**2. Overview of the Internet of Things (IoT)**

The Internet of Things (IoT) is a network of connected devices, objects, and sensors that can collect and exchange data without human intervention. IoT devices are typically embedded with sensors, software, and other technologies that enable them to communicate with each other and other devices, such as smartphones or computers.

IoT has several key characteristics that distinguish it from traditional computing systems. Firstly, IoT devices are highly interconnected, allowing them to share data and collaborate. Secondly, IoT devices are typically embedded in everyday objects, such as appliances, vehicles, and buildings, making them highly pervasive. Thirdly, IoT devices are often low-power and low-cost, making them accessible to many users.

**Figure 1** provides a graphical representation of the evolution in the number of connected devices within the Internet of Things (IoT) ecosystem over the years, spanning from 2003 to a projection for 2025. The figure visually conveys the exponential growth in connected devices, underscoring the rapid expansion of the IoT landscape. The data captures the remarkable rise in device connectivity, indicating the trend's trajectory over time. By illustrating this growth pattern, **Figure 1** emphasizes the IoT's significant role in transforming how devices interact and share data, further driving the potential for enhanced energy management and efficiency.

IoT uses sensors to collect data from the environment, and then transmit it over a wireless network to a cloud-based platform for analysis and storage. IoT devices can be controlled and monitored remotely through a smartphone or computer, allowing users to adjust settings or receive real-time notifications.

IoT has various applications in various industries, such as manufacturing, healthcare, transportation, and energy management. IoT can optimize production

*IoT and Energy DOI: http://dx.doi.org/10.5772/intechopen.113173*

#### **Figure 1.**

*Number of connected devices on the Internet of Things (2003–2025) [3].*

processes, monitor equipment performance, and reduce downtime in manufacturing. IoT can monitor patients remotely, track medication adherence, and improve patient outcomes in healthcare. IoT can improve logistics, reduce traffic congestion, and enhance driver safety in transportation [4]. In energy management, IoT can monitor and control energy usage in buildings, factories, and other settings, optimizing energy consumption and reducing waste.

Overall, IoT has the potential to transform many industries by enabling real-time monitoring, analysis, and control of data. The following sections of this research paper will explore how IoT can optimize energy management and the challenges and opportunities of implementing IoT-enabled energy management solutions.

**Figure 2** visually presents the distribution of the Internet of Things (IoT) market across different subsectors in the year 2017. The figure showcases the varying market shares of IoT in distinct industries, offering insights into the sectors that were adopting IoT solutions at that time. This data aids in understanding the prevalence of IoT across sectors such as manufacturing, healthcare, transportation, and energy management. By visually representing the distribution of IoT market

**Figure 2.** *Internet of Things global market share by subsector (2017) [3].*

share, **Figure 2** highlights the diverse applications and potential impact of IoT technology across various industries.
