Heightened data security concerns, falling demand for smartphones and tablet PCs, and stagnant growth in the Internet of Things (IoT) market are stymieing the consumer electronics industry and will continue to do so over the next year, according to a new Accenture survey.
Around 47 per cent of respondents, security concerns and privacy risks rank among the top three barriers to buying an IoT device and service. IoT devices include smartwatches, wearable fitness monitors, and smart home thermostats, among others, the study revealed.
The study Igniting Growth in Consumer Technology was conducted across 28 countries in which 28,000 consumers participated.
Of the survey respondents who indicated they either own or plan to buy an IoT device this year, 69 per cent said they know that these products are capable of being hacked and therefore can result in stolen data or device malfunctions.
Within the groups of IoT device owners or those planning to buy one in the next year, about 37 per cent decided to be more cautious when using these devices and services; 24 per cent chose to postpone buying an IoT device or subscribing to an IoT service; and 18 per cent quit using their IoT devices or terminated their IoT services until they can get safer guarantees.
Declining demand
The survey also highlights sluggish demand for traditional consumer technology devices. For example, 48 per cent of respondents said they intend to buy a smartphone this year, down six points from the 54 per cent who said they planned to buy one last year.
Consistent with this, the number of people who said they plan to buy a new TV or a tablet PC this year – 30 per cent and 29 per cent, respectively – also dropped from 38 per cent last year for both device types.
Read the whole report here .