What’s Stopping Consumers from Buying Internet of Things Devices?

Some consumers already own connected devices, but cost is a barrier

Toronto, ON (Jan. 25, 2016) – The internet of things (IoT) has a wide-ranging impact across many categories, from healthcare to travel. And consumers are even embracing smart home devices. However, when it comes to purchasing an IoT device, cost is a top barrier.

Barriers to purchasing IoT devices and services

According to a November survey from Accenture, nearly two-thirds of internet users worldwide said that one of the barriers to purchasing IoT devices and services were the fact that they are too expensive.

In addition, almost half of respondents said they were concerned about privacy and security, and these issues were another hindrance to purchasing an IoT device. The uncertainty about which device would be of use to them, as well as the confusion around these IoT devices more generally, were other barriers to purchase.

IoT devices owned by US internet users

While price may be a hurdle for many consumers, others already own IoT devices. August 2015 research from ISACA, found that 43% of US internet users own a smart TV. Additionally, 26% of respondents said they own cameras that connect to the internet, and a quarter of respondents said they own a connected car.

Wireless fitness trackers, internet-connected audio and stereo speakers and smart weight scales were among the other devices internet users said they owned. Some 24% said they didn’t own any IoT devices.

About eMarketer

By gathering the latest research and news from over 1,000 sources, eMarketer has established itself as the world’s leading provider of internet and e-business statistics. eMarketer’s Web site is at www.emarketer.com.

eMarketer bases all of its forecasts on a multipronged approach that focuses on both worldwide and local trends in the economy, technology and population, along with company-, product-, country- and demographic-specific trends, and trends in specific consumer behaviors. We analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

In addition, every element of each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of each forecast means those assumptions and framework are constantly updated to reflect new market developments and other trends.

SOURCE: eMarketer