Detailed definition of IoT

In the broadest terms, the Internet of Things includes any object—or “thing”—that can be wirelessly connected to an Internet network. But today, IoT has more specifically come to mean connected things that are equipped with sensors, software, and other technologies that allow them to transmit and receive data—for the purpose of informing users or automating an action. Traditionally, connectivity was achieved mainly via Wi-Fi, whereas today 5G and other types of network platforms offer the promise of handling huge data sets, almost anywhere, with speed and reliability.

Once IoT devices collect and transmit data, the ultimate aim is to learn as much as possible from it, and to ensure it delivers increasingly accurate and sophisticated outputs and insights. This is where AI technologies come into play: augmenting IoT networks with the power of generative AI, machine learning, and data analytics.

Key drivers of IoT growth

In just a few decades, IoT data has grown exponentially, and that’s likely to continue. So what triggered this Internet of Things boom? For IoT to evolve, a specific set of technologies had to come together and advance concurrently.

• Connectivity: Evolving from humble modem-based beginnings, today’s Internet and cloud connectivity is now sufficiently fast and robust enough to send and receive enormous volumes of data and support the IoT’s exponential growth.
• Sensor technology: With the steady rise in demand for IoT sensor innovation, the market went from a few costly, niche providers to a highly globalised and price-competitive sensor manufacturing industry. Since 2004, the average price of IoT sensors has dropped by over 70%, accompanied by a demand-fuelled rise in better functionality and diversity in these products.
• Computing power: To use and leverage the massive amount of available data, modern businesses demand ever-increasing amounts of memory and processing power. The race to achieve this has been fast and competitive and has driven the growing relevance and applicability of IoT.
• Big Data technology: Since the 1980s, the world’s data, as well as the computer technology needed to store it, has grown exponentially. Advances in databases and analysis tools have enabled massive volumes of data generated from IoT devices, smart vehicles, and equipment to be processed and analysed in real time. This speed and capacity are essential for the Internet of Things.
• AI and machine learning: These technologies provide the ability not only to manage and process vast amounts of IoT data, but also to analyse and learn from it. Big Data is the favourite food of artificial intelligence and machine learning. The larger and more diverse the data sets, the more robust and accurate the insights and intelligence that AI-powered advanced analytics can provide. The rise in IoT devices has very much grown alongside the advancement of artificial intelligence and its appetite for the data they provide.
• Cloud computing: Just as connectivity was integral to the development of the Internet of Things, the rise of cloud computing has also been closely tied to its evolution. With the ability to deliver processing power and high-volume storage on demand, cloud IoT services paved the way for IoT devices to gather and transmit increasingly large and complex data sets.

How does IoT work?

IoT devices are our eyes and ears when we cannot physically be there—capturing whatever data they are programmed to gather. That data can then be collected and analysed to help us inform and automate subsequent actions or decisions. There are four key stages in this process:

1. Capture the data. Through sensors, IoT devices capture data from their environments. This could be as simple as the temperature or as complex as a real-time video feed.
2. Share the data. Using available network connections, IoT devices send this data to a public or private cloud system (device-system-device) or to another device (device-device), or store it locally as directed for processing at the edge.
3. Process the data. At this point, software is programmed to do something based on that data—such as switch on a fan or send a warning.
4. Act on the data. Accumulated data from all devices within an IoT network is analysed. This provides powerful insights to inform confident actions and business decisions.

Examples of IoT networks in action

IoT networks and the data they produce are at work in virtually all aspects of modern life—in our homes, our cars, our shops, and even on our bodies.

• Smart homes: Many people are already intimately familiar with IoT networks in their own homes. Through smart switches, sensors, and devices that communicate via protocols such as Z-Wave or Zigbee, home automation systems can be used to monitor and control things like lighting, climate, security systems, appliances, and more—even from a distance. If you forget to turn off the lights or your oven before leaving the house, you can do it from your phone through IoT-enabled devices.
• Smart grids: Combined with AI and advanced analytics technology, smart grids use IoT solutions to help integrate technology to help consumers better ration and understand the energy they are using—and even producing—through solar panels and other means. IoT sensors across the grid can detect potential risks earlier so that power can be redistributed as needed to prevent or minimise outages and other issues. Sensors can also detect mechanical problems and alert technicians as needed for repairs, all of which helps energy consumers to have better control and insight.
• Smart cities: According to the Smart City Index (SCI), a smart city is “an urban setting that applies technology to enhance the benefits and diminish the shortcomings of urbanisation.” Increasing populations, traffic congestion, and ageing infrastructures are all among some of the challenges that the IoT is helping to address. By using sensors, meters, and other IoT devices, city planners can monitor and collect data to proactively address issues. For example, sensors placed in storm drains can detect water levels and automate actions to help prevent flooding when levels become too high.
• Connected cars: Today, virtually all new cars roll off the line with IoT and smart functionality, with 5G cars expected to grow in ubiquity over the next five years and beyond. Advanced driver assistance systems (ADAS) that use IoT technology help drivers avoid collisions, plan routes, squeeze into tight spaces, and much more. And as automotive IoT develops, we are increasingly seeing connectivity with external devices such as traffic lights, pedestrians, news and weather sources, and streaming entertainment providers.
• IoT in retail: Customer-facing IoT solutions are increasingly being used to enhance in-store experiences. Motion-activated smart cameras, smart shelves, beacon, and RFID technologies can help shoppers locate items through a mobile app. They make it easy to share stock information, and even send in-context promotions to customers whilst they are browsing in store. And as the lines blur between in-store and online shopping experiences, IoT solutions can help improve customer experiences by tracking delivery and shipping vehicles, allowing customers to better customise their shopping plans.
• Telehealth: It is increasingly common to see IoT-driven consumer medical devices such as smart watches and medication dispensers that help doctors to monitor patients remotely. But some of the most fascinating advances in telehealth are coming via smart surgical tools. This is particularly relevant for patients in remote or less developed areas. These tools enable remote doctors to connect with some of the finest surgeons in the world, to carry out guided surgeries, remote diagnoses, and even monitor anaesthetised patients during that critical period.
• Traffic management: Through a network of sensors, cameras, and other devices, IoT technology can be used to reduce traffic congestion and help to provide workable rerouting options. For example, real-time data feeds can be used to adjust the timing of signals to ensure a smooth flow of traffic in dynamic conditions. Light sensors can detect and adjust lighting brightness for optimal visibility, while road sensors can detect accidents and automatically report issues.

What are the industrial uses of IoT data?

Of the trillions of gigabits of data we generate each year, Industrial IoT (IIoT or Industry 4.0) data is the largest (and fastest growing) producer of data. This growth in data comes from myriad sources, from surveillance cameras to connected cars and manufacturing and transport applications. Today, IIoT data is generated, gathered, and utilised across virtually every industry, from supply chain management to healthcare.

One of the areas in which IIoT technology is growing the fastest is within manufacturing and supply chains. In a smart factory, sensors can detect and even predict mechanical issues to keep things running smoothly. They can also collect and analyse operational data to identify workflows and processes that are the fastest and most efficient—which can then be automated via a central system. In supply chains, IoT solutions help to streamline operations from end to end. Raw materials and supplies can be tracked for safety and provenance. Cargo, shipping, and last-mile logistics can be monitored in real time. And customers can receive live updates about the status of their orders or the origin of their products.

The future of IoT

What we can look for in the future is a more seamless integration between technology and human experience. While the metaverse may still be a few years away, 3D audio, advanced virtual reality, haptic sensations, and AI-powered real-time personalisation will mean that our interaction with the devices around us will allow for increasingly “real” sensory experiences. Furthermore, with the rise of 5G and globally ubiquitous fast connectivity, people will have a quantum-like ability to share these experiences across any distance. The implications of this are vast and have the potential to change how we approach some of our most fundamental activities and institutions such as workplaces, surgical and medical care, property, shopping, travel, and human relations in general.