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Technology

IoT / Internet of Things

Connecting physical devices to the internet. IoT enables data collection, remote control and automation in Industry 4.0, smart home and logistics.

The Internet of Things connects the physical and digital worlds. Sensors in machines, buildings, vehicles and everyday objects collect data that is analysed in the cloud – for predictive maintenance, energy optimization, logistics and automation. Estimates suggest over 30 billion IoT devices will be connected globally by 2030.

What is IoT / Internet of Things?

The Internet of Things (IoT) is the networking of physical objects (things) with the internet to capture, exchange and act on data. IoT devices range from simple sensors (temperature, humidity) and smart home kit (thermostats, lights) to complex industrial systems (robots, production lines). Key parts: sensors/actuators (measure and act), connectivity (Wi‑Fi, Bluetooth, LoRaWAN, 5G, NB-IoT), IoT platform (ingestion and processing) and analytics (dashboards, alerts, ML).

How does IoT / Internet of Things work?

Data flow in IoT: 1) Capture: sensors measure physical quantities (temperature, vibration, position, power). 2) Transport: data is sent via MQTT, HTTP or CoAP to a gateway or the cloud. 3) Process: edge handles time-critical data; cloud handles history and analytics. 4) Analyse: dashboards and ML for patterns and anomalies. 5) Act: automated responses (e.g. shut down on overheating) or alerts to staff.

Practical Examples

1

Predictive maintenance: Vibration sensors on a CNC machine detect wear weeks before failure – planned maintenance instead of unplanned downtime.

2

Smart building: Motion, temperature and CO2 sensors control lighting, heating and ventilation – significant energy savings.

3

Fleet management: GPS and OBD in delivery vehicles for routing, driving behaviour and maintenance prediction.

4

Smart agriculture: Soil and weather data control irrigation – less water, same yield.

5

Asset tracking: BLE beacons and RFID track inventory and assets through the supply chain.

Typical Use Cases

Industry 4.0: Machine monitoring, quality control and production optimization in real time

Logistics: Real-time tracking, cold-chain monitoring and warehouse management

Building management: Energy, access control and facilities

Healthcare: Wearables and remote medical devices

Agriculture: Precision farming with soil, weather and plant data

Advantages and Disadvantages

Advantages

  • Data-driven decisions: Real-world data for better business decisions
  • Automation: Physical processes automated from data and rules
  • Cost savings: Predictive maintenance, energy and efficiency gains
  • New business models: Pay-per-use, equipment-as-a-service, data-based services
  • Scale: Cloud IoT platforms scale from tens to millions of devices

Disadvantages

  • Security: IoT devices are often targeted and hard to patch
  • Interoperability: Many proprietary protocols and standards
  • Complexity: Hardware, firmware, connectivity, cloud and analytics
  • Data volume: Millions of events per day need storage and processing strategy
  • Reliability: Wireless links can be unreliable

Frequently Asked Questions about IoT / Internet of Things

How secure are IoT devices?

IoT security is a known weakness: weak default passwords, outdated firmware, no encryption. Best practices: unique credentials per device, encrypted links (TLS/DTLS), regular OTA updates, network segmentation (e.g. IoT in own VLAN) and anomaly detection. Standards like IEC 62443 provide a framework.

Which IoT protocol should I use?

MQTT: lightweight, pub/sub, standard for sensor data. HTTP/REST: for devices with enough resources and infrequent communication. CoAP: UDP-based, for very constrained devices. LoRaWAN: low data, long range (km). BLE: short range, wearables. 5G/NB-IoT: mobile and latency-sensitive use cases.

What does an IoT project cost?

PoC: about €10,000–30,000 for sensor integration, visualization and first analytics. Pilot: €30,000–100,000 for a production-ready solution with dashboard and alerts. Scale: €100,000–500,000+ for company-wide rollout, edge and ML. Add hardware: roughly €10–500 per device depending on sensors and connectivity.

Related Terms

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What is IoT? Internet of Things Explained