What are IoT Devices? How They Work, Types & Key Challenges

The Internet of Things (IoT) has revolutionized modern technology by enabling everyday objects to connect, communicate, and share data over a network. The term IoT, or Internet of Things, refers to the collective network of connected devices and the technology that facilitates communication between devices and the cloud, as well as between the devices themselves. The Internet of Things integrates everyday “things” with the internet. Computer Engineers have been adding sensors and processors to everyday objects since the 90s.

IoT is not just turning on/off a switch fan or light over a wireless connection.  These devices have transformed various sectors, including healthcare, agriculture, industrial automation, and smart homes.

1.    What Are IoT Devices?

IoT devices are physical objects embedded with sensors, software, and network connectivity that enable them to collect and exchange data. These devices range from simple smart home appliances like thermostats and lighting systems to complex industrial machinery and medical equipment. IoT devices are hardware devices, such as sensors, gadgets, appliances and other machines that collect and exchange data over the Internet. They are programmed for certain applications and can be embedded into other IoT devices. IoT is not just related to home automation.

For example, an IoT device in your car can identify the traffic ahead and send out a message automatically to the person you are about to meet of your impending delay.

2.    How Do IoT Devices Work?

Different IoT devices may be used for different functions, but they all have similarities in terms of how they work. Firstly, IoT devices are physical objects that sense things going on in the physical world. They contain an integrated CPU, network adapter and firmware, and are usually connected to a Dynamic Host Configuration Protocol server. It also requires an IP address to function over the network. IoT devices function through a combination of sensors, connectivity protocols, data processing, and user interfaces. The basic working process involves:

   ⦁    Sensing: The device collects data from its environment using sensors.

   ⦁    Processing: The microcontroller or embedded system processes the collected data.

   ⦁    Connectivity: The device transmits data via Wi-Fi, Bluetooth, Zigbee, or other protocols.

   ⦁    Action: Based on the data received, the device performs an action, such as sending an alert or adjusting its settings.

   ⦁    User Interaction: Users can monitor and control the device through mobile applications or web interfaces.

For action and user interaction the IoT devices are configured and managed through a software application. For example, an app on your smartphone to control the lights in your home.

3.    Importance of  IoT?

IoT has made it possible for the physical world to meet the digital world and cooperate with each other. It offers numerous benefits to organizations by enabling them to automate and simplify their daily tasks. In this way now anyone can monitor/ control their home appliance from anywhere in the world just with an internet connection. As IoT grows exponentially year on year, companies are leveraging the tremendous business values it can offer. Here are some of the most important benefits of IoT:

   ⦁    To generate new business models and revenue streams

   ⦁    To improve business decisions through data-driven insights from IoT data

   ⦁    To increase productivity and efficiency of business operations

   ⦁    To enhance customer experience

Types of IoT Devices:

IoT devices can be categorized into various types based on their applications:

IoT Steps and Layers:

The architecture of IoT follows a layered approach, from here we can see how data is collected, processed, sent, received and finally displayed on a user interface. which includes:

  1. Perception Layer – Consists of sensors and actuators that collect data.

   2. Network Layer – Handles data transmission using various communication protocols.

   3. Edge Layer – Processes data locally before sending it to the cloud.

   4. Cloud Layer – Stores and analyzes data, making it accessible for applications.

   5. Application Layer – The interface that allows users to interact with the device.

4.    Types of Connections IoT Devices Use:

IoT devices use various connection types, including:

5.    Can IoT Work Without Internet Connection?

Yes, IoT can work without internet connectivity, but with certain limitations. In some situations the devices only need a communication channel, if there is a local host available the devices can work without the internet. Some scenarios where IoT devices can function independently include:

   ⦁    Using self-hosted MQTT brokers for communication within a confined environment

   ⦁    Forming mesh networks for local device-to-device communication

   ⦁   Employing edge computing for local data processing

   ⦁    Utilizing short-range communication technologies like Bluetooth Low Energy (BLE) and Near Field Communication (NFC).

Or we can implement local networks using Bluetooth, Zigbee, or LoRa.

6.    Is It Safe to Use IoT Devices? Can They Be Hacked?

IoT devices provide significant convenience and efficiency, but they also pose notable security risks. Many of these devices have inherent vulnerabilities due to limited processing power and memory, which restricts the implementation of robust security features.

Insufficient software and network security: Outdated firmware and inadequate network protection can leave devices vulnerable.

Privacy concerns: Unauthorized access to personal data collected by IoT devices can lead to privacy breaches.

7.    What are examples of IoT devices?

Let's look at some examples of IoT systems in use today:

Connected cars:

   ⦁    Monitoring rental car fleets to increase fuel efficiency and reduce costs.

   ⦁    Helping parents track the driving behavior of their children.

   ⦁    Notifying friends and family automatically in case of a car crash.

   ⦁    Predicting and preventing vehicle maintenance needs.

Connected homes:

   ⦁    Automatically turning off devices not being used.

   ⦁    Rental property management and maintenance.

   ⦁    Finding misplaced items like keys or wallets.

   ⦁    Automating daily tasks like vacuuming, making coffee, etc.

Smart cities:

   ⦁    Measuring air quality and radiation levels.

   ⦁    Reducing energy bills with smart lighting systems.

   ⦁    Detecting maintenance needs for critical infrastructures such as bridges, and pipelines.

   ⦁    Increasing profits through efficient parking management.

From smart thermostats to industrial sensors, every IoT device relies on a reliable printed circuit board (PCB) at its core. As the complexity and miniaturization of IoT devices increase, high-quality PCB manufacturing becomes essential to ensure performance, stability, and long-term durability. Whether you're prototyping a wearable sensor or scaling up a smart home product, having a fast and precise PCB fabrication partner can accelerate your development process. JLCPCB supports makers, startups, and engineers around the world with advanced PCB manufacturing services

（Learn more about how PCB technology supports IoT devices in our dedicated article）

Conclusion:

In conclusion, the Internet of Things (IoT) has transformed the way we interact with technology, connecting everyday objects to the internet and enabling seamless communication and automation. While they offer numerous benefits, security, connectivity, and interoperability challenges must be addressed. With proper implementation and safeguards, IoT can enhance productivity, efficiency, and convenience across multiple domains.  By balancing innovation with security, IoT has the potential to shape a smarter, more connected world, enhancing both personal and industrial experiences.