Security fears impede demand for IoT devices in Australia

Demand for consumer electronics in Australia and elsewhere is being dragged down by heightened security concerns, particularly regarding IoT devices, and falling smartphone demand.

This is among the findings of a new survey by Accenture, which finds that 47% of respondents worldwide rank security concerns and privacy risks as the top barriers to buying an IoT device or service.

Even among the Australian respondents who already own or plan to buy an IoT device this year, 61% stated that they know that these products are capable of being hacked, exposing them to stolen data and device malfunction problems.

These concerns are contributing to lacklustre global demand for IoT devices. For example, only 8% of respondents plan to buy a smartwatch in the next year, only 13% intend to buy a fitness model and only 9% plan to pick up a wearable health device.

In addition, only 38% of Australian respondents to Accenture’s survey indicated that they plan to buy a smartphone this year. The proportion planning to buy a new TV or tablet PC has meanwhile declined to 25% and 23% respectively.

“The slowdown in the consumer technology market is irrefutable, serious and global,” Accenture Global Managing Director for Electronics and High Tech Sami Luukkonen said.

“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.”

Image courtesy of One Way Stock under CC