The Impact of IoT on the Modern World

By Dr. Heidrich Vicci

1. Introduction

The IoT provides users with dynamic and rich context-aware services that are highly responsive to the user needs. The users can remotely monitor and control the environment. The IoT will allow more direct integration of the physical world into computer-based systems, resulting in improved accuracy, efficiency, and economic benefit in addition to reduced human intervention. The basic premise is to have objects or things working for humans, rather than humans working for them. As we can see, the usage of the term follows a similar trend in both economics and search engine results, which could be a good indicator of the existence of a correlation between the two. More than 16 years after its inception, technology remains a hot topic both in the business world and in academia. (Jagarlamudi et al.2022)(Pradeep et al.2021)(Pradeep et al.2021)

The purpose of this article is to understand the impact of the Internet of Things on different aspects of business. This review focuses on understanding the services provided by the Internet of Things (IoT) to industries and how it can be used for their benefit. The Internet of Things represents a vision in which the Internet extends into the real world, embracing everyday objects. Physical items are no longer disconnected from the virtual world but can be controlled remotely and can act as physical access points to internet services. "Things" with built-in processors could be connected within an area to accomplish one or the other task, an idea that was first proposed by Ashton and Kamaras in the year 1999. (Greengard, 2021)(Tran-Dang et al.2020)(Lombardi et al., 2021)

2. Advantages of IoT

The growth rate of the Internet of Things (IoT) is phenomenal, with more than 36 billion devices expected to be connected by 2021. But the reality is that this growth brings more questions and challenges than mere connections and innovation could address without drastically increasing the workforce. There are predictions of a potential shortage of IoT skilled workers. The world is showing increasing interest in this new area, where to a greater or lesser extent people experience, use, and benefit from its contributions. The automation and control capabilities of IoT make it possible to provide services and to create systems to control different technological systems, promoting better quality of life and overall improving the welfare and well-being of people. (Zikria et al., 2021)(Alvares et al., 2021)(Sadeeq et al.2021)

To support digital transformation processes, a trend has emerged in IoT, which has shifted the perspective of people to the value of data generated by devices and devices connected to the Internet. This leads to a type of relationship in which the amount and quality of the data generated and collected by a device is directly related to its connectivity, leading Information Technology (IT) to expand the possibilities of associating the digital world with the real world through digital services, technology, and increasingly "smarter" products. The ubiquitous nature of IoT, i.e. its omnipresence in several aspects and sectors of modern life, can lead to the disappearance of "technological overload". That is, in the future, the technology that surrounds us will no longer be "seen" (it will rather be used) as the backdrop of our environment. Therefore, it is imperative that the creation and evolution of IoT solutions take into account this new reality. (Booij et al.2021)(Firouzi et al., 2022)(Lombardi et al., 2021)

2.1. Efficient Data Collection and Analysis

IoT-based solutions facilitate the emergence of new services and business models. These technologies are already implemented in many areas, for example, in smart cities, smart grids, or smart homes. It is estimated that in 2020, the number of active things will be between 26 and 212 billion. Every year, IoT technologies bring $1.9 trillion of new potential economic value. The final value will depend upon, among others, the implemented systems, the scope and effectiveness of the implemented solutions, as well as the level of acceptance of these technologies by the users. When used efficiently, IoT brings considerable benefits. They include, among others, faster decision-making, reduction of operation and control costs, competitive benefits, and the optimization of input resource and energy usage. IoT also, among other things, contributes to changing human behavior, influencing consciousness, and being an incentive for economic development. (Atitallah et al., 2020)(Rejeb et al., 2022)(Bellini et al., 2022)

The development of IT technologies influences, among others, the increased expectations for intelligent systems. Many assume that, in a few-year perspective, a computer system will take over many activities and responsibilities from people. Intelligent systems will be able to assist people without needing specific instructions. For example, by supplementing their experience, recognizing and analyzing situations, drawing appropriate conclusions, making decisions, and informing of a risky situation. The efficiency of these solutions stems, among others, from the comprehensive and reliable information, which constitutes the indispensable basis for these systems. These expectations, however, might have a detrimental effect. According to some researchers, they facilitate the erosion of competencies, which requires, for example, memorization and use of knowledge and skills, creation of interpersonal relationships, and obtaining experience, autonomously solving individual or collective problems. (Sarker, 2022)(Zavr?nik, 2020)(Yang & Gu, 2021)

2.2. Improved Decision-Making

Compared to conventional methods, Industry 4.0 will provide complete real-time process monitoring and reporting capabilities. The data collected can be integrated with analytics and big data capabilities to make decisions on time to predict if trouble is likely and to also predict the quality and production time of a product. This allows plants to operate in the most efficient way by allowing movement and communication to work together as a whole. Also, the ability to exchange information, create tasks, execute tasks, and monitor task progress through real-time data collected by developers used to maintain factory floor visibility and allow intelligent decisions to be made quickly using real-time information. This greatly contributes to improving efficiency, reducing downtime, and improving overall business operations and strategies. (Javaid et al., 2021)(Shaheen & Németh, 2022)(Jamwal et al., 2021)(Saabye et al., 2020)

The advanced technologies outlined in the IoT strategy will be used to support the seamless exchange of data and information between devices, equipment, factories, and other business functions, so new revolutionary services can be offered to customers, and improved productivity and efficiency in value chains. This business-led approach will ensure that Europe's industry can take full advantage of the latest technological developments and ensure that IoT is incorporated into their best business strategies and operations. This will provide direct economic benefits and improve the daily lives of European citizens. Europe's industry is highly competitive but is struggling to innovate and secure worldwide market leadership positions in IoT application areas such as consumer equipment and network connectivity, apart from giving full value to manufacturing and Industry 4.0. (Yang & Gu, 2021)(Vermesan & Friess, 2022)(Behie et al.2023)

2.3. Enhanced Automation

IoT systems underpin improved automation of various forms, which increases efficiency, reduces time, eliminates costs, and eliminates human error. This asset is used by every business that employs IoT types. IoT constructs a "smart home" model with several smart devices operating collectively (each appliance also belongs to a small network within IoT networks) to automate a wide variety of household activities. Nonetheless, the greater system participates in "smart" businesses, "smart" housing suppliers, and "smart" cities. Given that most businesses' core operations are maintained by businesses, limiting use cases to personal usage does not reflect the broader picture. Limited integration with enterprise systems in recent reports has unreasonably prevented the elevated integration of smart home technology. (Swamy & Kota, 2020)(Ayvaz & Alpay, 2021)(Sgarbossa et al.2020)

Shared understanding and engagement with the design and development of the smart city framework is needed. Additionally, the importance of such undertaking must be emphasized, as it is imperative that leaders and economists impede into the easy stage of integrating "smart cities." Automated manipulation of basic household and business operations enhance operational effectiveness by joining IoT appliances. Moreover, automation has enhanced the performance of planet management by automating the entire device. Enhancements by automation and control of artificial intelligence, powered by machine learning through IoT, in transportation systems, manufacturing industry automation as well as in the automatic delivery of products will determine the path in the direction in which IoT helps to benefit most lives. (Apsilyam et al.2024)(Ng et al.2021)(Tyagi et al.2020)

3. Challenges and Concerns of IoT

Security and privacy are two major concerns that need to be addressed, especially now as more and more connected devices are being installed. Security is a major challenge within IT, but with IoT, it is even more challenging, making it the single biggest challenge of IoT. The more devices are connected, the faster networks have to get for real-time processing and reactions, and such networks would be mostly shared among other applications. When you have drones and autonomous cars with highly uplinked access with extremely high speed, defense networks will require an infrastructure that is equally as robust with no delays in reaction times. (Malhotra et al.2021)(Karale, 2021)(Abiodun et al.2021)

Current firewalls are not designed well for IoT type of traffic as they classify and manage traffic based on domain and IP addresses, which as we have seen is expected to be a whopping 4.3 ZB. VPNs work well with low latency, but when you have an autonomous car driving at speeds of over 100km/h, delays of microseconds diverting traffic back to home base for inspection would lead to accidents leading to loss of lives, and this is simply not acceptable. (Alabady et al.2020)(VARZANEH et al.2024)(Kumar et al.2022)

Privacy is an issue with IoT as all data repositories may be integrated to store and analyze data. With colossal gains being expected from monetization, citizens' privacy is expected to level with public safety; otherwise, citizens may object to massive deployment of CCTVs in public arenas. A surveillance system that is cross-referenced is definitely questionable due to its ethical implications. Ethical implications lead to legal implications, and IoT compliance regulations are expected to go up. (Atlam & Wills, 2020)(Chatterjee et al., 2021)(Munoko et al., 2020)

Trust involves integrity and non-repudiation, and in IoT, clients and servers are expected to be mutually authenticated to prove service from authorized parties is from intended parties with appropriate levels of integrity and non-repudiation. Lower levels of trust require real-time actions of appropriate security policies enforcing them through various pattern recognition and self-improvising cryptographic policies. (Panda & Chattopadhyay, 2020)(Sun et al.2021)(Zheng et al.2022)

Regulatory issues are expected to be complex, confusing, and extremely legal-driven. It is complex as it involves thinking and addressing problems on a global level, as IoT can happen indecent of national and geographic borders, and it is confusing because it has so many layers implementing it at various levels of technology. (Stoyanova et al.2020)(Veale and Zuiderveen2021)(Brown and Pressley2023)

3.1. Security Risks

Initially, the attraction to IoT stemmed from the potential to drive vastly improved business processes and the resulting high demand for data analytics software and Big Data infrastructure investments. Then global usage of IoT rapidly expanded into Industrial IoT, Smart Cities (with a broader emphasis on environmental impacts), and a trend towards greater interest and concern about implications for consumers. In such a system based on IoT technologies, potential security risks are varied and multi-layered. These risks can be the security challenges on the data transport between thing-to-thing, place-to-place, one-to-many data flows, and security management problems, resilience, service-level impacts, security in integrated services and applications, as well as many levels of identity and policy issues in an increasingly open environment. (Magaia et al.2020)(Syed et al., 2021)(Javed et al.2022)

An overview of potential security faults is presented with brief explanations on the scales and impacts. Sensor data stream in IoT applications (intruder alarm, water tap sensor, smart meter for electricity and water; wireless body area sensor network for healthcare, etc.), actuators are often used for actuations in these applications, and these are expected to be security-hardened in such environments. Unfortunately, current IoT devices and services are very much about how to enhance the security in a reasonably secure way, and there are very few formal IoT security specifications in the real market. Moreover, IoT brings a new dynamic layer into otherwise isolated computing systems with scattered data flow and trust contexts, allowing the creation of very large-scale multi-layered attacks covering all the above-mentioned potential risks. In a compromised system, cloud data exchange mechanisms are widely applied and are also an ideal place for compromising credentials in very large attacks. (Martin et al.2020)(Cirne et al., 2022)(Iqbal et al.2020)

3.2. Privacy Issues

Given the extent to which IoT can and will be used in critical aspects of human life, it is paramount to secure reliable privacy-enhancing technologies (PET). IoT raises new privacy concerns, such as possible inferences on position, personal health indicators, personal and professional habits, personal predispositions and fears, and doxing. Citizens, both in personal and professional capacities, have the right to keep certain aspects of their lives private, such as their habits, cultural preferences, and personal environment. However, studies indicate that nearly 85% of IoT devices expose user data to potential privacy and security risks. (Chanal & Kakkasageri, 2020)(Emami-Naeini et al.2021)(Karale, 2021)

Over the past years, many technical solutions have been proposed to mitigate IoT privacy concerns. Furthermore, several high-level solutions have been defined at the EU level. The European Commission, in charge of environmental and privacy policy and strategy, has taken proactive steps to set the foundation of the IoT privacy debate. On May 4th, 2016, a new EU regulation specifically addressing the security of IoT solutions was introduced. The concept of EU levels addressing IoT privacy and security is as follows: Level 1 (highest degree of centralization) called specific data sets sensitive to privacy reasons operations, Level 2 contextualized PET across sensitive data sets and privacy local devices of PET across sensitive data sets, and Level 3 (highest degree of decentralization) called privacy-by-design across IoT devices (similar to the GDPR). (Cirne et al., 2022)(Karale, 2021)(Chiara)

3.3. Compatibility and Interoperability

Notably, one of the most challenging technical problems to which the IoT has given rise is making the devices and systems - what many researchers and analysts individually refer to as things - themselves. Adding incompatibility, different standards, privacy and security checks, voided warranties by adding new functions, market profusion, and over a hundred protocols, the challenges appear clearly. Problems emerge from the widespread and extensive use of proprietary solutions, which has created a situation in this field similar to and yet even more serious than that which the computer world had many years ago, a situation which has made it hard for users to interface with different systems. What every IoT standard has in common is the ability to analyze data extremely quickly and to react and execute actions in response. (Karie et al.2021)(Gupta and Quamara2020)(Iqbal et al.2020)

A passive RFID may be used as an ID card at work, school, or another office; an employee's smartphone might be used to connect to the internal wireless network, to send or receive emails or messages, or to access services provided only by an intranet. It may be useful to connect the device that reads the card to the electronic clocking-in machine that registers the day's start or end time; only a sophisticated mobile application can be used to register the entry of a person in accordance with safety procedures, and only a company-provided mobile phone can receive shared calendars, scheduled training events, or technical support alerts. It is necessary to consider, especially from the point of view of the employer, that integrating work activities with everyday activities automatically disadvantages those employees who cannot afford a smartphone, even a basic one, and therefore have limited access to enhanced services. (Derks et al., 2021)(Thulin and Vilhelmson2022)(Lutz et al., 2020)

4. Future of IoT

This potential future of IoT brings with it a lot of controversies about how the main stakeholders should manage it. Fog (edge) computing appears as a possible solution to some current and upcoming disagreements. The requirements of computation, communication, attachment to the physical world, reliability, security, real-time response, continuous operation during many years, low cost, and privacy are not all equally satisfied with the current and available general-purpose IT ecosystem, via the core cloud paradigm. Especially IoT, almost all the time and almost all together, require this set of requirements. (Laroui et al.2021)(Mijuskovic et al.2021)(Salaht et al., 2020)

The core cloud is much more flexible, powerful, and advanced than other technologies developed in the past. However, it is facing difficulties in properly satisfying IoT, all warranting the demand for a change of paradigm. It is also argued that legacy technology applications will also further benefit from a complementary computing edge, by on top of it reusing in whole or in part the basic principles of functionalities invented for IoT, which is compounding the benefits of changing IoT from a cloud computing environment to a fog one. Sometimes it is required to use the explicit prefix of fog to dissociate common mist concepts or paradigms and help engineers understand that this new generation of programmable computation is indeed different from traditional ones. (Firouzi et al., 2022)(Cai et al.2020)(Serhani et al.2020)

The recent advances in computing, new architecture paradigms, technologies in general, or applications and developments that are mostly based upon the widespread availability of the internet, mobile devices, and anticipation of future trends can be classified as new generations of some underlying basic concept. Despite the value of other generations, the cost of IoT is behaving not as it was expected initially. Hence, it is hard to forecast the real evolution of such impact and it may remain high or vanish completely when only desirable consumer product applications emerge - for sure a very important market but perhaps not as much as to warrant the huge potential economic increase that was expected from IoT. Regardless of the real economic impact of IoT, it has indeed pushed a large amount of research for IT subjects in either case, making such endeavor a worthwhile effort of the information technology community. (Kurt et al.2020)(Savazzi et al., 2020)(Alifah and Kusumawati2022)

4.1. Expansion of IoT Applications

The range of applications and use cases of IoT has been rapidly increasing in recent years. In 2014, 29,832 organizations worldwide invested $476 billion on IoT, where 89 percent of the business managers expect IoT to be a major source of competitive advantage over the next three years. Furthermore, the Internet of Things market will grow to $21.7 billion by 2018. Some of the most explored areas to benefit from IoT are Precision Agriculture, Smart Cities, Health Care, Smart Home, and Industrial IoT. ACHMA is one of the major Brazilian research centers focusing on IoT, providing technologies that enable IoT research and IoT-related applications. Some examples of ACHMA-supported research areas and projects are: waste management, urban air quality monitoring, medical equipment, smart grid applications (smart apartment buildings and industry), and IoT for disaster management. (Gupta and Quamara2020)

As opposed to consumer electronics, IoT solutions have specific characteristics that are commonly present in diverse applications such as: the need to support a variety of devices with different capabilities; context data (high volume and variety of context sources with temporal variation); distributed data processing based on devices with limited processing capacity; focus on event driven communication, using publish/subscribe paradigms (and even in scenarios not focused on IoT); and support the connection of new devices through dynamic device discovery and configuration. Since IoT follows the traditional phases of IoT data, where IoT devices capture information about physical objects, sending it to an IoT service where they are combined, processed and analyzed. These are viewed and shared by the recipient, in order to make the best decision, and can be transformed into actions that are executed, finally impacting the real world. (Gupta and Quamara2020)(Tawalbeh et al., 2020)(Lombardi et al., 2021)

4.2. Integration with AI and Machine Learning

One of the key barriers to the widespread integration of IoT devices is the impressive volume of data that is being generated and transmitted. Businesses are now faced with the challenge to not only monitor and analyze this data, but to also contextualize it within web applications or services. As computing capabilities develop, and encroaching advancements such as the increased availability of cloud-computing resources - users will likely see the development of advanced, reactive IoT-driven applications, and have the ability to respond to the context in which it is being used. Technologies integrated with machine learning and decision-supporting AI will unlock another level of important context-aware applications to benefit both businesses and consumers. Ultimately, IoT will accelerate the path to create an environment that can be the epitome of the truly connected world and revolutionize lifestyle in every aspect. (Younan et al., 2020)(Hamad et al.2020)(Qiu et al.2020)

While 5G will drive superfast wireless communication and drive the progress in the IoT sector, AI and machine learning, on the other hand, will drive smart applications that can decide and act once the AI entities are closely integrated with IoT devices. AI today is more robust and capable than ever, translating to IoT being more valuable in today's world than it has ever been. Thus, with breakthroughs apparent, investment in artificial intelligence is growing significantly; around 60% of businesses are now utilizing AI for data-processing. These datasets will inherently come from IoT sensor data due to the wide range of applications it perceives. Since AI thrives on data, the more extensive the information, the better the AI becomes, delivering enhanced quality insights. Early adopters in business are already beginning to take advantage of this as part of its digital transformation projects, underpinning real initiatives in various sectors, demonstrating the potential of integrating IoT and AI. (Wamba-Taguimdje et al.2020)(Bharadiya, 2023)(Kulkov, 2021)

4.3. Ethical Considerations and Regulations

The monumental rise of sensors and connected devices throughout the world has also insinuated a variety of vexing questions in terms of trust, security, responsibility, and transparency. A few years back, security and privacy in the context of IoT were considered as largely solvable through the adoption of competitive markets and the progressive development of technological solutions aimed to mitigate unauthorized data access and privacy breaches. There has been a moderate focus on the ethics of IoT and on the potential long-term consequences of these technologies. However, as the IoT rapidly continues to consolidate in modern life, even though traditional mechanical and hardware safeguards have been undertaken, many major technical and ethical issues still remain unsolved. Moreover, although some substantial efforts have been undergone to apply ethical principles to the societal changes caused by the IoT, a coherent view of these technologies from an ethics perspective is still lacking. The IoT has completely blurred the line between the physical and the digital world, raising several ethical questions, particularly in the form of privacy, freedom, and responsibility. (Atlam & Wills, 2020)(Dhirani et al., 2023)(Narasimhan & Mbero, 2022)

There have been several unwanted data leaks. The healthcare sector was an example of an IoT application that was intended to improve numerous issues with the traditional approach, but the issues turned out completely different than those predicted. Such cases are further deteriorating public trust. To address potential issues to which the IoT is prone, implementation of regulations is very crucial. A highly effective regulation approach needs to be very specific to the particular objectives of the regulations and tailor the regulation carefully to the realities on the ground. In the context of particularly against the Smart Cities, the European Commission recently is also being implemented. Some of the core uses of IoT are under investigation and regulation process, including transport and environment. However, even legal and ethical issues such as data ownership, privacy, security, and environmental impacts are still unclear. Authorities and technology developers are not very clear on how to tackle some of these issues due to the lack of understanding and knowledge of the IoT among the community. A general appropriate legal framework is necessary for the successful, reliable, secure, and manageable IoT. However, in addition to the usual need for regulations that fall within local and regional governance structures, the IoT domain presents three major constraints that are not held in some other ICT (Information and Communication Technology) forms. (Sivakumar et al.2024)(Wilner et al.2021)(Fahey & Hino, 2020)(Saheb et al., 2022)

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