The Internet of Things (IoT) is the concept of connecting any device to the internet or to another device. Technology has advanced to the point that everything from cellphones, coffee makers, washing machines, headphones, lamps, wearable devices and almost anything else you can think of can be connected. This applies to industrial components as well, like the drill of an oil rig or a jet engine of an airplane.
These connections will increasingly include people, people to things and things to other things.
The logical outcome of this is: "Anything that can be connected, will be connected." Gartner, an IT analyst firm says that by 2020 there will be over 26 billion connected devices.