IoT Glossary: Key Terms from the World of Connected Systems

Actuator

An actuator is a device that performs movements or actions, such as a motor that opens a window or a valve that releases water. While sensors measure things, actuators make a system active and cause changes. In many IoT applications, the actuator acts as the “action organ,” converting digital commands into real-world actions.

Anomaly Detection

Anomaly detection refers to the automatic identification of unusual patterns in data. In IoT systems, it can help detect faulty devices, security issues, or abnormal operating conditions early on. This allows companies to respond more quickly before significant problems or failures occur.

Big Data

Big Data describes very large and complex sets of information that cannot be processed with traditional methods. In IoT, such data often comes from millions of sensors continuously collecting information. By analyzing big data, patterns can be identified, trends predicted, and better decisions made.

Cloud

The cloud refers to remote servers and storage solutions that are accessible via the internet. IoT devices send data to the cloud, where it is collected, stored, and analyzed. This allows information to be accessed from anywhere and smart services to be provided.

Connected Cars

Connected cars are vehicles that constantly communicate with their surroundings and the cloud via mobile or satellite networks. They collect telemetry data, support infotainment services, enable over-the-air updates, and are a central element of future mobility concepts.

Digital Twin

A digital twin is a virtual representation of a real object or system. Sensors continuously provide data from the physical world, which is reflected in the digital model. This allows behavior, conditions, and potential issues to be simulated, monitored, and analyzed—for example, in machines, buildings, or vehicles.

Edge Computing

Edge computing refers to decentralized data processing close to where the data is generated—directly in the device or at a local gateway. This reduces latency, lowers data transmission costs, and keeps systems responsive even when internet connections are unstable.

Embedded Systems

Embedded systems are specialized computer systems built into devices or machines. They handle specific control, measurement, or communication tasks and often form the technical foundation for connected IoT products.

Radio / Wireless Communication

Radio refers to the wireless transmission of data using electromagnetic waves. In IoT systems, technologies such as Wi-Fi, Bluetooth, Zigbee, or LoRaWAN are used to connect devices with each other or with the cloud without the need for cables.

Gateway

A gateway connects IoT devices to networks or cloud services and often translates between different communication protocols. It serves as a central interface that collects, filters, forwards, or locally processes data.

IIoT (Industrial Internet of Things)

The Industrial Internet of Things (IIoT) describes the use of IoT technologies in industrial applications such as manufacturing, logistics, or energy production. The goal is to automate processes, increase efficiency, improve transparency, and enable data-driven decisions.

IoT (Internet of Things)

The Internet of Things (IoT) refers to the connection of physical devices via the internet, enabling the collection, transmission, and processing of data. It forms the basis for intelligent applications in areas such as smart homes, industry, mobility, or energy management.

M2M (Machine-to-Machine)

M2M stands for Machine-to-Machine communication and refers to the direct exchange of data between two machines without human intervention. It is considered a precursor to IoT and is commonly used in industrial automation systems.

Node

A node is a single device or point within a network. Each node can send, receive, or forward data. In IoT networks, nodes are often sensors, actuators, or gateways that together form a connected system.

Predictive Maintenance

Predictive maintenance means “maintenance in advance.” Machines and equipment are continuously monitored via sensors. The collected data helps predict when a component should be serviced or replaced. This prevents unexpected failures, saves costs, and extends the lifespan of devices.

Provisioning

Provisioning is the process of preparing a new device for use. This includes setup, configuration, and assigning access rights within a network or cloud. Proper provisioning ensures devices can communicate securely and perform their tasks reliably.

Security

Security in IoT systems includes all measures to protect devices, networks, and data from unauthorized access, manipulation, or misuse. This includes encryption, secure authentication, and regular updates to ensure IoT applications remain reliable and trustworthy.

Sensor

A sensor measures physical quantities such as temperature, pressure, acceleration, or humidity and converts them into digital values. Sensors are essential building blocks of IoT, as they make the state of devices and environments measurable.

Smart Cities

Smart cities use digital technologies and connected sensors to make urban life easier, safer, and more sustainable. Examples include intelligent street lighting that only turns on when needed or traffic systems that detect congestion and suggest detours. The goal is to use resources more efficiently and improve the quality of life for residents.

Smart Home

A smart home is a home in which devices such as lights, heating, blinds, or security systems are interconnected and can be controlled automatically or via an app. This makes everyday life more comfortable, energy-efficient, and often safer. For example, the heating can turn on automatically when someone arrives home, or lights can switch off when no one is in the room.

Smart Objects

Smart objects are everyday items that become “intelligent” through sensors, chips, and internet connectivity. They can collect information, respond to it, or communicate with other devices. Common examples include connected thermostats, smartwatches, or industrial machines. They make processes automatable and enable new digital applications.