You’ve likely heard the term “Internet of Things” at some point from a colleague, an article, or an advertisement. But the term is broad and can cover an overwhelming amount of information.

In short, the Internet of Things refers to the rapidly growing network of connected objects that are able to collect and exchange data in real time using embedded sensors. Thermostats, cars, lights, refrigerators, and more appliances can all be connected to the IoT.

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Insider Intelligence forecasts 3.74 billion IoT mobile connections worldwide by 2025 and more than 64 billion IoT devices installed by 2026.

To help clarify how the IoT works, we’ve laid out some real-world applications, along with some specific devices and examples.

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Internet of Things Applications

  1. Smart HomeThe smart home is likely the most popular IoT application at the moment because it is the one that is most affordable and readily available to consumers. From the Amazon Echo to the Nest Thermostat, there are hundreds of products on the market that users can control with their voices to make their lives more connected than ever.
  2. WearablesWatches are no longer just for telling time. The Apple Watch and other smartwatches on the market have turned our wrists into smartphone holsters by enabling text messaging, phone calls, and more. And devices such as Fitbit and Jawbone have helped revolutionize the fitness world by giving people more data about their workouts.
  3. Smart CitiesThe IoT has the potential to transform entire cities by solving real problems citizens face each day. With the proper connections and data, the Internet of Things can solve traffic congestion issues and reduce noise, crime, and pollution.
  4. Connected CarThese vehicles are equipped with Internet access and can share that access with others, just like connecting to a wireless network in a home or office. More vehicles are starting to come equipped with fobs in lieu of physical keys, which use sensors to do everything from remote start and setting off the alarm to popping the trunk and unlocking the vehicle with smart locks.

Internet of Things Devices & Examples

  1. Amazon Echo and Google Home – Smart Home: AI voice assistants like the Amazon Echo and Google Home are some of the most popular connected devices in consumer IoT. Users can talk to voice assistants like Alexa for help performing a variety of functions including playing music, providing a weather report, getting sports scores, ordering an Uber, and more.
  2. Fitbit Charge 5 – Wearables: The Fitbit Charge 3 tracks your steps, floors climbed, calories burned, and sleep quality. The device also syncs with computers and smartphones through wifi to transmit your fitness data in understandable charts to monitor your progress.
  3. Barcelona – Smart Cities: The Spanish city is one of the foremost smart cities in the world after it implemented several IoT initiatives that have helped enhance smart parking and the environment.
  4. AT&T – Connected Car: AT&T was the first telecom company to open a connected car research and innovation center.