Internet of things (IoT) describes physical objects (or groups of such objects) with sensors, processing ability, software, and other technologies that connect and exchange data with other devices and systems over the Internet or other communications networks, according to Wikipedia. Engineers and technologists have developed IoT over the last years and its future is promising. Bicycles could not fall behind.
Some common targets of IoT in bikes (smartbikes) consider security, satisfaction and user fidelity to transform mobility towards a more sustainable paradigm. E-bikes are equipped with geolocation, instant statistics of rides, remote alarms and anti_theft, messages advising that a mechanical check is needed and online maintenance of some bike parts. Hardware and software cooperate to offer new functionalities and experiences. But not all IoT in bikes is offered to the final user, some companies sell it to manufacturing firms that do not have such proper, specific engineers.
Where is this hardware installed? It depends on the manufacturer. In some cases it is located inside the handlebar whereas in some others in the bicycle frame or even in the rear rack.
On the other hand, more and more data is collected from these devices which allow companies to optimize marketing, among others, to offer bikers what they desire.