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Chapter 1

Fundamentals of Cyber-Physical Systems

Amir Abiri Jahromi and Deepa Kundur

1.1. Introduction
Cyber-physical systems are permeating practical application to become an in-
tegral part of manufacturing, healthcare, agriculture, transportation, energy sys-
tems, financial systems, defense and smart infrastructure amongst other appli-
cation spaces. It is expected that cyber-physical systems in 21st century gener-ate
comparable innovation and drive for economic productivity and growth to the In-
ternet revolution of the late 20th century. This is while educational and training
programs, large scale testbeds, and skilled workforces are in short supply and are
expected to remain a major challenge to innovation, develop-ment and adoption
over the next decade.
The concept of cyber-physical systems (CPS) was first established over a dec-
ade ago as a next technological step in engineering. As such its evolution has aris-
en from multiple foundations resulting in a family of systems that have the poten-
tial to provide remarkable solution for traditional, contemporary and emerging
areas of societal need.
A CPS essentially involves the integration of two subsystems: a computational-
ly based subsystem involving sensors, communication infrastructure and computa-
tional elements and a physical one with components particular to the application
context. For example, in power grid applications this would include electricity
generation and transmission infrastructure, in transportation systems this could in-
clude power train and chassis control, in robotics applications it would include the
motor units, gear box and arms. The cyber component represents, in some sense,
the overall “central nervous system” of the CPS. It provides the “smarts” of the
system essentially enhancing the operation of the physical system. A simple de-
sign mantra for CPS can be stated as knowledge is power. What distinguishes CPS
is that the integration between the cyber and physical is considered tight. That is,
these subsystems must intelligently work together and coordinate seamlessly.
This tight integration is aimed to facilitate attractive system properties includ-
ing adaptability, autonomy, efficiency, functionality, reliability, safety and usabil-
ity. Depending on the application and resources available, these properties are pri-
oritized to different degrees. For example, in critical infrastructure, reliability and
safety are of primary importance and in manufacturing, functionality may be a
significant concern.
Figure 1.1 illustrates how the coupling of the cyber and physical components
typically occur. The physical subsystem is comprised of components that are natu-
rally linked physically. Often, they may be considered legacy system components
2

of the original physical system prior to “cyber-enablement.” The cyber subsystem

is comprised of elements that are connected as well for the purpose of information
flow. These could be through physical means such as two sensors connected
through a physical communication wire or virtually through a wireless channel. In
the physical and cyber subsystems, they are each individually coupled functionally
as illustrated; typically, a graph-based model is effective in representing the con-
nectivity.
The integration of the cyber and physical elements occurs at the cyber-physical
bridge. Here, the physical-to-cyber link occurs at the sensors that convert observ-
able and measurable physical quantities to data. The cyber-to-physical link occurs
at the interface of actuation whereby information is processed to come up with de-
cisions used to make physical change in the physical system. For example, this
could be a storage device in a power system that employs information to decide if
power should be absorbed or emitted for power grid stabilization. CPS can vary
significantly in scale. The emerging trend is in the development of large-scale dis-
tributed networked systems.

Fig. 1.1. Cyber-physical system description.

1.2. Cyber-Physical Systems Characteristics

CPS are safe and interoperable smart networked systems with distributed and
deeply integrated cyber and physical components including sensing, control, pro-
cessing and computing, communication and actuating elements that are capable of
interacting with physical world and human users in real-time [NSF (2013); Schätz
et al (2015); NIST (2013a)]. A cyber-physical system can be a small and local sys-
tem such as a building management system or a highly connected, complex, and
large system integrated over several domains such as a city-scale autonomous
transportation system or a smart electric grid which is spanned over a continent.
The sensing, actuating and human-interactive features of CPS in combination
with their highly distributed and networked intelligence and computational power
have the potential to significantly increase efficiency, flexibility, and autonomy
while improving the situational awareness, robustness and resiliency of the present
 3

systems that are loosely coupled or manually operated [National Academies of

Sciences, Engineering, and Medicine (2016)]. Yet, safety, security and reliability
remains the top priority for CPS given the integral role that CPS plays in mission
oriented and safety-critical systems like transportation systems and healthcare.
CPS are closely related to other fields including embedded systems, robotics, In-
ternet-of-things, and big data [National Academies of Sciences, Engineering, and
Medicine (2016)].
Embedded Systems: The field of embedded systems is focused on the integra-
tion of cyber elements such as processors and software to purely electrical and
mechanical systems to perform a specific task. The generalization of the concept
of embedded systems to perform multi-tasking in real-time through the integration
of distributed sensing, computation, control, and actuation over a communication
network has led to the notion of CPS.
Robotics: The field of robotics is focused on the seamless integration of sen-
sors, actuators, processors and control to perform a task autonomously or semi-
autonomously. Although similar elements are present in both fields of robotics and
CPS, the strong emphasis on distributed sensing, processing, control, actuation
and networking is a distinguishing feature of a cyber-physical system.
Internet-of-things: Internet-of-things is focused on dynamic communication
network infrastructure with standard interoperable protocols that autonomously
communicate data amongst entities with well-defined and unique identifiers.
These entities include physical equipment, virtual elements, computing devices
and human users. In contrast to CPS, the concept of Internet-of-things does not
place emphasis on the aspects of control or regulation, computational power and
human-machine interaction.
Big data: The field of big data is focused on the systematic analysis, storage,
and visualization of a large volume of data. Although the field of big data has ap-
plications in CPS, its focus is limited in comparison to CPS and does not address
the limitations of CPS for data management and analysis.

1.3. Drivers for the Development of Cyber-Physical Systems

The main drivers for the development of CPS include security, economic com-
petitiveness, societal needs and technical drivers [NIST (2013b)]. As the cost of
sensing, control, processing and computing, communication and information tech-
nologies continue to drop and the levels of connectivity between systems continue
to grow, the vulnerability of systems and the number of attacks and intrusions is
expected to grow. Thus, it is expected that the expense of security consume signif-
icant share of expenditures in all sectors. In this environment, security will be the
main motivation for the development and adoption of trustworthy, cyber-resilient,
safe and reliable CPS.
The higher levels of consumer demand and the need for improved efficiency
will generate an economic competitive driving force for innovation, development,
and adoption of CPS. As the interoperability, modularity and high functionality of
CPS combined with their safety, security and reliability advances and become
4

more evident, their application in all sectors become more prevalent. Deregulation
of electricity markets is a prime example where the need for higher levels of effi-
ciency and competitiveness became a motivation for innovation and development
of smart grid concept. Growing competitiveness of businesses in combination with
the increased deployment of cost-effective sensing, processing, information and
communication technologies is also a major incentive for pushing forward the in-
novation in CPS and shaping the future deployment and adoption of these systems
in all sectors.
The endeavor for improving life quality and standard is another driving force
for innovation and development of CPS. CPS play a key role in domains that in-
volve human interaction and cover both societal and technical aspects. Moreover,
cyber-physical technologies are capable of performing tasks that are either dan-
gerous or difficult for humans and significantly reduce accidents caused by human
error. For example, it is expected that the application of CPS grow dramatically in
sectors like transportation, healthcare, and mining as they become more afforda-
ble.
The need for improved reliability, reduced installation costs, automation, seam-
less human-machine interaction and higher levels of connectivity and remote ac-
cess in industry is another reason for innovation and development of CPS. CPS
provides an advanced platform for flexible, adaptive and autonomous systems that
are compatible with heterogonous systems containing legacy systems and human
users.

1.4. Applications of Cyber-Physical Systems

CPS are used for various applications in different sectors including manufactur-
ing, transportation, energy, agriculture, smart buildings/structures, emergency re-
sponse, defense and healthcare. This section briefly discusses the application of
CPS in these sectors. A more detailed overview of CPS applications in industries
other than the built environment will be provided in Chapter 3.
Manufacturing: CPS will play a vital role in keeping up with fast-changing and
complex needs of consumers by providing smart, flexible and networked manu-
facturing production lines. The smartness, flexibility and connectivity of CPS also
reduces the lead times required for changing the size and production level of man-
ufacturing systems. In the present global market place, it is imperative for manu-
facturing industries to rely on CPS in order to maintain their economic competi-
tiveness [Monostori et al (2016)].
Transportation: CPS can significantly reduce air and vehicle traffic and im-
prove public transportation system by introducing smarter traffic control mecha-
nisms and intelligent/autonomous transportation systems. Moreover, CPS can
eliminate accidents caused by human error by improving the autonomy and intel-
ligence of transportation systems [Deka et al (2018)].

Energy: CPS play a vital role in realizing smart energy systems for a sustaina-
ble future. CPS with their connectivity, smartness, interoperability, flexibility and
 5

self-healing properties can provide a platform to improve efficiency, sustainability

and resiliency in energy sector. Moreover, the interdependency of different energy
sectors like gas and electricity on other related infrastructures such as transporta-
tion, water and telecommunications highlights the critical role that CPS can play
in energy security. For example, the massive integration of renewable energy re-
sources like wind and solar, electrification of road transportation, and continuous-
ly aging power system legacy assets coupled with more frequent natural disasters
and possibility of cyber-physical attacks demand higher levels of situational
awareness, autonomy, adaptability, flexibility, resiliency and self-healing proper-
ties in the electric energy systems which is achievable through CPS [Kezunovic et
al (2016)].
Agriculture: Climate change and higher needs for agricultural products due to
growing population is expected to become a major challenge in the following dec-
ades. CPS will play a key role in addressing the pressing need for smarter, more
efficient and sustainable supply chain of agricultural products while providing op-
portunities for higher levels of productivity.
Smart buildings/structures: Building management systems are becoming smart-
er and connected with external infrastructures such as first responders and law en-
forcement. Moreover, structures like bridges, highways and tunnels use different
sensors to improve sustainability and resiliency as well as safety and reliability.
CPS in smart buildings can significantly improve energy efficiency by measuring
different quantities like temperature, occupancy, light intensity and humidity in
real-time and adjusting energy consumption. Moreover, CPS can play a vital role
in improving the security of building management systems [Schmidt and Ahlund
(2018)].
Emergency Response: Climate change has already resulted in more frequent
natural disasters such as hurricanes, tornados and wild fires. CPS can significantly
improve situational awareness and support first responders during natural disasters
through their sensor networks, surveillance systems, intelligence, automation and
robotics [Zander et al (2015)].
Defense: Defense systems are becoming more reliant on complex, adaptable
and autonomous CPS such as unmanned aerial vehicles, robotics and surveillance
systems for meeting the military and national defense needs to reduce the human
involvement. Moreover, cyberwarfares which rely of CPS has become an im-
portant part of offensive and defensive operations.
Healthcare: CPS are becoming prevalent in medical devices like artificial pan-
creas since they can autonomously monitor and react to abnormal body conditions.
Moreover, CPS are expected to play a vital role in providing supporting systems
for elderly people, people with disabilities and patients that need 24/7 care
[NITRD (2009)].

1.5. Evolution of Cyber-Physical Systems

The transformation of purely electrical and/or mechanical engineering systems
with physical implementation of sensing, actuating, control, and decision making
6

to physical systems with cyber elements in the form of sensors, processors and
software resulted in the emergence of embedded systems which are designed for a
specific purpose. Afterwards, the need for the development of networked and mul-
ti-purpose monitoring, surveillance, and control systems in various applications
including defense, energy systems, transportation systems, healthcare, and first re-
sponders resulted in the emergence of sensor networks and secure networked con-
trol systems. The notion of CPS is then developed and emerged out of the general-
ization of the concept of embedded systems and by parallel contributions from the
fields of sensor networks, embedded systems and secure networked control sys-
tems. CPS are realized by the seamless and secure integration of a spatially dis-
tributed and networked sensors, actuators, computing devices, and feedback con-
trol systems that are interacting with each other, the physical world and human
users over a communication network in real-time.

1.5.1. Foundations of Cyber-Physical Systems

 Sensor Networks
Sensors connect the physical world with the cyber world by converting the re-
al-world phenomena into signals that can be processed, stored, visualized and act-
ed upon in the cyber world. Therefore, they can be integrated into many devices
and used in numerous applications. The rapid advancements in the design of low-
power, and inexpensive sensors have contributed to the emergence of distributed
sensor networks (DSNs) over the past decade.
DSNs are comprised of low-cost unattended groups of densely placed sensor
“nodes” that observe, communicate (often using wireless means), and coordinate
to collectively achieve high-level inference tasks. DSNs represent a conceptual
shift in the way humans and machines monitor, and interact with the physical en-
vironment and have found a wide range of applications including surveillance,
safety, condition monitoring, and process automation. For example, DSNs can be
employed to monitor and protect civil infrastructure such as bridges and tunnels
by collecting structural health information using spatially distributed vibration
sensors.
The spatially distributed and collaborative nature of DSNs introduces several
challenges and benefits. The challenges facing the development and adoption of
DSNs include safety, security, real-time performance and energy consumption as
well as availability, reliability and robustness in harsh environments. The major
benefits associated with DSNs include cost effectiveness, flexibility, efficiency,
autonomy, redundancy and distributed nature. The DSNs can be considered as the
first building block of CPS which provides a cost-effective, flexible, and reliable
platform for monitoring and interacting with physical world in real-time.
 Embedded Systems
Embedded systems can be broadly defined as devices that contain tightly cou-
pled physical (mechanical and/or electrical) and cyber (processor and software)
components to perform a specific task. Most of embedded systems operate in con-
 7

strained environments and interact with physical world in real-time which imposes
limitations on available resources like memory size, processing power and power
consumption.
Embedded systems are present in almost all the devices around us like micro-
wave oven, refrigerator, dishwasher, printers and even our watch just to name a
few. In CPS, distributed embedded systems perform multiple tasks in a coordinat-
ed and collaborative way in real-time. Although embedded systems form the com-
putational foundation for CPS, the need for distributed, coordinated and collabora-
tive computations in real-time create challenges that are specific to CPS such as
the need for asynchronous computational models. The challenges facing the trans-
formation of embedded systems to CPS are discussed in the Section on distin-
guishing features of CPS.
 Secure Networked Control Systems
The rapid deployment of distributed sensors, actuators, communication net-
works and processors in control systems resulted in the emergence of networked
control systems. Networked control systems are central or distributed control sys-
tems that exchange information with distributed sensors and actuators over com-
munication networks. In comparison to traditional control systems, networked
control systems provide several benefits including reduced costs, improved flexi-
bility, reliability and interoperability. Yet, the uncertainty in the integrity of data
received from distributed sensors and commands transmitted to actuators as well
as the potential unavailability of communication networks introduces new chal-
lenges for the design of networked control systems. For example, the unavailabil-
ity of the feedback loop signals due to communication channel loss may cause in-
stability problems for control systems with drastic consequences.
The efforts to address these challenges resulted in the emergence of the secure
networked control systems. The field of secure networked control systems is con-
cerned with the design of control systems that can survive conditions where the
availability and integrity of data is compromised [Cardenas (2008)]. The design of
distributed, secure, robust, and fault-tolerant control systems form the foundation
of secure networked control systems which are necessary for the development of
CPS.

1.5.2. Principles of Cyber-Physical Systems

CPS consists of physical, cyber and control/decision making elements. The
physical elements in CPS refer to the electrical and mechanical components as
well as the physical world that CPS is interacting with in real-time. The physical
elements follow the principles of the physical world which includes physics,
mathematics and mathematical modeling, probability, statistics and stochastic pro-
cesses, logic, linear algebra and analysis. The cyber elements in CPS refer to the
software, data structures, databases and networks as well as the processors and
computational devices. The cyber elements follow the principles of computer en-
gineering and computer science which includes software programming, computa-
tional hardware, processors and embedded computation, and networking. The con-
8

trol/decision making elements refer to cyber and physical elements that process
and monitor incoming information from sensors and commands the actuators to
perform various tasks through feedback control loops. The control and decision
making elements follow the principles of control theory, adaptive and robust con-
trol, distributed and fault-tolerant control, stability, optimization, hybrid systems,
digital and real-time systems [National Academies of Sciences, Engineering, and
Medicine (2016)].

1.5.3. Distinguishing Features of Cyber-Physical Systems

CPS are founded by bridging the cyber and physical elements including dis-
tributed sensing, communication, computing, control and actuation elements
which are interacting with physical world and human users in real-time. Accord-
ingly, CPS demand distinguishing features as follows [National Academies of
Sciences, Engineering, and Medicine (2016)].
 Advanced Computational Models and Concepts
CPS rely on distributed sensor networks that provide variable number of inputs
about changing physical environment and human user needs in real-time and de-
mand adaptive control and decision making and variable number of outputs. This
characteristic demands novel computational models that are different in two re-
spects from classical computational models.
First, computational models with adaptive and variable number of in-
puts/outputs are essential for CPS. For example, consider time-varying number of
electric vehicles at a charging station that should negotiate and decide how to
charge/discharge their batteries depending on the need of their users and the avail-
ability of power from the electric grid. In this scenario, the electric vehicle charger
receives input signals from various number of agents including the electric vehicle
owner and should make correct decisions about charging/discharging of the bat-
tery. Another example is a set of autonomous vehicles that should change their
speed depending on the traffic status and passenger needs. This is in complete
contrast to the classical computational models where models are developed based
on fixed and known number of inputs/outputs.
Second, distributed, and collaborative computational models are required that
are coordinated in a synchronous or asynchronous fashion. In classical computa-
tional models, the computations are performed sequentially. In contrast, in CPS
distributed and variable number of processors perform computations and com-
municate data collaboratively which can be coordinated in a synchronous or asyn-
chronous fashion depending on the application. In synchronous computational
models, the processors work in harmony and exchange messages in synchronized
rounds. This is while, the processors in asynchronous computational models work
at independent speeds and exchange messages on an as-needed basis. In both ex-
amples of electric vehicles and autonomous vehicles asynchronous computational
models are required where each vehicle optimizes its objective and exchanges in-
formation with other vehicles on an as-needed basis.
 9

 Discrete and Continuous Mathematics and Modeling

An important difference between CPS and classical systems is that both dis-
crete and continuous mathematics and modeling are needed for CPS. Such sys-
tems which require both discrete and continuous modeling and mathematics are
called hybrid systems. For instance, cyber elements in CPS follow event-driven
models and discrete time mathematics while physical elements follow continuous
time evolving models and continuous time mathematics. Thus, the knowledge
about the integration of discrete and continuous models and mathematics are criti-
cal. This is while either continuous or discrete mathematics and modeling is used
in classical systems. Smart grids are prime examples of CPS where communica-
tion networks and power systems constitute the cyber and physical elements
which respectively function based on discrete and continuous modeling and math-
ematics.
 Real-Time Computing for PhysicalWorld
The real-time characteristic of CPS distinguishes them from conventional sys-
tems. In a real-time system the accuracy and correctness of the system behavior
depends not only on the correctness and accuracy of the results, but also on the
time instant at which these results are available to be applied. As such, specific
operating systems, computing architectures, and programming languages are re-
quired with the ability to address the requirements of CPS for real-time compu-
ting. Moreover, sophisticated models should be developed with the ability to pre-
dict and consider time delays while performing real-time control and decision
making. For example, autonomous vehicles need to recognize the boundaries of
the road, distance from different objects and adjust the speed accordingly while
taking into account the time delays for receiving and processing data from sensors,
as well as necessary time for computations and communication of commands to
actuators.
 Interaction with Physical World
Interactions of CPS with physical world imposes complex design constraints on
all elements of these systems. For example, type of sensors, processors, control
systems, communication networks, and actuators that can be used will be imposed
by the characteristics of the physical world that CPS interacts with. Moreover,
other factors such as memory size, processing power and power consumption as
well as redundancy and fault tolerance of elements may become decisive depend-
ing on the physical world constraints and cause unpredictable failures. This feature
highlights the need for various testbeds to examine the CPS design requirements
in a safe and controlled environment which is discussed next.
 Safety-Critical Applications
Testing, validation and certification for systems and devices whose failure do
not result in serious consequences are normally performed at the final stage before
deployment. This is while most of CPS are safety-critical systems whose failure
could result in loss of life, significant property damage or damage to the environ-
10

ment. Thus, their safety, reliability and security has higher priority over other ob-
jectives such as cost and performance. The safety-critical applications of CPS in
sectors like healthcare, transportation, and defense demand novel testing, valida-
tion and certification procedures and testbeds from planning to deployment stage
including design, assembly, implementation, and delivery stages.
 Cross-Cutting Technologies
CPS are underpinned by cross-cutting technologies that facilitate the following
characteristics.
• Abstractions, modularity, and composability
• Standard and interoperable
• Adaptable and predictable
• Hierarchical and secure networked control and decision making
• Distributed sensing, communications, control and actuation
• Redundancy, resilience, survivability and self-healing properties
• Novel testing, validation, and certification mechanisms,
• Autonomy and human interaction
• Cybersecurity
• Resource constrained

1.6. Challenges and Opportunities

1.6.1. Challenges
The major challenges facing innovation, development and adoption of CPS can
be classified into technological, educational and legal challenges [Schätz et al
(2015); National Academies of Sciences, Engineering, and Medicine (2016)].
 Technological Challenges
The technological challenges partly stem from the distinguishing features of
CPS compared to classical systems. For example, technological advancements are
required for the development of distributed, interoperable, autonomous and relia-
ble systems that can protect safety, privacy, dependability and cybersecurity of
CPS.
The development of interoperable systems with certain level of modularity, and
composability that can be combined and integrated with legacy systems has been
initiated in industry a decade ago but it is still at the embryonic stage in terms of
deployment, testing and validation. In addition, the safety and reliability concerns
are still the main barriers in front of the adoption of autonomous systems in differ-
ent sectors. Considering the volume of data that will be generated, gathered and
processed by CPS, development of various mechanisms for protecting the data
privacy is another technological challenge that should be addressed properly. Last-
ly, cybersecurity is the most important technological challenge that must be ad-
 11

dressed while designing CPS considering the critical role that they play in safety-
critical systems like defense and transportation systems [Schätz et al (2015)].
The other two contributing factors to technological challenges are the economic
and scientific aspects. A good share of benefits associated with the CPS may not
be quantifiable using classical business models since in many cases they only con-
tribute to facilitating the processes or providing services rather than resulting in a
product. Thus, new business models and cost/benetit analysis tools must be devel-
oped to justify the investment in CPS. Moreover, considering the transdisciplinary
nature of the CPS, innovations in this field require scientific contributions from
several domains. Therefore, a body of knowledge with suitable breadth and depth
from several domains should be established for modeling, design and implementa-
tion of CPS. Finally, socio-technical aspect of CPS play a key role for their adop-
tion in the society which demands a special attention.

 Educational Challenges
The skilled workforces, knowledgable experts, professionals and educational
trainers with a deep understanding of CPS are in short supply and are expected to
remain as a major challenge in front of innovation, development and adoption of
CPS at least over the next decade. This is mainly because the field of CPS requires
the integration of knowledge from multiple areas of engineering such as computer
science, computing engineering, civil, mechanical or electrical engineering, sys-
tems engineering with a right balance between theory and practice. The breadth
and depth of knowledge required for innovation and development of CPS makes
the education in this field challenging. Therefore, new education/training systems
should be designed and implemented based on the requirements of CPS [National
Academies of Sciences, Engineering, and Medicine (2016)].
The lack of cyber-physical laboratories and testbeds in educational institutions
and industry is another obstacle which hampers the provision of the required edu-
cation/ training in the field of CPS. Individuals in the field of CPS need access to
testbeds with different levels of complexity and integration of physical and cyber
components so that they can develop relevant programming, simulation and exper-
imentation skills.
 Legal Challenges
The application of the CPS in different sectors demands different legislations
and regulations concerning the privacy of data, safety and security of systems and
users, and liability as well as testing and certification of CPS. Moreover, consider-
ing that CPS may span over different states, provinces or even continents, new le-
gal standards and terms may be needed to specifically address the needs of CPS
[Schätz et al (2015)].

1.6.2. Opportunities
CPS improve the efficiency, flexibility, reliability, autonomy and self-healing
properties of systems while providing higher levels of situational awareness, ro-
12

bustness, resiliency and interoperability. Moreover, CPS enable better coordina-

tion, collaboration and control of large and complex systems. In addition, CPS
provide opportunities for higher levels of connectivity and remote access. Finally,
CPS provide numerous opportunities for skilled workforce to design, develop and
deliver new devices, systems and services.

1.7. Conclusions
Cyber-physical systems are establishing themselves as a critical element of
modern engineering systems design. Their multidisciplinary roots have helped to
spur on interdisciplinary collaborations and results. Rich innovations exist at the
intersection of traditionally siloed fields. As such CPS represent a paradigm shift
in the way in which engineering systems are developed in terms of empirical and
mathematical modelling, real-time computing, interaction with the physical world
and safety. As their technologies become intrinsic to the operation of smart socie-
ties, it will become imperative to not only address technological challenges, but
those related to shortage of an appropriately trained workforce.

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