Data Spaces: The future of sovereign data exchange in mechanical and plant engineering

Many companies are already generating and using vast amounts of data, but mostly within internal silo structures and not across company boundaries. In the future, data spaces should unlock untapped potential through secure data exchange. But what exactly is a data space and how far along is the industry today?

Increasing digitalization and the increased networking of products make a large amount of data available and show an increased need to share data both within a company and across company boundaries. Data-based services and platform economies are already successfully established in the B2C sector. In the B2B sector, however, scaling has yet to take place as there are no large companies dominating the supply chain that have enough influence to enforce their system architecture.

This is precisely where data spaces come in. Contrary to popular belief, they are not a centralized “space” in which all data is stored. Instead, they take a decentralized, federated approach to solving complex problems. A transparent and federated architecture of data spaces creates the necessary trust for data exchange by bypassing the centralized approach of classic cloud architectures and promoting the direct exchange of data between two or more parties without a central platform.

Trust in data spaces is crucial

Trust in data spaces is crucial, as the exchange of sensitive data between different stakeholders can only be successful if all parties involved can be sure that their data will be handled securely and in accordance with the agreed terms of use. Technological challenges, such as interoperability between different systems and ensuring data integrity, present further hurdles. A great deal of coordination is required to ensure that all parties involved are on the same page and use the same standards and protocols. Interoperable interface standards are crucial in this context, as they enable seamless integration and collaboration between different systems and organizations. At the same time, they also promote the scalability of the data space and facilitate the exchange and use of data across different platforms. They also strengthen user trust, as standardized data formats and protocols ensure the reliability and consistency of the shared information.

Legal aspects also play a central role. Compliance with various data protection laws and regulations, such as the GDPR in Europe, is essential to avoid legal conflicts and ensure the data sovereignty of the parties involved. Finally, data sovereignty is another critical issue. Data spaces must ensure that data owners retain full control over their data and can decide for themselves who has access to their data and how it is used.

By taking all these factors into account, data spaces can provide a trustworthy and efficient solution for data exchange that meets the requirements of modern data ecosystems.

Advancing digitalization is opening up numerous opportunities for companies to transform their business models and tap into new sources of revenue. A key factor for the success of these digital business models is the exchange of data. A specific example from the short study by the IMPULS Foundation of the VDMA “Success factors of digital business models for mechanical and plant engineering” shows how companies can successfully implement digital business models by networking smart machines and optimizing services. A prime example is the introduction of predictive maintenance services in the mechanical engineering industry, which makes it possible to plan maintenance work in advance and thus minimize downtimes. Another example is the emerging Machines-as-a-Service model, in which companies offer the production performance of their machines as a service. Customers pay a monthly fee for the use of the machines, which enables them to react flexibly to production requirements without incurring high investment costs. At the same time, providers benefit from a stable, recurring income and have an incentive to ensure high machine availability.

Overview of the various components of a data space (source: International Data Spaces Association).

How does a data space work?

There are two main players in a data space: the users and the operators. The users of a data space, also known as participants, can be either data senders or data recipients, depending on their needs. The operators of a data space ensure the administrative framework conditions. Data is exchanged directly between the sender and receiver, without a central platform. The data sender provides the data and retains data sovereignty. As this is a federated approach, various elements and roles are involved in the data exchange.

A so-called connector enables participation in a data space. This dedicated software component acts as a gateway for data and services and makes it possible to attach terms of use and guidelines to one's own data so that each data recipient has a clear understanding of what may be done with the data.

There are various administrative tasks in a data space that are performed by one or more operators. To ensure trustworthy data exchange partners, there is the role of the identity provider. The identity provider creates, maintains, manages and validates identity information from and for data space participants. A broker provides information about data sources in terms of content, structural quality, up-to-dateness and other characteristics. The so-called clearing houses log every data exchange transaction in a data space in a non-repudiable, verifiable form. The use of a standardized description for the data (vocabulary) ensures a uniform understanding of the information. The data consumer processes the data received and can rely on its quality and reliability - this is also part of data sovereignty.

Status quo in mechanical and plant engineering

The mechanical and plant engineering industry has already made progress in the area of data spaces. However, according to the latest VDMA study “On interoperability in mechanical and plant engineering”, only 53% of participants are currently familiar with data spaces. It is clear that many of those involved have not yet dealt with the topic sufficiently. First of all, the technical prerequisites must be created to enable the networking and availability of data. It is also important to provide comprehensive information and education in order to achieve a better understanding and broader acceptance.

The revenue that can be generated through the use of data spaces is very promising. According to an estimate by the European Commission and KPMG, the economic impact of data sharing in the EU could increase by 7 to 14 billion euros by 2028.

Manufacturing-X: Secure and sovereign data infrastructure

The Manufacturing-X (M-X) data space initiative aims to establish the principles and technologies of data spaces in various industries. M-X promotes the digital transformation of industry by developing a secure and sovereign data infrastructure. This infrastructure enables mechanical engineering companies, for example, to exchange data efficiently and in a controlled manner, which facilitates collaboration between different players and supports the development of new digital business models. The VDMA became involved in the Factory-X (F-X) project of the M-X initiative at an early stage and played a key role in shaping the vision and requirements of its members.

A schematic representation of a data space ecosystem (source: VDMA).

SM4RTENANCE: Neutral cross-sector infrastructure

Another project is the European SM4RTENANCE project. It aims to create a neutral cross-sector data space infrastructure for the manufacturing industry in which data from various stakeholders can be made available along the entire life cycle of equipment. This enables the development of autonomous maintenance services and promotes collaboration between manufacturers, service providers and OEM customers. The focus of the project is on ensuring interoperability between different data spaces, which is why existing approaches and developments will be used for their implementation.

Data Spaces Support Center (DSSC): EU initiative for development and implementation

There are numerous other efforts to implement data spaces at European level. The European Commission, for example, is a key player in initiatives to implement joint European data spaces in 14 different sectors. The DSSC also plays a central role in accelerating the creation of sovereign European data spaces. It supports the development and implementation of data spaces by providing guidelines, best practices and technical solutions that ensure interoperability and data sovereignty.

The VDMA as a driver of Data Spaces

The VDMA is involved in the SM4RTENANCE, F-X and M-X projects in order to represent the requirements of its members, promote the use of existing interoperability standards and facilitate the future participation of companies in a data space. The umati initiative (universal machine technology interface), in which an initial data space implementation using OPC UA with Companion Specifications is being realized, is of particular importance in order to make it easier for small and medium-sized companies in particular to participate in data spaces. The demonstrator enables standardized production information to be provided in data spaces on the basis of an open, pre-competitive architecture and serves as an implementation blueprint.

Conclusion and outlook

There are already a large number of projects in the field of data spaces that are being driven forward by government funding and cooperation between various players. Now the implementation in the market must show which architectures can prevail. This is crucial in order to recognize the resilience and practicality of the various approaches. There are many challenges to overcome in the short and medium term. Different approaches and maturity levels of the solutions make it difficult to gain a transparent overview of the entire architectures and implementation options. This results in an important task for the VDMA in its role as a neutral institution for the European mechanical and plant engineering industry. It offers its member companies a comprehensive overview of the current state of developments at various events and supports them in identifying the technologies and concepts that are right for them. This support enables companies to respond better to the challenges of digital transformation and make the most of the benefits of data spaces. In conclusion, it can be said that interoperable interface standards for data spaces form the basis of a networked and efficient data economy of the future.

In addition, great importance must be attached to internationalization in the long term. Not only SM4RTENANCE, but also M-X attach great importance to internationality and are striving to establish international and national mirror committees. There are already commitments from various countries to support these efforts. For example, the VDMA's Machine Information Interoperability (MII) department has made contact with Brazil, Japan and the USA in order to drive the topic forward.

In addition to the aspects of the technical and legal implementation of data spaces presented in the article, an interview with Andreas Faath provides concrete insights into their significance for AI applications in industry.

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