AWS IoT Analytics is a fully managed service that helps users analyze data from their Internet of Things (IoT) devices. It simplifies the process of collecting, processing, and storing large volumes of IoT data, allowing businesses to gain insights and make informed decisions based on real-time information. The service provides tools for data preparation, including filtering, transforming, and enriching data before analysis. Users can create custom queries and visualize results using Amazon QuickSight or other analytics tools, making it easier to understand trends and patterns in their IoT data.