Nearly 75% of US internet households are concerned about the security of their personal data, while 54% report experiencing a data privacy or security issue in the past 12 months, an increase of 50% over the five year period from 2018 to 2023, according to a consumer study by Parks Associates.
Among smart home device owners evaluating ‘smart home’ device companies such as Amazon, Google, Apple or Samsung as a unified app provider, 42% cite a lack of trust in a property management company, while 30% would not choose a smartphone/smart speaker provider because they do not trust them with their data.
“Lack of trust is the top reason for smart home device owners to reject specific companies as their preferred unified app provider,” said Jennifer Kent, VP Research, Parks Associates. “Consumers are wary about how companies use their data, and they need reassurance that brands are accessing their data responsibly – before they sour on product and service offerings.”
Privacy and Data Protection for Connected Devices, a consumer study of 8,000 US internet households, tracks shifts in consumer attitudes around data privacy, including desire for privacy controls and preferences for how companies collect and manage their data. It explores data that consumers are willing to share for their benefit and tests consumer willingness to pay for a premium data security service.
Parks Associates is conducting its all-day Connections Summit on January 9 at the Venetian in Las Vegas during the 2024 CES conference, with a session about privacy and home security during the course of the event. Registration is through CES.
Parks Associates: 54% of US internet households report experiencing a data privacy or security issue in the past 12 months, an increase of 50% over five years. Press release. December 18, 2023. Parks Associates
Table of Contents: Privacy and Data Protection for Connected Devices. TOC and purchase information. December 18, 2023. Parks Associates
Why it matters
“Smart home players must honor consumer concerns and double their efforts to secure their products,” said Ms. Kent. “Trust can be gained through transparency about partnerships and data access and through industry certification programs. When trust is honored, earned, and kept, it can be a competitive advantage.”
Security concerns impact consumer product and vendor choices, especially as the push for interoperability will enable smart home device owners to pick a unified app to control all their devices, said Parks Associates.