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Internet of Things (IoT) hardware design is the process of developing a connected device around the needs of a specific application. Teams begin by establishing the device architecture and the connectivity model it will use in the field. Those early decisions affect reliability and cost, and they influence how well the product can meet security and certification requirements over time.
As connected devices take on more processing at the edge, hardware design has a greater effect on deployment outcomes. Early decisions can influence:
- Processing performance under real operating conditions
- Power consumption across the device duty cycle
- Field reliability over the expected service life
IoT hardware comes in a range of form factors. Some devices are enclosed units installed directly on edge equipment. Others are embedded boards or modules integrated into a larger product. Gateways often connect sensors and endpoint devices to cloud or enterprise systems. Across these designs, the hardware supports data capture and connectivity. In some deployments, it also enables local processing. The right hardware approach depends in part on how the device fits into the broader IoT solution.
Create Your Custom IoT Solution
Table of Contents
4 Components of an IoT Solution
1. Hardware
At the core of every IoT solution are the physical devices that collect, process and transmit data. Depending on the application, these devices may leverage connectivity options like 5G or Wi-Fi. Some also use Bluetooth® wireless technology.
2. Cloud
The cloud provides computing resources for many IoT deployments. It receives device data and supports analysis. It can also help organizations manage devices at scale.
3. Data Network
The data network carries information between devices and back-end systems. In many architectures, devices connect through gateways to cloud services or enterprise systems. Which wireless network is leveraged will depend on the deployment.
4. IoT Platforms and Business Applications
IoT platforms support device management and data flow across the solution. Business applications use that data to present insights. Together, they help organizations monitor connected operations and make informed decisions.
An effective IoT solution depends on all four components operating as an integrated system. Hardware remains central because it defines device behavior in the field and influences reliability across the broader solution.
What Makes Up the IoT Hardware
IoT hardware is the physical device designed to perform a specific function in the field. It may take the form of a standalone unit or an embedded system within a larger product.
Depending on the application, the device may include sensing capability and a communication module. Some deployments also rely on a gateway. The intended use case and operating environment shape the design.
Most IoT devices depend on a set of core hardware elements:
- Sensors: Capture data from the physical environment when the application requires it, such as temperature or motion
- Processing and control: A microcontroller or other processor manages device operations and coordinates local functions
- Wireless modules: Enable the device to communicate over the selected network
- Power management: Regulates energy use based on the device’s workload and deployment profile
- Security features: Help protect the device and its data from unauthorized access and cyberthreats
What Is Involved in IoT Hardware Design
Every IoT device begins with a clear use case. A smart meter faces different constraints than an asset tracker. An industrial gateway has its own requirements. Each application places its own demands on the hardware.
The deployment environment shapes the design as much as the function. A battery-powered device in a remote location calls for a different hardware approach than a fixed device with stable power.
Before choosing a hardware design, teams should:
- Define the device’s purpose
- Identify the deployment environment
- Clarify communication expectations
Connectivity requirements are determined at this stage. A network approach that works in one deployment may create problems in another. Network options may be constrained by:
- Coverage requirements
- Data volume
- Latency expectations
Power planning begins just as early. A device with frequent data transmission or edge processing will place different demands on the hardware than one designed for periodic reporting. The power strategy affects:
- Battery life
- Maintenance demands in the field
- Expected service life
Security and certification are also core parts of the hardware design process. Waiting too long to address either one can force changes later in development.
Selecting IoT hardware is a critical part of solution design. The process often involves multiple vendors and interdependent technologies, which can make integration difficult.
COTS Hardware
When evaluating development paths, many organizations consider commercial off-the-shelf (COTS) IoT hardware for its ease of use and faster time to value. COTS hardware works well for straightforward use cases that do not require specialized features or extensive customization.
These ready-made solutions reduce upfront costs and speed deployment. They support rapid prototyping or early market validation with precertified connectivity. However, off-the-shelf hardware is designed for broad use. That can create limits when a device has strict size constraints or unusual power demands. The same issue can arise when security requirements are more demanding.
Custom Hardware Design
A custom hardware approach gives teams more control over how the device is built and how it performs in the field. It reduces compromise when the application demands more than standard products can deliver. In some cases, it also simplifies supplier coordination by reducing the number of vendors involved.
Key benefits of custom IoT hardware include:
- Improved Fit for the Application
Custom hardware can be designed around the specific needs of the device rather than adapted from a general-purpose product. That can improve field performance and make it easier to accommodate changing requirements over time. - Stronger Control over Security
Custom hardware gives teams greater control over how security is built into the device. Security features are addressed early in the design process rather than added later. This approach reduces exposure to design gaps and supports a more resilient device architecture. Advanced security approaches, such as zero trust architecture, can be implemented to verify identity and device posture before granting access. - Reduced Long-Term Costs
Custom hardware may require more upfront investment, but it lowers long-term costs by removing unnecessary components or avoiding additional hardware. A design tailored to the application also reduces maintenance demands over time.
Even with these advantages, many organizations remain concerned about the complexity of custom development and the time required to bring a solution to market. At the same time, they may hesitate to settle for a COTS solution that does not fully meet their requirements.
This creates space for a third option: IoT reference architecture.
Where Reference Architectures Fit
A reference architecture is a validated hardware blueprint built around a recurring device pattern. It provides a proven starting point for the core design, but it is not a finished product. Instead, teams adapt that foundation to the needs of a specific application.
This approach works well when the use case is familiar, but the final device still needs tailoring. One project may call for a beacon-based device that supports location visibility and environmental monitoring. Another may require a tracker for a non-powered asset.
By building on proven, field-tested architecture, organizations can reduce development costs and accelerate time to market. This allows engineering effort to focus on the parts of the device that truly need customization, making the path to production more efficient.
Telit Cinterion’s Expertise in Custom IoT Hardware Solutions
Telit Cinterion assists organizations moving from hardware requirements to a production-ready device. By combining connectivity expertise with integration support, we help customers build custom IoT solutions that are ready for launch.
For teams building an IoT product, our work starts with hardware strategy and continues through certification and production planning. We provide engineering and R&D services for custom IoT devices.
We support customers across the development value chain by providing:
- An initial assessment that aligns the use case with the right product path
- A design review process so teams get the most from the hardware
- A development checkpoint to identify issues before they add time or costs
- Integration and pretesting assistance that helps prepare the device for certification and production
This process helps customers move forward with a clearer path to deployment.
Speak with our IoT experts to learn more about designing an IoT solution that fits your application.
Key Takeaways
- IoT hardware design focuses on developing connected devices tailored to specific applications and environments.
- Critical early decisions shape core IoT device performance and long-term reliability.
- Teams must define device requirements before selecting hardware design options.
Editor’s note: This blog was originally published on 13 February 2024 and has since been updated.
