Imagine you are sitting in your favorite café, reading the latest issue of Economy Middle East magazine. You spontaneously reach for a cup of coffee when suddenly your bracelet vibrates, letting you know that the coffee is still too hot for you.
So you go back to the magazine and about a minute later you get a notification on your watch that the drink is at the desired temperature.
This type of networking is possible thanks to the Internet of Things (commonly known as IoT).
In 2024, there are currently about 17 billion connected IoT devices. Industry experts predict that the number of IoT devices will grow at an average rate of 12% annually. At this rate, the number of IoT devices will grow to about 29 billion by the end of the decade. In terms of revenue, McKinsey estimates that the total value of the IoT ecosystem could exceed $12.6 trillion by 2030.
But what exactly is IoT?
Think of IoT as a network of connected devices.
These devices can be anything from phones to wearables to home appliances like coffee machines and washing machines. What makes them smart is that they are connected to a network like the internet and can detect other connected devices in their environment.
But IoT encompasses much more than just 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 could be a security system that monitors your home for intruders. If it detects a break-in, the system not only alerts you but also the security authorities. IoT could be as small as a bracelet that not only monitors your parents’ vital signs but also alerts you if it detects anything unusual.
While these are small, achievable goals, the real power of IoT would be that our smart cars could communicate with our smart homes. As soon as you pull into the driveway, your car will tell the garage to open the door. Depending on the time of day, it will then adjust the lights and air conditioning to suit your needs.
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IoT is also critical for businesses. The ability to communicate with multiple devices could help streamline manufacturing without human intervention. For example, companies can use IoT to monitor wear and tear and maintain their production lines.
IoT – History and Development
The origins of the term and concept of the Internet of Things are hotly debated. Some say British engineer Kevin Ashton was the first to use the term in 1999. Others say it was first used in a speech by Peter T. Lewis in 1985.
Lewis not only coined the term, but also predicted that the technology would work when sensors and devices were connected through a ubiquitous medium such as cellular networks.
There is agreement on the first example of an IoT device. In 1982, a Coca-Cola vending machine at Carnegie Mellon University was connected to ARPANET, the forerunner of the Internet. In addition to selling drinks, the machine could also report its inventory and the temperature of the drinks.
Examples of IoT applications
There are many smart IoT devices available in stores near you.
Smart speakers
The most well-known example of an IoT device for home use is Amazon’s Echo range of smart speakers. Thanks to their support for the Alexa virtual assistant, you can use Echo to control smart plugs, security cameras and more. Then there’s Google’s Nest Mini, which can also control other smart devices.
Smart lamp
The Philips Hue smart lighting system lets you control Philips Hue lights from anywhere in the world. It also lets you create custom lighting scenes, schedules, and more.
Smart locks
BenjiLock was the world’s first standards-compliant smart padlock that you could open with your fingerprint. Since then, the smart lock market has exploded. Now there are locks with cameras that you can open with fingerprints, OTPs, and more from anywhere in the world.
IoT Benefits
If you are not yet convinced of the benefits of IoT, here are the top reasons for using IoT.
Improving the quality of life
By allowing devices to communicate with each other, the IoT will help automate repetitive, everyday tasks and improve our lives. It will also help us save time when, for example, alarm clocks can turn on coffee machines.
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Improve efficiency
IoT devices can help automate processes and help businesses improve their efficiency. By reporting inventory levels of consumables and reordering a new batch, businesses can ensure they don’t run out of essentials. The same can be boiled down to a single user and their IoT-enabled refrigerator, which can reorder groceries when needed.
Turn data into insights
One thing IoT is good for is collecting data. Sensors on IoT devices provide all sorts of data that can be collected and stored to predict future outcomes. For example, individuals can keep track of their calories because their refrigerator stores data on past orders.
Turning insights into action
Using artificial intelligence and machine learning, the insights gathered can be translated into actionable tasks. For example, by tracking the time it takes a consumer to turn off the alarm and get to the kitchen to get their coffee, IoT can help reduce electricity costs by reducing the number of reheats.
Disadvantages of IoT
Despite all the advantages, the use of IoT also brings with it some disadvantages.
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 work well with each other, making it difficult for IoT devices to communicate with 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 may seem useful, converting traditional devices into smart devices often comes at a significant cost.
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Security
The risk of IoT devices being compromised is significantly higher because 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. These sensors convert raw data into actionable inputs. For example, in order for a smart cup to heat a drink to a certain temperature, it must rely on a sensor to monitor the temperature of the drink.
Unique identifiers
An IoT setup depends on a whole range of sensors and smart devices. All of these devices must be uniquely identifiable to ensure that data or actions from one do not end up in another.
Internet
Although it is not the only component that makes devices smart, it helps devices communicate seamlessly with each other.
AL and ML
Some IoT devices, like the Echo smart speakers, wouldn’t be very useful without AI, particularly natural language processing (NLP). AI and ML also help IoT devices understand the context behind an instruction.
Final thoughts
Contrary to some buzzwords in the technology world, the Internet of Things has many practical applications for both consumers and businesses. The term refers to a set of hardware and software that helps transform an everyday device into a smart device.
From a consumer perspective, the technology can be seen in action in the form of smart home technologies like the Echo speakers. Outside of the smart home, IoT is being used in virtually every sector, including agriculture, healthcare, manufacturing, and more.
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