The term is used in two ways that are both common in IoT. In the first, an OEM is the brand that designs and sells the finished product, for example a maker of industrial sensors or smart thermostats, even if a contract manufacturer builds it. In the second, an OEM supplies parts or complete devices that another company integrates and sells, such as a modem maker whose IoT module ends up inside a tracker.
The distinction matters for responsibility. The company that places the product on the market under its name carries certification, security and regulatory obligations, regardless of who built it. That drives decisions about the bill of materials and about whether to design in-house or source a finished unit from an ODM and rebrand it, which is faster but limits differentiation and control over firmware.
Part of the IoT Glossary. Spotted an error or a missing term? Tell us.