Security and privacy concerns are among the key barriers to buying an IoT device and service, according to a poll of almost 30,000 consumers released by Accenture.
“Until the promise of IoT meets consumers’ expectations, the IoT market will remain more promise than profit and do little to reinvigorate the overall digital consumer market,” said Sami Luukonen, global managing director for Accenture’s electronics and high tech group.
The survey findings put something of a dampener on the blossoming IoT industry, particularly in the midst of the Consumer Electronics Show jamboree, with all manner of IoT-enabled and connected tech being shown off to attendees.
The Igniting Growth in Consumer Technology survey found that more than two thirds (69%) who own, or are planning to buy, an IoT device know the products are vulnerable to hacking, and can therefore result in stolen data or device issues.
Among those planning to buy a device in the next 12 months, 37% will be more careful about using these devices and services; 24% have pushed back purchasing an IoT device or subscribing to an IoT service; and 18% have altogether given up on using their IoT device or service until they come across better security.
The amount of consumers planning to buy a smartphone in the next 12 months has fallen by six percentage points from the previous year to 48%. The number of people who said they plan to buy a new TV or a tablet PC has also fallen from 38% in the previous year to 30% (TV) and 29% (tablet PC).
Luukonen added: “The slowdown in the consumer technology market is irrefutable, serious and global. The market is not about the glitzy gadgets anymore – rather, it’s about providing secure, innovative and practical digital services and more open collaboration.
“As device demand tapers off, the industry needs to make a sharp turn toward providing innovative, value-added services that consumers are able to use with confidence.”
Interested in hearing industry leaders discuss subjects like this and sharing their IoT use-cases? Attend the IoT Tech Expo World Series events with upcoming shows in Silicon Valley, London and Amsterdam to learn more.