Resource-constrained devices equipped with multiple sensors to exchange data over the network are called the Internet of Things (IoT). The major limitations of IoT devices are limited resources, low computational power, low communication capacity, and low bandwidth. Therefore, ensuring proper security while using these low resources is challenging. In contrast, the conventional cryptographic algorithm has higher complexity and high resource requirements, making it incompetent for IoT devices. However, lightweight cryptographic algorithms have limited resource requirements and limited complexity, making them eligible for use in low-resource devices. This paper proposed a lightweight hybrid cellular automata-based algorithm for IoT applications. The encryption algorithm uses multiple layers of hybrid cellular automata and a secondary secret key. For key randomization, omega-flip permutation and cellular automata are used. The experimental result shows that the algorithm outperforms existing ciphers such as DES and 3DES in the context of simplicity, encryption, and decryption time. In addition, this algorithm successfully meets the randomness criteria set by the National Institute of Standards and Technology (NIST). The algorithm also meets the criteria of passing all of the DIEHARD tests which ensures the security requirements of this algorithm. This algorithm can be used for resource-limited devices and can be upscaled to use for higher-complexity devices.