What is IoT? - Key Concepts, Features, Applications, etc.

Get the answer to “What is IoT?” and explore key concepts, benefits, and applications of IoT with our detailed guide.

Around 75.44 billion connected devices will become alive by the end of 2025. This number is not just a figure but an opportunity to embrace a market that is still transforming, i.e., IoT or Internet of Things. 

So, what is IoT? It is a tech that allows you to leverage connected devices to record data, perform commands, operational analysis, and whatnot.

Understanding the fact that there are leaders who are willing to embrace the tech and innovate new products out of it, we created this basic guide. A guide that not only answers what IoT is but also shares the different nuances and aspects of the tech. So, let’s clear our doubts about IoT and push things further.

What is IoT Technology? - Basic Definition

IoT (Internet of Things) is a combination of interconnected devices. It enables communication between devices and remote systems through the network. This technology allows you to connect everyday electronics like vacuums, cars, and machines with a smart device. You can use a smartphone to give commands to these devices.

History of IoT

The idea behind connecting computers with everyday devices is not novel or nascent. Instead, the roots of IoT were sown much earlier. 

The development of IoT began in the 1970s. It started when engineers developed microprocessors that allowed machines to process information. When the early internet started to connect computers, it gave way to the idea of IoT.

In the 1980s, students at Carnegie Mellon University showcased the first example. They connected the vending machine to the internet to check if the drinks were cold. After that, in 1999, Kevin Ashton introduced the term “Internet of Things”. Ashton wanted to use RFID to track products in supply chains, giving way to the name.

In the 2000s, Wi-Fi and mobile phones became common. And by 2008, internet-connected devices started to outnumber people. Cloud computing and big data also became a reality helping people analyze large amounts of data. By the 2010s, IoT became a part of homes, hospitals, and industries. 

Smart devices started to become popular, while technologies like 5G opened new doors. The real IoT of today was fully realized, and the tech became a part of multiple industries, like manufacturing, healthcare, transportation, etc., to automate processes.

Types of IoT

There are an uncountable number of IoT types. The reason behind the development of so many types of IoT is their general naming conventions. Experts, researchers, and other relevant parties named the types based on their applications. So, the naming conventions were simply used to describe the IoT. For example, IoT used in healthcare was called IoMT, which meant Internet of Medical Things, and IoT in industries was called IIoT, i.e., Industrial Internet of Things. 

So, to share the types of IoT, we began researching on two fronts, i.e., application and network. And based on that, these are the types of IoT:

By Application:

• Consumer IoT (CIoT): Consumer IoT deals with the creation of IoT used in appliances of daily usage. It includes smart home devices, wearables, and connected appliances.
• Commercial IoT: IoT used by businesses is called commercial IoT. The applications include smart retail, connected healthcare, and smart buildings. These technologies are used to improve customer experience and workplace workflow.
• Industrial IoT: This type of IoT is used in factories for energy production and agriculture. This helps increase productivity, improve safety, and optimize processes.
• Infrastructure IoT: This IoT is used to manage and improve city systems with applications like smart grids, traffic control, and environmental monitoring.

There are many other types of IoT by application, such as Smart Office IoT, Energy and Utility IoT, Environmental IoT, etc. The naming convention here completely relies on the type of application.

By Network

• LPWAN (Low Power Wide Area Network): These IoT are designed for long-range communication and minimal power consumption. LPWAN is ideal for devices that operate for years using a single battery.
• Cellular IoT: IoTs that work on cellular networks like 4G and 5G come in this category. These devices require higher bandwidth and lower latency.
• Short-Range Networks: This type of IoT is used for short distances with equipment like Wi-Fi, Bluetooth, or Zigbee to connect devices. For instance, homes and offices.

How IoT Works? - Covering All Factors That Make It Happen

The working of IoT can be bifurcated into three segments, i.e., Primary Components, Associated Technologies, and the Working Process. Throwing light on each, here is a complete answer to the question, “How IoT Works?.”

5 Primary Components of IoT

These are the components that make up an IoT ecosystem. Let’s check them out.

1. IoT Sensors or Devices

Sensors like Thermistors, Hygrometers, PIR (Passive Infrared) sensors, etc., and devices like Smartwatches, Smart Thermostats, Industrial Robots, etc., make up the IoT ecosystem. These can collect and transmit data and are responsible for performing actions based on the data collected.

2. Gateway

A gateway is an intermediary between sensors and the cloud to transfer processed data. It is responsible for security maintenance, facilitating communication, reducing latency, balancing load, etc.

3. Cloud

Cloud in IoT is used to facilitate the management, processing, and storage of collected data. It helps maintain security and connectivity within the network and is also very cost-effective for businesses.

4. Analytics

Analytics are used to derive meaningful insights from the data provided by the IoT devices. It is used for statistical analysis, data processing, and machine learning. This helps in enhancing workflows, updating AI models, tuning equipment, etc. 

5. User Interface (UI)

UI in IoT provides users with an interface to interact with the IoT application. Key elements for UI for IoT are:

• User-friendly design 
• Personalized interface
• Authentication and security
• Simple data visualization
• Integration with other systems

Associated Technologies:

These are technologies that are either closely associated with IoT in terms of application or are core to the functionality of an IoT system. Let’s assess.

1. Blockchain Technology 

Blockchain makes data sharing in IoT secure and transparent. It is considering blockchain’s decentralized and immutable nature that keeps the data confidential and available within the relevant group.

2. Artificial Intelligence

Artificial intelligence and its relevant subfields, like machine learning and deep learning, can be used to increase operational efficiency. These technologies not only help improve products but can also automate choices to enhance final outcomes.

3. Big Data

The role of Big Data is significant as the popularity of IoT gadgets continues to increase. For instance, IoT sensors can monitor the condition of equipment in real-time, and big data analytics can predict potential failures before they occur. This reduces the downtime and maintenance costs.

4. Augmented Reality and Virtual Reality 

Businesses can use technologies like augmented reality (AR) and virtual reality (VR), and IoT can be combined for several applications. For instance, employee training where AR/VR can be used for hands-on experience and IoT devices for real-time data for accurate simulations. The combination of these techs will improve efficiency, optimize processes, and even deliver a better customer experience.

Working Process:

An IoT system primarily works by collecting and exchanging data in real time.  The data is collected from the surroundings after which it is sent for analysis. Let’s understand this process below.

• Step 1: Data Collection by Sensors: The Sensor, individual, or collection (also called device) will collect data from its environment. For example, GPS, Thermostat, etc.
• Step 2: Transmission to the Cloud: With the help of a connection, the collected data is sent to the cloud or connected devices like Bluetooth, WiFi, LAN, etc.
• Step 3: Data Processing in the Cloud: Based on the pre-defined rules, the cloud processes and analyzes the data to give accurate predictions. Some examples are reading temperature values, detecting location, etc.
• Step 4: User Interactions and Alerts: Information is sent to the users and showcased through a user interface. 

Pros and Cons of IoT

Like every technology, IoT is also a culmination of many pros and cons. Understanding them, here are the pros and cons of IoT.

Use Cases of IoT

IoT as a technology delivers unhinged flexibility for applications that allow it to be useful for automating processes in multiple industries. Broadly speaking, there are several use cases of IoT that make it so. Here they are:

1. Remote Monitoring and Control

IoT can be used to monitor and control devices from anywhere using an internet connection. It happens because the systems collect and transmit data for real-time adjustments and interventions.

Use Cases:

• It can be used to optimize processes by adjusting settings based on real-time data.
• Prevent failures by detecting any type of anomaly and triggering alerts.
• Managing distributed assets within an inventory.
• Provision of relevant support and maintenance with deployed equipment.

2. Automation and Optimization

IoT devices can be programmed to perform any sort of action automatically based on pre-defined rules or data analysis. This can help with optimizing complex processes.

Use Cases:

• Automates repetitive tasks to improve efficiency and reduce human errors.
• Optimizes resource allocation based on real-time conditions.
• Helps in creating adaptive systems that learn and improve over time.
• Anticipate potential issues by using predictive maintenance.

3. Data Collection and Analysis

IoT devices are able to collect vast amounts of data about their environment, usage, or performance. This data can be analyzed to gain insights and make informed decisions.

Use Cases:

• Can understand usage patterns, improving product design or service delivery.
• Identify trends and anomalies with the capability to detect problems or opportunities.
• Personalize experiences based on individual preferences and behavior.
• Improve forecasting and planning by analyzing the historical data.

4. Enhanced Connectivity and Communication

IoT can enable seamless communication between devices, systems, and people. This can facilitate collaboration and information sharing.

Use Cases:

• It can help in creating an interconnected ecosystem for boosting efficiency and collaboration.
• Improved decision-making by enabling real-time information sharing.
• Remote collaborating and communication.
• Building of more transparent and traceable systems.

IoT Frameworks and Other Associated Technologies for Development

IoT devices are an assembly of IoT frameworks and other associated technologies. These technologies are a culmination of tools, libraries, and protocols that help developers with the development and deployment of Internet of Things (IoT) solutions. Some key entries in this list are:

IoT Frameworks:

• AWS IoT: Amazon’s cloud service for connecting, managing, and securing IoT devices. Core features include device management, data storage, analytics, and machine learning.
• Azure IoT: Integrates well with other Azure services. Microsoft’s offering in the niche delivers similar functionalities as AWS IoT. Some features that it offers are device provisioning, data streaming, and security.
• Google Cloud IoT Core: Google's service for connecting and managing IoT devices. Offers features like device registration, communication, and data processing.

Other Development Technologies

In addition to the frameworks mentioned, there are other technologies that are commonly used in IoT. Let’s check them out:

• Programming Languages: C++, Java, JavaScript, Node.js, and Python.
• Communication Protocols: CoAP, AMQP, HTTP, and MQTT.
• Cloud Platforms: AWS, Azure, and Google Cloud
• Databases: Cassandra and InfluxDB
• Analytics Tools: Apache Spark and Hadoop

Examples of IoT Applications - Based on Industries

IoT’s nature allows it to connect everyday utilities like home appliances, kitchen appliances, product line equipment, medical equipment, etc. Therefore, to unfold its capabilities, let's check out some examples of IoT applications.

1. Consumer Applications 

IoT makes it easier to manage and monitor general-purpose equipment and devices. For example, watches, televisions, health-tracking devices, etc. Besides this, it can be used for home security systems and devices to track personal assets.

2. Agriculture 

IoT and related technologies can heavily aid in the automation of farming processes. The technology can support smart techniques like livestock monitoring, precision agriculture, and automated irrigation systems. The combination of IoT and advanced farming techniques can help in fulfilling food demands and improve crop ROI (return on investment).

3. Smart Cities

IoT can improve infrastructure, public utilities, and other services in a smart city. And can inspire similar initiatives for tier 2, tier 3, and even tier 4 cities. It can contribute to improving waste management, waste management, connected infrastructure, and even smart streetlights.

4. Industrial IoT

Industrial IoT, or IIoT is a worthy candidate for the implementation of predictive maintenance to supply chain management. Supply chains are omnipresent within industries: retail, e-commerce, manufacturing, pharmaceutical, etc. IoT devices can help improve operational efficiency and product quality and reduce downtime. 

5. Healthcare 

IoT in healthcare supports wearable technologies like smartwatches and sensor monitoring like heart rate monitors. It can provide continuous health monitoring for use cases like blood pressure monitoring, blood glucose monitoring, etc., helping patients track their health stats 24*7.

6. Retail 

With real-time inventory tracking and stock management, IoT in retail is extremely valuable. The technology can help enhance customer experience via smart shelves and personalized marketing. In fact, you can use it to tailor promotion strategies and product recommendations for each user. 

7. Transportation and Logistics 

IoT + GPS systems are the most common IoT applications. It helps users plan routes, monitor vehicle health, and check fuel consumption. The tech enables the users to track their vehicle in real-time, and this feature alone is great for monitoring goods to improve accuracy and reduce loss. 

8. Energy and Utilities 

IoT can be used to manage energy distribution. The help of smart meters can make the distribution efficient for electricity, water, and gas. The technology can also help with predictive and proactive maintenance.

IoT Compliance

IoT compliance is a complex landscape, as it touches on various aspects of technology, security, and data privacy. Here's a table outlining some key areas and examples:

IoT Future Trends

Iot is constantly evolving in combination with new and nascent technologies like AI, Blockchain, and many more. So, to provide possible insights in the form of IoT trends, here are some things to watch out in the future if you want to be a part of the industry.

1. Blockchain and IoT: The combination of Blockchain and IoT will be seeing a rise. The need for secure record keeping and protecting data from cyber threats has become essential. This is the reason the global blockchain IoT market is projected to grow with a CAGR of 58.21% between 2025-2034. 
2. Smart Cities: The evolution of cities to smart cities has a clear contributor, i.e., IoT. And, this trend is expected to reach $79.94 billion in 2025, and it will be growing with a CAGR of 9.59% between 2025 and 2029.
3. 5G-Powered IoT: A previous report by Statista states that in 2025, the number of 5G subscribers will reach 2.61 billion. This will further boost the application of IoT, making better use of IoT devices with the combination of 5G’s ultra-fast and low-latency communication.
4. Traffic Management with IoT: Traffic management has become a tricky affair, with jams becoming a persistent issue in countries like the USA, United Kingdom, India, etc. Seeing the rise in intelligent traffic management is no surprise, as the trend is growing with a CAGR of 15.2% between 2025 to 2030.
5. Digital Twin IoT Applications: Virtual representation of our identity online has spread like wildfire within the market. The Digital Twin industry is expected to reach $29.06 billion by the end of 2025, growing with a CAGR of 38.4%.
6. Voice-Activated IoT Devices: Voice-activated IoT devices are a core way of using Google Voice Search. IoT-integrated voice assistants like Alexa, Google Assistant, and Siri are a great example of it. In fact, the increased usage can be attributed to the growth in the market, i.e., 29.4% CAGR and $7.26 billion by the end of 2025.
7. Edge Computing: IoT and edge computing complement each other making them work well in cohesion. And, with further upgrades in edge computing, faster data processing, reduced latency, and improved real-time decision-making will be some impacts witnessed. Also, a previous report by Markets & Markets states that edge computing will see a CAGR growth of 13.0% between 2024 and 2029.

Why to Choose MobileAppDaily?

Single-point space with tonnes of well-researched resources is a dream come true for many entrepreneurs, startups, enthusiasts, etc. And, MobileAppDaily aims to be that single-point space. Our core intent in creating our resources is to help bridge the gap between our audience and their success in the IT realm. So, to make sure that happens, we publish editorials, top company directories, top product directories, web stories, exclusive interviews, etc.

In fact, some of the topics that might entice you that we have covered so far are IoT App Development Platforms, IoT in Cybersecurity, IoT impact on Business, etc. These resources are created with the sole intent to educate the reader in the easiest way possible. Stating this, we are a media & marketing company that wants to grow with their audience.

Final Words

The implementation of the Internet of Things is not a future prospect rather, it's here, and it's real. Enterprises and businesses around the world have already adopted this technology. And, if you want to win, you need to create a connection between your operations and IoT to increase its efficiency and automation. With our editorial on “What is IoT?” our aim has been to give you a space to learn everything basic about the topic. So, we hope we may have succeeded. Also, if you want more, you can keep on following the cluster or check out our blog section to find more topics.