People often ask what the Internet of Things is. Indeed, there is a lot of confusion out there.

You already know how the Internet connects people, businesses, and information worldwide. The increasingly relevant Internet of Things simply connects devices in the same way.

The Internet of Things (IoT), sometimes referred to as the Internet of Everything or the Industrial Internet, is a computing concept that describes everyday physical objects being connected to the Internet and able to identify themselves to other devices and systems. The term IoT was first coined by Kevin Ashton in 1999 while working at Procter & Gamble. However, the first internet-connected appliance, a Coke machine at Carnegie Mellon University, was created in 1982. Since then, IoT adoption has grown exponentially – there are now over 10 billion IoT devices worldwide as of 2019, according to IHS Markit. The global market value of IoT is projected to reach £662 billion by 2025, as per IoT Analytics.

What Is The Internet of Things?

The Internet has transformed how people, businesses, and information connect globally. The Internet of Things (IoT) takes this connectivity to the next level by connecting physical devices similarly.

The Internet of Things refers to a network of physical objects embedded with sensors, software, and connectivity, enabling them to collect and exchange data. These “smart” objects range from everyday household items to sophisticated industrial equipment, all communicating with each other without human intervention.

The term “Internet of Things” was first coined by Kevin Ashton in 1999 while working at Procter & Gamble. However, the concept began earlier—the first internet-connected appliance was a Coke machine at Carnegie Mellon University created in 1982. Since then, IoT has grown exponentially with over 15 billion connected devices worldwide as of 2023, projected to reach 30 billion by 2030.

How IoT Works

IoT devices communicate using Internet protocols, creating billions of connections that drive technological advancement. These devices feature:

• Sensors that collect data from their environment
• Connectivity components that transmit this data
• Processing capabilities that act on the collected information
• Software that enables functionality and integration

In practical terms, IoT enables everyday objects to sense, communicate, and interact with their environment. For example, smart thermostats can monitor temperature patterns, smart fridges can track inventory, and industrial sensors can predict equipment failures before they happen.

“IoT represents the most significant shift in how businesses operate since the introduction of computers. It’s not just about connecting devices; it’s about fundamentally transforming how we gather and use data to make smarter decisions,” explains Ciaran Connolly, Director of ProfileTree.

What is the Internet of Things – Global Growth of IoT

The Internet of Things is growing at a speedy rate of about 28.5% per year, with a market evolution from $157 billion (2016) to $657 billion (2025).

This number is expected to reach over $457 billion by 2021. The business-to-business segment in the USA represents over $300 billion annually, with about $85 billion in the industrial sector and about $72 billion for residential services.

Manufacturing, utilities, and transportation logistics will be spending about $40 billion each year starting in 2020.

Globally, the IoT is expected to grow to around $3.2 trillion in 2025 (a more realistic progression from the $8.9 trillion projected for 2020) and maintain a growth rate of 20% per year. Global industrial manufacturing will be about $398 billion (it was $890 billion in 2020).

Healthcare will be a huge market for global Iot services, estimated to be worth $427 billion (down from the earlier projection of $1.3 trillion, which was likely overestimated).

IoT is making an impact across many industries, including:

• Manufacturing—IoT sensors can detect failures early and enable predictive equipment maintenance. This improves uptime and reduces costs. For example, Aerospace company Airbus uses Iot sensors to track its factory assets and optimise production.
• Healthcare—IoT devices can monitor patient health remotely and provide telemedicine options. Medical device company Medtronic uses IoT sensors to collect data on heart patients and detect problems.
• Retail—IoT sensors in stores can track inventory levels in real time. Walmart uses RFID tags to monitor stock levels. Digital signs and beacons can also target promotions to shoppers.
• Smart homes—IoT devices like Google Nest thermostats, Amazon Echo speakers, and bright lights make homes more energy-efficient, secure and convenient.
• Smart cities—IoT sensors monitor public infrastructure like bridges for safety, collect traffic data to optimise routes, and more efficiently manage public transportation, garbage collection, and water usage. Barcelona, London, Singapore, and more are becoming smart cities.

Different Types of IoT Devices

IoT devices can be classified into different types based on their function, industry, and form factor. Some common types of IoT devices include:

• Wearables: IoT devices worn on the body, such as smartwatches, fitness trackers, and augmented reality glasses. These devices can track health data, fitness levels, and location.
• Smart home devices: IoT devices that control and manage the home, such as smart thermostats, lights, and locks. These devices can automate tasks, save energy, and improve security.
• Industrial IoT devices: IoT devices used in industrial settings to improve efficiency and productivity, such as asset tracking sensors, predictive maintenance systems, and smart robots. These devices can track inventory, optimise production schedules, and predict machine failures.
• Smart city devices: IoT devices that improve city infrastructure and services, such as traffic sensors, air quality monitors, and smart parking systems. These devices can reduce traffic congestion, improve air quality, and make parking more efficient.

Different Ways That IoT Devices are Used

IoT devices are used in a wide variety of industries and applications, including:

• Healthcare: IoT devices monitor patients’ health, track medication adherence, and provide remote care. For example, they can monitor patients’ blood pressure, heart rate, and glucose levels. They can also track when patients take their medications and remind them to take them if they forget.
• Manufacturing: IoT devices track inventory, optimise production schedules, and predict machine failures. For example, they can track the location of products in a warehouse, monitor the performance of machines on a production line, and predict when machines are likely to fail.
• Transportation: IoT devices track vehicles, manage traffic flow, and optimise fuel efficiency. For example, they can track the location of buses in real time and provide passengers with estimated arrival times. They can also monitor traffic conditions and adjust traffic lights accordingly.
• Retail: IoT devices track inventory, monitor customer behaviour, and improve the shopping experience. For example, they can track customers’ movement around a store and identify popular products. They can also send personalised recommendations to customers based on their past purchases.
• Agriculture: IoT devices monitor crop health, automate irrigation systems, and track livestock. They can also monitor soil moisture levels and turn on irrigation systems when needed. They can also track livestock locations and ensure their safety.

Security and Privacy Concerns Associated With the IoT

IoT devices are increasingly being targeted by cybercriminals. Some of the security and privacy concerns related to the IoT include:

• Data breaches: IoT devices often collect and store large amounts of data, which can be a target for hackers. For example, hackers could steal personal data from IoT devices like health or financial information.
• Device hijacking: Hackers can hijack IoT devices and use them to launch attacks against other devices or networks. For example, hackers could use hijacked IoT devices to launch a DDoS attack against a website or network.
• Botnet attacks: IoT devices can be used to create botnets, networks of infected devices that can launch DDoS attacks or spread malware. For example, hackers could use a botnet of hijacked IoT devices to launch a DDoS attack against a website or network.
• Privacy concerns: IoT devices collect a lot of data about our personal lives, which raises privacy concerns. For example, they could collect data about our location, activities, and health. Companies or governments could then use this data to track us or target us with advertising.

How to Mitigate the Security and Privacy Risks Associated with the IoT

There are several things that you can do to minimise the security and privacy risks associated with the IoT, including:

• Choose IoT devices from reputable manufacturers and retailers. This will help to ensure that the devices are secure and that they have been updated with the latest security patches.
• Keep your IoT devices up to date with the latest security patches. This will help to protect your devices from known vulnerabilities.
• Use strong passwords for your IoT devices and change them regularly. This will make it more difficult for attackers to access your devices.
• Enable two-factor authentication (2FA) for your IoT devices whenever possible. 2FA adds an extra layer of security to your devices by requiring you to enter a code from your phone in addition to your password.
• Be careful about what information you share with IoT devices. 

Devices Utilising the Internet of Things

Many technological advancements are emerging that take advantage of the newer IoT capabilities. The easiest way to understand how the Internet of Things market is made up is to consider some industries that benefit the most.

These include the following as a percentage of the total IoT market:

Smart Cities (26%)

A smart city uses information technology to create more efficient communications, which help improve the efficiency of municipal government operations, share public information more readily, and improve the general welfare of its citizens.

This can involve things like using data to improve the provision of public services or prioritising infrastructure projects.

Industrial IoT (24%)

The industrial applications of IoT include the application and monitoring of sensors and other connected devices to improve manufacturing processes, enhance the maintenance of machinery and equipment, and leverage the power of enterprise IoT services for comprehensive data analysis and automation.

There are also several applications for machine learning using IoT technology in the industrial sector.

Connected Health (20%)

These systems allow healthcare workers to monitor the health conditions of patients benefiting from home care services without the patients needing to come into the healthcare facilities as often.

This not only saves on healthcare expenses but also improves the quality of patient care.

Smart Homes (14%)

Smart homes operate more efficiently and respond to usage patterns to monitor heating and ventilation. They also allow you to automate domestic tasks, like laundry or restocking your fridge.

Smart homes have enhanced security and video surveillance monitoring, notifying homeowners of potential dangers, such as a fire or an intrusion. These systems can also summon emergency response if needed.

Connected Cars (7%)

Connected cars link drivers and their environment to improve the driving experience. The driver can be informed of road conditions, weather, hazards, and suggested routes to avoid difficulties.

In fleet operations, GPS monitoring can inform the fleet manager of the location of every fleet vehicle.

Real-time delivery and pick-up scheduling can be enhanced with efficiencies that come from knowing where all the vehicles are located and what traffic conditions the fleet members are experiencing.

Smart Utilities (4%)

Smart utilities use smart meters to allow for better allocation of power consumption and real-time response with power creation that may incorporate alternative power generation.

For example, a building or residence may operate on solar power and, at times, have excess power not needed for the specific facility that can be put back on the grid to reduce utility expenses. Utilising the solar irradiance map can help accurately predict these surplus energy periods, enabling more strategic energy management and grid contributions.

A battery system that recharges at times other than during peak power usage can be used to reduce the cost of recharging the batteries.

Wearables (3%)

Some interesting uses of IoT-connected wearables are monitoring exercise programs for the amount of exercise achieved, heart rate, blood pressure, and calories burned.

Additionally, wearables can send and receive sensory messages.

This message can be sent to friends and family if they are wearing a connected device. Another excellent use of a wearable device is monitoring diabetics’ blood sugar levels to help them know when to take insulin or do something to raise their blood sugar.

IoT Security Challenges:

While IoT offers many benefits, it also introduces security risks like:

• Data protection – IoT devices collect a lot of consumer data that needs to be kept private and secure.
• Device hacking – Criminals can exploit security flaws in IoT devices to access networks or launch DDoS attacks. The 2021 Colonial Pipeline attack was through an IoT device.
• Privacy concerns – Constant surveillance through IoT devices can raise privacy issues if not addressed responsibly.

Organisations can take steps like:

• Encrypting data
• Monitoring for anomalous behaviour
• Regularly patch and update devices
• Authenticate users and devices
• Isolate IoT networks through VLANS

The Future of the Internet of Things

Of course, we’ve only scratched the surface of the Internet of Things’ potential. Because of its wide-ranging potential applications, this area is seeing billions of dollars of annual investment.

The pace of technological change has never been faster.

Because of this, it’s difficult to predict where IoT technology might lead us in even a few years. Chances are, it will be an integral part of new developments, which were the domain of science fiction in the past.

These include driverless cars, automated assistants, and much, much more.

The rewards of IoT technology will be high for early adopters. This fact explains the industry’s large stock revenue over the last decade. Everyone wants to get in on the ground floor of this massive growth industry.

Conclusion

The Internet of Things offers transformative potential for businesses willing to embrace it strategically. Success with Iot doesn’t come from technology alone—it requires clear objectives, thoughtful implementation, and ongoing optimisation.

As Iot continues to evolve and converge with AI, edge computing, and 5G, organisations that begin their journey now will be best positioned to capitalise on future opportunities. The most effective implementations align technology with specific business challenges and create measurable value.

Remember, IoT is no longer just a future trend—it’s a present reality reshaping how businesses operate. The question isn’t whether your organisation will participate in this transformation but how you’ll leverage it to drive growth and innovation.

Ready to Transform Your Business with IoT?

Don’t navigate the complex world of IoT implementation alone. ProfileTree’s team of digital experts can help you develop a customised IoT strategy that drives real business results.

Whether you’re just beginning to explore IoT possibilities or looking to optimise your existing implementation, we provide end-to-end support—from strategy development and web integration to data analytics and security planning.

Take the first step today:

• Schedule a free 30-minute IoT consultation
• Get a personalised assessment of your IoT readiness
• Discover how our digital expertise can accelerate your IoT journey

Contact ProfileTree now to discuss how we can help your business harness the transformative power of IoT. Call us at 028 9568 0364 or email hello@profiletree.com to get started.

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