The Internet of Things is a network of devices that feed data into a platform. This enables communication and automated control. It connects physical devices to digital interfaces.
The Internet of Things (IoT) is defined as a network of devices that feed data into a platform to enable communication and automated control. It connects physical devices to digital interfaces. This article explains IoT in detail, along with apt examples and significant trends for better understanding.
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What Is the Internet of Things?
The Internet of Things (IoT) is a network of devices that feed data into a platform to enable communication and automated control. IoT connects machines or people to other machines. It primarily connects the physical devices to digital interfaces.
These physical devices have sensors that send data to a centralized platform. More often than not, they receive instructions based on this data. The platform also analyzes the data to provide insights to business owners and personalization to customers.
These devices can include smartwatches, injectable ID chips in animals, temperature sensors in jet engines, or voice controllers at home. Prominent examples include Google Home and Amazon Echo.
The first rudimentary IoT device is said to be a vending machine at Carnegie Mellon that was connected to the ARPANET in 1970. The phrase was coined by Kevin Ashton in 1999, though it has taken decades for technology to catch up with the vision.
According to IoT Analytics’ State of IoT Summer 2021 report, around 27 billion IoT connections will be operational by 2025.
The technological advancements that have aided in IoT taking off are:
1. RFID tags: RFID tags are low-power chips that can communicate wirelessly. They are small and can be added to larger, more expensive pieces of machinery to make them accessible.
2. Wireless & cellular networks: We now have increasing access to wireless and cellular networks, making it easy for devices to stay connected on the go. Advancements in 5G networking and Wi-Fi 6 ensure the high bandwidth required to support the low latency rates of IoT networks.
3. IPv6: When the world moved from IPv4 to IPv6, it created enough IP addresses for every device in the world for the foreseeable future.
4. Low-cost, low-energy sensors: The semiconductor industry has grown in leaps and bounds and continues to do so. Low-cost sensors now do not consume significant power. They have enough computing power to run artificial intelligence (AI) on the smallest devices.
5. Efficient machine learning algorithms: Machine learning (ML) algorithms are more complex, advanced, and efficient now than ever before. ResearchOpens a new window has indicated it takes 44X less time now than in 2012 for algorithms such as neural network training to work.
6. Cloud computing: Cloud adoption, which was already on the rise, has been accelerated due to the pandemic. Companies are looking to 50% or more of their applications being on the cloud, according to a 2021 O’Reilly study. Cloud makes it easier for data to be transferred between IoT devices and the AI platforms that analyze them.
A genuinely robust Internet of Things system requires combining all this technology. Other technological aspects such as edge computing may need to be considered based on business requirements.
An IoT system consists of four crucial components to make it work:
- Physical devices: Physical devices with sensors are the starting point of any IoT device. A camera with motion sensors, a car that gauges tire pressure, and Amazon’s Alexa that plays songs on request are all physical devices. They provide raw, base data about operational environments and user inputs.
- Connectivity platform: These devices can be hooked onto a network in several ways. The most common are Wi-Fi and cellular networks. 6LoWPAN, or low-power wireless personal area network, empowers any low-power radio to communicate with the internet. ZigBee is a low-power, low-data rate wireless network primarily used in industrial settings. Standards such as OneM2M are trying to formalize communication patterns across machines of various types.
- Analytics platform (IoT platform):
Machine learning plays a significant role in analyzing the massive data
sent by physical devices. Algorithms are trained to read this data and
provide in-depth analysis backed by historical data. This can also be
used to predict future behavior.
The platform has two primary purposes. The first is to facilitate informed, data-driven decisions at the business level. The second is to send automated instructions back to the devices. This allows the IoT devices to respond intelligently to user inputs or environmental changes. - Configuration manager: The sheer number of devices and data involved makes IoT-based systems complex to administer. A configuration manager gives the business a bird’s eye view of the devices involved, the various parameters required to monitor and control machines, and the algorithmic tweaks required with new additions. Security patch management must ideally also be a part of this setup.
- Dashboard: The dashboard makes sense of all the data mined and analyzed from the Internet of Things system.
Components of an IoT Platform
Internet of Things is everywhere now, whether we notice it or not. The idea of IoT is to create an informed environment while making mundane tasks invisible.
See More: What Is IoT Device Management? Definition, Key Features, and Software
Role of the Internet of Things
The Internet of Things has been implemented across numerous industry verticals already. The manufacturing, retail, government, healthcare, and automotive sectors have increased IoT adoption. Industries such as education and sustainability are envisioning high-impact changes with the aid of IoT.
Types of IoT
At a business level, the Internet of Things plays the role of an ultra-intelligent analyst. It provides data insights for better decisions, and finds gaps in operations and processes, and business policies. It also creates an unprecedented connection between the factory floor and the business. All this means increased productivity, even while cutting down on costs and energy expenditure. The result of all this is undoubtedly an improved company bottom line.
The Internet of Things enables the automation of everyday things that tend to suck up manpower and resources. Automatically switching settings based on immediate environment or usage is one example. This frees up a lot of resources for the organization to focus on innovation and the company’s broader vision.
The various types of IoT that are currently in the market are:
1. Industrial IoT
Industrial IoT, or IIoT, is the internet of things in an industrial setting. It mainly applies to machine-to-machine communication with little user interaction. Industrial IoT is often used to improve logistics and supply chain management. The Industrial Internet of Things is often referred to as the fourth wave of the industrial revolution, or Industry 4.0.
2. Commercial IoT
Commercial Internet of Things breaks down into consumer and enterprise IoT. These are solutions for everyday users and businesses to run efficiently.
Smart homes and fitness bands are examples of consumer IoT. They need user input.
Enterprise IoT includes SaaS IoT solutions for businesses. For example, Bluetooth low energy (BLE) beacons improve shopping experiences. The healthcare industry uses IoT for managing chronic illnesses and inventory in pharmaceuticals.
3. Infrastructure IoT
Smart buildings use IoT to save energy and use space better. Corporations and schools with big campuses benefit a lot from this.
Cities are exploring smart city ideas. They use sensors at traffic signals and lamp posts for data. This data helps with traffic, maintenance, and crowd control.
4. Defense IoT
Defense IoT uses IoT for military purposes. This includes surveillance robots and wearable combat gear.
The Internet of Things is everywhere. Its role will grow, becoming essential in business and personal decisions.
See More: What Is Artificial Intelligence (AI)? Definition, Types, Goals, Challenges, and Trends in 2025
Top 5 Examples of the Internet of Things
Some examples of IoT already in use are:
1. Spain’s Balearic Islands
In 2017, Spain aimed to make the Balearic islands an IoT lab. They used sensors to monitor air quality and noise. They also integrated meteorological data.
They deployed 150 sensors at five ports. Later, they added 50 IoT antennas to existing masts with 10,000 sensors. They're exploring using this data for tourism.
2. IoT in COVID management
The Internet of Things played a key role in managing the COVID-19 pandemic.
With hospitals full and few beds, IoT helped with remote treatments. Gauteng health services used electronic bed management systems.
IoT helped track vaccine location, temperature, and stock levels. India’s electronic vaccine intelligence network ensured safe vaccine supply, reducing stock-outs by 80%.
Healthcare drones used IoT to deliver tests, PPE, and medical supplies. Zipline, a medical delivery company, used drones in Rwanda and Ghana.
3. Smart factories
We're seeing a new industrial revolution. Volkswagen's main plant in Wolfsburg, Germany, is a smart factory example. They used a private 5G wireless network with Nokia’s digital automation cloud. They're testing smart factory use cases for reliability, security, and real-time connectivity.
4. Connected cars
Cars work thanks to many parts and sensors. IoT is key in car maintenance and management.
Data from sensors like the speedometer and fuel tank helps check how well the car and driver are doing. It helps predict and prevent car problems. IoT can also make cars more fuel-efficient, saving money.
Smart dashcams and parking sensors improve safety. They are great for rental companies and new drivers.
5. IoT in agriculture
Smart farming uses sensors to check light, temperature, and soil moisture. IoT helps irrigation systems work better, saving water and money.
Agricultural drones capture images to help grow more crops. IoT also helps keep an eye on livestock.
See More: What Is Machine Learning? Definition, Types, Applications, and Trends for 2025
Top 6 Upcoming IoT Trends
The IoT market is growing fast, expected to hit $1.39 trillion by 2026. This growth is despite a semiconductor shortage caused by the pandemic. Here are some trends to watch:
1. Healthcare to see more IoT integration at patient, hospital, and pharmaceutical levels
During the pandemic, millions of US households used telemedicine. A survey in May 2021 showed 43% want to keep using it.
The healthcare industry is now using more IoT. It's being used for managing inventory, patients, and infrastructure.
Remote patient monitoring alerts patients when they need to see a doctor. It's useful for monitoring high-risk pregnancies and chronic illnesses. It can also help in research and predicting health issues.
2. Edge computing to solve latency issues that cloud computing cannot solve
Most IoT systems use cloud computing. This works for simple analytics.
But, with many sensors, cloud computing can cause delays. This is a problem for situations where quick action is needed. For example, shutting down a machine if it gets too hot.
Edge computing is a solution. It uses small processors at the edge of the network. These processors can handle some tasks before data reaches the cloud.
Edge computing is now more possible thanks to new hardware and AI. IoT solutions will use this to be more efficient and competitive.
3. IoT used to track environmental issues, particularly concerning sustainability
Climate change is a big problem that needs quick action. It affects our living quality and how businesses operate. Weather changes can cause big problems for businesses.
Companies are using IoT to monitor the environment, save energy, and manage areas. NetOp and Opti are using IoT for fire and flood management.
At an industry level, Calyx is using biology to create sensors for detecting air chemicals. They help detect airborne chemicals in many industries.
The goal of IoT in sustainability is to use less energy and predict shortages.
4. Supply chain management will be revamped around IoT
The pandemic caused a lot of supply chain problems. This has made IoT changes in business operations happen faster.
IoT helps with inventory management, scheduled maintenance, and fleet management. It gives valuable data insights. This data, with smart routing, can cut costs.
IoT will track assets in industries. Shipping companies can better manage fuel and predict fuel costs. It will also monitor temperature for sensitive materials.
5. Wearable tech will move beyond smartwatches
Wearable tech is mostly smartwatches and fitness bands now. This is because of small processors and 5G networking. Experts think 2022 will see more IoT wearables.Smart eyewear, linked fabric, and smart rings will become more popular. They will help people with physical disabilities. Augmented reality and virtual reality with wearables are being explored for surgeries.
Wearables are also being used to improve safety in workplaces, especially factory floors. Militaries are considering it for combat.
6. Cybersecurity will be the focus of IoT
The world now knows the importance of cybersecurity in all businesses. IoT will be key in keeping businesses safe in the future.
New tech like blockchain and encryption will secure access to assets. They ensure apps, machines, and people are authenticated securely.
The Internet of Things will use real-time data to improve safety and disaster prevention. Companies like Bayshore Networks offer IoT solutions that learn from network activity. They prepare for incidents and security policies.
Besides focusing on IoT security, the market will see cybersecurity solutions for IoT devices. IoT devices link directly to personal or business data. More standard communication protocols and edge-based security will emerge.
See More: Edge Computing vs Cloud Computing: 10 Key Comparisons
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