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The Internet of Things (IoT): An Overview


The Internet of Things (IoT) is a system of interrelated
devices connected to a network and/or to one another,
exchanging data without necessarily requiring human-to-
machine interaction. In other words, IoT is a collection of
electronic devices that can share information among
themselves. Examples include smart factories, smart home
devices, medical monitoring devices, wearable fitness
trackers, smart city infrastructures, and vehicular
telematics. Potential issues for Congress include regulation,
digital privacy, and data security as discussed below.


JoT devices are often called smart devices because they
have sensors and can conduct complex data analytics. JoT
devices collect data using sensors and offer services to the
user based on the analyses of that data and according to
user-defined parameters. For example, a smart refrigerator
uses sensors (e.g., cameras) to inventory stored items and
can alert the user when items run low based on image
recognition analyses. Sophisticated JoT devices can learn
by recognizing patterns in user preferences and historical
use data. An JoT device can become smarter as its
program adjusts to improve its prediction capability so as to
enhance user experiences or utility.

IoT devices are connected to the internet: directly, through
another JoT device, or both. Network connections are used
for sharing information and interacting with users. The JoT
creates linkages and connections between physical devices
by incorporating software applications. JoT devices can
enable users to access information or control devices from
anywhere using a variety of internet-connected devices. For
example, a smart doorbell and lock may allow a user to see
and interact with the person at the door and unlock the door
from anywhere using a mobile device or computer.


JoT devices are used in different fields for a broad range of
functions. This section describes select JoT categories of
frequent congressional interest.

Industrial Internet of Things (IoT): The manufacturing
industry has begun to adopt commercial IoT applications.
Referred to as industrial Internet of Things (IoT),
networked machines in a production facility can
communicate and share information with the goals of
improving efficiency, productivity, and performance. The
application of IoT can vary significantly, from detecting
corrosion inside a refinery pipe to providing real-time
production data. Currently in North America, there are more
consumer IoT connections than IoT connections, but this
may change in the future. IoT has the potential to
transform a variety of industries, including manufacturing,
chemicals, food and beverage, automotive, and steel. The


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Updated February 12, 2020


incorporation of IoT and analytics is viewed by experts as
the Fourth Industrial Revolution, or 41R.

Internet of Medical Things (IoMT): The health care field
has begun incorporating IoT, creating the Internet of
Medical Things (IoMT). These devices, such as heart
monitors and pace makers, collect and send patient health
statistics over various networks to health care providers for
monitoring, analysis, and remote configuration. At a
personal health level, wearable JoT devices, such as fitness
trackers and smart watches, can track a user's physical
activities, basic vital data, and sleeping patterns. According
to a 2019 survey by Pew Research, about one-in-five
Americans uses a smart watch or fitness tracker.

Smart Cities: JoT devices and systems in the utilities,
transportation, and infrastructure sectors may be grouped
under the category of smart city. Utilities can use JoT to
create smart grids and meters for electricity, water, and
gas, where sensors collect and share customer usage data.
This data is used to enable the central control system to
optimize production and distribution to meet demand in real
time. Cities can use transportation IoT for fare readers and
status trackers or locaters that interface across all public
transportation platforms. For example, Columbus, Ohio's
winning proposal for the Department of Transportation's
2016 Smart City Challenge incorporated connected
infrastructure that interacts with vehicles (including electric
autonomous vehicles and shuttles), as well as a common
payment and trip planning system across multiple transit
systems.

Smart Homes: Consumer IoT devices used in homes and
buildings are often grouped under the smart home
category, including smart appliances, smart TVs, smart
entertainment systems, smart thermostats, and network-
connected light bulbs, outlets, door locks, door bells, and
home security systems. These smart home JoT devices can
be connected to a single network and controlled remotely
over the internet via a mobile device or computer.


The market research firm JoT Analytics predicts the number
of active JoT devices will grow from 9.9 billion in 2019 to
21.5 billion in 2025. While non-JoT device connections will
also continue to increase, IoT devices will be about two-
thirds of those connections by 2025, up from about one-
third in 2019 (Figure 1).


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