Heightened data security concerns are stymieing the consumer electronics industry, according to a newly released Accenture survey.
Other factors that are contributing towards this trend are falling demand for smartphones and tablet PCs, and stagnant growth in the Internet of Things (IoT).
Between October and November 2015, Accenture conducted an online survey polling 28,000 consumers in 28 countries, including APAC countries like Australia, China, India, Indonesia, Japan, Philippines, and South Korea. Titled "The Igniting Growth in Consumer Technology", the survey suggests that this trend will continue over the next year.
Security concerns and privacy risks rank among the top three barriers to buying an IoT device and service for about half (47 percent) of respondents.
"The slowdown in the consumer technology market is irrefutable, serious and global," said Sami Luukkonen, global managing director for Accenture's Electronics and High Tech group. "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."
69 percent of the survey respondents who indicated they either own or plan to buy an IoT device this year, said they know that these products are capable of being hacked and therefore can result in stolen data.
More than 37 percent within the groups of IoT device owners or those planning to buy one in the next year, decided to be more cautious when using these devices and services.
24 percent chose to postpone buying an IoT device or subscribing to an IoT service; and 18 percent quit using their IoT devices or terminated their IoT services until they can get safer guarantees.
The survey also indicates sluggish demand for traditional consumer technology devices. 48 percent of respondents said they intend to buy a smartphone this year.
"Despite all its promise, the Internet of Things market has revealed itself to be a double-edged sword. The market opportunity is enormous, but security and ease-of-use concerns are hindering its near- and long-term potential," added Luukkonen. "To ignite this market, consumer technology companies should consider getting serious about ecosystems, sharing data, and creating integrated services across multiple companies, such as building a connected home through an integrated home security camera, thermostat, and door lock."
Sign up for CIO Asia eNewsletters.