The Internet of Things (IoT) is an umbrella term used to describe a network of physical devices that can communicate with each other over the internet. IoT devices typically rely on sensors to collect data, which is then automatically shared with other devices or used to automate actions.
Thanks to the internet and development of smaller technology, sensors can now be embedded into everyday devices, allowing these to communicate with each other and feed back data to a central hub. These can include consumers devices such as smart speakers and virtual assistants, or even temperature control systems in an office and industrial machinery on a factory floor.
According to an IBM blog, IoT can be traced back to 1981, ten years before the World Wide Web was opened to the public. It is believed a group of Carnegie Mellon students were the first to embed a vending machine with sensors in order to monitor its stock levels remotely. In spite of its elusive beginnings, IoT has established itself as an everyday element of modern life. Smartphones, laptops, lights, even cars and fridges, are all examples of daily IoT use.
IoT is present in every sector, from healthcare and retail to farming and transport. Moreover, it's a fast-growing industry that is spreading across an increasing number of sectors, as more businesses realise how to apply IoT in order to gain a competitive advantage.
In fact, it has outgrown the 'human' internet exponentially. The number of non IoT devices (laptops, smartphones, etc) currently stands at around 10.2 billion, about the same as last year and with only steady growth since 2010, when there were 8 billion devices. Contrast that with IoT devices (cars, smart home devices, industrial equipment, etc). In 2010 there were just 800 million. Today there are 24.4 billion, set to hit 30.9 billion next year.
How IoT is being deployed
We have so far seen two major applications of IoT, those in the consumer space and those in industry.
IoT devices have been welcomed into our homes in staggering numbers. All over the world we bought just under 40 million smart speakers in the first quarter of 2022, down from a peak just under 60 million in the last quarter of 2020 (not uncoincidentally, the peak of COVID lockdowns).
If you use a video doorbell or security camera you can check on your phone, Google Nest or Amazon Alexa or a Smart TV preloaded with apps from Netflix or YouTube, you're an IoT user.
Just as much growth is happening in business or industrial sectors. Sales, marketing, and CRM platforms from providers like Salesforce and Atlassian are connecting data from every corner of a company, its suppliers, and customers to help owners extract value from business intelligence (BI).
The world's busiest shipping lanes are now managed by IoT devices, with remote sensors automatically logging cargo and syncing the data from a port to a central hub.
In healthcare, patients are wearing a variety of devices. Initially this started with familiar technology, such as a Fitbit wrist band that counts your daily steps. However, more advanced technology is appearing, including the Nanowear SimpleSENSE, an undergarment that captures and reports on temperature, blood pressure, blood flow hemodynamics, lung volume, and fluid and ECG readings. Health IoT devices that capture such data can send it directly to your doctor where they can make diagnoses and prescribe treatments via text or email.
In agriculture, sensors in the ground can measure moisture or nutrient content and pass this data to irrigation or fertilization systems. Harvest monitoring can augment the expertise of farmers with atmospheric readings to make sure harvesting occurs at exactly the right time.
We're also seeing a greater number of electric cars on the roads, with many of their manufacturers racing to be the first to develop reliable self-driving technology. So far, the majority of the driver safety smarts and algorithms are embedded into the vehicle itself, but infrastructure providers are starting to formalise plans for smart roads. Sensors under the asphalt, in traffic lights, and on signs will collect data and potentially connect to every vehicle on the road, diverting them from traffic jams, reporting on overall flow performance to let city planners make changes, and even summoning emergency services automatically if there's an accident.
The technology behind IoT
Any IoT system comprises three essential components; sensors, connectivity and analytics.
Sensors are as varied as the applications that use them. Most of us are used to simple audio or visual data when asking Alexa to cue up the latest Amazon series or check who's at the door through a smart home app.
But IoT sensors can measure almost everything you can think of. A GPS receiver can pinpoint an object's location. Digital thermometers can measure the temperature anywhere from the living room to the greenhouse, making automated adjustments. Barometers can measure humidity in office HVAC systems to make sure they operate at peak efficiency.
Motion and proximity sensors that automatically open doors have been with us for decades, but as part of an IoT network they can contribute to the efficient use of a building by helping build a digital twin 3D model.
Pressure sensors and scales can measure the displacement or weight of an object or the air pressure inside it, applicable everywhere from inflating your car tyres to comfortable air travel.
Those sensors have onboard microprocessors that collect data about how they're used and what they measure over time, and the next step – connectivity – is how they transmit it to a central processing hub.
Like the consumer internet, IoT connectivity depends on the application. Simpler systems might rely on wired connections like Ethernet, but larger systems that cover a wider physical area might use public or dedicated Wi-Fi. In the case of industrial devices that are reliant on low-latency connections, 5G is typically the answer. Systems that operate on smaller scales but contain an array of moving parts moving in and out of the system might use RFID or Bluetooth.
But the secret sauce of the IoT is analytics. When all the data is collected from across the farm, store, factory, or household, it is then analysed to give owners and operators a snapshot about how the facility or system is performing overall. This helps to pinpoint bottlenecks in production, identify breakdowns waiting to happen that would be impossible for a human to foresee, and find efficiencies that can save time and money.
There are still plenty of challenges for hardware makers, engineers, and inventors; security, privacy, and compatibility standards, to name just a few.
Why is IoT so important?
It's somewhat inevitable that with the growing availability of faster and more reliable broadband, devices will soon come with the ability to connect to WiFi as standard. The IoT is already beginning to shape the way we manage our daily routines; cars are able to sync with calendars to track appointments and plan best routes, and smart assistances have transformed shopping into a conversation.
Yet, by far the most compelling application of IoT can be found within industry, where AI is revolutionising the way we do business. Smart cities are helping us to cut down on waste and energy consumption, while manufacturers are now able to use connected machines that automate repair call outs.
Is IoT safe?
In 2016, it was alleged that hackers used an IoT enabled fish tank as a gateway into a North American Casino's network. The tank was supposedly kitted out with sensors to regulate temperature and notify its owner about feeding times and configured to a single VPN. Somehow, the hackers managed to breach that and gain access to further systems within the casino.
While it is a funny story, it also highlights the dangers of IoT in that each device you have can also be a gateway into your entire network. For businesses that have whole factories running IoT machinery, or offices that have IoT hardware, making sure everything is secure can be a big headache.
A part of the problem can be default passwords that are easy to crack. This was the main focus of a UK government proposition called 'Secure by Design' that called on manufacturers to embed security into the design, rather than adding it after its built.
This is quite important for IoT, especially as almost anything can be internet-enabled and this can sometimes mean so-called 'headless devices'. Something that doesn't have a way to modify a password because it has rudimentary controls or no interface.
