Nowadays, the advanced sensor technology with cloud computing and big data is generating large-scale heterogeneous and real-time IOT (Internet of Things) data. To make full use of the data, development and deploy of ubiquitous IOT-based applications in various aspects of our daily life are quite urgent. However, the characteristics of IOT sensor data, including heterogeneity, variety, volume, and real time, bring many challenges to effectively process the sensor data. The Semantic Web technologies are viewed as a key for the development of IOT. While most of the existing efforts are mainly focused on the modeling, annotation, and representation of IOT data, there has been little work focusing on the background processing of large-scale streaming IOT data. In the paper, we present a large-scale real-time semantic processing framework and implement an elastic distributed streaming engine for IOT applications. The proposed engine efficiently captures and models different scenarios for all kinds of IOT applications based on popular distributed computing platform SPARK. Based on the engine, a typical use case on home environment monitoring is given to illustrate the efficiency of our engine. The results show that our system can scale for large number of sensor streams with different types of IOT applications.