A hardware-bound system depends on device-specific capabilities such as sensors, motors, local acceleration, secure elements, or real-time control. Its software architecture follows the physical environment and cannot be evaluated only as a generic web interface.
The system needs device compatibility, update and recovery paths, physical safety, power management, and clear ownership over locally stored data. Hardware replacement can also determine the supported lifetime.
ELI5
A hardware-bound system is software made to work with a particular physical device. The device's sensors, controls, timing, storage, or location are essential to what the software does.
For example, a home energy assistant may run on a controller connected to household meters. It needs safe updates and recovery because a software failure can affect the physical system, not just a browser page.
