What is an IoT Edge Device?

Your business may already be using Internet of Things (IoT) devices, which are essential for collecting and sharing data with centralised processing systems. These physical devices connected to the Internet provide valuable data for insights on streamlining operations, automating processes, and enhancing productivity.  

However, relying solely on central systems for data processing can sometimes fall short. Data transmission delays and system strain can make real-time actions and decisions difficult. Edge devices can help solve these issues by processing data locally. But what are edge devices in IoT?  

In this guide, we’ll explain what IoT edge devices are, how they function, and how they can optimise your IoT solutions 

What is an IoT edge device?

An edge device uses edge computing to collect, process, and analyse data locally. These devices are positioned at the edge of the network, close to where data is generated, removing the need to send the data back to a centralised server or cloud for processing. 

Edge devices can be IoT devices with built-in edge computing hardware and software, such as smart cameras with real-time video analysis capabilities. They can also be separate physical devices located near the IoT devices they support, such as edge gateways that aggregate and preprocess data from multiple sensors in a factory. 

What are the different types of edge devices?

Edge devices are tailored to specific needs and applications within the IoT ecosystem. They fall into two major categories: traditional and intelligent edge devices.  

Traditional edge devices

Unlike IoT devices, which focus on collecting and transmitting data, traditional edge devices perform basic processing tasks. This helps reduce data transmission needs and can improve response times. 

Here are a few examples:  

  • Routers: Routers are traditional edge devices that manage data traffic between networks. They direct incoming and outgoing data packets to their destinations, ensuring efficient communication. By handling data locally, they help reduce latency and improve network performance. 
  • Switches: Switches are used to connect multiple devices within a local network. They manage data flow between devices by directing data packets to the appropriate destinations. This local handling of data improves network efficiency and reduces congestion. 
  • Firewalls: Firewalls are security devices that monitor and control incoming and outgoing network traffic based on predetermined security rules. They provide a first line of defence against cyber threats by inspecting data packets locally. By processing data at the network’s edge, firewalls help protect against unauthorized access and attacks. 

Intelligent edge devices

Intelligent edge devices have advanced processing capabilities and often incorporate AI and machine learning algorithms. These devices can perform complex data analysis, make decisions in real time, and operate autonomously. 

Here are a few examples:  

  • Smart sensors: Smart sensors not only collect data but also analyse it locally. They can detect patterns or anomalies and make instant decisions based on their analysis. This enables quicker responses to changes in the environment. 
  • Smart actuators: Smart actuators can perform actions based on data analysis and real-time inputs. For example, they can adjust machinery settings or environmental controls autonomously. This helps optimise operations and improve efficiency without needing constant human intervention. 
  • Smart cameras: Smart cameras are equipped with AI to analyse video feeds on the spot. They can recognize faces, detect movement, and identify specific objects or behaviours. This local processing capability enhances security and surveillance systems by providing real-time insights and alerts. 

How does an edge device work?

An edge device works by processing data locally, close to where it is generated. It collects data from its environment, analyses it in real time, and can take immediate actions based on this analysis. This local processing reduces the need to send all data to a central server, saving bandwidth and enabling faster decision-making. 

Let’s see this in action, using a smart security camera in a retail store as an example.  

  1. Data collection: The edge device, a smart security camera, continuously captures video footage from its surroundings in the retail store. 
  2. Local data processing: The camera is equipped with an onboard processor and AI software. As it records the footage, the AI software analyses the video in real time to detect suspicious activities, such as shoplifting or unusual movements. 
  3. Immediate actions: When the AI detects suspicious behaviour, it can trigger immediate actions. For example, it might send an alert to the store manager’s smartphone, sound an alarm, or activate additional lighting in the area. 
  4. Data storage: Important footage, such as clips showing detected incidents, is stored locally on the camera’s built-in storage or on a local network storage device. This ensures quick access and preserves bandwidth by not constantly streaming data to the cloud. 
  5. Selective data transmission: The camera sends selected data, such as flagged incidents, to a central server or cloud service for further analysis and long-term storage. This minimizes the amount of data transmitted, reducing bandwidth usage and costs. 

What is the benefit of an edge device?

Edge devices offer numerous benefits that make them a valuable component of workplace IoT 

Improved performance

By processing data locally, edge devices can provide faster response times and reduce latency. This is crucial for applications requiring real-time decisions, such as autonomous vehicles, industrial automation, and healthcare monitoring systems. 

Utilising the benefits of artificial intelligence and machine learning

Edge devices leverage AI and ML to perform advanced data analytics at the source. This capability allows for more efficient use of resources and enhances the accuracy of predictions and decisions. For example, edge devices in smart factories can use ML algorithms to predict equipment failures before they occur, enabling proactive maintenance and reducing downtime. 

Greater interoperability

Edge devices often act as intermediaries between different systems and technologies, facilitating greater interoperability. They can bridge communication gaps between various devices and protocols, ensuring seamless integration and operation of IoT solutions.  

Better regulatory and compliance performance 

Edge devices can help organisations meet regulatory and compliance requirements more effectively. By processing and storing data locally, they can ensure that sensitive information remains within specific geographic boundaries, complying with data protection laws and regulations.  

Use cases of edge devices

Edge devices have a wide range of applications across different industries, demonstrating their versatility and importance in modern IoT ecosystems. 

Smart factories 

In smart factories with manufacturing IoT, edge devices are used to monitor and control various aspects of production processes. They collect data from machines and sensors, analyse it in real time, and make adjustments to optimise efficiency and reduce waste. This local processing capability is vital for maintaining high productivity and quality standards in manufacturing. 

New business opportunities

Edge devices create new business opportunities by enabling innovative services and solutions. For example, in retail, edge devices can analyse customer behaviour to personalise shopping experiences. In healthcare, they can provide remote patient monitoring and immediate feedback, enhancing patient care and reducing hospital visits. 

Predictive maintenance

Predictive maintenance is another key application of edge devices. By continuously monitoring equipment performance and analysing data locally, edge devices can predict when maintenance is needed before a failure occurs. This proactive approach reduces downtime, extends equipment lifespan, and lowers maintenance costs.  

FAQs about IoT edge devices


What is the difference between IoT hub device and edge device?

An IoT hub device acts as a centralised point for managing and processing data from multiple IoT devices. An edge device processes data locally at the source.  

What is IoT edge module?

An IoT edge module is a component within an edge device that performs specific functions such as data processing, storage, and communication.  

What is an example of a network edge device?

An example of a network edge device is a router. Routers manage data traffic between different networks, directing data packets to their destinations efficiently. By processing and controlling data flow locally, they help reduce latency and improve overall network performance.