that drives hesitation, but the complexity everyone knows is sitting under the hood. Fragmented telemetry, inconsistent identifiers, old controllers no one wants to touch. When the plumbing is messy, the instinct is to leave it alone until someone forces the issue. It’s very human. And very risky at the same time.
The real problem is simple: until you do the groundwork, you have no idea whether your compliance gap is a two-week fix or a nine-month project. The small items, like adding an export function or patching an API, can be slotted in quickly. Anything deeper, such as reorganizing telemetry flows, aligning device ownership records, or redesigning authentication, rarely moves fast.
By the time national enforcement kicks in, the window for real fixes may be too short. If you discover late that older products can’t surface required data or that your logs can’t track access, you’ll be rushing under pressure with little room for good engineering decisions.
Useful early checks include:
If the fixes are small and well understood, waiting can be a perfectly valid strategy. If they aren’t, “wait and adjust” becomes a gamble. And the cost of catching up later is almost always higher than tackling the basics early.
For manufacturers that already collect and use operational data, making it shareable in a controlled way sounds like the most logical strategy. This is where compliance turns into capability and where readiness becomes a marker of supplier maturity.
Companies in this position typically have connected products, telemetry pipelines, or customer portals in place. What they need next is structure: consistent access rules, standardized data formats, and clear procedures for validating user and third-party requests.
For those preparing to share, it makes sense to focus on five essentials:
These are the minimum steps required to meet the regulation’s intent. They do not demand a full rebuild, but they require coordination between engineering, legal, and IT.
If you want to go further, a few additional actions can create long-term advantage.
Manufacturers following this path are not reinventing their business model yet, but are showing that their systems and organization are built to cooperate.
Getting ready to share is the baseline. Acting early is what creates an edge. Some manufacturers are already using the same architectural work required for compliance as the foundation for new services.
Large industrial groups such as Siemens, Schneider Electric, and Bosch are already extending open data interfaces and testing shared models for cross-brand collaboration. Their strategic direction is clear, but scale makes execution slower.
For mid-sized manufacturers, this is an opening. With shorter decision cycles and closer customer relationships, they can adapt faster and position themselves as integration-ready partners. They can be the first to offer multi-brand monitoring, predictive diagnostics, or performance benchmarking – the services that appeal to customers managing diverse fleets.
Acting early here does not mean building everything at once. It means using the compliance investments, such as developing APIs, organizing telemetry, or defining access layers, to create additional value.
If you can already use your own device data to deliver insights, maintenance recommendations, or performance benchmarking, you are halfway there. The same capabilities can be extended to include data from other vendors’ products, allowing you to deliver broader services across mixed fleets and deepen customer relationships.
That shift opens new ways to compete:
This approach demands more time and focus, but it creates a significant competitive advantage. Customers increasingly choose partners who make data access simple and integration painless. The companies that design for openness now will integrate faster, win more renewals, and stay embedded in their customers’ systems longer.
There’s no universal roadmap.
Each manufacturer’s path depends on system complexity, data maturity, and leadership priorities. The table below outlines how each strategy typically fits different levels of readiness and ambition.
| Strategy | Best For | Focus | Feasibility | Risks/Challenges |
| Wait and Adjust | OEMs early in digital maturity with small, well-understood gaps. | Short-term continuity with minimal change until enforcement tightens. | Only feasible when gaps are genuinely small and mapped. | – Rushed retrofits once national penalties start; – Missed compliance windows; – Higher cost per fix later. |
| Prepare to Share | OEMs with connected products, telemetry pipelines, or portals already in place. | Meeting Data Act obligations while building internal readiness and customer trust. | Highly feasible for most OEMs with connected products. Clear path, predictable effort, lowest organizational friction. | – Backlog pressure; – Older product generations slowing rollout; – Customer expectations outpacing initial scope. |
| Act Early and Expand | OEMs with a functioning digital stack and service ambitions beyond compliance. | Using compliance work as a foundation for multi-brand services and new revenue models. | Feasible for digitally mature OEMs. High upside but requires leadership sponsorship and a stable architecture. | – Higher upfront investment; – Cross-brand data work adds complexity; – Competitors may follow quickly, reducing differentiation. |
Regardless of where you start, the path forward is set. Every connected manufacturer will need to make data accessible, secure, and portable. The difference lies in timing and intent: whether you act only to comply or to compete in a more open market.
Adapting to the Data Act isn’t a one-size-fits-all process.
Every manufacturer moves at a different pace depending on product portfolio, data maturity, and internal capacity. The goal is to make that journey structured, efficient, and aligned with business priorities.
For companies choosing to wait and adjust, Sigma Software helps assess readiness and uncover architectural or process gaps that could block compliance later. Even a short diagnostic can reveal where preparation will save time and cost once enforcement begins.
For those preparing to share data, Sigma Software supports the technical groundwork: designing access layers, defining APIs, establishing identity, and logging workflows.
And for manufacturers ready to act and expand, Sigma Software experts help design the systems and interoperability frameworks that turn compliance into competitive advantage: from data architecture and integration design to service enablement around shared data.
Whether your next step is planning, building, or scaling, our goal is the same: helping you move from obligation to opportunity, at a pace and scope that fit your business. And we’re here whenever you are ready to explore what the right path might look like for you.
Sigma Software Group provides IT services to enterprises, software product houses, and startups. Working since 2002, we have build deep domain knowledge in AdTech, automotive, aviation, gaming industry, telecom, e-learning, FinTech, PropTech. We constantly work to enrich our expertise with machine learning, cybersecurity, AR/VR, IoT, and other technologies. Here we share insights into tech news, software engineering tips, business methods, and company life.
Linkedin profileWhy the EU Data Act Matters for Connected Manufacturers
What the EU Data Act really changes
How Manufacturers Are Responding
Explore how artificial intelligence is reshaping the battle against Fraud, Waste, and Abuse in health insurance. In this article, we’ll break down the key chal...
Chronic conditions such as heart failure, diabetes, and COPD require continuous oversight, but most healthcare systems still rely on periodic in-person visits. ...
Innovation and digitalization drive growth in Central Asia, forming a new digital excellence hub with software development centers across several countries. Uzb...