Updated February 12, 2020
The Internet of Things (IoT): An Overview
The Internet of Things (IoT) is a system of interrelated
incorporation of IIoT and analytics is viewed by experts as
devices connected to a network and/or to one another,
the Fourth Industrial Revolution, or 4IR.
exchanging data without necessarily requiring human-to-
machine interaction. In other words, IoT is a collection of
Internet of Medical Things (IoMT): The healthcare field
electronic devices that can share information among
has begun incorporating IoT, creating the Internet of
themselves. Examples include smart factories, smart home
Medical Things (IoMT). These devices, such as heart
devices, medical monitoring devices, wearable fitness
monitors and pace makers, collect and send patient health
trackers, smart city infrastructures, and vehicular
statistics over various networks to healthcare providers for
telematics. Potential issues for Congress include regulation,
monitoring, analysis, and remote configuration. At a
digital privacy, and data security as discussed below.
personal health level, wearable IoT devices, such as fitness
trackers and smart watches, can track a user’s physical
IoT Characteristics
activities, basic vital data, and sleeping patterns. According
IoT devices are often called “smart” devices because they
to a 2019 survey by Pew Research, about one-in-five
have sensors and can conduct complex data analytics. IoT
Americans uses a smart watch or fitness tracker.
devices collect data using sensors and offer services to the
user based on the analyses of that data and according to
Smart Cities: IoT devices and systems in the utilities,
user-defined parameters. For example, a smart refrigerator
transportation, and infrastructure sectors may be grouped
uses sensors (e.g., cameras) to inventory stored items and
under the category of “smart city.” Utilities can use IoT to
can alert the user when items run low based on image
create “smart” grids and meters for electricity, water, and
recognition analyses. Sophisticated IoT devices can “learn”
gas, where sensors collect and share customer usage data.
by recognizing patterns in user preferences and historical
This data is used to enable the central control system to
use data. An IoT device can become “smarter” as its
optimize production and distribution to meet demand in real
program adjusts to improve its prediction capability so as to
time. Cities can use transportation IoT for fare readers and
enhance user experiences or utility.
status trackers or locaters that interface across all public
transportation platforms. For example, Columbus, Ohio’s
IoT devices are connected to the internet: directly, through
winning proposal for the Department of Transportation’s
another IoT device, or both. Network connections are used
2016 Smart City Challenge incorporated connected
for sharing information and interacting with users. The IoT
infrastructure that interacts with vehicles (including electric
creates linkages and connections between physical devices
autonomous vehicles and shuttles), as well as a common
by incorporating software applications. IoT devices can
payment and trip planning system across multiple transit
enable users to access information or control devices from
systems.
anywhere using a variety of internet-connected devices. For
example, a smart doorbell and lock may allow a user to see
Smart Homes: Consumer IoT devices used in homes and
and interact with the person at the door and unlock the door
buildings are often grouped under the “smart home”
from anywhere using a mobile device or computer.
category, including smart appliances, smart TVs, smart
entertainment systems, smart thermostats, and network-
IoT Categories
connected light bulbs, outlets, door locks, door bells, and
IoT devices are used in different fields for a broad range of
home security systems. These smart home IoT devices can
functions. This section describes select IoT categories of
be connected to a single network and controlled remotely
frequent congressional interest.
over the internet via a mobile device or computer.
Industrial Internet of Things (IIoT): The manufacturing
Global IoT Device Adoption
industry has begun to adopt commercial IoT applications.
The market research firm IoT Analytics predicts the number
Referred to as industrial Internet of Things (IIoT),
of active IoT devices will grow from 9.9 billion in 2019 to
networked machines in a production facility can
21.5 billion in 2025. While non-IoT device connections will
communicate and share information with the goals of
also continue to increase, IoT devices will be about two-
improving efficiency, productivity, and performance. The
thirds of those connections by 2025, up from about one-
application of IIoT can vary significantly, from detecting
third in 2019 (Figure 1).
corrosion inside a refinery pipe to providing real-time
production data. Currently in North America, there are more
consumer IoT connections than IIoT connections, but this
may change in the future. IIoT has the potential to
transform a variety of industries, including manufacturing,
chemicals, food and beverage, automotive, and steel. The
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The Internet of Things (IoT): An Overview
Figure 1. Global Number of Connected Devices
Regulatory Issues: Emerging and converging technologies,
($ Billions)
such as IoT, may not align wholly with federal agency
oversight jurisdictions. New technologies may be left
unregulated, partially regulated, or more fully regulated
under a newly developed framework. They could also be
left to self-regulate by the industry, which is the case for
many consumer IoT devices. Federal regulation of IoT may
entail policies for deconfliction, harmonization, and/or
expansion of agency jurisdictions.
Digital Privacy Issues: The IoT facilitates increased
collection and consumption of data, posing potential
privacy concerns. A piece or aggregation of the collected
information could be used to identify, locate, track, or
monitor an individual without the person’s knowledge. The
revealed patterns in their activities may also be exploited.
The dilemma lies in that digital privacy and the
Source: Internet Analytics, August 8, 2018, https://iot-
advancement of smart technologies like IoT may be in
analytics.com/state-of-the-iot-update-q1-q2-2018-number-of-iot-
direct opposition. Increased data collection and usage may
devices-now-7b/.
yield innovation, technological progress, and improved
Notes: IoT devices do not include mobile devices, laptops, tablets,
utility, but could also lead to the erosion of privacy and data
nor other computing devices. They are represented as Non-IoT
exploitation without consent.
devices. The figures do not include devices no longer in use. Non-
bolded figures are estimates.
Data Security Issues: Connected devices and systems offer
the possibility of ubiquitous access, which equates to more
IoT Market Growth
possible entry points for both authorized and unauthorized
The development, application, and usage of IoT will likely
users. As more devices become connected to one another
continue to grow with the deployment of fifth-generation
and to the internet, the risk and impact of a compromise
(5G) cellular networks and technologies. These allow a
increase, along with the possibility of a cascading
larger number of devices to be connected simultaneously to
cyberattack. Data security is a tradeoff to consider between
a network and communicate with minimal delays,
convenience and vulnerability.
supporting not only consumer but industrial use of IoT
devices and systems. The global IoT is expected to grow
The IoT links cybersecurity and physical security. For
approximately 37% from 2017 to $1,567B by 2025 (Figure
example, when smart doors and locks are remotely
2).
controlled by a malicious actor through cyberattack, the
physical security of that building also becomes
Figure 2. Global IoT Market Forecast ($ Billions)
compromised. The damage may not be limited to loss of
digital content or information. Loss of data physically
stored in the compromised location as well as personal
security could be jeopardized.
Many IoT devices do not employ strong encryption at the
device or user interface level. Not implementing strong
encryption may be intentional due to associated benefits—it
usually reduces cost, increases battery life of devices,
minimizes memory requirements, reduces device size, and
is easier to use or implement. However, a system may
become easier to break into if IoT devices are the most
vulnerable points of a system.
Congress may choose to define the role of the federal
government in overseeing digital privacy and data security
Source: Internet Analytics, August 8, 2018, https://iot-
through legislation that comprehensively addresses IoT
analytics.com/state-of-the-iot-update-q1-q2-2018-number-of-iot-
issues or that revises specific authorities of federal
devices-now-7b/.
agencies. In considering options, Congress may face three
Notes: Non-bolded figures are estimates.
potential policy decisions: (1) whether data privacy and
data security should be addressed together or separately in
Selected Policy Issues
different laws, (2) whether various types of personal data
should be treated equally or differently, and (3) which
Congress may take IoT-related legislative and/or oversight
agencies should be responsible for implementing such laws.
actions. Issues could include regulation, digital privacy, and
data security among other policy issues.
Patricia Moloney Figliola, Specialist in Internet and
Telecommunications Policy
https://crsreports.congress.gov
The Internet of Things (IoT): An Overview
IF11239
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