i3 - September/October 2016 - 51

By Steve Koenig

Business

M A R K E T B E AT

Consumers Eye Smart Home Security

ILLUSTRATION BY JOHN DEVOLLE/GETTY IMAGES

onsumer adoption of smart home solutions is rising,
but so too are concerns surrounding the security of
connected devices that control and/or monitor critical
home systems and activities. In a time where data
breaches are an almost weekly news story, industry should understand the cyber-threats-both actual and notional-facing the
smart home ecosystem. If not addressed,
growing consumer concerns, or worse,
loss of confidence with connected solutions could hurt market growth.
CTA and CABA's (Continental
Automated Building Association) recent
Cybersecurity and the Connected Home
(May 2016) found 38 percent of U.S.
and Canadian consumers own a smart
home solution or device, with another 24
percent aspiring to adopt in the next two
years. More, the average smart home has
at least five potentially vulnerable devices
other than computers, tablets or smartphones connected to their home network.
Not surprisingly, the incidence of cyber
breaches is growing in tandem with the
adoption of connected devices in the
C TA . t e c h / i 3

home. In the past year, 29 percent of
adopters experienced some type of cyber
breach. More than half (54 percent) of
these breaches were reported as a vendor
or service provider glitch in the system
in question.

Smart Home Pros and Cons
Adopters acknowledge numerous benefits of smart home technologies, such
as reducing energy costs (79 percent),
increased home security (81 percent),
greater efficiency (78 percent) and
improved safety (77 percent). However,
they harbor an equal number of concerns,
including exposure or theft of personal
information (65 percent), loss of privacy
(65 percent), and security breaches of

smart home network (63 percent) or
cloud services (61 percent).
These data points illustrate the vulnerabilities consumers associate with
connected solutions, despite a budding
desire to adopt them. The research
also confirms a measured approach to
assessing risks is necessary, given that the
profile and intensity of risk varies substantially; and consumer perceptions do
not always correspond accurately to the
actual threat potential. Although ostensibly outweighed by the benefits of smart
home solutions (for now) this concern
begs the question: How long before
consumers begin to question the benefits
of smart home technologies given the
potential risks?
To forestall cybersecurity threats and
shore-up consumer confidence, industry
must secure solutions and services by
designing security and privacy as defaults,
pursuing enterprise cybersecurity initiatives and incorporating the advice of
cybersecurity experts. Partner solutions
such as software or cloud services, should
be thoroughly vetted against stringent
guidelines and satisfactory compliance
through regular checks. Consumer education is a must as well, to convey product
security knowledge, best cybersecurity
practices and other connected safeguards.
CTA and other organizations can also
lead on industry initiatives around education, training, standards and guidance
on government policy.
As the marketplace of smart home
technologies continues to expand into
a mosaic of independent and interdependent systems, the footprint of
connected devices within the home will
grow. CTA forecasts shipments of smart
home devices, including cameras, locks,
lighting controls and thermostats will
grow 29 percent this year to 9.5 million
units. However, the scope of cyber threats
will also grow. To learn more about the
Cybersecurity and the Connected Home
research, download the study from the
CTA member site.
n
SEPTEMBER/OCTOBER 2016

http://www.CTA.tech http://cta.tech/i3

i3 - September/October 2016

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