With the rapid development of intelligent applications, the development of the Internet of Things changes with each passing day. The Internet of Things, as an essential component of the new information technology, has already become another revolutionary information industry after computers and modern communications. Although the Internet of Things has developed and grown, at the application level, the applications of Internet of Things devices of different architectures are relatively independent of their data information. This paper is based on the research of 5G urban component sensor information processing method and LOT cloud platform, and proposes a data fusion algorithm based on the data sequence of the same time. It analyzes the system process and architecture diagram of the LOT cloud platform, examines the performance of the Hadoop platform on different scale data sets, and uses the stand-alone system as a reference. The experimental results show that the time increase of the cluster decreases with the increase of the amount of data, which shows that the system exerts the advantages of parallel computing under the massive amount of data, and as the data source file increases, the accuracy rate decreases. When the data source size is 2000 MB, the Hadoop cluster system with 3 and 4 cluster nodes has the highest accuracy, 79.21% and 76.28%, respectively.