Internet of Things Design: Components, Trends, and Challenges

Integrating IoT into business is complicated, as you need to connect both hardware and software components in one ecosystem. At the heart of this process is IoT design. It defines literally all aspects of the system: the functions of hardware and software, data transmission technologies, data processing methods, and even security measures.

In this article, we want to explain the specifics of IoT design. We’ll cover what it is, what the integral parts of the Internet of Things design are, and how development companies build it. 

What is IoT design? 

IoT design is the process of building a complete Internet of Things (IoT) ecosystem. It involves connecting hardware, software, networks, cloud services, and other technologies into a full-fledged system. The goal is to ensure that connected devices can communicate with users and exchange information with each other. 

The term “IoT design” is multifaceted. We can divide it into four subtypes:

1. Functional design
2. Hardware design
3. Software design
4. UI/UX design

Let’s explore each of these design types in detail.

1. Functional IoT design

The focus of functional design is on the system’s functional requirements and its components. The client can provide a rough outline of what they need, but the functional design helps clarify these requirements. In other words, the project team defines what exactly the system should do to meet the client's needs. 

Project teams often use activity diagrams to create functional designs. These diagrams illustrate how users are expected to interact with an IoT device. They also show how the system can handle tasks considering the power consumption limits, hardware performance, and environmental factors.

2. IoT hardware design

IoT device design determines the sensors and microprocessors required to carry out the actions defined during the functional design. Designing IoT devices guides the hardware development process. 

If you are purchasing vendor-supplied IoT devices, this stage requires careful selection of equipment. It must be compatible with the required standards, provide robust security features, and easily integrate with each other and other components within your system.

3. IoT architecture design 

The architecture design helps to understand how to meet the client’s goals technically. 

To create a successful IoT design, specialists use the layered IoT architecture. This is an approach that organizes an IoT system design into distinct layers. 

The layers help to isolate the components from each other. This simplifies bug fixing, scalability, and system management. Instead of making changes in the whole system, developers can focus on specific layers and update or replace only the affected elements. 

Though there are different approaches, the basic five-layered model looks like this:

Let’s explore every layer and why it is needed in the whole IoT design.

Perception layer

The perception layer is the base of the Internet of Things design infrastructure. It detects and collects data and interacts with the environment. 

The perception layer includes physical devices like sensors, actuators, and embedded chips.

Network layer

This layer bridges the perception layer and the higher-level systems. This layer focuses solely on data transmission and does not handle its processing.

It uses transport protocols such as TCP/IP and UDP for information transfer. Other typical technologies used on this layer are Wi-Fi, Bluetooth, Zigbee, LoRa, 5G, and Ethernet.

Example: We developed an app for Plonq, a POD system provider. In this application, the POD device is connected to the PWA app via Bluetooth to help users monitor the number of puffs made with their POD system.

It was a hard task to connect Bluetooth with the PWA app, as there were no public guidelines, but we nailed it. Check out the detailed case study on our website and learn how we coped with difficulties.

Middleware layer

The middleware layer is a bridge that connects the network layer and the application layer. Cloud has a central place here. It serves as a centralized platform for processing, routing, managing, and transforming data delivered from the network layer. 

The middleware layer uses application-level protocols such as MQTT and CoAP. Also, tools like APIs and message brokers are used here to facilitate connections between the network layer and applications. 

Application layer

The application layer is the closest to the end users. It enables the interaction between applications and devices and concerns how the app responds to user interactions.

The application layer typically uses:

• web technologies like HTML, CSS, JavaScript
• tools for creating graphical interfaces, such as D3.js, Chart.js 
• APIs for interaction with other systems
• security technologies like OAuth for access control

Let’s see how the application layer handles the user interaction flow in the EnerGO case.

EnerGO is a powerbank renting app. If users want to get a powerbank, the app hints them to select the type of station they are near. If it's a small station, the app instructs the user to plug in a power bank. For a large station, the app asks the user to scan the station’s QR code and wait for the gate to open. 

This is just one short example of functions that we implemented in the EnerGO case. Explore the full case study on our website.

Business layer

The business layer in an IoT system focuses on the overall goals, value, and strategy of the company. It analyzes information collected from IoT devices to generate insights.

To do this, companies use business intelligence tools like Power BI or Tableau, as well as data analysis frameworks, artificial intelligence, and machine learning technologies.

4. UI/UX IoT design

Let’s go back to the Internet of Things design types. The fourth and final component of the IoT design system is UI/UX design. It helps users complete actions quickly and without errors.

User interface (UI) is responsible for the visual appearance of the interface. UX focuses on the user's experience — the logic behind the placement of elements on the screen. 

To make it clear how users should interact with an IoT device, apps or programs often include helpful cues, such as clear onboarding, pop-ups, and animations.

For example, in the Vendify case, we designed an app for smart fridges. Not everyone is familiar with this concept, so in this IoT app design, we emphasized how to use the device with short instructions for each step.

How IoT design fits into the development process 

Now, let’s clarify the step-by-step process of creating an IoT ecosystem. It will help you understand how Internet of Things design fits into the overall process and how it transforms into a fully functional solution.

Exploring the IoT device functions and limitations

After the device development, or, more often, the purchase of the ready-made equipment, the project team explores the technical documentation from the vendor. This helps the team analyze the device's capabilities and identify limitations.

Researching

The research phase focuses on analyzing the project's context. During the research, the project team scrutinizes the user needs, business aims, market trends, and existing solutions on the market. This involves client interviews, customer development sessions, and competitor analysis.

Functional Internet of Things design is closely tied to the research process, as it is built on the insights gathered. It refines the client’s initial concept and defines the necessary scope for an IoT solution.

Creating architecture design

Once the user needs and functional design are defined, the next step is to build the IoT architecture. It outlines the technologies and systems required to implement the functional requirements.

Building the UI/UX design

Based on the research, functional design, and architecture design, the UI/UX development begins. There are cases where UI/UX design is done first. However, this approach is not ideal because not all necessary flows are clear, and some screens may be missing. 

The first step in the UI/UX design process involves creating low-fidelity wireframes of the future screens. This helps visualize the core functionality and how the user will interact with the system.

After wireframes, designers move on to the design concept and create a few fully developed screens. They serve as a showcase for investors and the client’s team.

Once the concept is approved, designers create all screens that will be used in the actual app or program. The end screens are supported with a detailed UI kit. It describes all the interface elements, their styles, and interactions.

Development and implementation

Implementation is the stage where the IoT hardware integrates with the clickable interface.

Frontend developers build interfaces for PCs or mobile devices. Here, users can control IoT devices and analyze information coming from them. However, the program is not ready at this moment.

Backend developers set up the server-side components, including data processing, cloud interaction, and APIs. They connect the hardware and the software to function properly.

Testing

During this phase, a development team checks the functionality of the entire system: devices, interfaces, data, and interactions. It helps identify bugs, improve the user experience, and ensure that all IoT components work correctly.

Key testing areas include:

• Device functionality
• Software integration correctness
• Connection stability
• Testing under real conditions (disruptions, high loads, etc.)
• System security

Tests should be conducted throughout the whole development cycle. 

Launching and supporting

After the app or program is developed and successfully integrated with the IoT device, it’s time to release it. If there is some negative feedback from users, the problems should be promptly fixed. 

As new requirements and technologies emerge, the updates are needed. This can involve integrating new sensors, updating APIs, and adding new features. Due to the layered approach, the updates can be applied without disrupting the overall system.

IoT design principles to follow 

During the Internet of Things design stage, the project team must adhere to some principles. If ignored, there’s a risk of inefficiencies, security vulnerabilities, integration issues, and a poor user experience. Here are some of the principles to consider:

Designing with scalability in mind

It’s important to plan for future expansion of the ecosystem. For example, you can implement load-balancing solutions. They ensure that when more devices or services are added, the system can handle the increased traffic or data without bottlenecks. 

Using data management techniques like smart filtering helps reduce the volume of transmitted and stored information. Technologies like cloud computing and edge computing help move data processing closer to the devices, also reducing the load on central servers.

Interoperability

For the Internet of Things design to be effective, all ecosystem elements must communicate seamlessly, even if they use different protocols and technologies. So, a reasonable decision is to choose open standards like MQTT, CoAP, and Zigbee to easily integrate devices and systems. This also helps avoid vendor lock-in that can happen with a proprietary protocol or an IoT technology tied to a single vendor.

Energy effectiveness

Effective energy management extends the lifespan of devices and reduces operating costs. To optimize energy consumption, use modes with increased battery life. Refine data transmission algorithms — for instance, minimize the number of data packets sent. For hardware optimization, choose components with low power consumption.

Over-the-air updates

It’s better to implement over-the-air updates to add new features or fix issues without physical intervention. This approach allows companies to reduce maintenance costs. It also improves security as all updates are centrally managed.

Real-time operations

Many IoT solutions, such as smart city systems or health monitoring platforms, rely on real-time data handling. To meet these demands, the system must support fast data handling and instant responses.

Incorporate edge computing to minimize delays and implement a low-latency data transmission design. Additionally, select protocols optimized for real-time operations, such as MQTT.

Reliability

All parts of an Internet of Things design system must work reliably to reduce the risk of failures and errors. To keep the system running smoothly during issues, it’s important to have data recovery and backup mechanisms. It will help quickly restart the system operation and prevent information loss.

Real-life testing

IoT devices are often used in environments where they may face challenges, such as on streets, in vehicles, or in crowded areas. It is important to test these devices in different real-world conditions. For example, you can test and ensure that devices can withstand issues like temperature fluctuations or signal loss.

Challenges to consider in the IoT design 

The development of IoT had its challenges. Know them beforehand to undertake preventive measures during the Internet of Things design stage. Here are some main challenges to watch for: 

Lack of protocol unity

The IoT device market is vast. Each country and even each manufacturer may have its own standards and protocols. This makes integrating multiple devices more complicated. It also lengthens development cycles, as developers need to spend extra time understanding various documentation and specifications.

To address this problem, a flexible architecture is needed. Also, developing adapters and gateways helps reach compatibility between different types of devices.

Data leakage risks

IoT devices are vulnerable to data breaches and cyberattacks. For instance, according to an alarming statistic from Bitdefender, home IoT devices experience up to 10 attacks every day.

To prevent cyberattacks, all transmitted information must be encrypted with methods like TLS. The IoT ecosystem should account for vulnerabilities and provide authentication to prevent unauthorized access. Also, it’s better to implement intrusion protection methods like IDS or IPS.

Moreover, the security systems need constant improvement. They must become more sophisticated over time to stay ahead of potential threats.

Usage safety

Another challenge in IoT security is ensuring safe usage.

For instance, with autonomous vehicles, IoT design must address not only data protection but also the physical safety of the people inside the car. So, all systems, from sensors to software, must be configured to prevent life-threatening decisions.

It is important to constantly monitor the real-world performance of sensors. This is the only way to identify areas where improvements are needed and where issues may arise.

Interference from other devices

There are already many IoT devices in use, and another issue is interference from sensors operating in similar frequency bands. The frequency overlap worsens signal quality and connection stability. To address this challenge, technologies like adaptive frequency selection or signal amplification are used. 

Main trends of IoT design

There are three key trends in Internet of Things design that are shaping the industry. Know them to implement in your next IoT project:

5G connectivity

5G is faster than 4G, which means IoT sensors can quickly transmit data in a shorter period of time. This is important for Internet of Things design, especially for real-time systems. For example, 5G can be useful for an autonomous vehicle, a medical device, or smart city infrastructure.

Edge computing

This technology has become relevant due to the need for real-time data processing. It reduces the load on networks and cloud platforms, which helps to manage the growing amount of data generated by IoT devices. Edge computing also enhances security, as the data is processed locally. That’s why there are fewer chances for malicious attackers to intercept it. 

Artificial Intelligence 

AI is important for IoT design because it helps analyze information coming from smart devices in real-time. This allows for predicting failures, optimizing system performance, and improving the device's autonomy. Additionally, AI supports elaborate functions like image recognition, behavior analysis, and system adaptation to changing conditions.

A final note

The Internet of Things design process is a high topic of discussion among companies, as the IoT market is growing rapidly. 

At Purrweb, we've successfully delivered 550+ projects in software development and design, including those from the IoT sector. You can explore our portfolio of IoT applications, view the screens from our projects, and learn about our approach to each of them.

▶️ If you need a custom IoT solution, get in touch with us through the form on our website. We will review your request, suggest potential solutions, and provide a scope estimate within 48 hours.