Home IoT Insights IoT Basics: IoT Connections

What Are IoT Connections?

IoT connections are the links that allow devices, sensors, and systems to exchange data. They form the foundation of every Internet of Things solution. This guide explains the main types of IoT connectivity — from cellular and LPWAN to Wi-Fi and satellite — and how each fits different use cases.

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Connection Types Utilized for IoT Devices 2025

IoT-connected devices now form the backbone of a data-driven world, where sensors, software, and systems continuously exchange information. The essential enabling technology is the connection between the “things” of IoT — allowing physical objects to communicate and interact in real time. Across industries, these connections unlock new efficiencies, business models, and revenue streams.

Different IoT connection types are used depending on the needs of each device or application — from simple sensors that send small data packets infrequently to always-connected equipment that transmits large volumes at high speed and low latency. The range of possibilities extends from something as small as a medical sensor to something as large as an agricultural machine.

As IoT matures, the number of active connections continues to accelerate. Industry estimates suggest that there are now more than 16 billion IoT connections worldwide, surpassing the number of non-IoT connected devices such as smartphones and PCs.

There were about 16 billion connected IoT devices in 2023 (as reported by IoT Analytics). Forecasts project growth to approximately 18.8 billion by 2024, with long-term estimates pointing to 38–40 billion connected devices by 2030 (IoT Analytics, Ericsson Mobility Report).

This figure is expected to exceed 30 billion by 2025, as the physical and digital worlds merge and connectivity becomes embedded in almost everything.

The types of IoT devices being connected vary widely — from sensors and actuators performing simple tasks like monitoring temperature or motion, to complex systems such as connected vehicles that can be geo-fenced and tracked in real time. Continuous connectivity has already proven critical in areas such as cold-chain logistics and predictive maintenance, while newer applications are emerging that depend on ultra-reliable, low-latency links for uses like remote healthcare and real-time video analytics.

With tens of billions of connected devices, IoT use cases are expanding rapidly across sectors — driving innovation and creating new data ecosystems. Connection technologies are evolving in parallel to meet diverse needs for bandwidth, coverage, power efficiency, and scalability. Cellular networks from 2G to 5G and beyond now coexist with LPWAN, Wi-Fi, Bluetooth, and satellite solutions, ensuring that every IoT device can be matched with an optimal connection. Choosing the right IoT connection always depends on factors such as coverage, network availability, and the physical environment of the deployment.

Different connection types and device categories are converging to form a truly hyperscale Internet of Things, bridging the digital and physical worlds and enabling intelligent automation at global scale.

LPWA (Low-power wide-area networks)

Low power wide area networks typically utilise unlicensed radio technologies to enable relatively low capacity over sites such as factories, campuses and mines. Most offer a cost-effective, low power alternative to cellular connectivity, with the exception of NB-IoT, and are well-suited for IoT applications that require modest throughput.

Key types of LPWA connectivity include:

Bluetooth

Bluetooth is a short-range wireless technology mainly used for exchanging data between fixed and mobile devices over short distances using UHF radio waves in the ISM bands, from 2.402 GHz to 2.48 GHz, and building personal area networks. Its characteristics make it suitable only for short distance deployments.

BLE

Bluetooth Low Energy

Bluetooth Low Energy is aimed at applications in healthcare, security, home entertainment and wireless beacons. Independent of Bluetooth, BLE offers reduced power consumption while maintaining the range of classic Bluetooth.

LoRaWAN

Low-power wide-area network

LoRaWAN is a networking protocol for connecting wireless battery operated devices to the internet in regional, national or global networks. It addresses IoT requirements such as bi-directional communication, end-to-end security, mobility and localisation services. LoRaWAN baud rates range from 0.3 kbps to 50 kbps.

NB-IoT

Narrowband IoT

NB-IoT is a low power wide area (LPWA) technology developed to enable a wide range of IoT devices and services. NB-IoT significantly improves the power consumption of user devices, system capacity and spectrum efficiency, especially in deep coverage in contrast to cellular networks. Battery life of more than 10 years can be supported for a wide range of use cases. It provides a simpler, lower bandwidth alternative to cellular connectivity.

Sigfox

Sigfox is similar to LoRaWAN in that it is a technology designed for global roll-out to provide wireless networks to connect low power objects such as smart meters. It has low power characteristics and utilises the 900MHz band with networks in 72 countries, covering 5.8 million square kilometres, as of November 2020. Sigfox communication supports up to 140 uplink messages a day, which can carry a payload of 12 octets at a data rate of 100 bits per second.

Wi-Fi

Wi-Fi is commonly used for local area networking of devices and for internet access. Well known in home and small office networks, the technology is also utilised in enterprises to connect devices and provide public internet access for mobile devices. Wi-Fi has a range of 20-150 metres and some versions can achieve speeds of more than 1Gbps.

With the recent Wi-Fi 6 standard, the technology has more to offer IoT. Wi-Fi 6 offers data rates up to 10 Gbps with eight antennas and the technology can serve power-hungry devices with large batteries, such as mobile phones, tablets, and laptops. By operating at 5 GHz, Wi-Fi 6 avoids the highly congested 2.4 GHz frequency band and offers improved data throughput, increased robustness and reduced power consumption in comparison to previous Wi-Fi.

Zigbee

Zigbee is a communications protocol used to create personal area networks with small, low power digital radios. Typical applications include home automation, medical device data collection and other low power, low bandwidth use cases. The technology is limited to transmission distances of 10-100 metres with a line of sight in order to keep power consumption low. Zigbee has a defined data rate of 250Kbps and is suited for intermittent data transmission.

The Things in IoT

Beyond the networks themselves, IoT depends on physical devices and components that sense, process, and communicate data.

Access point

A wireless network device that acts as a portal for devices to connect to a local area network.

Device

A device is a unit of physical hardware or equipment that provides one or more computing functions within a system.

Beacons

Small transmitters that connect to Bluetooth and Bluetooth Low Energy (BLE)-enabled devices such as smartphones or tracked packages.

Gateway

A “hub that translates” communication between two computers or devices that allows these to understand each other´s data transfer and communication.

Hub

A hardware device that connects other data-transmitting devices to a central station.

Sensor

A device that measures a physical input from its environment and converts it into data that can be interpreted by either a human or a machine.

The Physical World Meets the Digital

As devices and systems become interconnected, physical assets increasingly interact with digital systems through these technologies and processes.

Actuator

A component that is responsible for moving and controlling a mechanism or system, such as opening a valve.

Cyber-physical systems

Integrations of computation, networking and physical processes with feedback loops where physical processes affect computations and vice versa.

Contactless

Describes technologies that allow a smart card, mobile phone or other device to connect wirelessly – without contact – to an electronic reader, typically in order to make a payment.

Digital twins

A digital replica of physical assets, processes, people, places, systems and devices that can be used for various purposes and integrates historical machine data into a digital model.

Geofencing

The use of GPS or RFID technology to create a virtual geographic boundary in which devices can operate.

GIS

Geographic Information System

A system designed to capture, manipulate, analyze, manage and present spatial or geographic data.

GPS

Global Positioning System

A technology created by the US Government that allows for location services.

GNSS

Global Navigation Satellite System
A constellation of satellites providing signals from space that transmit positioning and timing data to GNSS receivers

Haptics

The science of applying tactile sensation and control to interaction with computer applications.

HAV

Hardware-Assisted Virtualisation
The use of a computer’s physical components to support the software that creates and manages virtual machines (VMs).

IMU

Inertial Measurement Unit
A device that measures and reports a body – such as a drone’s – specific force, angular rate, and sometimes the magnetic field surrounding the body.

LIDAR

Light Detection and Ranging
A remote sensing technology which uses the pulse from a laser to collect measurements which can then be used to create 3D models and maps of objects and environments.

Mechatronics

Engineering of both electrical and mechanical systems which includes a combination of robotics, electronics, computing, telecoms, systems, control and product engineering.

RADAR

Radio Detection and Ranging
A detection system that uses radio waves to determine the range, angle, or velocity of objects.

Telematics

A method of monitoring an asset by using GPS and onboard diagnostics to record movements on a computerised map.

Hardware & Software

IoT connections rely on embedded hardware and network identifiers that manage communication, authentication, and data exchange.

eSIM

The embedded SIM (also called eSIM or eUICC) is a secure element designed to remotely manage multiple mobile network operator subscriptions and be compliant with GSMA specifications.

ICCID

Integrated Circuit Card Identifier
The unique serial number embedded on a SIM card.

IMSI

International Mobile Subscriber Identity
A unique number, usually fifteen digits, associated with identifying a GSM-connected device.

IoT module

A small electronic device embedded in objects, machines and things that connect to wireless networks which sends and receives data.

IP Address

An Internet Protocol Address is a unique designating number assigned to a computer (or other device) that is connected to a network, most notably the Internet

Modem

A hardware device that allows a computer to send and receive data over a telephone line or a cable or satellite connection.

Router

A hardware device designed to receive, analyse and move incoming IP packets to another network.

SOC

Subscriber Identity Module
A smart card that stores including identity, location, phone number, network authorisation data and security keys that is installed into a wireless device.

Wireless modem

A modem that bypasses the telephone system and connects directly to a wireless network, through which it can directly access the Internet connectivity.

Together, these technologies form the foundation of global IoT connectivity — linking billions of devices and enabling intelligent, data-driven systems.

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