Imagine a world where your alarm clock seamlessly communicates with your coffee machine, which then coordinates with your car to prepare a fresh cup of coffee just as you’re ready to leave for work. This interconnectedness, powered by the Internet of Things (IoT), has transformed our daily lives, reaching into homes, hospitals, offices, and beyond.
But have you ever wondered how all these devices talk to each other so reliably? Well, it’s all thanks to modern IoT infrastructure and its three IoT layers. This IoT infrastructure design organizes devices, networks, and applications in a way that allows data to flow smoothly from sensors to cloud platforms to business systems.Yet, with so many devices connected, security challenges for the IoT are unavoidable. Each layer has its own vulnerabilities, from sensors collecting real-world data to networks transmitting it and applications using it. In this article, we’ll examine the layers of IoT architecture and discuss security from each layer’s perspective.
What is IoT & IoT layers, and how IoT architecture works
Let’s begin by understanding what IoT is. The Internet of Things is a system where physical devices collect data and send it to software systems over the internet. These devices can be sensors, machines, medical equipment, payment terminals, cars, or smart home devices. This entire setup is organized using Internet of Things architecture layers.
In simple terms, layers of IoT architecture mean that the whole IoT system architecture is divided into clear parts (IoT architecture layers), and each part has its own job. These are also called IoT layers or Internet of Things layers. This layered approach makes complex systems easier to build, manage, scale, and secure. That is why most modern IoT architecture layers follow a structured, layered design.
Let’s look at very simple business examples:
- Hospital sensor: A heart-rate monitor collects patient data. The data is sent through the hospital network to a secure cloud system. Doctors see the data in a dashboard and can react instantly if something is wrong.
- Payment terminal in a store: A customer pays with a card. The terminal sends the payment data through the network to the bank’s cloud system. The transaction is approved in seconds.
- Travel tracking device: A GPS tracker in a delivery vehicle sends location data through mobile networks to a cloud platform. Logistics managers see the exact location in real time.
Without a layered structure, these systems would be difficult to control, expensive to scale, and very hard to secure. That is why Internet of Things layers are the foundation of every reliable IoT solution today – whether in healthcare, fintech, travel, or marketplaces.
What are the three IoT architecture layers?
The most widely used model today is the IoT architecture 3-layers model. It is simple, clear, and works for most real-world projects. This IoT layered architecture shows how data moves from physical devices to business systems in a logical and secure way.
In any modern IoT system architecture, each layer has a clear role. This is why the layered architecture in IoT is used across industries such as healthcare, fintech, travel, and marketplaces. The same logic applies to the architecture of IoT systems in both small solutions and large enterprise platforms. A well-planned IoT architecture structure helps companies reduce risks, control costs, and scale faster.
Perception Layer in IoT
The perception layer in IoT is the first and most physical part of the system. It is where data is created. This is also called the IoT perception layer. The main job of the perception layer in IoT architecture is to collect information from the real world.
This layer is critical because if the data is wrong or insecure here, everything above it is also at risk.
IoT Network Layer
In modern IoT infrastructure, this layer must support millions of devices, real-time data transmission, and secure cloud connectivity. The IoT network layer is responsible for moving data from devices to cloud platforms and business systems. It acts as a bridge between physical devices and digital systems. This is where IoT and cloud computing meet.
Network layer includes:
- Wi-Fi;
- 4G / 5G mobile networks;
- gateways;
- routers and communication protocols.
Its main job is to:
- transfer data safely;
- ensure continuous connectivity;
- send information from the perception layer to cloud platforms in real time.
For example, a medical sensor sends patient data via Wi-Fi to a secure cloud, or a payment terminal sends transaction data over mobile networks to a bank. If this layer fails or is attacked, data can be delayed, stolen, or lost.
Together, the perception layer and network layer form the foundation of the IoT data pipeline architecture, where raw device data is collected, transmitted, processed, and prepared for business use.
Application Layer
The application layer is where people and businesses actually use the data. This is the visible part of the IoT system architecture. It is also the core of the IoT platform architecture, where data is visualized, managed, and connected to business tools.
The application layer turns raw sensor data into:
- business decisions;
- automated processes;
- alerts and reports;
- better customer experiences.
What are the IoT system architecture security challenges?
As we have already understood, IoT is everywhere – in hospitals, offices, smart homes, and even the trucks delivering your packages. However, this interconnected world comes at its own cost. According to the most recent data, cyberattacks on IoT devices are a frequent and escalating threat, with an estimated 820,000 attacks occurring daily in 2025. Besides, the growth in attacks is also steep: a Zscaler report found that malware attacks on IoT/OT devices increased by 400% year-over-year (in the last measured period).
Such data reveals a surge in IoT malware incidents, reflecting the accelerating risks as IoT adoption skyrockets. Take, for example, the 2024 cyberattack on Roku, which exposed vulnerabilities in over 576,000 user accounts. This is why security is a core requirement of next-generation IoT architecture, not an optional feature.
Perception layer: the eyes and ears of IoT architecture layers
The perception layer is where IoT “sees” the world – sensors, monitors, and smart devices collect vital information. Imagine a hospital where a patient monitor suddenly sends the wrong readings, or an intelligent payment terminal in a store that reports incorrect transactions.
In real-world IoT environments, the perception layer often contains thousands or even millions of low-power devices, many of which were not originally designed with strong security in mind. These devices usually have limited computing power, minimal memory, and long life cycles, which makes regular security updates difficult or impossible. As a result, even a single unprotected sensor can become an entry point into the entire IoT system architecture.
One of the most serious risks at this level is the use of default passwords and hardcoded credentials. Many devices are deployed with factory settings that are never changed, making them easy targets for automated attacks. Attackers scan the internet for exposed devices and gain access within seconds. Once compromised, these devices can be used to spy on operations, manipulate data, or become part of large botnets used for massive distributed attacks.
Another major challenge is physical access to devices. Unlike traditional IT systems locked inside offices or data centers, perception-layer devices are often installed in public or hard-to-reach places: hospital rooms, streets, warehouses, production floors, or vehicles. If an attacker can physically access a device, they can replace it, reprogram it, or extract sensitive data directly from its memory. This makes hardware-level protection a critical part of modern IoT infrastructure design.
In healthcare environments, especially, perception-layer attacks can have life-critical consequences. If medical sensors are manipulated, doctors may receive incorrect patient readings, leading to incorrect treatment decisions. This is why IoT solutions for healthcare must follow strict device authentication, encryption, and continuous integrity monitoring from the very first data point.
Network layer: the highways for IoT data
Once data leaves devices, it travels through networks – the digital highways of IoT.
Thus, the network layer becomes one of the most exposed parts of the Internet of Things layers as it connects private device environments to public networks and cloud platforms. Data often travels across Wi-Fi, mobile networks, satellite links, and public internet infrastructure, which increases the number of potential attack surfaces. Without proper protection, attackers can intercept, modify, or completely block data in transit.
One of the most common threats at this level is traffic sniffing, where attackers secretly monitor unencrypted network communication to capture sensitive information such as health data, payment details, or authentication tokens. Another widespread risk is spoofing, where attackers impersonate trusted devices or servers to inject fake data into the system or redirect traffic to malicious destinations.
Large-scale denial-of-service attacks are also frequently launched at the network layer. By overwhelming gateways or cloud endpoints with massive volumes of traffic, attackers can shut down entire IoT platforms, disabling smart factories, hospital monitoring systems, fleet tracking, and payment infrastructures at once. For businesses that rely on real-time operations, even a few minutes of downtime can lead to significant financial and reputational damage.
To protect the IoT data pipeline architecture at the network level, companies must implement strong encryption, secure communication protocols, network segmentation, and continuous traffic monitoring. In modern IoT infrastructure, security controls must operate in real time and scale automatically as the number of connected devices grows.
Application layer: where data becomes action in the Internet of Things layers
Finally, the application layer translates raw IoT data into dashboards, apps, and business insights. The application layer is often the target for cybercriminals because this is where IoT data becomes valuable business information. Dashboards, analytics tools, mobile apps, and integrated CRM or ERP systems store and display sensitive operational, financial, and personal data. A successful attack at this level gives criminals direct access to insights that can be exploited for fraud, extortion, or competitive sabotage.
Common threats at the application layer include unauthorized access, weak authentication, insecure APIs, misconfigured cloud services, and software vulnerabilities. If proper access controls are not enforced, attackers may log in to dashboards using stolen credentials, manipulate data, issue false commands to devices, or extract confidential business intelligence.
Cloud-based applications introduce additional risks when security settings are misconfigured. Publicly exposed databases, unsecured admin panels, and open APIs are among the most frequent causes of large-scale data breaches in IoT platforms. This is why secure cloud-native applications must include strict identity management, role-based access control, regular security audits, and automated compliance checks.
In healthcare, attacks on application-layer systems can expose patient records, treatment history, and insurance information. Healthcare CRM solutions connected to IoT platforms must therefore comply with strict data protection laws such as HIPAA and GDPR. In fintech, compromised applications can enable unauthorized transactions, financial reporting fraud, and large-scale account takeovers.
Because this layer directly interacts with end users, any breach here immediately affects customer trust. For executives and decision-makers, application-layer security is not just a technical issue – it is a core business risk that impacts brand reputation, legal compliance, and long-term customer relationships.
The lesson: IoT security isn’t just about protecting devices – it’s about safeguarding your business, your customers, and your operations. A well-designed IoT security architecture, combined with secure cloud-native applications and continuous monitoring, ensures that IoT fulfills its promise safely and reliably.
Need help bringing all three layers together? Let’s build your IoT system — from device to cloud.
Layered architecture in IoT: deployment models and implementation
When building IoT solutions, companies need to decide how and where the IoT system will be deployed. This is called IoT deployment models. The choice depends on the type of business, regulatory requirements, data sensitivity, and scalability needs.
For example, whether it is IoT solutions for healthcare, fintech, travel, or smart marketplaces, the same three-layer architecture ensures devices, networks, and applications work together efficiently. In hospitals, healthcare CRM solutions connected to IoT data help manage patient communication, follow-ups, and treatment history. Therefore, the deployment model also determines the overall IoT implementation architecture. There are three main deployment models:
1. Cloud deployment
In a cloud deployment, all IoT data and applications run in the cloud. Devices send data directly to cloud platforms, where it is stored, processed, and analyzed.
2. Hybrid deployment
A hybrid deployment combines cloud and on-premise systems. Some data is processed locally on devices or on-premise servers, while other data is sent to the cloud.
3. On-premise deployment
In an on-premise deployment, all IoT systems, storage, and processing happen locally within the company’s own infrastructure. Data does not leave the company network.
Choosing the right IoT deployment model is critical to ensure that your IoT implementation architecture is secure, scalable, and meets business goals. Most companies today prefer cloud or hybrid deployment, while on-premise is reserved for highly sensitive or regulated industries.
Final thoughts
IoT is quickly weaving itself into modern life all around the world. By connecting smart devices, applications, and other technologies it can enhance our quality of life and automate a near-infinite number of interactions.
Still, we hope this brief overview has properly outlined how layered architectures of IoT can be subject to specific, malicious attacks by third parties. Our goal is to remind leaders that, while the possibilities of the IoT are indeed exciting, proper precautions and security measures must always be taken.
Moreover, it is essential to consider new multi-layered architectures to design a more secure IoT infrastructure. Ultimately, we encourage more users to address these problems and implement the necessary changes as soon as possible.
