Datamation Logo

Wearables Stoke Privacy Concerns

August 21, 2014
Datamation content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

Businesses hoping to capitalize on the wearables boom will need to first lay consumers’ privacy concerns to rest, according to a report from Acquity Group, an Accenture digital marketing division.

Eighty percent of the 2,000 surveyed for the group’s “2014 State of the Internet of Things Study” expressed worries that wearable devices could infringe on their privacy. Predictably, that figure drops when they are otherwise incentivized. Half of those polled said that they could be coaxed into sharing personal data if they were treated to discounts and coupons.

In potentially good news for makers of health-related wearables, a slim majority of respondents (53 percent) said that they would be willing to share data with doctors. Some are even willing to let their wearables update friends (17 percent) and family (27 percent).

A significant number, just under 40 percent, are unwilling to share wearables data with anyone.

The issue is compounded by the “great deal of uncertainty [that exists] around the security of these connected devices,” said Acquity Group in a statement. “Companies will have to address consumers’ very real security concerns before any widespread adoption can take root.”

Adoption also may be stymied by a range of societal factors and the very nature of the current wearables market, said CCS Insight, a telecommunications and technology research firm.

Marina Koytcheva, Director of Forecasting at CCS Insight, noted that the “market is still in a chaotic stage of development,” in a statement. “Every category faces different risks: the way people use wearables is still changing, one type of device could kill sales in another category, people are unsure whether some wearables are socially acceptable, and intellectual property rights are a minefield for the dozens of start-ups entering the wearables market.”

Nonetheless, her firm expects wearables shipments to reach 22 million this year, a 129 percent gain over the 9.7 million units shipped in 2013. “We believe this will fuel strong growth in the final quarter of 2014 for smart bands, particularly fitness trackers, which will account for more than half of the 35 million wearables in use at end of 2014,” stated Koytcheva.

By 2018, the firm’s forecast calls for shipments of 135 million wearables in 2018. The majority of those devices will be smartwatches and smart bands. Wrist-worn devices will make up 87 percent of all the wearables that ship in 2018, predicts CCS Insight, a figure that represents “68 million smartwatches and 50 million smart bands,” said the company.

Pedro Hernandez is a contributing editor at Datamation. Follow him on Twitter @ecoINSITE.

Photo courtesy of Shutterstock.

  SEE ALL
ARTICLES
 

Subscribe to Data Insider

Learn the latest news and best practices about data science, big data analytics, artificial intelligence, data security, and more.

Datamation Logo

Datamation is the leading industry resource for B2B data professionals and technology buyers. Datamation's focus is on providing insight into the latest trends and innovation in AI, data security, big data, and more, along with in-depth product recommendations and comparisons. More than 1.7M users gain insight and guidance from Datamation every year.

Advertisers

Advertise with TechnologyAdvice on Datamation and our other data and technology-focused platforms.

Advertise with Us

Our Brands


Privacy Policy Terms & Conditions About Contact Advertise California - Do Not Sell My Information

Property of TechnologyAdvice.
© 2025 TechnologyAdvice. All Rights Reserved

Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.