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Internet of things grows on consumers

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 22 Aug 2014
Despite consumer cynicism around the Internet of things, uptake of in-home devices is on the rise.
Despite consumer cynicism around the Internet of things, uptake of in-home devices is on the rise.

More than two-thirds of consumers plan to buy connected technology for their homes by 2019, and nearly half say the same for wearable technology, according to Acquity Group's 2014 Internet of things study, released this week.

While the study was based on more than 2 000 consumer surveys across the US, local analysts have said SA is increasingly trying to keep up to date with international trends, unlike in the past. Frost & Sullivan attributes this to improved IT infrastructure in SA and increasing consumer and business demand.

Acquity Group's latest study, "The Internet of things: the future of consumer adoption", looks specifically at consumer adoption of connected devices and smart technology - both now and in the future.

The firm defines the Internet of things as "the phenomenon of everyday devices connecting to the Internet through tiny embedded sensors and computing power".

The study found consumer adoption of network-connected technology is on the rise, with 69% of consumers planning to buy an in-home device in the next five years. By the end of next year, a total of about 13% of consumers will own an in-home Internet of things device, such as a thermostat or in-home security camera. Currently, only about 4% of those surveyed own such a device.

"Findings predict immediate growth at a more gradual rate. Still, certain devices, namely ones focused on health and safety, are projected to see earlier adoption among consumers."

Here are some of the study's key findings:

The following devices are expected to top the popularity list over the next few years:

* Wearable fitness devices are expected to see 22% adoption by 2015 and 43% adoption in the next five years.
* Smart thermostats, it is projected, will have 13% adoption in the next year and 43% in the next five years.
* Connected security systems are expected to have 11% take-up in the next year and 35% in the next five.

Lack of awareness, says Acquity Group, is not the only barrier to adoption for in-home Internet of things devices. Consumers aware that these devices are available for purchase said their reasons for not purchasing in-home smart technology were:

* Lack of perceived value (36%).
* Concerns with privacy (23%).
* Concerns with price (23%).
* 18% said "other".

For wearable tech, consumers have similar concerns that Acquity Group says could hamper adoption:

* 30% cite lack of perceived value.
* 26% have concerns around the pricing of the devices.
* 19% have privacy concerns.
* 25% said "other".

The full study is available for download here.

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