IoT Set To Grow Despite Consumer Ignorance
While businesses are spending a lot of time developing strategies around the Internet of Things (IoT), a recent research from the Acquity Group shows most consumers are clueless about the technology. In fact, the research shows lack of knowledge about the IoT is the biggest barrier to adoption. A startling 87 percent of the people surveyed do not know the term and consequently cannot see any value in it.
The study however shows that their ignorance on IoT however does not stop them from adopting the technologies and concepts associated with it. For example, many people are embracing wearable technology, but are unaware that these technologies are part of a wider group of devices that can be described as the IoT.
The report suggests that there will be nearly a 70 percent adoption rate of IoT devices by 2019, whether customers show an interest or are ignorant about it. The report from The Acquity Group titled “The Internet of Things: The Future of Consumer Adoption” says that 30 percent of consumers already own at least one IoT device, based on a survey sample of 2,000 people, with four percent opting for an in-home device, such as a Nest thermostat or a semi-sentient washing machine. While IoT is still in its infancy, the research contends that mainstream adoption is inevitable as it become less expensive to integrate sensors into physical objects, particularly around in-home smart devices and wearable devices.
Wearable fitness devices are expected to see the fastest rate of adoption in the next five years with 13 percent of consumers planning to buy a device in the next year and 43 percent in the next five years. The next most popular device will be smart watches, with 5 percent expected to invest in the next year, 8 percent by the end of 2015 and 25 percent in the next five years. Smart clothing is less likely to interest customers and adoption will be slower. In the next five years, a total of 14 percent of consumers expect to own smart clothing and 16 percent expect to own a wearable headset device.
Also read: Is The Internet Of Things Doomed?
Despite a high rate of adoption, the researchers conclude that a lack of awareness and lack of understanding of the potential gains of connected devices can be the two biggest obstacles to adoption of the IoT, more so even than concerns about security. Lack of awareness is not the only barrier to adoption for in-home IoT devices. Over the past couple of years, a series of highly publicized data breaches, have given rise to considerable security concerns. About 57 percent of consumers said they are less likely to buy wearable IoT technology because of these data breaches. Even still, prospects for development are positive with 55 percent of consumers planning to adopt wearable IoT technology and 68 percent of consumers plan to adopt IoT technology at some point in the future.
Availability of technology was also an issue, with 71 percent saying they would be willing to buy a smart refrigerator if it was offered in the same store a conventional model. From this, Acquity predicts that point-of-sale information from sales associates and promotions could be effective ways for retailers to increase sales of certain types of connected technology.
Technology companies are advised to promote the advantages of the IoT to overcome these obstacles. Some of the suggestions include, use of location based coupons for frequently purchasing items like food, recipes sent to mobile devices based on items that have been place in a refrigerator and also locations of the least expensive places to buy products based on previous purchases
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