Are data privacy or
IT security even important?Trust

State of ScienceTrust

There are many studies, surveys, and scientific papers on this topic. Below is a critical assessment from our perspective.

This work is independent of EUSEC®.

Quotes and titles have been translated from the original language. Original articles are accessible via the provided URLs.

YES!JA!

''BSI survey: IT security is crucial when buying devices''

Source: Hendrik Vatheuer on Heise online. (2024, September 9). BSI survey: IT security is crucial when purchasing devices. Heise online : https://www.heise.de/news/BSI-Umfrage-IT-Sicherheit-beim-Geraetekauf-entscheidend-9862479.html

According to a report on heise.de, the Federal Office for Information Security (BSI) conducted a representative survey of 1,500 consumers in July 2024. The five most important criteria when purchasing so-called „smart devices“ were: user-friendliness (80.4%), IT security (76.5%), regular security updates (74.6%), trust in the manufacturer (72.1%), and good test results (67.3%). Our comment:

 

The article contains no specific information on data protection. However, IT security is a key prerequisite for protecting personal data.

"Over two-thirds of consumers have privacy concerns."
Source: Martin Hensel on STORAGE INSIDER. (2023, January 11). Over two-thirds of consumers have privacy concerns. Storage Insider . https://www.storage-insider.de/ueber-zwei-drittel-der-verbraucher-haben-datenschutzbedenken-a-78ae236ae91b8800006d66129f5d0a71/

According to a report by Storage Insider, the survey included 27,000 participants worldwide, including 2,000 people from Germany. The article addresses consumer privacy concerns.

Our comment:
Due to the high number of participants, we consider the results to be meaningful. However, it remains unclear in which technical context the respondents consider data protection to be particularly relevant. The need for data protection varies depending on the application: It is generally higher for networked security cameras than for gaming apps.

'' The vast majority of internet users in Germany are concerned about their personal data online.''

Source: Greta Schnaack on Bitkom research (January 26, 2024): Data protection: German providers enjoy the greatest trust . bitkom-research.de: https://www.bitkom-research.de/news/datenschutz-deutsche-anbieter-geniessen-das-groesste-vertrauen

Laut bitkom-research.de wurde eine Befragung unter 1.018 Internetnutzern in Deutschland ab 16 Jahren durchgeführt.

Unser Kommentar:
Bitkom ist ein renommierter und vertrauenswürdiger Digitalverband, und die Umfrage ist repräsentativ. Allerdings beschränkt sich die Erhebung auf Personen in Deutschland, sodass keine internationalen Vergleiche möglich sind.

''Almost two-thirds recognize positive effects from data protection laws (61 percent) and do not buy from companies they distrust regarding data protection (66 percent). ''

Source: SECURITY INSIDER (December 20, 2024): Worldwide survey by Cisco: Germans are lazy when it comes to data protection. https://www.security-insider.de/datenschutz-bewusstsein-deutsche-studie-a-656014335f646ad4f1603809d38cd918

According to SECURITY INSIDER, 2,600 people from Germany, France, Italy, Spain, Great Britain, Australia, Brazil, China, India, Japan, Mexico and the USA participated in the Cisco study.

Our comment:
Cisco is an extremely trustworthy provider, and the study’s findings are plausibly consistent with insights from government, academic, and independent sources. However, SECURITY INSIDER concludes that Germans are rather negligent when it comes to data protection – a long-suspected contradiction. According to the study, only 53 percent of Germans use multi-factor authentication, compared to an average of 69 percent in Europe. This suggests that many Germans prefer to rely on a trusted manufacturer rather than actively taking responsibility for their own IT security.

$38.36 willingness to pay for improved security and confidentiality.

Source: Emami-Naeini P., et al. (2023): Are Consumers Willing to Pay for Security and Privacy of IoT Devices? . Online: https://www.usenix.org/system/files/sec23summer_382-emani_naeini-prepub.pdf

In a scientific study conducted by Duke University in collaboration with Carnegie Mellon University, Emami-Naeini investigated the willingness to pay for improved security and privacy. The study included 180 participants and found that they were prepared to pay significant premiums for more secure connected devices.

Our comment:
The study is highly reliable and focused on the small appliance sector in the US. The results could vary in other countries. However, since data privacy enjoys a comparatively high level of awareness in Europe, it is plausible that similar or even higher willingness to pay exists in Germany as well.

Almost all participants would be willing to pay a 10-30% surcharge for improved security and confidentiality.

Source: Emami-Naeini P., et al. (2019): Exploring How Privacy and Security Factor into IoT Device Purchase Behavior . Online: https://www.usenix.org/system/files/sec23summer_382-emani_naeini-prepub.pdf

In a scientific study at Carnegie Mellon University, Emami-Naeini investigated the willingness to pay for improved security and privacy. The study included 24 participants and found that they were prepared to pay premiums of up to 30% for more secure connected devices.

Our comment:
The study is trustworthy and focused on the small appliance sector in the US, albeit with a small sample size. Since it dates back to 2019, it is somewhat dated. Nevertheless, we include it for the sake of completeness, particularly for historical analysis. However, more recent studies by the same researcher confirm that willingness to pay has remained comparably high.

 
Willingness to pay between 62.5% and 14% for better security

Source: M. Blythe J., D. Johnson S. & Manning M. (2020): What is security worth to consumers? Investigating willingness to pay for secure Internet of Things devices . Online: https://crimesciencejournal.biomedcentral.com/articles/10.1186/s40163-019-0110-3

A scientific study by researchers from University College London (UCL) and the Australian National University (ANU) found that willingness to pay for data protection and IT security varies greatly depending on the category of connected devices: 14% for smart TVs, 28% for thermostats, 32% for smartwatches, 40% for security cameras and 62.5% for Wi-Fi routers.

Our comment:
The study is very reliable. The renowned universities UCL and ANU have clearly demonstrated that willingness to pay varies depending on the type of device. It is particularly high for devices whose primary purpose is security-related – such as security cameras or Wi-Fi routers.

'' Data privacy remains a concern: Only 36 percent of consumers are satisfied with the data privacy of connected products. ''

Source: Capgemini (2024, January 9): Connected devices are indispensable for two-thirds of consumers in their daily lives . Online: https://www.capgemini.com/at-de/news/press-releases/vernetzte-geraete-sind-fuer-zwei-drittel-der-verbraucher-im-alltag-unverzichtbar/

According to a study by Capgemini , 10,000 consumers from 13 countries worldwide were surveyed.

Our comment:
The study is highly reliable due to the large number of participants. Particularly noteworthy is that it highlights the existing dilemma: While connected devices are indispensable for two-thirds of consumers in their daily lives, only 36 percent are satisfied with data privacy.

''Connected smart toys can be especially dangerous.''

Source: Consumer Advice Center. (May 24, 2024). Caution with Smart Toys: The Risks of Connected Toys. Accessed February 3, 2025, Online: https://www.verbraucherzentrale.de/wissen/umwelt-haushalt/spielzeug/vorsicht-bei-smart-toys-die-risiken-von-vernetztem-spielzeug-29297

Consumer protection agencies are urging caution when buying „smart toys.“ Many of these toys contain microphones and could potentially be misused for eavesdropping.

Our comment:
This statement from the consumer protection agency underscores the importance of this issue. More and more institutions are addressing the topic of digital security, thereby contributing to raising consumer awareness and sensitivity. Manufacturers who neglect this issue will likely find it more difficult to compete in the market in the future.

''Gutes Testergebnis'' sowie
''Datensicherheit und Datenschutz'' in TOP 4 Kaufkriterien bei Smart-Home-Produkten

Source: Bitkom Research. (September 22, 2023). What is particularly important to you when buying smart home products? [Graph]. In Statista. Accessed February 3, 2025, from https://de.statista.com/statistik/daten/studie/1452265/umfrage/kriterien-beim-kauf-von-smart-home-produkten-2023/

Bitkom Research enjoys a high level of trustworthiness. As in the BSI study 2024 , user-friendliness is the most important purchasing criterion. Furthermore, good test results play a significant role in both studies.

Our comment:
A striking difference emerges regarding the price factor : While it was the second most important criterion in an older Bitkom study , it only ranks sixth in the more recent BSI survey . The reasons for this shift are not entirely clear. However, it seems plausible to us that consumers are increasingly willing to spend more for better security and data protection .

''Bundesnetzagentur ap­pel­liert zu Vor­sicht beim Kauf von smar­ten Pro­duk­ten''

Source: Bitkom Research. (September 22, 2023). What is particularly important to you when buying smart home products? [Graph]. In Statista. Accessed February 3, 2025, from https://de.statista.com/statistik/daten/studie/1452265/umfrage/kriterien-beim-kauf-von-smart-home-produkten-2023/

The Federal Network Agency is urging caution with certain networked devices, including surveillance cameras, smart lights, toys, doorbells, automatic feeders and treat dispensers, smart glasses, and robotic vacuum cleaners. Reports indicate that various spying devices have again been discovered on the market.

Our comment:
We also see risks in other device categories, such as connected kitchen appliances, smart sex toys, voice assistants, apps, and mobile games. This press release makes it clear that even high-ranking authorities are now warning of the dangers and want to raise public awareness. Furthermore, consumer protection agencies are increasingly warning about the risks of smart devices. Manufacturers who neglect security and data protection aspects are likely to face greater difficulties in the market in the future.

Critical appraisal

SummaryZusammenfassung

The findings from scientific, commercial, and independent bodies paint a generally plausible picture: data protection and IT security are of crucial importance. Most consumers are significantly concerned about these issues. However, the results vary depending on the country and context, indicating differing priorities and perceptions. A paradox is nevertheless apparent.

In Germany, it can be deduced that while data protection and IT security are important, trust in the manufacturer plays a central role. This is underscored in the BSI report (2024).

Furthermore, it appears that awareness and willingness to pay vary depending on the product category. A higher willingness to pay can be expected in the area of ​​network equipment, while it seems less relevant for smart TVs.

A willingness to pay between 10% and 30% can be achieved, depending on factors such as country, product category and other contexts.

Another factor influencing the priority given to data protection and IT security is the age of consumers. Younger generations place more value on these issues and are more willing to pay more for them. Older people, on the other hand, often prefer simpler, non-connected devices, which means they don’t have to worry as much about digital security.

Consumer awareness is high and still rising. 

Over the past two years, a clear trend towards increased awareness of data protection and IT security has emerged. Digital quality, particularly in the areas of data protection and IT security, is increasingly becoming a relevant purchasing criterion. Since it is often difficult for customers to recognize the digital quality of a product, it is becoming ever more important to support them in their purchasing decisions. Consumers tend to rely on trusted manufacturers and certifications to ensure their data protection needs are met. Although consumers depend on connected devices, many are dissatisfied with data privacy, highlighting a dilemma. In this context, there is certainly also a group of consumers who consciously choose not to purchase connected products.