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What is Internet of Things (IoT) and How it Works?

The future...

By JohnPublished about a year ago 4 min read

Imagine you're en route to a meeting in a nearby town and a message appears on your device screen alerting you that your petrol level is low. Another message quickly follows, providing information about a nearby petrol station. This is a prime example of the Internet of Things (IoT) in action. In this article, we will delve into the details of IoT technology, including how it works and some intriguing statistics.

What is Internet of Things?

IoT, also referred to as the Internet of Everything (IoE), is an ecosystem of interrelated computer devices, digital machines and objects that has the ability to transfer data to each other in real-time, with minimum human intervention.

These devices include coffee makers, washing machines, music system, TVs, wearables and other electronic devices that can communicate with each other using what is called Machine-to-Machine (M2M) communication.

While this was all about what does IoT mean and what are IoT devices, let’s talk about a few stats that show the uprising market of IoT:

By 2022, 100% of the population is predicted to have LPWAN coverage.

By 2025, there will be more than 75.4B Internet of Things devices worldwide.

54% of enterprises invested in IoT app development because of its cost saving factor.

The global internet of things data market size stood at USD 250.72 billion in 2019 and is projected to reach USD 1,463.19 billion by 2027, at a CAGR of 24.9%.

94% of businesses will use some form of IoT by the end of 2021. Among current IoT business adopters, 88% believe IoT is critical to their business success.

Now that we have seen what IoT devices are and the potential of emerging IoT technologies and concepts in the future, let’s turn towards how does the internet of things work and IoT working principle.

How IoT Works

When talking about how does IoT works, the process begins with devices that have built-in sensors. These devices are connected to IoT platforms which store data from all the connected devices. The important data is then used to perform tasks that fulfil the needs of people.

When we say the data is stored in the IoT platforms, it doesn’t mean that all the data is useful. Devices carefully select only particular data that is relevant to execute an action. These pieces of information can detect patterns, recommendations and problems before they occur.

This is how an IoT application works with smart systems that automate tasks to address specific needs.

Moving further, let’s dive deeper into the Internet of Things concept and see what are the prime components of Internet of Things technology.

Major Components of IoT Ecosystem

1. Sensors/ Devices

The foremost component to consider in Internet of Things technology is sensor/devices. A sensor picks up all the minute details from an environment. The environment can have many complexities. What makes IoT security so great is these sensors that pick up even the most sensitive changes. These sensors are built in the devices which collect all the data to be used later. For instance, our phone is a device with built-in sensors like GPS, camera, etc.

2. Connectivity

Once the data is collected it is transferred to the cloud infrastructure (also known as IoT platforms). But to transfer the data, the devices will need a medium. That’s when connections like Bluetooth, Wi-Fi, WAN, cellular networks, etc come into play. These mediums are all different and must be chosen wisely for best results.

The effectiveness of IoT security highly depends on the speed and availability of these mediums.

3. Data Processing

After reaching the cloud infrastructure the data has to be analysed so that the right action can be taken. This process is however considered one of the most crucial obstacles in front of IoT app development. The analysis can be as simple as checking the temperature of the AC or a complex one such as a situation where an intruder comes in and the device has to identify it through cameras. The IoT application is made such that it can process all the data at a fast rate to take immediate actions.

4. User Interface

The last step is when the user is notified about the action with the help of a notification or an alert sound sent to the IoT mobile apps. This way the user will know that his command has been run through the systems.

However, this isn’t as easy as it seems. It all depends on what is IoT technology and how it has been developed. It becomes crucial for Internet of Things (IoT) app development companies to develop a system that can also be manually adjusted. In a situation where the temperature of the fridge is not cold enough to freeze ice cubes, users should be able to do that manually without the system backfiring.

Now as you have gained an insight of the internet of things concept, why Internet of Things is important and how does the internet of things work, let’s take a look at what are the uses of Internet of Things in the present world – besides backing the concept of Smart Homes and cars.

IoT in healthcare

IoT in Healthcare has opened new doors of opportunity for medical specialists and patients. The purpose of internet of things data is to enables doctors to get real-time access to patient medical data, store them on cloud, and share with others. It also cuts down the waiting time, helps to check for the availability of hardware and equipment, and simplifies the process to identify chronic diseases and take the right actions to mitigate the risk.


Internet of Things technology is also revolutionizing the education sector. It is connecting people worldwide to ease the process of sharing knowledge, reduce the barrier in gaining access to any data, introduce security in education system, and more

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