Connected Device Owners' Concerns Grow

The concerns over data invasion and security are not felt solely by prospective purchasers but carry over to current device users as well, impacting not only how they use their smart home devices, but also their propensity to purchase additional smart home devices.

?The continued uncertainty surrounding the safety and privacy of connected devices and their associated data has led to increased interest in add-on security services for smart/connected devices.

?These add-on services are applicable in both residential and commercial settings that make use of smart devices. Residential customers see the value of increased protection and privacy in their home, while commercial customers (whether businesses and/ or property managers) can augment the security of the devices in their businesses as well as the overall commercial space.

?Industry data suggests security providers are not currently leveraging this interest in add-on cybersecurity services — only 21% of security companies that offer pro monitoring say they are likely to add cybersecurity services within the next year.

• ?49% of those with connected devices have experienced at least one data security or privacy problem, with almost 75% of households displaying concern or high concern about the presence of spyware/viruses on their smart devices.
• 72% of consumers are concerned/very concerned about the security of personal data collected and transmitted by devices as well as concerned/very concerned about someone gaining access or control of smart devices without permission.
• Among smart home device users, 55% of consumers are worried about hackers while 39% fear technology companies having unauthorized access. This continues to be a strong barrier for adoption and one that industry players must address, as fear of privacy violations from legitimate entities has been persistent among consumers. Only 37% of consumers trust the companies that have access to their personal data.

Expanding Beyond Premise Security: Building Loyalty and Services

Pro monitoring companies also have a unique opportunity to offer warranty add-on services alongside their available products and services. Smart device owners are interested in warranties for their connected devices as add-on services in addition to support services. In Q2 2022, 42% of respondents stated that they had purchased an extended warranty/device protection service of some kind, up 15% from Q2 2019. Additionally, 49% of consumers stated that if they had to choose between similar products offered by different brands, they would select the one that offered a warranty.

?Parks Associates shows 48% of consumers desire to have warranty services bundled with technical support services for their smart products. Overall, the use of extended warranty and subscription support services among CE device owners has increased substantially in the last twelve months.

?Read this full research white paper, Protect the Connected Home: Home Security Meets Personal Privacy, developed with Assurant

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