With next generation of Synthetic Monitoring how to manage IoT devices. I can not explore option for using IoT devices simulation through new SM.
Below link mention that with the pace of application changes and ways of engaging with customers through mobile and IoT devices new SM solution will provide the platform the achieve the same and Classic SM will be decommissioned in later 2019.
It really might depend on the type of IoT devices you are intending to monitor or emulate/simulate. Considering what I know about IoT, and that I have several devices at home, not connected to Dynatrace, yet ;-), it seems to me that you can have several options: