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Cyber-physical systems (CPS) are computational and collaborative in nature, and bear the capability to have an intense connectivity with the surrounding physical world. These physical devices are constructed with embedded sensors, software, network connectivity, as well as computational capabilities, and can be applied into a range of industrial and commercial uses, from devices and vehicles to home appliances and wearables.

Such capabilities are provided through the Internet of Things (IoT) and the Internet of Service (IoS), allowing for remote access, smart services, and big data analytics online and in real-time. On the other hand, IoT is comprised of autonomous collections, exchanges and actions upon data regarding a network of smart physical devices.

Regarding the design, manufacturing and implementation of CPS, the fundamental challenges are as follows: establishment of effective interoperability, standardisation of operating and manufacturing practices, real-time modelling and reconfiguration, as well as the adequate implementation of a high cybersecurity level. IoT faces different challenges, which are mostly related to the vast amount of data available and processed using this technology, such as efficient data management, data mining, privacy levels, cybersecurity, and the issue with the hyper-accelerated innovation and evolution cycle faced by IoT-related technologies, referred to as the chaos challenge.