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What Really Happens Inside IoT Networks? A Plain English Guide

Inside IoT Networks
Inside IoT Networks

IoT networks are everywhere in our modern lives. Billions of physical devices silently collect and share data around us. We use these networks every day, yet most of us don’t know what happens under the hood.

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The Internet of Things (IoT) connects a web of physical objects—from vehicles and appliances to sensors and software—with built-in connectivity features . Kevin Ashton introduced this concept in the late 1990s, which has revolutionized the way our physical and digital worlds work together . IoT sensors detect environmental changes and send live data that helps companies boost safety and streamline processes in industries of all types .

Let’s break down what happens inside IoT networks in simple terms. This piece explores how these networks link devices, handle massive data streams, and make our world more connected. The number of IoT devices will reach tens of billions in the next few years . That’s why knowing how these networks work isn’t just fascinating—it’s becoming crucial for everyone.

What is an IoT Network?

IoT networks work as sophisticated ecosystems where physical devices with sensors, software, and connectivity features share data without human input [1]. These networks differ from traditional computer setups by connecting everyday objects. Your toothbrush, vacuum cleaner, industrial machinery, and transportation systems create an interconnected web that improves automation and efficiency.

How IoT networks connect devices

Multiple connectivity technologies establish communication paths between devices in IoT networks. The system architecture has three main tiers: devices with sensors, edge gateways, and cloud services [2].

Devices connect through several protocols based on what they need for range, power use, and data volume [3]. These include:

  • Wireless technologies: Wi-Fi, Bluetooth, Zigbee, and cellular connections (5G, LTE-M, NB-IoT)
  • Low Power Wide Area Networks (LPWAN): Technologies like LoRaWAN and Sigfox that work well for long-range, low-power applications
  • Wired connections: Ethernet, I2C, and other serial connections that provide stable, high-speed data transfer

Edge gateways play a crucial role as intermediaries between devices and the cloud [4]. These gateways collect data from multiple sensors and process it to filter important information before sending it to cloud services. They help save bandwidth by analyzing data locally and sending only essential information to the cloud [5].

The role of sensors and data

Sensors are the foundations of IoT networks and act as the system’s eyes and ears. They spot changes in physical conditions like temperature, humidity, pressure, light, or motion and turn these analog signals into digital data [6]. This real-time data collection lets the system respond quickly to environmental changes.

Data in an IoT network follows a specific route. Sensors first gather signals and turn them into data. This information then moves through network protocols like MQTT, HTTP, or CoAP. The data ends up stored locally or in cloud systems for processing and analysis [7].

IoT networks excel at handling huge amounts of data. Experts predict IoT devices will generate about 73.1 zettabytes of data by 2025, up from 17.3 zettabytes in 2019 [8]. This massive data flow powers advanced analytics, machine learning, and AI applications that turn raw numbers into useful insights.

Why IoT networks matter in 2025

IoT networks keep growing in importance. Market projections show the global IoT market will jump from $662.21 billion in 2023 to about $3.30 trillion by 2030 [8]. Connected IoT devices should reach 30.9 billion by 2025, making up 41.2% of all devices in use [8].

These numbers tell only part of the story. IoT networks are changing industries through practical uses. Manufacturing plants use them for predictive maintenance by watching machine conditions and spotting potential failures. Healthcare providers track patients remotely and give personalized care. Farmers get real-time soil and weather data to farm more precisely and use resources better [9].

IoT’s combination with 5G and edge computing opens new doors for automation and efficiency. 5G networks move data up to 100 times faster than 4G, which greatly improves how IoT devices communicate in real time [8]. Edge computing processes data closer to its source, so IoT networks in 2025 will respond faster, stay more secure, and handle data more efficiently.

How IoT Networks Actually Work

The IoT network’s sophisticated four-step process turns physical events into digital actions. Let’s get into what happens under the hood of these interconnected systems.

1. Data collection from sensors

Sensors start this experience. These specialized devices measure physical conditions and turn them into meaningful digital data. The electronic components watch their surroundings and capture three main types of information: raw physical measurements (temperature, pressure, motion), operational metrics (device health, usage), and user-specific patterns [10].

IoT devices create massive amounts of data. Manufacturing facilities produce over 2.5 quintillion bytes of operational information each day [11]. About 73% of this valuable data sits unused, which shows both the biggest problem and a chance within IoT networks [11].

IoT data collection works in several ways based on the application: immediate monitoring (continuous), event-based (triggered by specific occurrences), periodic (at regular intervals), or just when needed [12].

2. Transmission through gateways

The collected sensor data must reach processing systems through a vital intermediary. IoT gateways connect sensor-equipped devices to the cloud and do much more than route data [13].

These gateways work as translators. They interpret various device-specific protocols (like Z-Wave, BACnet, Bluetooth, or Zigbee) and convert them to standardized formats that cloud platforms understand [14]. They also protect data through encryption and device authentication [13].

The gateways prepare data by removing duplicates, filtering, and combining information to reduce volume before transmission [10]. This edge network processing helps save bandwidth and makes centralized processing more efficient [10].

These gateways also store data locally if internet connections fail or during data overflow. This ensures all vital information stays safe during transmission issues [14].

3. Processing in the cloud or edge

Data processing takes place in two main locations. Cloud computing offers centralized storage and processing power that IoT devices need for complex analytics [15].

Edge computing has become a complementary solution that processes data near its source. This method cuts down delays and saves network resources by analyzing information at the network edge [16].

The system requirements determine whether to use cloud or edge processing. Edge computing works best for immediate performance needs like manufacturing automation or critical healthcare monitoring [17]. Cloud platforms excel at complex analytics that need substantial computing power [15].

4. Triggering actions or alerts

The last step turns processed data into useful responses. IoT systems trigger actions or alerts based on preset conditions without human input [1].

The system creates immediate notifications about key events or unusual patterns that sensors detect [18]. These range from security breach warnings to equipment maintenance alerts or environmental changes [5].

IoT networks can also control connected systems directly. To cite an instance, AWS IoT Events creates automatic responses by activating functions in services like Amazon SNS, AWS IoT Core, Lambda, and others based on sensor data patterns [1].

Smart filtering helps prevent too many alerts. Microsoft Defender for IoT limits actions to once per device daily. This prevents alert fatigue while ensuring important information reaches the right people [2].

References

[1] – https://docs.aws.amazon.com/iotevents/latest/developerguide/what-is-iotevents.html
[2] – https://docs.paloaltonetworks.com/iot/iot-security-admin/respond-to-iot-security-alerts/create-alert-rules
[3] – https://www.machinemetrics.com/blog/iot-in-manufacturing
[4] – https://www.fortinet.com/resources/cyberglossary/iot-security
[5] – https://learn.microsoft.com/en-us/azure/defender-for-iot/organizations/alerts
[6] – https://www.techtarget.com/iotagenda/blog/IoT-Agenda/Overcome-data-overload-and-prevent-IIoT-project-failure
[7] – https://ieeexplore.ieee.org/document/8480255/
[8] – https://cradlepoint.com/resources/blog/connecting-and-protecting-iot-in-retail-stores-warehouses-and-beyond/
[9] – https://www.digi.com/blog/post/iot-in-manufacturing
[10] – https://www.techtarget.com/iotagenda/tip/How-IoT-data-collection-works
[11] – https://www.sustainablemanufacturingexpo.com/en/articles/implementing-iot-industrial-automation.html
[12] – https://webbylab.com/blog/iot-data-collection/
[13] – https://www.zipitwireless.com/blog/what-is-an-iot-gateway-and-how-does-it-work
[14] – https://www.techtarget.com/iotagenda/definition/IoT-gateway
[15] – https://intellisoft.io/what-describes-the-relationship-between-edge-computing-and-cloud-computing/
[16] – https://www.akamai.com/blog/edge/edge-computing-versus-cloud-computing-key-similarities-differences
[17] – https://www.penguinsolutions.com/en-us/resources/blog/edge-computing-vs-cloud-computing-comparisons-advantages-and-disadvantages
[18] – https://infisim.com/blog/iot-trigger-alerts
[19] – https://www.verizon.com/business/products/internet-of-things/iot-networks/lte-m-narrowband-iot/
[20] – https://docs.aws.amazon.com/whitepapers/latest/implementing-lpwan-solutions-with-aws/lte-m.html
[21] – https://euristiq.com/types-of-iot-networks/
[22] – https://azure.microsoft.com/en-us/solutions/iot/iot-technology-protocols
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[24] – https://www.blackhillsinfosec.com/understanding-zigbee-and-wireless-mesh-networking/
[25] – https://www.data-alliance.net/blog/lpwan-technologies-lorawan-and-sigfox-compared/
[26] – https://www.nxp.com/products/wireless-connectivity/zigbee:ZIGBEE-PROTOCOL
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[28] – https://www.tdk.com/en/tech-mag/past-present-future-tech/how-iot-is-making-homes-smarter-and-safer
[29] – https://www.itransition.com/iot/use-cases
[30] – http://www.healthcareitnews.com/news/how-iot-transforming-remote-patient-monitoring
[31] – https://www.hashstudioz.com/blog/iot-in-industrial-automation-enhancing-operational-efficiency-across-industries/
[32] – https://www.inboundlogistics.com/articles/iot-in-logistics/
[33] – https://www.semtech.com/applications/internet-of-things/smart-agriculture
[34] – https://www.sciencedirect.com/science/article/pii/S2090447923003982
[35] – https://www.rinf.tech/interoperability-challenges-in-iot-and-how-to-solve-them/
[36] – https://www.iot-now.com/2024/06/04/144693-interoperability-issues-the-hidden-challenges-of-iot-integration/
[37] – https://tdan.com/10-risks-of-iot-data-management/32157
[38] – https://www.seagate.com/blog/solving-data-overload-in-smart-city-systems/
[39] – https://www.coeosolutions.com/news/cost-implementing-iot
[40] – https://ovic.vic.gov.au/privacy/resources-for-organizations/internet-of-things-and-privacy-issues-and-challenges/
[41] – https://energous.com/company/newsroom/blog/the-hidden-costs-of-iot-infrastructure-and-maintenance-challenges/

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