Australian IOT Device Barriers To Usage

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Australian IOT Device Barriers To Usage

2018 is forecast to bring an increase of 66% in Australian spending on personal IoT products. Most of this spending is predicted to come from the “early adopters” of IoT technology in the country. The industry growth is expected to rapidly increase in 2018. This is in comparison to much slower performance in previous years. We have examined the usage barriers in Australia to identify why the market has grown so slow up to this point.

SECURITY & PRIVACY BARRIERS

Telsyte Research has identified that security and privacy issues have created a usage barrier among consumers of IoT products in Australia. The research firm recently looked into the IoT industry in Australia. Although they have predicted a rapid increase in 2018, to expand the consumer base the industry, companies will need to overcome privacy and security barriers. As a side note, Telsyte also identified high cost of personal IoT devices to be a barrier against usage.
Dan Tehan, assistant to the Prime Minister of Cyber Security, proposed legislation regarding the security of IoT devices. In the proposed law, manufacturers of personal IoT devices will be required to provide a security rating with each product. Australia has a similar law mandating energy efficiency ratings on certain products. This legislation is an attempt to grow the IoT market in Australia by overcoming privacy and security barriers.

ADOPTION OF IPv6

Most internet service providers in Australia currently utilize Internet Protocol 4. They are currently ranked 25 in their adoption rate of IPv6 with a 14.35% adoption rate according to data collected by Google. Experts in IoT technology say that the IoT market cannot grow until the country more widely adopts IPv6. Most personal IoT devices require more IP addresses than IPv4 can provide. Cloud computing implementations also require more IP address than most areas of Australia can provide. It is predicted that in four years, only 20% of IoT devices will function on IPv4 internet service.

CONFUSION AMONG CONSUMERS

Although Australia is experiences a rapid influx of IoT devices, consumers confidence in their ability to identify the “smart” products has fallen 13 points. The confusion among Australian consumers concerning IoT devices is attributed to a recent influx in personal IoT devices on the Market. With most of the new IoT products having implemented artificial intelligence, 77% of consumers have become fearful of cybersecurity issues as a result of their use of a product.

SLOW ADOPTION OF INNOVATION

Australia ranked 22nd in the World Economic Forum's report 2016-2017. This rank was based on a competitiveness report that measured countries sophistication and innovation around the world. Australia’s was also ranked last among countries in the generation of new ideas. This study was done my the Australia Department of Industry and related to the country's competitiveness in adopting new ideas and innovation. The combined global recognition of Australia’s procrastination can explain, partially, why the usage of IoT devices among its consumers has been lagging.

SMART SPEAKER CASE STUDY

Australia has become one of the last developed countries in the world to receive Amazon's music service in February 2018. Australia just recently introduced its first smart speaker onto the market in 2018. This was the first country where Google released the first smart speaker onto the market. Amazon followed Google into the Australian smart speaker market with Alexa in early 2018. Australia’s slowness to adopting innovation is the primary barrier for the smart speaker segment to achieving a strong ground hold on the market.

CONCLUSION

Our research has identified several barriers on the usage of IoT devices in Australia. The primary usage barriers are security and privacy issues. The country is not modernizing their internet protocol from IPv4 to IPv6 which will result in the inability to introduce new smart products on the market over the next four years. A recent rapid influx of IoT devices on the Australian market have confused consumers and frightened them over security concerns. Australia has been identified in several studies as one of the slowest countries to adopt ideas and innovation. This is hampering the growth of IoT usage among consumers in the country as well.

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