Understanding IoT Architecture in IoT Systems

Published in

Cavli Wireless

9 min readNov 19, 2024

The Journey of Data packets from Sensors on the Field to the Control Applications on the Cloud

We all have been hearing about the Internet of Things.
When you hear the word ‘IoT’ what comes to your mind?
Autonomous cars, smart homes, automated industrial machinery, smart lightings. Yeah, the list goes on.

What is IoT? Internet of Things Explained

From Smart Homes to Autonomous Cars, IoT that Connects Billions of Devices Explained

The IoT is the collection of devices connected to the internet to enable communication between them. This reliable communication between the devices in a connected ecosystem helps humankind to attain authority, better visibility, management, and control in applications involving them. IoT promises a better user experience to its consumers, the best example being smart home automation.

Ever imagined coming home after a hectic day to find your space perfectly set instantly?

Picture this: your lights automatically adjust as you enter, the thermostat sets the perfect temperature before you arrive, and your favorite music starts playing in the background. It’s all possible with advanced intelligent home automation.

With IoT, these smart home features seamlessly work together to create an environment that anticipates your needs and enhances your comfort. IoT is not just limited to home automation.

In earlier years, could you have imagined a car that self-diagnoses and schedules its own maintenance?

In the automotive industry, IoT applications such as on-board diagnostics, Smart ECUs, Battery Management Systems, Telematics Control Units and more are revolutionizing the modern driving experience.

We can quote similar examples like smart agriculture, robotic surgery and others from diverse industries that leverage IoT to make automation of devices possible. IoT is that magic potion, enabling intelligent data flow between devices, driving innovation and efficiency in today’s connected world.

IoT Market Size
As per Fortune Business Insights, the global Internet of Things (IoT) market size was valued at USD 714.48 billion in 2024 is expected to grow to USD 4,062.34 billion by 2032, exhibiting a CAGR of 24.3% during the forecast period (2024–2032).

What is Architecture of IoT? The Foundation of Intelligent Connectivity

IoT architecture refers to the structured framework that outlines how various elements within an IoT system interact and work together. It includes the physical devices, networks, data management processes, and user interfaces that enable these devices to connect and interact with each other.

IoT applications collect data from various devices and sensors. The most critical task in IoT is managing this vast amount of data effectively. IoT architecture involves both hardware and software, establishing a relationship between dataflow, protocols, and interfaces. To get it right, there needs to be a robust IoT architecture that oversees all the components of IoT in a systematic way.

To relate it better, Imagine IoT as the Wakanda empire, then IoT architecture is Wakanda’s vibranium network — the technological marvel that provides the underlying structure that powers and links all IoT devices in the tech world.

IoT Layers: Slicing Through the 7-Layer Architecture of IoT

The 7-layer IoT architectural view is also known as the Open System Interconnection (OSI) model. It is a more refined IoT architectural view, designed to meet the growing IoT challenges and requirements. We are about to slice through the seven layers of IoT architecture that makes it efficient and secure in modern tech environments.

The 7 IoT layers in the architecture of IoT is grouped into 3 categories -

Hardware Layers
Transport Layer
Software Layers

Physical Layer

The physical layer consists of the devices and transmits data in binary form (as 0s and 1s). It also includes wireless network connections and network components like repeaters, modems, cabling, etc.

Data Link Layer

The data link layer defines the structure in which the data moves in and out of the network entities and corrects errors that may have occurred at the physical layer. The two control protocols that the data link layer uses for security and error control are MACsec (Media Access Control security) and LLC (Logical Link Control).

Network Layer

The network layer is responsible for deciding which path the data packets should take for sending them back and forth between different networks. This layer divides the transport layer into network packets and carries out data transmission with the help of IP addressing.

Software IoT Layers

Session Layer

As the name suggests, the Session Layer opens a session between two systems to communicate with each other. It also determines how long the session will continue and when the session will end.

Presentation Layer

The Presentation layer acts as a data translator for the network. It retrieves data from different points and delivers it to the Application Layer. This IoT architecture ensures that the data is structured and presented in a usable format for both the Application and Network Layer.

Application Layer

It is the closest layer to the end user in the IoT architecture diagram. It can collect information from the end user and send back the desired action. This IoT architecture layer consists of protocols that allow data transmission like HTTP and HTTPS, FTP, DNS, etc.

From Data to Business Decisions: The Key Components of IoT Architecture Explained

As we advance, understanding the roadmap of data — from its collection to its transformation into insightful decisions — is crucial. Imagine each stage as a milestone in the journey of data becoming a decision.

1. Devices on Field

The devices in an IoT ecosystem, equipped with sensors, collect and transmit data. This ecosystem supports bidirectional communication between IoT layers to receive timely instructions. Depending on specific requirements or applications, sensors collect various data parameters, such as temperature, movement, and others.

1.1. Sensors

Sensors are devices that detect and measure physical properties from the environment, such as temperature, humidity, pressure, and motion. Examples of sensors include:

Temperature sensors
Humidity sensors
Pressure sensors
Motion sensors

1.2. Actuators

Actuators are devices that carry out a physical movement or function on getting a command from the IoT system. For example, carrying out tasks like opening a valve, turning the lights off/on are all carried out by actuators. Examples of actuators include:

Valves
Motors
Lights
Pumps

2. Physical Gateways

Gateways serve as the entry point and exit points within the IoT layers. It manages device connectivity and security in the network by authenticating the first layer of filtering the raw data collected from the devices.

Physical gateways (LAN, WAN) are hardware devices located at the edge of the network. They facilitate communication between sensors, actuators, and the cloud. Physical gateways support the following functions:

Aggregates data from multiple sensors and transmits it to the cloud.
Perform local data processing processing and filtering to reduce data load on the cloud.
Implement security measures to ensure secure data transmission.

2.1. Cloud Gateways

Cloud gateways (Cavli Hubble) are centralized devices that establish a connection between IoT devices and sensors to the cloud environment. The data from the gateway enters the cloud so that an extra additional layer of protection can be incorporated. Cloud gateways support the following tasks in IoT architecture

Transforming data into different formats suitable for further processing.
Routing data to appropriate destinations such as data lakes, data warehouses, or analytics platforms.
Implementing security measures to protect data during transmission to the cloud.

3. Data Lake

The data lake is a repository designed for storing raw and unstructured data from all IoT devices until it needs to be processed. It is from this data lake the raw data is moved to the data warehouse for further analysis. Data lakes enables

Ability to store large volumes of data.
Flexibility to store all types of data (structured, semi-structured, and unstructured).
A centralized location for data scientists and analysts to access raw data.

3.1. Data Warehouse

The data warehouse is where structured, cleaned and filtered data is stored for business intelligence purposes. It acts as a structured database optimized for reporting making it easier to manage queries and offer flexible reporting.A data warehouse is where structured, cleaned, and filtered data is stored for business intelligence purposes. It acts as a structured database optimized for reporting, making it easier to manage queries and offer flexible reporting. Features of data warehouses include:

Data is organized in a structured schema that supports efficient querying.
Optimized for high-speed performance in data retrieval and analysis.
Integrating data from multiple sources for comprehensive analysis.
Anticipating equipment failures before they occur.
Identifying anomaly patterns that may indicate security threats or system malfunctions.
Enabling smart systems to make autonomous decisions based on data insights.
Predictive analytics for forecasting future trends based on historical data.
Pattern recognition for identifying patterns and anomalies in data.
Optimization for improving processes and utilization based on data insights.

4. Control Applications

Control applications in IoT architecture are software systems that automate and manage device behavior based on sensor data. For example, an actuator can trigger action given by control applications. Therefore control applications automate processes and facilitate remote management. Therefore control applications play a crucial role in:

Automating processes based on predefined rules and real-time data.
Allowing users to manage and control devices remotely.
Making autonomous decisions to optimize operations and respond to changing conditions.

4.1.User Interfaces

Control applications often include user interfaces for interaction and management.

4.1.1. Mobile:
It allows users to interact with IoT systems using smartphones and tablets.
4.1.2. Web:
It provides access to IoT systems via web browsers.

4.2. Business Logic

Business logic refers to the rules and algorithms that govern the behavior of the IoT system. It includes:

Defining automation rules and conditions under which certain actions should be taken.
Implementing algorithms for intelligent decision-making.
Designing process workflows to streamline operations and improve efficiency.

4.3. Business Analytics

Business analytics within control applications involves analyzing operational data to optimize performance and drive strategic decisions. It includes:

Performance monitoring by tracking key performance indicators (KPIs) to ensure system efficiency.
Trend analysis by identifying trends to predict future conditions and make informed decisions.
Optimization by continuously improving processes based on data insights.

The Strategic Edge: Why Robust IoT Architecture is Important for Your Business

A well-defined and simplified IoT architecture is important to help you with the following.

Scalability

The volume of connected devices and their data generation is on an exponential growth. A scalable architecture of IoT should handle this surge without any performance degradation or service quality.
For instance, a smart city’s traffic management system should possess a robust IoT architecture to handle the increasing number of connected sensors and cameras.
Here the scalability of the IoT architecture is designed to allow the system to easily add more nodes and devices and handle the exponential growth of data in real-time as the city’s vehicle count grows.

Flexibility

From sensors to complex systems, an IoT ecosystem requires a robust yet an adaptable structure to accommodate this variety of devices. This adaptability is crucial for integrating security patches and emerging technologies that future-proof the architecture of IoT.
In a manufacturing company, there may be different machineries from different vendors working together to complete a specific IoT process.
In this case, a flexible IoT architecture is crucial to integrate new sensors and devices through different communication protocols such as MQTT, CoAP, and HTTP, allowing the company to easily integrate new devices and systems.

Reliability

To keep IoT systems running around-the-clock is critical, especially in applications like healthcare, industrial automation, and smart cities. Downtime in IoT architecture can have significant consequences. Reliable architecture of IoT ensures effective system functioning without interruption, thereby minimizing downtime.
For example, in the case of a hospital, the Internet of Medical Things (IoMT) requires reliable architecture of IoT for various tasks. It is essential for real time monitoring of patient vitals and other medical equipments.
It is this strong architecture that ensures medical things remain operational 24/7, process real time data and reduces downtime. The IoT architecture provides enhanced security to the critical medical records, preventing unauthorized cyberattacks that can be accessed, and exploited by cyber attackers.

Closing Notes

The IoT architecture landscape is continuously evolving, driven by rapid technological and shifting industry needs. By embracing these innovations, we can unlock significant potential within IoT, propelling digital transformation across all sectors. For businesses and developers, staying updated with these trends and integrating new technologies into existing IoT strategies is crucial. This proactive approach will enhance system efficiency, security, and scalability, ensuring that IoT continues to be a cornerstone of technological progress in the digital age.