The Internet of Things refers to the interrelation of all internet-connected physical devices (except computers and smartphones). These devices use sensor technology to share data with other machines that are also connected to the internet.
What truly separates IoT technology is its ability to transmit data without a human. In other words, the communication is from IoT device to IoT device. Anything from a house to a car or from a plane to a toilet can connect to the Internet of Things. If a sensor with IoT capabilities, meaning it shares and analyzes data, is placed upon an object, then it becomes a branch of the Internet of Things framework.