IoT Explained
18 June 2025
Reading Time: 10 mins
IoT Explained
18 June 2025
Reading Time: 10 mins
Eseye
IoT Hardware and Connectivity Specialists
LinkedInThe Internet of Things (IoT) is a global network of billions of connected devices spanning multiple industries and thousands of use cases from mass market consumer applications to niche business deployments.
IoT devices, sometimes known as smart devices or connected devices, are the connected hardware making up this massive network.
IoT devices are connected, either to each other, the internet, or a private network by wireless technologies such as LTE, WiFi, or Bluetooth. IoT hardware is usually low-cost, low-power units that feature one or more sensors capable of reporting on the ongoing status of whatever it is they are monitoring. Some IoT devices may also feature actuators to perform additional functions or be part of a larger hardware and software deployment responsible for controlling something like an autonomous vehicle or drone.
IoT devices or ‘smart objects’ are typically responsible for sharing data with a managing application that performs analysis on that data to make better decisions about a specific environment.
The IoT device ecosystem covers a broad range of hardware from wearables like smartwatches and blood glucose patches, through to smart thermostats and home assistants like Alexa and Google Assistant, and from industrial machinery to environmental controls for lighting or electricity.
The real value delivered by IoT applications is created by the data monitoring and collection capabilities of the end-point devices. Or more specifically, in the analysis of that data and how it can be used to positively influence business decisions.
If, for example, a business can accurately monitor the flow and usage of water or electricity by a municipality or building, it can optimize infrastructure for delivery of said utility or even identify leaks or theft of service. Similarly, if a consumer can accurately track their heart rate and physical activity, they can improve their health and even detect early warning signs of heart problems. Data collection and timely analysis is critical.
But in all cases, the key to unlocking this value is in ensuring that the data can be transferred from the IoT device to some compute resource, perhaps on the network edge, but more likely in a centralized cloud or data center. A feat only achieved through reliable connectivity.
Although something of a buzzword for the last decade, the ‘Internet of Things’ has been a long time coming. The term was first coined in the 1990’s by Kevin Ashton, and into being when DARPANET scientists got networked machines to talk to each other. But it was in the mid 2000’s that automobile manufacturers saw the potential for connected cars, and wanted to be able to provision and manage a large volume of SIMs at once – something the consumer-focused GSM specification didn’t really support.
The GSMA acknowledged this shortcoming and the original M2M specification for Machine-to-Machine was released in 2014, followed in 2016 with a first attempt at a global specification for eSIM, including capabilities for M2M Remote SIM Provisioning (RSP) with SGP.01/02.
But even with these enhancements, the M2M mechanism was still not well suited to enterprises with fleets of low power devices, including NB-IoT and LTE-M units. It was only when efforts were made to bring services, devices, protocols, and solutions together in one ecosystem that M2M became accessible both for smaller enterprise initiatives and for larger operator ones, and at the same moment opened the door to the Internet of Things as we understand it today, and the acronym IoT.
The GSMA standard was updated again in 2020 with SGP.21/22, which addressed capabilities of RSP for consumer devices, opening up the potential for IoT to the mass market. Then SGP.31/32 for IoT, released in mid-2023, removed requirements for unnecessarily complex integrations and addressed the needs of constrained devices, removing the reliance on SMS and introducing provisions for managing eSIM deployments centrally and pushing profiles to individual or multiple devices. This became a key factor in realizing the potential of the Internet of Things for enterprise initiatives but highlights just how nascent the concept is yet how fast things are moving.
Getting to this point was only achieved through a combination of hardware development, affordable manufacturing and data pricing, standardized connectivity, and device estate management capabilities. Yet there is still some way to go.
‘True IoT’, the so-called Massive Internet of Things (mIoT), will only become possible with the advent of 5G Standalone. Today, the IoT universe is somewhat limited in scale and several scenarios require 5G to support very high traffic densities of IoT devices sending small amounts of data on a regular or infrequent basis, which is something not possible on a massive scale with LTE 4G connectivity. The Massive Internet of Things requirements also include improved operational aspects that apply to the wide range of IoT devices, applications and services anticipated as a result of enabling mIoT.
From smart watches to smart cars to smart cities, we’ve come a long way with the evolution of IoT devices and the extension of IoT into almost all vertical sectors has led to the rise of numerous ‘smart’ segments, from agriculture, to energy, to buildings and more, where the combination of sensors, connectivity, and intelligence combine to make life or business more efficient, exciting and accessible.
In the early years, the most well-documented use cases for IoT devices focused on large numbers of sensors that typically serve small amounts of data, often at infrequent intervals. These kinds of applications are generally based on passive sensors that report on their environment and have little in the way of bi-lateral activity. Think temperature, water or energy monitors.
But as the devices themselves became ‘smarter’, energy usage and battery life became better optimized, and connectivity reduced latency and increased bandwidth, more ‘critical IoT’ initiatives emerged to focus on fewer endpoints and applications that required two-way connectivity, with the IoT-enabled device relaying information back to a centralized IT system or even a human operator to act on in real-time, even sending commands back.
Such applications include control of an autonomous vehicle or drone, operation of industrial equipment, or even remote-controlled surgical tools.
Most consumers however, are familiar with wearable IoT device types such as smart watches or personal trackers, hearables, smart rings and smart glasses, such as Meta’s collaboration with Ray-Ban.
Smart device ecosystem architecture encompasses a complex network of sensors, devices, and data processing systems, connecting back to analytics and management platforms that make autonomous or supervised decisions.
The core components of the IoT device ecosystem are the PCB or motherboard, sensors, battery, radio antenna and connectivity, SIM or eSIM, and any onboard processing capability.
The IoT device is just one part of the overall IoT ecosystem, which includes devices, SIM management and provisioning platforms, device and estate management platforms, data processing, storage and analytics platforms, the application itself, and wireless networks.
Connectivity types frequently used by IoT devices include WiFi, LPWAN including Sigfox, LoRa, and NB-IoT and LTE-M, cellular (4G LTE and 5G), and Bluetooth.
Connectivity is largely dependent on the capabilities of the device itself. Small form factor trackers may rely on short range connectivity to monitor the movement of robots within a warehouse and might only need to be useful in a limited geographic area. Whereas adding longer range radio capabilities could mean increasing the footprint of the device or using an unwieldy external antenna.
In such cases a Bluetooth tag might be used for tracking assets within a localized area, where a Bluetooth-based mesh can provide precise positioning and communication while yielding a multi-year battery life. The Bluetooth mesh could connect to a 4G LTE-M gateway, which pushes the data collected to the cloud to be mixed with other data from different sources.
Generally speaking, IoT ecosystem architecture is broken down into five layers.
In this layer, sensors or actuators monitor and/or control a physical object. The primary function of these sensors, actuators, wearables, and other smart devices is to collect and transmit data such as temperature, humidity, chemical composition, fluid levels in a tank, movement and more.
Connectivity and communication protocols are essential for getting the data from the IoT device or sensor back to a gateway, edge compute device, or public or private cloud environment.
Once data is ingested it needs processing or storing. In some cases, this means real-time processing as close to the edge as possible to extract useful insights, in others it means backhauling the data to a centralized data lake, warehouse, or other cloud storage system.
At this layer, use case specific applications can be used to perform in-depth analysis and apply business logic to determine whether action needs to be taken. The application may also be responsible for triggering the action, which could in turn be performed by an IoT-enabled actuator.
Some IoT architectures may also include a business logic layer, which is an additional management layer that sits on top of multiple applications or integrates with business processes. As insights from multiple processes and workflows are aggregated, logic can be applied to trigger cross-application actions.
The most appropriate type of device, and the most appropriate type of connectivity, is highly dependent on the application and IoT use case.
Smart home devices and wearables are the most common and recognizable consumer IoT devices. The wearable market has been driven by smartwatches and activity trackers among swimmers, cyclists, runners, gym-goers, and athletes, with smart clothing and IoT-based apparel now gaining popularity.
IoT-enabled smart translators are another growing segment, with devices that can instantly translate live verbal communication, text, street signs, menus and more in real time across multiple common languages.
In the home itself it’s increasingly common to see a range of sensors and controllers for temperature, lighting, home security and entertainment.
Smart manufacturing, also known as Industrial IoT (IIoT), benefits a number of vertical industries, including: Automotive, Aerospace and Defense, Consumer goods, Food and beverages, Additive manufacturing and 3D Printing, Pharmaceuticals and chemicals, and Textiles and apparel.
IIoT uses interconnected devices, sensors, and systems to collect and exchange data to deliver operational benefits through industrial sensors, actuators and machines.
Outside of the consumer sector, healthcare IoT is a major segment, with smart wearables offering real-time health monitoring for patients and healthcare providers. IoT wearables allow healthcare providers to monitor patients’ health remotely, reducing hospital visits, providing continuous data and insights, and enabling real-time intervention.
IoT connectivity means cities can achieve real-time data collection and analysis and improve everything from traffic management and public safety to energy efficiency and environmental monitoring. Smart cities encompass a lot of other ‘smart’ segments, including but not limited to smart water management, smart energy, smart mobility, smart buildings, and smart campuses, but all linked back to a centralized system.
In many cases a digital twin model can help municipal operators to run virtual tests on their city’s capabilities and optimize their actions based on specific requirements.
AgriTech solutions can be categorized into three groups: smart crop management, smart livestock management, and mechanization services.
IoT and M2M solutions that are well placed to assist with smart crop farming include remote management of water and irrigation pumps, soil quality monitoring, crop health monitoring, greenhouse management, automatic fertilizer and pesticide spraying, and cold storage management and logistics tracking.
Precision farming sensors can measure soil moisture levels, temperature changes, wind speed, precipitation, humidity levels, nutrients such as nitrogen, potassium, phosphorus, pH levels, and more. For cattle farmers, IoT-enabled devices can automate feeding, manage containment, theft and predator prevention, and health and reproduction.
Mechanization sensors enable monitoring of equipment to give farmers real-time data about fuel levels in machines, and if there are any maintenance issues. While more sophisticated IoT sensors enable the collection of data that can then be analyzed by farm management software in the cloud to make decisions and control chemical balance inputs for machinery such as sprayers or irrigators.
As technological advancements in IoT have come on in leaps and bounds, the biggest concern by far is that not enough is being done by manufacturers or those companies deploying IoT projects with regards to security.
Many mass-market consumer devices have become notorious for little to no security features, an oversight that has led to the creation of large IoT botnets. Some IoT devices, such as those used in healthcare or smart home security systems, may also have direct implications for user safety. Ensuring the security of these devices is essential to prevent potential physical harm or unauthorized control. A compromised connected video camera is a very different threat to an IoT-enabled insulin pump.
In terms of challenges, with the IoT ecosystem being so large and complex, interoperability, especially when it comes to connectivity is often top of mind. The provisioning and management of SIMs and network profiles was a key issue only dealt with by SGP.31/32 in mid-2023. Further updates to RSP capabilities are not expected until this year at the earliest.
Another example is the relentless march of network infrastructure technology, with 5G Standalone now rolling out but leaving some operators with a difficult decision to go through an expensive and painful update to make the most of the benefits of 5G SA or wait until a future point when any teething issues have been worked out but risk being left behind.
Furthermore, with the rapid growth of IoT deployments, signalling storms are becoming more common. For IoT networks, where the number of devices that need to communicate can run into the tens of thousands or millions, signalling storms can be disastrous, both for the network operator and the enterprise, which could see its IoT estate taken completely offline for hours or potentially even days.
The future of IoT will likely be influenced by a number of technological factors, a key one being the widespread adoption of 5G SA to enable mIoT and help usher in an era when massive scale can really be achieved.
Another big influence will be adoption of AI and data analytics – after all, value can only be unlocked from IoT sensors if the data can be manipulated or mined in a timely manner to make decisions. The cloud often factors where the compute operation can be performed, but the need for close to real-time impact is driving adoption of network models like edge networking, which moves some hardware right to the network edge close to the deployed IoT devices and may introduce capabilities to perform some simple computation and storage, or act as a gateway that aggregates data from multiple IoT endpoints.
Machine Learning (ML) and Artificial Intelligence (AI) are also helping IoT initiatives evolve into intelligent systems capable of making autonomous decisions based on all this data they generate. This has significant applications in everything from smart cities and smart buildings, all the way down to individual connected vehicles.
Choosing the right connectivity partner for your IoT device can make or break your project. At Eseye, we provide more than just connectivity. We offer deep technical knowledge, global reach, and a proven track record of helping customers bring complex IoT devices to market.
Speak to an Eseye expert today to discover how our award-winning approach can deliver the reliable, scalable, and secure IoT solution your business needs.
IoT devices, sometimes known as smart devices or connected devices, are internet connected hardware devices featuring one or more sensors.
IoT devices typically connect to each other or networks using wireless technologies such as LTE or other cellular connectivity, WiFi, or Bluetooth.
Smart devices are generally accepted as being part of the Internet of Things because they are typically connected and deliver some smart (useful) functions. Not all IoT devices are ‘smart’ however. Some are only ‘dumb’ sensors and the ‘smartness’ comes from the application to which they relay data.
The most prevalent risk associated with IoT is security of the devices and potential privacy implications that go with this. Another common risk is reliable and continuous long-term connectivity, especially for international deployments or roaming devices, where improper management of connectivity contracts could lead to devices going offline.
The best connectivity for your IoT initiative is the most appropriate connectivity for your specific use case or application. The IoT device itself could be on a utility meter deep underground, a shipping container roaming internationally, or a fast-moving vehicle, and this might have an impact on your choice of connectivity technology. Furthermore, not all cellular networks are built the same and different operators may offer different coverage maps or connectivity capabilities in different markets.
Predictable performance is the key to IoT success. Let our experts test your device for free. Receive a free trial IoT SIM trial kit and speed up your IoT deployment with expert insights and seamless connectivity.