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Accenture forecasts IoT device sales slump in 2016

Accenture has warned of slowing smartphone and consumer wearable IoT (internet of Things) device sales in 2016, highlighting a decrease in the number of people considering buying new technology in the coming year.

Worryingly for the technology industry, this slump in demand is right across the board with demand for televisions and other consumer electronics down on 2015.

However, the real blow is that demand for IoT devices has also stagnated, with less-than-hoped-for sales. A poll of 28,000 consumers across 28 countries, the Igniting Growth in Consumer Technology survey found that for nearly half (47 per cent) of respondents, security concerns and privacy risks rank among the top three barriers to buying an IoT device and service.

For, example the results show only 13 per cent of respondents, said they plan to purchase a smartwatch in the next year, up only 1 percentage point from last year. The survey also revealed similar stagnation in demand for a range of IoT devices, including fitness monitors, wearable health devices, smart thermostats and connected home-surveillance cameras – with each only cited as a planned purchase by 9 per cent of respondents, about the same percentage as last year.

“The slowdown in the consumer technology market is irrefutable, serious and global,” said Sami Luukkonen, global managing director for Accenture’s Electronics and High Tech group. “The market is not about the glitzy gadgets anymore – rather, it’s about providing secure, innovative and practical digital services and more open collaboration.

"As device demand tapers off, the industry needs to make a sharp turn toward providing innovative, value-added services that consumers are able to use with confidence.”

Image credit: Shutterstock/Georgejmclittle