They may also include embedded devices in roadways and in other components of infrastructure such as electric grids, manufacturing plants and other buildings, farms, and virtually any other object, element, or system for which remote communications, control, or data collection and processing might be useful. In other words, the IoT potentially includes huge numbers and kinds of interconnected objects. The IoT is often considered the next major stage in the evolution of cyberspace. Internet connectivity allows a smart object to communicate with computers and with other smart objects. To enable precise communications, each IoT object must be uniquely identifiable. Smart objects can form systems that communicate information and commands among themselves, usually in concert with computers they connect to. Smart systems allow for automated and remote control of many processes. These integrated systems can potentially have substantial effects on homes and communities, factories and cities, and every sector of the economy, both domestically and globally. The IoT may significantly affect many aspects of the economy and society, although the full extent and nature of its eventual impacts remains uncertain. Among those commonly mentioned are agriculture, energy, health care, manufacturing, and transportation. Economic Growth

Several economic analyses have predicted that the IoT will contribute significantly to economic growth over the next decade, but the predictions vary substantially in magnitude. Infrastructure and Smart Cities

The capabilities of the smart grid, smart buildings, and ITS combined with IoT components in other public utilities—such as roadways, sewage and water transport and treatment, public transportation, and waste removal—can contribute to more integrated and functional infrastructure, especially in cities. In such a world, cyberspace and human space would seem to effectively merge into a single environment, with unpredictable but potentially substantial societal and cultural impacts. There is no single federal agency that has overall responsibility for the IoT, just as there is no one agency with overall responsibility for cyberspace. Federal agencies may find the IoT useful in helping them fulfill their missions through a variety of applications such as those discussed in this report and elsewhere. Each agency is responsible under various laws and regulations for the functioning and security of its own IoT, although some technologies, such as drones, may also fall under some aspects of the jurisdiction of other agencies. Various agencies have regulatory, sector-specific, and other mission-related responsibilities that involve aspects of IoT. What Issues Might Affect the Development and Implementation of the IoT? The Internet of Things is often lauded for its potentially revolutionary applications. Technical Issues

Prominent technical limitations that may affect the growth and use of the IoT include a lack of new Internet addresses under the most widely used protocol, the availability of high-speed and wireless communications, and lack of consensus on technical standards. IoT objects need energy for sensing, processing, and communicating information. As the number of connected objects in the IoT grows, so will the potential risk of successful intrusions and increases in costs from those incidents. Consequently, new approaches to security may be needed for the IoT. Privacy

Cyberattacks may also compromise privacy, resulting in access to and exfiltration of identifying or other sensitive information about an individual. In addition to the question of whether security measures are adequate to prevent such intrusions, privacy concerns also include questions about the ownership, processing, and use of such data. Some interagency initiatives have been established with respect to specific aspects of the IoT. Legislation

			Bills

No bills have been introduced in the last two Congresses relating specifically to the IoT. 195 /Lance, introduced April 13, 2015) and one in the Senate ( S.Res. Both call for
a U.S. strategy for development of the IoT to improve social well-being while allowing for innovation and protecting against misuse, recognition of the importance of a consensus-based approach and the role of businesses in that development, federal government commitment to use the IoT, and a U.S. commitment to use the IoT for developing new technologies to address challenging societal issues. Hearings

Both the House and the Senate have held hearings on the IoT in 2015. Caucuses

There are several congressional caucuses that may consider issues associated with the IoT.
"Internet of Things" (IoT) refers to networks of objects that communicate with other objects and with computers through the Internet. "Things" may include virtually any object for which remote communication, data collection, or control might be useful, such as vehicles, appliances, medical devices, electric grids, transportation infrastructure, manufacturing equipment, or building systems.
In other words, the IoT potentially includes huge numbers and kinds of interconnected objects. It is often considered the next major stage in the evolution of cyberspace. Some observers believe it might even lead to a world where cyberspace and human space would seem to effectively merge, with unpredictable but potentially momentous societal and cultural impacts.
Two features make objects part of the IoT—a unique identifier and Internet connectivity. Such "smart" objects each have a unique Internet Protocol (IP) address to identify the object sending and receiving information. Smart objects can form systems that communicate among themselves, usually in concert with computers, allowing automated and remote control of many independent processes and potentially transforming them into integrated systems.
Those systems can potentially impact homes and communities, factories and cities, and every sector of the economy, both domestically and globally. Although the full extent and nature of the IoT's impacts remain uncertain, economic analyses predict that it will contribute trillions of dollars to economic growth over the next decade. Sectors that may be particularly affected include agriculture, energy, government, health care, manufacturing, and transportation.
The IoT can contribute to more integrated and functional infrastructure, especially in "smart cities," with projected improvements in transportation, utilities, and other municipal services. The Obama Administration announced a smart-cities initiative in September 2015.
There is no single federal agency that has overall responsibility for the IoT. Agencies may find IoT applications useful in helping them fulfill their missions. Each is responsible for the functioning and security of its own IoT, although some technologies, such as drones, may fall under the jurisdiction of other agencies as well. Various agencies also have relevant regulatory, sector-specific, and other mission-related responsibilities, such as the Departments of Commerce, Energy, and Transportation, the Federal Communications Commission, and the Federal Trade Commission.
Security and privacy are often cited as major issues for the IoT, given the perceived difficulties of providing adequate cybersecurity for it, the increasing role of smart objects in controlling components of infrastructure, and the enormous increase in potential points of attack posed by the proliferation of such objects. The IoT may also pose increased risks to privacy, with cyberattacks potentially resulting in exfiltration of identifying or other sensitive information about an individual. With an increasing number of IoT objects in use, privacy concerns also include questions about the ownership, processing, and use of the data they generate.
Several other issues might affect the continued development and implementation of the IoT. Among them are
the lack of consensus standards for the IoT, especially with respect to connectivity; the transition to a new Internet Protocol (IPv6) that can handle the exponential increase in the number of IP addresses that the IoT will require; methods for updating the software used by IoT objects in response to security and other needs; energy management for IoT objects, especially those not connected to the electric grid; and the role of the federal government, including investment, regulation of applications, access to wireless communications, and the impact of federal rules regarding "net neutrality."
No bills specifically on the IoT have been introduced in the 114th Congress, although S.Res. 110 was agreed to in March 2015, and H.Res. 195 was introduced in April. Both call for a U.S. IoT strategy, a focus on a consensus-based approach to IoT development, commitment to federal use of the IoT, and its application in addressing challenging societal issues. House and Senate hearings have been held on the IoT, and several congressional caucuses may consider associated issues. Moreover, bills affecting privacy, cybersecurity, and other aspects of communication could affect IoT applications.