As data security needs for the connected home increase, opportunities exist across the ecosystem to cultivate partnerships with device and system manufacturers, broadband operators, and security solution providers.

There is continued demand for new products and services spanning beyond just traditional PCs and mobile devices to include entertainment products, appliances and productivity tools, and a multitude of smart home devices. Securing these products against the mass of internet threats and leaks has become an ever more complex task.

• 34% of US broadband households own a smart home device, and 23% own three or more smart home devices.
• 52% of US broadband households want a telehealth service that uses data from connected health devices.
• 79% of consumers report having concerns about data privacy and security issues. Identity theft, viruses and spyware, unauthorized access to devices, and private information being made public top this list of concerns.

Security solutions at the level of hardware, network, or cloud platforms are vitally important to the success of IoT providers throughout the ecosystem. Data security or privacy issues are one of the top three purchase inhibitors of smart home devices.

Nearly half of consumers do not take any action to protect themselves from unauthorized access to their connected devices. Most consumers lack understanding and awareness of data security solutions or have found solutions inadequate or inconvenient. In addition, requiring the installation of another app/software becomes a barrier.

Learnings from enterprise solutions using cloud-based artificial intelligence and machine learning are being applied to consumer cybersecurity. The challenges to securing the smart home create ample business opportunities across the value chain. Addressing data privacy and security issues with a hassle-free experience for the consumer can be a differentiator for players in the smart home ecosystem.

As data security needs for the connected home increase, opportunities exist across the ecosystem to cultivate partnerships with device and system manufacturers, broadband operators, and security solution providers. Data security and privacy protections will be a necessary feature of connected devices and services in the home as the market moves to mass adoption. 

• The single biggest factor causing consumer concerns about online security is password breaches.
• Malware is the top threat to IoT networks.
• Consumers show increased interest in the ability of any device on their network to be identified and fingerprinted.
• Security gateway products are hard to design and sustain due to the ever-increasing challenges in compatibility with the extensive variety of brands/models of home gateways/routers.

This is an excerpt from Parks Associates library of research, a proprietary data set built across almost 40 years. We welcome all comments and feedback. Thank you for reading! For more information, contact me or any time member or visit our website at www.parksassociates.com

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