New Delhi: Privacy and security concerns are deterring Indians from adopting devices and solutions based on the Internet of Things (IoT), according a new report by consulting firm Accenture Plc.
About 70% of the consumers surveyed cited security concerns as one of the main reasons for not using an IoT device, the data collated by the company showed.
A polling of 28,000 consumers across 28 countries survey found that, globally, for nearly half (47%) 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. “Security and privacy concerns have moved from being a nagging problem to a top barrier as consumers are now choosing to abandon IoT devices and services over security concerns," the report noted.
IoT is defined as a worldwide network of things such as identifiable devices, appliances and machinery of all forms and sizes that are connected to the Internet and can communicate, control and manage each other to perform a set of tasks with minimum intervention.
Smartphones act as the central point in majority of IoT-based solutions where users have the ability to control and monitor the network of devices through their mobiles.
This trend is impacting the overall industry.
Among the consumers who were surveyed in India, about 75% of them were aware of hack attacks and security breaches. Of those, 34% of consumers decided to stop using such devices and related services until they get safety guarantees. “These are customers who once saw value in the device or service but now perceive the risk to outweigh that value," the report said.
However, the growth could be re-ignited, says the report.
“Consumer technology is more than a $200 billion, highly profitable global industry with customers using their products extensively (not so based on our survey) But with evidence of stalling consumer interest in spending on both mainstay technologies and IoT devices, consumer technology companies must act now to ignite their next wave of growth," it said.
Companies providing IoT based solutions need to ensure a superior and simplistic customer experience, build security and offer compelling customer value proposition, the report added.