From Concept to Market: IoT Product Development Best Practices

From Concept to Market: IoT Product Development Best Practices
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In the last couple of years, the Internet of Things (IoT) has proved to be a great opportunity and challenge. With over 13 billion connected devices in 2023 that’s expected to almost double to 25 billion in 2030, developing IoT products can be a lucrative strategy. 

Of course, you’re not dealing with a gold rush here and any uncalculated move without knowledge can easily lead to a failure. But, do it right and you can enjoy tremendous success. 

To do that, you need to know more about IoT product development. Let’s start with the concept first.

What is IoT Development & How Does it Work?

The term "IoT development" describes the collection of techniques, methods, equipment, and tools used in the development, implementation, and maintenance of IoT solutions. IoT development has a broad range of potential applications since it may touch on privacy, cloud development, systems design, and other areas.

Industrial IT firms like IBM and Cisco have been keeping up with the IoT boom because they see it as a foundation for their industry. Numerous firms are creating sensor networks, cloud services, ML solutions, and networking technology in order to collect the required data and satisfy the demands of heavy industry.

Different Operating Systems for IoT Product Design

Since IoT devices are computers, they depend on some form of an operating system to work. The other way is to develop each program from scratch in machine code, which is possible but extremely time and capital-intensive. 

According to a study, the IoT OS market was valued at $977 million in 2022 and is expected to hit $4.6 billion in 2028 at a CAGR rate of 29.8%. Windows and Linux appear to be the two most popular operating systems for Internet of Things (IoT) devices.  

The story is slightly different for smaller IoT devices. These devices can run limited Real-Time Operating Systems (RTOS), but they lack an MMU and other technical features needed to operate on a full-blown OS.

Here are some of the most popular operating systems for IoT product development. 

Windows 10 IoT

The power of Windows 10 will be available to developers with Windows 10 IoT, which also offers development tools, enterprise-grade privacy, and lifetime assistance. Windows offers a reliable operating system that may be used to develop and implement IoT applications. It enables customers to utilize Azure IoT to link their gadgets to the cloud while using insights to offer tailored experiences and increase consumer engagement.

Nucleus RTOS

A real-time OS called Nucleus RTOS gives system designers the tools they need to handle the challenging needs of cutting-edge embedded architectures. More than 3 billion devices have it installed, and it provides a software platform based on a microkernel that is reliable and scalable. It is perfect for scenarios that call for scalability, energy efficiency, privacy, and predictable performance.


MIT created the free Real-Time Operating System known as FreeRTOS. It has a compact footprint and a broad range of applications and is created for use with IoT installations. Although FreeRTOS users can create their ideal OS using standard FreeRTOS features and elements, it is less customizable than Linux.

Connectivity: The Pillar of IoT Development

Naturally, a key component of the Internet of Things is the ability to connect objects to the Internet. The ideal method of network communication would use very little power, have a very wide coverage area, and be capable of transmitting massive volumes of data (great bandwidth). It may seem like there are too many alternatives when determining which kind of network connectivity is ideal for a certain IoT solution.


The wireless aspect of Wi-Fi makes it the popular form of internet access. It is extensively supported by everyday gadgets and does not have Ethernet's hardwiring limits. 

Even though Wi-Fi is widely used, adding Wi-Fi functionality to an integrated system is usually difficult. Wi-Fi is appealing since it is wireless and lightning-fast, but these benefits can impact security and energy usage. Therefore, a developer must weigh security, power, and expense in Wi-Fi-based IoT solutions.


For IoT applications, cellular connection is the most common option. The whole world currently has cellular networks in place; a SIM card is all your gadgets need for access. Plus, such systems were built to manage massive amounts of data.

Although cellular IoT is easy to adopt, there are some extra factors to take into account. Every generation of cellular technologies (such as 5G and 6G) and specific IoT systems has a unique infrastructure. The sort of cellular system you select will have a profound impact on coverage, expenses, bandwidth, and energy management.


We’re all familiar with Bluetooth. It has significantly reduced its power usage during the last few years. Modern Bluetooth connections operate on a rather low-power paradigm, unlike in the past when it could quickly drain a battery. The 2Mbps bandwidth was attractive, but its maximum range is just about 30 feet. If you need to transfer data over a short distance with moderate bandwidth, Bluetooth connection is a viable IoT connectivity solution.

Low Power Wide Area Network (LPWAN)

It may be the first time you hear about LPWANs because they are less found in consumer goods. Broad-range IoT uses, like environmental tracking, make up a sizable percentage of the market.

It's great that we can track remote, offshore, and usually unreachable locations when we use IoT for environmental tracking. These areas are remote, offshore, and typically inaccessible, which is the problem when using WiFi or cellular connections.

When using LPWAN, you usually have about 10 km in range. Although data is sent extremely slowly, you generally won't need a fast connection if you're not streaming movies.

Data Management Challenges in IoT Product Development

While the growing adoption and development of IoT-connected devices and connectivity solutions is certainly good news, it leaves us to face a vast volume of data from numerous sources that are hard to manage. Here are some of those challenges:

Too Many Data Sources

A new user mentality has emerged with the widespread adoption of smart devices and cloud services' simple and cost-free accessibility. Users openly use internet technologies, apps, and gadgets that are connected.

The enormous amount of data produced has presented companies with a special challenge: data management. Businesses must consider issues like managing various data forms, sources, and ideal data collection processes.

In addition to gathering new data, the company's existing data has to be updated for analysis. This proves how challenging it is to combine and manage data from many IoT sources.

Timely Data Movement

After capturing the data, businesses must figure out how to send IoT data to the right location at the right time. Here, the data is evaluated to see if it needs movement or analysis. In certain circumstances, it's crucial that the data is processed immediately at the user end, while in others, it's necessary to send the data to a server room or the cloud for a thorough analysis. The organization must make a choice about the data analysis.

Practical Data Analysis

To find useful insights that may be utilized to increase user engagement, IoT data must be examined. Nobody benefits from unanalyzed, underutilized data. Given a lack of resources and assets to cope with the growing mass, speed, and diversity of data, companies struggle with data analysis.

The Solution: Scalable IoT

With the growing number of IoT-connected devices, we’ll be facing a vast number of data sources, each producing a huge volume of data. Besides management and processing issues, security protocols need to cover an ever-growing number of vulnerabilities. Plus, it’s unlikely that such growth will stop anytime soon. 

Therefore, no matter when we set up an IoT product development infrastructure, we need to think ahead and design with scalability in mind. We can use edge computing and cloud computing for processing data. Plus, incorporating automated monitoring, real-time analysis, and remote management can help handle numerous data sources while encryption and access control should be part of a scalable security solution.

One company that has implemented scalability in its data management approach is Bosch. With numerous IoT projects and connected devices around the world, this industrial giant has implemented a scalable solution to manage structured and unstructured data through JSON modeling. Plus, thanks to dynamic schemas, it has set up an environment for agile development to easily develop and manage apps or devices.

Key Considerations for IoT Product Development

When going through the development of IoT products, there are many factors to consider. But, these five are some of the most vital points to consider:


You want all devices to seamlessly connect and exchange data on a wireless, cellular, or any other type of infrastructure. Due to the high complexity of wireless systems and device deployments, this is often a challenging task for engineers.

Industrial IoT equipment must be able to function consistently even in the harshest conditions. Engineers need to stay on top of the rapidly changing wireless protocols and regulations if they want to guarantee that devices operate without a hitch throughout the ecosystem.


The hardware development aspect of IoT products involves two different types of hardware: one for detecting and another for turning electrical data into tangible results. You will find the proper hardware parts for your particular needs by partnering with an experienced team that has expertise in various IoT boards and connected gadgets.

Vertical M2M Application

On a Vertical M2M app, two machines connect and exchange data through a wide range of connection options, without the involvement of a human agent. To give complete solutions, the M2M chain frequently involves multiple players vertically integrating their activities. For instance, a business can make gadgets, create connection options, deliver cloud-based systems, or offer app services. Vertical integration promotes connectivity, simplifies the value chain, and enriches the user experience as a whole.

User Interaction (UI)

Another important aspect of IoT product development is user interaction. Since many gadgets lack a screen or a sophisticated input mechanism, you must consider how people will engage with your product from the very start. Can the user interact with the gadget directly? Or is it better for users to use smartphones for this? Before figuring out which element your product needs, you have to answer these questions.

Software and Cloud integration 

Last but definitely not least, software and cloud integration is a vital part of the IoT product management and development process. The software engineering team is in charge of creating web- and mobile-based apps for managing real-time product performance. For the purposes of management, tracking, optimizing, and independent operation of every function, a customized software program runs on cloud servers.

Roadmap for IoT Development

IoT product development involves multiple unique stages, much like any significant technical development project. Even though the time frame of every IoT development cycle changes based on the project, each has a distinct goal and function. Basic phases for IoT product development include:


Before you start IoT product design and development, you need to extensively study and analyze the market to better define your goals and determine what you’ll need in terms of resources. 


This is the stage of IoT product design where you’ll build a prototype of the IoT product. By integrating hardware and software elements in a simplistic structure, you’ll get an idea of the product while easily testing and analyzing its weaknesses. 

Proof of Concept

The entire idea of the IoT product is covered in this stage, which integrates hardware and software devices to produce a clear vision of the finished product. The prototype must be improved, the back-end system must be developed, and the user interface must be made.


The prototype and constituent networks should undergo thorough testing. To enhance design, setup, functionality, and user experience, it also involves receiving user input. Due to the IoT network's multi-layer diverse tech stack, this step allows you to reduce the probability of failure and maximize time and resource efficiency.

Mass Production

Once you’ve developed and tested the IoT product, it’s time to partner up with a reliable IoT development team that has the expertise and suppliers to produce your product on a mass scale and offer IoT and IIoT development services.

Partner Up With an IoT Development Team

While it may be hard to choose from many partners on the market, it’s important to know what you get from this collaboration. At Lanars, we can help you with every aspect of IoT product development, including:

  • Manufacturing support: Not every standard material may be the best for your device in terms of pricing or design. That’s why our team works exclusively with some suppliers to acquire off-the-shelf material and engineers who can alter the parts to your specific needs. Development experts also provide design, assembly, and procurement support.
  • Design: Our team offers practical, user-friendly designs that can exactly mimic the user experience you have in mind for your client base. After creating a physical prototype, our expert engineers test the IoT product for manufacturing rules. 
  • Hardware & Firmware Development: Depending on your exact product needs, we can offer you a wide range of connectivity solutions including cellular, WiFi, RFID, and many others. Plus, we provide expertise in firmware design, testing, and coding for connected devices.
  • Prototyping: After consulting with you on all design requirements, our experts start working on a prototype of your IoT product concept. That’s vital because it’ll give you a chance to provide feedback and it allows us to only focus on certain functionalities and not waste time and money on all aspects of the product.

All in all, we can help you at every stage of the IoT product development process. You’re only a phone call away from creating your very own product.