Over a billion devices will connect people at homes and offices through the Internet of Things (IoT), making people and cities smart, global technology research firm Gartner said recently.

"The IoT will connect 1.1 billion devices in smart cities this year and a whopping 9.7 billion devices by 2020, while smart homes will lead with 294 million connected devices in 2015," said Gartner’s report Smart cities will include 10 billion things by 2020.

IoT is a network of objects or things embedded with electronics, software, sensors and connectivity to enable it achieve greater value and services by exchanging data with manufacturer, operator and other connected devices.

Identifiable through embedded computing system, each thing (device) can interoperate within the internet infrastructure.

IoT has the ability to transfer data over network without human or computer interaction or interface.

Smart homes and smart buildings, representing 45 percent of connected things in use this year, are projected to touch 81 percent by 2020, with increasing investments and service opportunities.

"Smart cities represent a great revenue opportunity for technology and services providers (TSPs) who have to plan, engage and position their offerings in advance," the report said, quoting Gartner research vice-president Bettina Tratz-Ryan.

Describing a smart city as an urban area where multiple sectors cooperate to achieve sustainable outcomes, Gartner said IoT would facilitate sharing real-time information specifically. As majority of IoT spending for smart cities will come from the private sector, TSPs will benefit with shorter procurement cycles.