What is IoT or the Internet of Things? Definition, Examples and How it Works.
The Internet of Things or IoT has become relevantly common in the current times. In this blog, we will discuss various aspects related to what is IoT and take a look at its functioning. We will discuss here about the various examples and common technology applications.
What is IoT (Internet of Things)?
The Internet of Things, or IoT, refers to the billions of physical objects connected to the internet, actively collecting and exchanging data. With the wider availability of affordable computer chips and use of wireless networks, anything can be a component of IoT. By connecting and equipping it with sensors, we add digital intelligence to them. Moreover, we further enable them to communicate real-time data without the involvement of human beings.
Today, the number of IoT devices has drastically increased. In fact, according to IDC, there will be 41.6 billion connected IoT devices by 2025, or ‘things’.
Why the Internet of Things (IoT) is Important?
At the present time, IoT is massively growing. In fact today the presence of connected things are much more than the presence of the people. Industry professionals predict that utilities will be the highest user of IoT, owing to the continued rollout of smart meters. Moreover, security devices detecting intruders and web cameras have emerged as the second biggest use of IoT devices.
To begin with, IoT has emerged as one of the most important technologies of the 21st century. Continuous communication between people, processes, and things is possible today due to the ability to connect commonplace items like appliances. Moreover, low-cost computing, the cloud, big data, analytics, and mobile technologies enable physical objects to share and collect data without human intervention.
Businesses can automate procedures and save money on labor thanks to IoT. It also reduces waste, enhances service delivery, lowers the cost of manufacturing, and delivering goods. Additionally, IIoT also provides transparency into customer transactions. As a result, IoT is among the most significant technologies of modern life, and it will gain momentum as more companies realize how connected devices can help them stay competitive.
Examples of Internet of Things (IoT)
Some of the most common examples of IoT are around us. Let us take a look at these common examples of IoT:
- Smart Home: Google Home and Amazon Echo are the most popular examples of connected devices in consumer IoT. These devices are helping people perform a variety of functions like playing music, providing a weather report, ordering food or Uber, and many more.
- Wearable Devices: The wearables devices are the common examples of IoT devices. The Fitbit Charge 3 device helps you to track your steps, the number of stairs you climb, calories you burnt, and your quality sleep you take. This device also syncs with your computers and smartphones via Wi-Fi. And transmits your fitness data in understandable charts to monitor your progress.
- Smart Cities: Barcelona city is one of the foremost smart cities in the world. The city became so after it implemented several IoT initiatives that have helped enhance smart parking and the environment.
- Connected Car: AT&T was the first telecom company to open a connected car research and innovation center.
What are the Benefits of the Internet of Things?
IoT has several benefits for businesses. However, most of these majorly depend on the particular implementation where agility and efficiency are the primary considerations. This is because enterprises focus on gaining access to more data about their products as well as internal systems.
Manufacturers are integrating sensors into various components of their products to transmit information about how those components are performing. This makes it possible for businesses to predict when a component will fail and replace it in time to prevent damage. Businesses can use the data generated by these sensors to increase the effectiveness of their supply chains and other systems because it is more accurate.
To begin with, the use of IoT devices ranges across all industries. For example, smart air conditioning or security systems, and IoT offerings that are industry-specific. For example, sensors in a generating plant or real-time location devices for healthcare.
The International Data Corporation’s (IDC) Worldwide Semiannual Internet of Things Spending Guide estimated that enterprises’ IoT spending to reach US$208 billion in 2022 in Europe and further estimated it to continue experiencing double-digit growth through 2026. Despite facing many uncertainties due to the pandemic, inflation, low demand, supply chain disruption, and geopolitical conflicts, IDC expects the European IoT market to continue to develop and expand, though at a slower pace than before the Russia-Ukraine War. This growth will continue in 2022 in various sectors such as manufacturing, retail, etc. Especially where the need to maintain operations and improve performance is imperative.
Given the expansive IoT market, it is imperative that IoT has various benefits for enterprises as well as industries. Following are some benefits of IoT:
- Provides businesses with valuable data for generating more revenue.
- Boosts employee productivity.
- Saves time and money for an organization.
- Enables a better decision-making process.
- Improves process efficiency, asset utilization, and productivity.
- Benefits in real-time insights and analytics to make better decisions.
- Benefits people in creating opportunities in business and industries.
The above-listed importance of IoT are just the tip of the iceberg. This is because the applications and implementations of IoT are limitless, from the perspective of innovation and advancement.
What is Industrial IoT or IIoT?
Industrial Internet of Things or IIoT refers to the industrial applications of computers networked with connected sensors, instruments, and other devices. This connectivity makes possible the ability to collect, exchange and analyze data. In fact, it also has several positive effects on the economy.
Recently, industries have started using machine-to-machine communication (M2M) to achieve wireless automation as well as control. However, with the surfacing of cloud and allied technologies like analytics, ML, and others, industries can now achieve a new layer of automation and generate new revenue, including new business models, with it. Oftentimes, IIoT is also called Industry 4.0 (the fourth wave of the industrial revolution).
Smart manufacturing, connected assets, preventive and predictive maintenance, Smart power grids, Smart cities, connected logistics, smart digital supply chains, etc., are examples of some of the common applications of IIoT.
Staggering Statistics of IoT
Here are some eye-opening Internet of Things statistics that you should know in 2022
- The global utility IoT market is expected to hit $129.1 billion by end-2032—with an 11.9% compound annual growth rate (CAGR). Since this sector continues to receive steady support from several governments, market revenue is expected to hit $41.8 billion by end-2022.
- IoT in automation is expected to gain up to $148.6 billion in revenue by 2027—with an 11.4% CAGR from 2022.
- Of the 3.5 billion cellular IoT connections expected to be present in 2023, 2.2 billion are anticipated to be active in North East Asia.
- The global internet of things (IoT) market is projected to grow from $478.36 billion in 2022 to $2,465.26 billion by 2029, at a CAGR of 26.4% in the forecast period.
- 58% of manufacturers see IoT as a strategic necessity for transforming industrial operations.
How is IoT Changing the World?
Over decades ago, man lived in a world where scientific and technological innovation was limited to movies and television series. Now, he lives in the world of science and technology. Today, technological advents have made several things, which were previously considered impossible, possible. One prominent example of this is IoT. With the development of cheap computer chips and the widespread availability of wireless, everyday objects have become IoT devices.
All in all, smart objects can communicate without the support of people due to the sensors providing digital intelligence. These sensors also offer control of a home’s lighting, temperature, and other features. In fact, your home can monitor your daily activities with the help of an internet connection. For example, when you wake up, what station you listen to, what you eat, and who comes to visit.
In many fields, including transportation and healthcare, the Internet of Things offers enormous opportunities. Besides helping you to save time, it fuels productivity and efficiency. You can, in fact, stay in touch with others using IoT devices on wearables.
Frequently Asked Questions About the Internet of Things
FAQ What is IOT (internet of things)
Anwesha has been a creative writer for a while. Currently, on her pursuit of tech writing, she is diving into the realms of technology to produce better content on the forever-changing world of technology. In her free time, you’ll find her humming tunes of her favourite shows or reading a book.