What Are IoT Connections?

IoT connections are the links that allow devices, sensors, machines, and systems to exchange data. They form the foundation of every Internet of Things solution, connecting physical assets to applications, platforms, and other devices. This guide explains the main types of IoT connectivity and how each fits different use cases, from cellular IoT and LPWA to Wi-Fi, satellite IoT, and private networks.

For a broader overview of how IoT works, from connectivity and security to market insights, download IoT Basics: A Guide to IoT Terms.

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Last updated: May 2026

Key IoT Connection Types, Devices, and Network Terms

IoT connection types define how devices connect to networks, exchange data, stay reachable, and interact with applications, platforms, and other systems.

IoT-connected devices have very different connectivity needs. A simple sensor may only send small data packets a few times per day, while a connected vehicle, industrial gateway, camera, or medical device may require continuous connectivity, higher throughput, mobility, low latency, or global roaming. The right setup depends on the use case, deployment environment, coverage, power consumption, bandwidth, latency, device cost, and expected device lifetime.

The number of connected IoT devices continues to grow. IoT Analytics estimates that there were 21.1 billion connected IoT devices globally by the end of 2025, with that figure expected to reach 39 billion by 2030. Ericsson’s Mobility Report shows a similar trajectory for IoT connections, forecasting growth from 22.3 billion in 2025 to 47.1 billion by 2031.

As deployments scale, IoT terminology becomes more specialized. Some terms describe connection types, such as cellular IoT, LPWA, Wi-Fi, Bluetooth, satellite IoT, and private networks. Others describe the devices and components that make IoT work, such as sensors, gateways, modules, SIMs, and routers. There are also terms for the way physical assets interact with digital systems, including digital twins, geofencing, GNSS, telematics, and cyber-physical systems.

The sections below explain the main IoT connectivity, device, hardware, and software terms, and how they fit into real-world IoT deployments.

Cellular IoT Connectivity

Cellular IoT (2G, 3G, 4G LTE, 5G)

Wide-area wireless connectivity utilizing licensed mobile spectrum.

LTE Cat-4 and LTE Cat-4+

LTE Cat-4 and LTE Cat-4+ are 4G LTE categories that support higher-throughput IoT applications, such as video surveillance, routers, gateways, and other devices that need faster data transfer.

LTE Cat-1 and Cat-1 bis

LTE Cat-1 and Cat-1 bis are commonly used for mid-bandwidth IoT applications that need megabit-level throughput, broad network support, and roaming. Cat-1 bis can reduce device complexity by using a single receiver antenna.

5G RedCap (Reduced Capability)

5G RedCap short for Reduced Capability, is a 5G NR device category introduced in 3GPP Release 17 for mid-tier IoT use cases. It reduces device complexity and power consumption compared with full 5G NR, while supporting higher data rates and lower latency than LTE-M or NB-IoT.

LPWA (Low-power wide-area networks)

Cellular LPWA technologies are designed for IoT devices that send small amounts of data over long distances while keeping power consumption low. LTE-M and NB-IoT use licensed mobile spectrum and are well suited for large-scale IoT deployments that require modest throughput, extended coverage, and long battery life rather than high data speeds.

LPWA

Low-power wide-area network

Networks operating on low bit rates designed to send small payloads over long distances while maximizing device battery life.

LTE-M (LTE Cat-M1)

Long-Term Evolution for Machine-Type Communications, Category M1

GSMA defines LTE-M as the simplified industry term for the LTE-MTC LPWA technology standard published by 3GPP in Release 13, and notes that it specifically refers to LTE Cat-M1 for IoT. GSMA also describes LTE-M as supporting relatively fast throughput, mobility, roaming, and potential voice services while reusing existing LTE base stations.

NB-IoT

Narrowband IoT

NB-IoT is a cellular LPWA technology designed for large-scale deployments of low-power devices, especially stationary or low-mobility use cases that need deep indoor coverage and long battery life.

Specialized and Short-Range IoT Connectivity

Satellite IoT / NTN

Satellite IoT and non-terrestrial networks (NTN)

Satellite IoT is extending coverage to maritime, aviation, and polar regions via Low-Earth Orbit (LEO) or Geostationary (GEO) satellites.

Hybrid Connectivity

Devices equipped with multiple radio technologies (e.g., cellular + satellite) to ensure fail-safe connectivity in the most remote environments.

Private Networks (Private LTE / 5G)

Private LTE and 5G networks are dedicated, localized cellular networks built for a specific enterprise environment, such as a factory, port, mine, or campus. They can help organizations control coverage, traffic, security, and performance requirements.

Wi-Fi, Bluetooth, and Zigbee

Unlicensed, short-range wireless technologies utilized mostly for local area networking, home automation, or gateway connections.

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.

Connected Devices / Endpoints

The physical hardware units interacting with the physical world and transmitting data back to a central 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 transmitting positioning and timing data to receivers (e.g., GPS, Galileo, GLONASS).

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.

IoT Hardware, Software, and Network Identifiers

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

SIM

Subscriber Identity Module / UICC

A smart card storing the IMSI and encryption keys, functioning as the foundational authentication hardware.

eSIM and eUICC

Embedded SIM and embedded Universal Integrated Circuit Card

eSIM refers to a SIM that can support remote profile changes, while eUICC is the reprogrammable SIM technology that enables remote SIM provisioning. In IoT, eUICC allows devices to change mobile network operator profiles without replacing the physical SIM.

iSIM

Integrated SIM

SIM functionality built directly into the device’s main processor (SoC), offering maximum space and power savings.

SGP.32

SGP.32 is the GSMA’s eSIM IoT Technical Specification for remote provisioning and management of eUICCs in IoT devices, including network-constrained or user-interface-constrained devices. It enables profile download and management through the eSIM IoT Remote Manager, or eIM.

RSP

Remote SIM Provisioning

The technology standard allowing network profiles to be downloaded, updated, and managed remotely over the air.

ICCID

Integrated Circuit Card Identifier

The unique serial number embedded on a SIM card.

IMSI

International Mobile Subscriber Identity

A unique 15-digit number associated with identifying a cellular-connected device to the network.

Multi-IMSI

A physical SIM card pre-loaded with several different mobile network subscriber identities, allowing a device to dynamically switch profiles to maintain coverage or bypass restrictions.

IoT module

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

Local Breakout

A network routing strategy where roaming data is routed directly to the local internet rather than being routed all the way back to the home operator’s core network.

MCU / MPU / SoC

The primary computing engines of a device. A SoC places all necessary electronic circuits and processing parts onto a single integrated circuit.

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.

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.