What Is the Internet of Things? Everything You Need to Know About IoT

IoT is a critical technology for daily consumer use and key infrastructure.

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Last Updated: Dec 10, 2024
A graphic design image of a character mascot surrounded by iconography of electronic devices
The Internet of Things is the term used to describe electronic devices that connect to the internet. 
  • The Internet of Things (IoT) connects physical devices via the internet to collect, analyze and share data.
  • IoT applications range from smart home gadgets and wearable health devices to industrial automation and smart city infrastructure.
  • While IoT enhances efficiency and convenience, challenges like data privacy, security vulnerabilities and device interoperability persist as critical concerns.

The Internet of Things (IoT) is a network of physical devices connected via the internet that collect, share and analyze data. IoT is here to make everything smarter, from smart refrigerators that judge your midnight snacks to industrial robots that probably work harder than you. While IoT can be used with everyday technology, the concept is critical in healthcare, manufacturing and transportation industries. We’ll take a deep dive into this topic to help you better understand IoT.

Overview of the Internet of Things

  1. What Is the Internet of Things?
  2. How IoT Works
  3. Examples of IoT in Action
  4. Pros and Cons of IoT
  5. Challenges and Risks of IoT
  6. The Future of IoT

What Is the Internet of Things?

A graphic design of various iconography depicting consumer, commercial, industrial and infrastructure IoT
IoT is all around us, from our homes to the businesses we support.

The concept of IoT dates back to the early 1980s when some clever researchers hooked up a Coca-Cola vending machine to the internet to check its stock remotely. Fast-forward to the early 2000s, and IoT really took off thanks to wireless internet, smaller sensors and leaps in computing tech.

IoT devices, ranging from home appliances to industrial machines, communicate and interact over the internet. Embedded with sensors, software and other technologies, these devices send and receive data. The objective is to automate processes, enhance decision-making and create more intelligent environments to optimize efficiency and functionality across various applications.

Four types of IoT devices exist, each with different goals for the end-user:

  • Consumer IoT: Devices such as smart home systems, fitness trackers and personal assistants
  • Commercial IoT: Used in retail, healthcare and other industries for patient monitoring or asset tracking
  • Industrial IoT: Often referred to as IIoT, this type is used in manufacturing and supply chain management for predictive maintenance and automation.
  • Infrastructure IoT: Smart city applications like traffic monitoring, energy management and water distribution systems

How IoT Works

At its core, IoT is all about devices chatting with each other, the internet and data-processing systems. The magic happens when IoT collects and processes data on a massive scale, giving us unique insights and enabling automation. This process boosts efficiency and sharpens decision-making. Let’s break down how IoT works:

  • Data Collection via Sensors: IoT devices gather information from their surroundings, such as temperature, motion, location or even specific conditions like humidity or pressure. These devices are embedded with sensors designed to capture data.
  • Data Transmission: After data collection, it’s sent over a network. How it gets there can vary depending on the application — think Wi-Fi, Bluetooth or even good old-fashioned Ethernet cables.
  • Data Processing: Once the data is transmitted, it’s crunched in the cloud or via edge computing platforms. Edge computing processes data closer to the source (the device itself or a nearby server), which cuts down on lag and allows for real-time insights. Cloud computing, on the other hand, offers more extensive processing power for complex data analysis.
  • User Interaction or Automation: After the data is processed, the system springs into action. This could mean a notification popping up on your smartphone, an automated response triggered by an event (like turning off lights when no one is home) or more sophisticated maneuvers like tweaking factory machinery based on environmental conditions.

Examples of IoT in Action

A graphic design image of a character mascot running on a treadmill with a zoomed-in focus on a smartwatch
Any smart device is considered an IoT.

IoT applications are popping up everywhere, from our homes to massive industrial setups. Here are some real-world examples:

  • Smart Thermostats: Devices like the Google Nest thermostat are like your home’s personal assistant that learns your schedule and preferences. They adjust heating and cooling automatically, saving you energy and keeping your home comfortable. Content Manager James Moore shares his experience with a smart thermostat, saying, “We use ecobee smart thermostats in our house — they work great as a convenient Alexa device, and the included Smart Sensor lets me manage the temperature of any room in the house.”
An Ecobee smart thermostat
Smart thermostats regulate your home’s indoor temperature without you needing to manually change it or even be at home. (Photo: James Moore) 
  • Wearable Health Trackers: Gadgets like Fitbit or the Apple Watch are your health’s best friends. They monitor vital signs such as heart rate, sleep patterns and physical activity, giving you a health report card and letting health-care providers monitor you remotely.
  • Connected Vehicles: IoT in automobiles allows for real-time diagnostics, navigation assistance and in some cases, autonomous driving. These systems can monitor fuel efficiency, detect issues before they become a big deal and update software on the fly.
  • Smart Refrigerators: Smart fridges can track grocery inventory, notify you when food is expiring and even suggest recipes based on what’s inside.
  • Industrial Automation: Factories are getting a tech boost with IoT-enabled sensors that monitor equipment for performance issues, predict maintenance needs, prevent breakdowns and boost efficiency.
  • Smart Cities: IoT is making cities smarter with traffic management, smart street lighting and energy distribution. It’s all about making urban living more efficient and eco-friendly.

Pros and Cons of IoT

As with any technological advancement, there will be pros and cons.

Pros Cons
Increased convenience and automation Privacy concerns due to data collection
Enhanced efficiency in certain industries High initial setup costs
Improved decision-making with real-time data Security vulnerabilities
Potential for cost savings, such as energy management Interoperability issues between devices
Supports smart cities and infrastructure Complex systems require expert maintenance

Challenges and Risks of IoT

As IoT devices become more widespread, the amount of data being collected and shared increases, making these systems attractive targets for cyberattacks. Hackers can exploit vulnerabilities in IoT devices to gain unauthorized access to sensitive information or disrupt services. Once compromised, these devices can be used to launch large-scale cyberattacks, such as Distributed Denial of Service (DDoS) attacks, which can knock entire networks offline.

IoT devices collect vast amounts of data about your habits, locations and personal preferences, raising online privacy concerns. This data can be exposed or misused without proper security measures and lead to privacy breaches. There are also concerns about how companies use this data, particularly for marketing purposes and often without explicit user consent. This raises questions about how companies use, store and protect this data.

Interoperability, or lack thereof, remains a significant challenge. IoT involves devices from various manufacturers, many of which use incompatible protocols and standards. This lack of uniformity makes it difficult for devices to communicate with one another, limiting the overall effectiveness of IoT solutions.

The Future of IoT

The future of IoT looks promising, with several emerging technologies and trends expected to enhance its capabilities:

  • 5G Networks: As the technology becomes more widespread, 5G will allow for faster, more reliable connections between IoT devices, enabling real-time data transmission and more sophisticated uses like self-driving cars.
  • AI and Machine Learning Integration: IoT is expected to integrate more closely with artificial intelligence (AI), allowing systems to analyze data in real time, detect patterns and make decisions without human intervention. This will enable more advanced automation and smarter devices.
  • Edge Computing: As the sheer number of IoT devices grows, the demand for faster data processing will increase. Edge computing, which processes data closer to the source rather than relying on centralized cloud systems, cuts down on lag and boosts performance, making everything run smoother.
  • Smart Cities and Infrastructure: IoT will continue to play a key role in smart city development, with the potential to extend beyond larger cities.
  • Wi-Fi 7: Wi-Fi 7 enhancements in speed, capacity and efficiency are game changers for IoT applications. With speeds exceeding 40 Gbps, Wi-Fi 7 supports the real-time data needs of IoT devices and increases device capacity, allowing more IoT devices to connect simultaneously without congestion or latency.

Frequently Asked Questions About the Internet of Things

Can IoT devices work without the internet?

Some IoT gadgets can work without the internet by using local networks like Bluetooth or Zigbee. But you’ll need a quality internet connection for remote access, cloud-computing data, system updates or other bandwidth-heavy uses. Depending on how many IoT devices you have in your home, you may require a mesh Wi-Fi network to better enable the devices to communicate.

What industries are most impacted by IoT?

Thanks to IoT, industries like manufacturing, health care, retail, transportation, agriculture and energy are getting a serious upgrade. Think better efficiency, cost savings and exciting new services.

Are cell phones considered IoT?

While cell phones connect to the internet, they’re not your typical IoT devices. Think of smartphones as the managers for IoT systems such as smart home devices or wearables like an Apple Watch or Fitbit.

What is massive IoT?

Massive IoT refers to large-scale deployments of low-power, wide-area networks (LPWANs) designed to support a massive number of connected devices. These networks are ideal for applications that require minimal data exchange but need to operate across wide areas, such as smart cities or agricultural monitoring.

How does IoT integrate with artificial intelligence (AI)?

IoT and AI work together by allowing devices to collect vast amounts of data, which AI analyzes to detect patterns, make predictions and enable autonomous decision-making. AI-driven IoT systems can optimize processes in real time, improving efficiency and performance.

Can IoT be used in rural areas?

IoT can be used in rural areas, particularly in agriculture, where IoT devices optimize farming operations by monitoring soil conditions, water usage and crop health. However, rural areas may face challenges with connectivity if internet access is limited.