How IoT works

An IoT ecosystem consists of web-enabled smart devices that use embedded systems, such as
processors, sensors and communication hardware, to collect, send and act on data they acquire
from their environments. IoT devices share the sensor data they collect by connecting to an IoT
gateway or other edge device where data is either sent to the cloud to be analyzed or analyzed
locally. Sometimes, these devices communicate with other related devices and act on the
information they get from one another. The devices do most of the work without human
intervention, although people can interact with the devices -- for instance, to set them up, give
them instructions or access the data.

The connectivity, networking and communication protocols used with these web-enabled devices
largely depend on the specific IoT applications deployed.

Industrial applications

Main article: Industrial internet of things

Also known as IIoT, industrial IoT devices acquire and analyze data from connected equipment,
operational technology (OT), locations and people. Combined with operational technology (OT)
monitoring devices, IIoT helps regulate and monitor industrial systems.Also, the same
implementation can be carried out for automated record updates of asset placement in industrial
storage units as the size of the assets can vary from a small screw till the whole motor spare part
and misplacement of such assets can cause a percentile loss of manpower time and money.

Manufacturing

The IoT can realize the seamless integration of various manufacturing devices equipped with
sensing, identification, processing, communication, actuation, and networking capabilities. Based
on such a highly integrated smart cyber-physical space, it opens the door to create whole new
business and market opportunities for manufacturing.[61] Network control and management of
manufacturing equipment, asset and situation management, or manufacturing process control
bring the IoT within the realm of industrial applications and smart manufacturing as well.[62] The
IoT intelligent systems enable rapid manufacturing of new products, dynamic response to
product demands, and real-time optimization of manufacturing production and supply chain
networks, by networking machinery, sensors and control systems together.[45]

Digital control systems to automate process controls, operator tools and service information
systems to optimize plant safety and security are within the purview of the IIoT.[63] But it also
extends itself to asset management via predictive maintenance, statistical evaluation, and
measurements to maximize reliability.[64] Industrial management systems can also be integrated
with smart grids, enabling real-time energy optimization. Measurements, automated controls,
plant optimization, health and safety management, and other functions are provided by a large
number of networked sensors.[45]
Industrial IoT (IIoT) in manufacturing could generate so much business value that it will
eventually lead to the Fourth Industrial Revolution, also referred to as Industry 4.0. The potential
for growth from implementing IIoT may generate $12 trillion of global GDP by 2030.[65]

Industrial big data analytics will play a vital role in manufacturing asset predictive maintenance,
although that is not the only capability of industrial big data.[66] Cyber-physical systems (CPS) is
the core technology of industrial big data and it will be an interface between human and the
cyber world.

Agriculture

There are numerous IoT applications in farming[67] such as collecting data on temperature,
rainfall, humidity, wind speed, pest infestation, and soil content. This data can be used to
automate farming techniques, take informed decisions to improve quality and quantity, minimize
risk and waste, and reduce effort required to manage crops. For example, farmers can now
monitor soil temperature and moisture from afar, and even apply IoT-acquired data to precision
fertilization programs.[68]

In August 2018, Toyota Tsusho began a partnership with Microsoft to create fish farming tools
using the Microsoft Azure application suite for IoT technologies related to water management.
Developed in part by researchers from Kindai University, the water pump mechanisms use
artificial intelligence to count the number of fish on a conveyor belt, analyze the number of fish,
and deduce the effectiveness of water flow from the data the fish provide. The specific computer
programs used in the process fall under the Azure Machine Learning and the Azure IoT Hub
platforms.[69]

Infrastructure applications

Monitoring and controlling operations of sustainable urban and rural infrastructures like bridges,
railway tracks and on- and offshore wind-farms is a key application of the IoT.[63] The IoT
infrastructure can be used for monitoring any events or changes in structural conditions that can
compromise safety and increase risk. The IoT can benefit the construction industry by cost
saving, time reduction, better quality workday, paperless workflow and increase in productivity.
It can help in taking faster decisions and save money with Real-Time Data Analytics. It can also
be used for scheduling repair and maintenance activities in an efficient manner, by coordinating
tasks between different service providers and users of these facilities.[45] IoT devices can also be
used to control critical infrastructure like bridges to provide access to ships. Usage of IoT
devices for monitoring and operating infrastructure is likely to improve incident management
and emergency response coordination, and quality of service, up-times and reduce costs of
operation in all infrastructure related areas.[70] Even areas such as waste management can
benefit[71] from automation and optimization that could be brought in by the IoT.[citation needed]

Metropolitan scale deployments

There are several planned or ongoing large-scale deployments of the IoT, to enable better
management of cities and systems. For example, Songdo, South Korea, the first of its kind fully
equipped and wired smart city, is gradually being built, with approximately 70 percent of the
business district completed as of June 2018. Much of the city is planned to be wired and
automated, with little or no human intervention.[72][73]

Another application is a currently undergoing project in Santander, Spain. For this deployment,
two approaches have been adopted. This city of 180,000 inhabitants has already seen 18,000
downloads of its city smartphone app. The app is connected to 10,000 sensors that enable
services like parking search, environmental monitoring, digital city agenda, and more. City
context information is used in this deployment so as to benefit merchants through a spark deals
mechanism based on city behavior that aims at maximizing the impact of each notification.[74]

Other examples of large-scale deployments underway include the Sino-Singapore Guangzhou

Knowledge City;[75] work on improving air and water quality, reducing noise pollution, and
increasing transportation efficiency in San Jose, California;[76] and smart traffic management in
western Singapore.[77] Using its RPMA (Random Phase Multiple Access) technology, San Diego-
based Ingenu has built a nationwide public network[78] for low-bandwidth data transmissions
using the same unlicensed 2.4 gigahertz spectrum as Wi-Fi. Ingenu's "Machine Network" covers
more than a third of the US population across 35 major cities including San Diego and Dallas.[79]
French company, Sigfox, commenced building an Ultra Narrowband wireless data network in the
San Francisco Bay Area in 2014, the first business to achieve such a deployment in the U.S.[80][81]
It subsequently announced it would set up a total of 4000 base stations to cover a total of 30
cities in the U.S. by the end of 2016, making it the largest IoT network coverage provider in the
country thus far.[82][83] Cisco also participates in smart cities projects. Cisco has started deploying
technologies for Smart Wi-Fi, Smart Safety & Security, Smart Lighting, Smart Parking, Smart
Transports, Smart Bus Stops, Smart Kiosks, Remote Expert for Government Services (REGS)
and Smart Education in the five km area in the city of Vijaywada.[84]

Another example of a large deployment is the one completed by New York Waterways in New
York City to connect all the city's vessels and be able to monitor them live 24/7. The network
was designed and engineered by Fluidmesh Networks, a Chicago-based company developing
wireless networks for critical applications. The NYWW network is currently providing coverage
on the Hudson River, East River, and Upper New York Bay. With the wireless network in place,
NY Waterway is able to take control of its fleet and passengers in a way that was not previously
possible. New applications can include security, energy and fleet management, digital signage,
public Wi-Fi, paperless ticketing and others.[85]

Energy management

Significant numbers of energy-consuming devices (e.g. lamps, household appliances, motors,

pumps, etc.) already integrate Internet connectivity, which can allow them to communicate with
utilities not only to balance power generation but also helps optimize the energy consumption as
a whole.[45] These devices allow for remote control by users, or central management via a cloud-
based interface, and enable functions like scheduling (e.g., remotely powering on or off heating
systems, controlling ovens, changing lighting conditions etc.).[45] The smart grid is a utility-side
IoT application; systems gather and act on energy and power-related information to improve the
efficiency of the production and distribution of electricity.[86] Using advanced metering
infrastructure (AMI) Internet-connected devices, electric utilities not only collect data from end-
users, but also manage distribution automation devices like transformers.[45]

Environmental monitoring

Environmental monitoring applications of the IoT typically use sensors to assist in environmental
protection[87] by monitoring air or water quality,[88] atmospheric or soil conditions,[89] and can
even include areas like monitoring the movements of wildlife and their habitats.[90] Development
of resource-constrained devices connected to the Internet also means that other applications like
earthquake or tsunami early-warning systems can also be used by emergency services to provide
more effective aid. IoT devices in this application typically span a large geographic area and can
also be mobile.[45] It has been argued that the standardization IoT brings to wireless sensing will
revolutionize this area.[91]

Living Lab

Another example of integrating the IoT is Living Lab which integrates and combines research
and innovation process, establishing within a public-private-people-partnership.[92] There are
currently 320 Living Labs that use the IoT to collaborate and share knowledge between
stakeholders to co-create innovative and technological products. For companies to implement
and develop IoT services for smart cities, they need to have incentives. The governments play
key roles in smart cities projects as changes in policies will help cities to implement the IoT
which provides effectiveness, efficiency, and accuracy of the resources that are being used. For
instance, the government provides tax incentives and cheap rent, improves public transports, and
offers an environment where start-up companies, creative industries, and multinationals may co-
create, share common infrastructure and labor markets, and take advantages of locally embedded
technologies, production process, and transaction costs.[92] The relationship between the
technology developers and governments who manage city's assets, is key to provide open access
of resources to users in an efficient way.