Picture yourself in your favorite cafe engrossed in the latest issue of Economy Middle East magazine. You reach for the cup of coffee by impulse when suddenly your wristband vibrates to let you know that the coffee is still too hot for you.
So you get back to the magazine and about a minute later there’s a notification on your watch telling you that the beverage is at the temperature you like.
That’s the kind of interconnectedness that’s possible thanks to the Internet of Things, popularly known as IoT.
There are about 17 billion connected IoT devices currently in 2024. Industry insiders expect the number of IoT devices to grow at an average annual growth rate of 12%. At this rate, the number of IoT devices will grow to about 29 billion years by the end of the decade. In terms of revenue, McKinsey estimates the total value of the IoT ecosystem could top $12.6 trillion by 2030.
But what exactly is IoT?
Think of IoT as a network of connected devices.
These devices could be everything from phones to wearables, to appliances like coffee makers, and washing machines. What makes them smart is that they are connected to a network like the Internet and are aware of other connected devices around them.
But IoT is much more than things connected to the Internet.
IoT is about making dumb things smarter by giving them the ability to sense, communicate, and respond. The Internet is just an efficient means for these smart devices to communicate with us and each other.
Why is IoT important?
IoT helps people live and work smarter.
For you IoT might be a security system that monitors your house for any intrusions. When it senses a break-in, the system alerts not just you, but also the security agencies. IoT could be as small as a wristband that not just monitors the vitals of your parents, but also alerts you when it finds anything out of the ordinary.
While these are small achievable goals the real power of IoT would be when our smart cars can talk with our smart houses. So just as you drive into the driveway your car asks the garage to open the door. Depending on the time of the day, it then adjusts the light and the air conditioner as per your preferences.
IoT is also essential to business. Its ability to talk to multiple devices could help streamline manufacturing without human intervention. For instance, companies can use IoT to monitor wear and tear, and maintain their production lines.
IoT History & Development
The origins of the term and the concept of Internet of Things are hotly debated. Some credit British technologist Kevin Ashton as the first to use the term in 1999. Others argue that it was first used in a speech by Peter T. Lewis in 1985.
In addition to coming up with the term, Lewis predicted it would work by connecting sensors and devices over a ubiquitous medium such as cellular networks.
One thing everyone agrees upon is the first example of an IoT device. A Coca-Cola vending machine in Carnegie Mellon University in 1982 connected to ARPANET, the precursor to the Internet. In addition to vending the drinks the machine could report its inventory, along with the temperature of the drinks.
Examples of IoT Application
There are loads of IoT smart devices available in stores near you.
Smart Speakers
The most well-known example of an IoT device for the home is Amazon’s Echo range of smart speakers. With their support for the virtual assistant, Alexa, you can use Echo to control smart plugs, security cameras, and more. Then there’s Google’s Nest Mini that can also control other smart devices.
Smart Lamp
The Philips Hue smart lighting system lets you control the Philips Hue lights from anywhere on the planet. You can also use it to create custom lighting scenes, schedules, and more.
Smart Locks
BenjiLock was the world’s first standard-compliant smart padlock that you can unlock with a fingerprint. The smart lock market has exploded since then. Now you get locks with cameras that you can unlock with fingerprints, OTPs, and more, from anywhere in the world.
IoT Benefits
If you’re still not convinced about the usefulness of IoT here are the top reasons for deploying IoT.
Improve quality of living
By enabling devices to talk to each other, IoT helps automate repetitive, mundane tasks and improve our lives. It’ll also help save us time, for instance, when alarm clocks can turn on coffee machines.
Read: 5 ways the revamped Google Gemini can make your life simpler
Improve efficiency
IoT devices can help automate processes and help businesses improve their efficiency. Reporting stock levels of consumables, and reordering a fresh batch can help businesses ensure they aren’t running low on essentials. The same can be narrowed down to an individual user and their IoT-enabled fridge that can reorder groceries when required.
Turn data into insights
One thing IoT is good at is collecting data. Sensors on IoT devices feed all kinds of data, which can be collected and housed to predict future outcomes. For example, individuals can keep a check on their calories thanks to their fridge storing data on its previous orders.
Turn insights into actions
With the help of Artificial Intelligence and Machine Learning, the collected insights can be turned into actionable tasks. For instance, tracking the time it takes a consumer to switch off the alarm and come to the kitchen for their coffee, IoT can help cut down electricity costs by cutting down the number of reheats.
IoT Disadvantages
Despite all its benefits, deploying IoT comes with several disadvantages as well.
Interoperability
IoT devices from one manufacturer don’t always work well (if at all) with smart devices from another vendor. There are multiple standards for IoT and many of them don’t play nice with the others making it difficult for IoT devices to talk to each other.
Data overload
IoT devices generate a lot of data and sometimes making meaningful use of this data is a task in itself.
Cost
While they do appear to be useful, turning regular devices into smart ones often comes at a considerable cost.
Read: 10 IT skills that will be in demand in 2025
Security
The risk of compromise of IoT devices is considerably more since they need to be connected to the Internet 24×7.
What technologies does IoT depend on?
IoT is the culmination of several other hardware and software technologies.
Sensors
One of the most important components of a smart device is a sensor. It’s these sensors that convert raw data into actionable input. For instance, for a smart cup to heat up a beverage to a particular temperature, it must rely on a sensor to monitor the temperature of the drink.
Unique identifiers
An IoT setup depends on a whole set of sensors and smart devices. All these should be uniquely identifiable to ensure data or action for one doesn’t end up with another.
Internet
While it isn’t the only component that makes devices smart, it helps ensure devices can communicate with each other seamlessly.
AL and ML
Some IoT devices like the Echo smart speakers wouldn’t be of much use without AI, specifically Natural Language Processing (NLP). AI and ML also helps IoT devices help the device understand the context behind an instruction.
Final Thoughts
Unlike some technology buzzwords, the Internet of Things has all kinds of practical uses both for individual consumers and businesses. The term refers to a suite of hardware, and software, that help transform an everyday device into an intelligent one.
From a consumer perspective, the technology can be seen in action in the form of smart home tech like the Echo speakers. Outside of the smart home, IoT has use in virtually all sectors including agriculture, healthcare, manufacturing, and more.
For more news on technology, click here.