The present chapter focuses on providing an extensive literature review study on the use of physical computing equipment, sensors, smart app software and real experimental data and processing techniques for physics teaching scenarios, under STEM epistemology framework. Along with sensors and actuators, physical computing platforms, smart devices and smart phones, physics experimental teaching, triggers students' interest and engagement. The use of sensors and real-time data processing is related to the STEM scientific and engineering practices, in alignment with Inquiry-based learning (IBL) and engineering design (ED) teaching approaches for Physics education. Following, related literature is thoroughly examined, analyzed and categorized, under various metrics, including physics topics, expected learning outcomes and software and hardware tools. In this work, we highlight the process to collect and analyze real experimental data, during physics teaching scenarios and the pedagogical effectiveness of using smart sensors to confirm Physics laws, throughout IBL scenarios and physical computing platforms. Finally, through our review, we make suggestions for further research directions of how to integrate the use of sensors and the conduction of data analysis into physics-based STEM instructional design to increase students' engagement and enhance their expected learning outcomes.