Concerns over information security and privacy is leading to a more cautious attitude among consumers when it comes to IoT (Internet of Things) devices and services, according to a new survey by Accenture.
It reported in its paper, Igniting Growth in Consumer Technology, that such fears have gone from being a “nagging problem to a top barrier”.
Close to half (47%) of respondents commented that “privacy risks/security concerns” are a barrier to adopting IoT technology, researchers at Accenture found.
Greater awareness of data breaches is also influencing buyer behaviour, the global professional services company explained, with informed consumers are holding back on purchases until they “get safety guarantees”.
Further, cyber-savvy consumers that have invested in an IoT device or service are going so far as to terminate their contracts until they feel confident that the technology is as secure as it can possible be.
Interestingly, the paper notes that while many consumers appreciate the value of IoT devices and/or services, the perceived risks trump the benefits.
“Despite all its promise, the Internet of Things market has revealed itself to be a double-edged sword."
“Despite all its promise, the Internet of Things market has revealed itself to be a double-edged sword,” said Sami Luukkonen, global managing director for Accenture’s electronics and high tech group.
“The market opportunity is enormous, but security and ease-of-use concerns are hindering its near and long-term potential …
“Consumer technology companies need to consider investing more in innovative services and make consumers’ online lives more secure, convenient and enriching.”
The biggest drawback for consumers looking to acquire an IoT device remains price, with 62% of respondents stating that they are currently far too expensive.
This is closely followed by security (47%), not knowing which device to purchase (23%), and being confused by the idea of IoT devices (17%).