Tech Trends 2015

TECH TRENDS
2015

72

Technology

INTRODUCTION

CONTENT OVERVIEW

As we hit the half-way point this decade, we seem to be in

a time of transition brought about by technological advances.
The ten short articles in this edition of Tech Trends reflect that.

Where will the growth come from?

With more aspects of our lives becoming connected, consumers

are leaving data trails that provide valuable insight for product
and business development. In this dynamic environment, how
might the connected car, the smart home, wearables, augmented
reality and the Internet of Things change our lives?

Devices on a continuum

An insatiable appetite for video

As consumers become more tech savvy, we predict theyll

increasingly rely on technology to support and manage their
lifestyles. Security and privacy will become much bigger
issues particularly as cashless payment goes mainstream.
This isnt a time to sit on the fence. It is a time to use research
and analysis to generate truly, innovative products and solutions
that appeal to todays connected consumer. These articles will
provide the insight and inspiration to continue navigating this
evolving landscape.

10

Wearable technology

12

The cashless society

14

Connected cars

16

Smart home, smart city

18

The data divide

20

Security

22

Augmented reality

Tech Trends 2015 | 3

Where will the growth come from?

Technology

WHERE WILL THE

GROWTH COME FROM?
The technology sector will increasingly look to developing markets
for growth. With device ownership near saturation point in some
developed markets, vendors will need to offer more innovative
solutions to maintain and grow market share.
Statistics paint a picture of increasing
disparity between developed and
developing markets, but to see where
future expansion of the tech market will
originate, we need to look beyond the
market size to growth rates.

In 2015, volume and

price combined will deliver
technology device growth
in India of US$5bn.
From this perspective, although China
(with sales in 2015 estimated at
US$200.8bn) should still be high on any
tech brands hit list, other markets in Asia
and Africa cant be ignored. Indias large,
young population offers huge potential
to tech device manufacturers and data
providers. At the moment comparable
sales of US$34.8bn are much lower than
Chinas, but the markets growth rates
are far higher. In 2015, volume and price
combined will deliver technology device
growth in India of US$5bn. The primary
driver of this increase is smartphone
sales at 16%.
Other developing markets are showing
great promise for future sales too:
Pakistan at 15%, Nigeria and Bangladesh
both at 13%, and Vietnam at 11% are

4 | Tech Trends 2015

all set for impressive performance in

2015. In fact, the ten markets listed
below will together deliver sales of
US$10bn, with the worldwide market
staying flat at US$1trillion unchanged
since 2011. These emerging markets
including those in BRIC and MINT have
replaced developed countries such as
the US, Japan, the UK and Germany
as the engines of growth. With US
households now having an average of
four connected devices, manufacturers
in developed markets are concentrating
on cross-selling to consumers hungry for
even more devices for their homes and,
increasingly, to manage their lifestyle.
Our forecasts for January 2015 based on
point-of-sale data from up to December
2014 (not including the US):
1. Pakistan
2. India
3. Vietnam
4. Nigeria
5. Egypt

80%
By 2019 more
than 80%
of all mobile
subscriptions
will be for
mobile
broadband

Key stats at-a-glance:

Mobile subscriptions are expected
to reach 9.2bn by Q4 2019, up from
6.8bn in Q1 2014.
Growth in Asia will be driven by new
subscribers. Five countries India,
China, Indonesia, Thailand and
Bangladesh accounted for more than
50% of all new mobile subscriptions in
Q1 2014.
In mature markets growth is driven by
increasing the number of connected
devices per household.
Ericsson estimates that by 2019 more
than 80% of all mobile subscriptions
will be for mobile broadband.
Data use is predicted to grow ten-fold
between 2013 and 2019.

Our analyst, Kevin Walsh, says:

While there remain significant
opportunities for growth in emerging
markets, technology brands need to
think about their strategies to ensure
they have the right approach for
saturated, developed markets. More
flexible and innovative offerings will
need to be delivered, and demonstrate
how they can fit in the increasingly
connected and complex lives of
consumers. We are already seeing
evidence of this as operators allow
shared connectivity in and out of the
home across both fixed and mobile
devices for an entire household.

6. Iraq
7. Indonesia
8. Thailand
9. Kenya
10.

Saudi Arabia

Source: G
 fKs trends and forecasting data
Ericsson mobility report

Tech Trends 2015 | 5

Devices on a continuum

Technology

DEVICES ON A CONTINUUM
As screens become omnipresent and consumers expect
to switch seamlessly between them, will there ever be
a dominant operating system?
Connected devices come in a wide
range of screen sizes: from large smart
TVs, to hybrid computers, to maxi/
mini tablets, through to phablets and
smartphones, and most recently micro
screens on wearables. Consequently,
devices no longer fall into neatly
divided traditional fixed versus
mobile categories, or business
versus pleasure. With the ability to
access your own files from any device,
there is now a continuum that ranges
from personal to shared, through
to mobile.
How consumers use their screens is
dictated by size, portability and the
nature of connectivity (i.e. with or
without SIM/WiFi/3G/4G). The desire

Research we undertook for

Facebook found that more
than 60% of online adults
in the UK use at least two
devices every day, and
more than one fifth use
three devices.

to move between those screens

seamlessly viewing the same content
on a wall-mounted screen and then on a
watch face sized screen means having
a single, common operating system
will continue to be the battleground of
2015 and beyond. This becomes even
more essential when we factor in the
connected car, smart home and the
Internet of Things.
Research we undertook for Facebook
found that more than 60% of online
adults in the UK use at least two
devices every day, and more than one
fifth use three devices. Four in ten
sometimes begin an activity on one
device and finish on another. In general,
people move to a larger screen, starting
with a smartphone and progressing to
a tablet (25%) or laptop (60%). Comfort
and convenience are the main drivers
to switch device mid-activity, but
urgency, the time involved, security,
privacy and the level of detail required
are also factors. Switching happens
most often at home in front of the TV,
when all devices are within easy reach
and when access to WiFi means device
connectivity is optimized.

60%
Over half of
online adults
in the UK
use at least
two devices
every day

Our analyst, Arndt Polifke, says:

Meeting consumers desire to connect
their lives seamlessly across all their
devices is a significant challenge. For the
operating systems, delivering both an
open environment that works seamlessly
with the Internet of Things, wearables,
the connected car and home is one
challenge. Another perhaps contradictory
obstacle is ensuring its security. The
winning ecosystems will be those that
either establish a dominant position for
their platform as with iOS and Android
for smartphones or provide common,

open, neutral platforms that enable

different device original equipment
manufacturers (OEMs), operating
systems and content providers to connect
and share across a variety of screens.

Meeting consumers
desire to connect their
lives seamlessly across
all their devices is a
significant challenge.

Source: G
 fK study for Facebook, 2014

6 | Tech Trends 2015

Tech Trends 2015 | 7

An insatiable appetite for video

Technology

AN INSATIABLE
APPETITE FOR VIDEO
Theres a growing appetite for video content across all screens,
both at home and on the go. How should advertisers, media buyers
and content providers maximize the opportunity? Can network
operators meet the increased demand for data?
2014 was the year that binge-watching
became a term we all understood. More
screens and the rise of online media
services combined to identify and meet
an almost insatiable appetite for video
content. So much so that Ericsson
forecasts video content will represent
50% of all global mobile data traffic by
2019. Between now and then it will grow
13 times to reach this size.
Mobile devices are taking an increasing
slice of this growth: 30% of all online
video watched in Q3 2014 was viewed
on smartphones or tablets double the
amount the same time a year ago. With
the introduction of tablets and larger
smartphone variants (phablets) viewing
quality has improved. The way people
consume video content is changing too.
Our Future of TV study highlighted
how the content were watching online
differs by screen size: on smartphones
it is short-form clips like YouTube, on
tablets and laptops its short series and
comedies, and on TV screens it tends to
be longer programs and movies.
Millennials in particular are used to
viewing extended video content on any of
several screens in the home, whether in

isolation or conjunction with each other

84% of Millennials with a mobile phone
dual screen while watching TV. They
are not only viewing video, but creating
and consuming user-generated content,
and conversing via video telephony or
snackable video messaging apps. All of
this is currently available via home/open
WiFi or enhanced mobile networks that
offer increased speed and capacity.

84%

of Millennials with a mobile

phone dual screen while
watching TV.
This desire for video content and
its mobility via smartphones gives
advertisers, content providers and media
buyers more opportunity to engage
with audiences. The industry has long
been familiar with the power of video
advertising. As content providers and
advertisers increasingly prefer to push
their content as video, so it will continue
to create a challenge for mobile operators
to keep up with this demand.

66%
Two thirds of
consumers
watch live
content on TV

Need to know:
Millennials spend more than one
third (34%) of their TV-watching
time online three times more than
everyone else.
With two thirds (66%) of consumers
watching live content on TV, its still
the go-to media for viewing events as
they happen.
Paid-for services and owned content
are most viewed on TV and PC.
PCs and tablets are used most to
access free content.
Mobile is currently least used for
viewing subscription services.

Our analyst, Niko Waesche, says:

Operators need to identify how they can
monetize the proliferation of video as they
are carrying a large part of the costs, but
consumers want all-inclusive data plans.
Digital video-enabled platforms such
as YouTube and Facebook are already
monetizing short-form video on mobiles
powered by advertising, going over the
top of operator networks. Finally, media
networks and studios are looking at ways
into the market. They certainly have
proficiency in video advertising, but might
need to share revenues with mobile ad
networks that have more, and deeper, data.
We may well see an explosion of partnering,
perhaps with operators teaming up with
media groups.

Source: Ooyala

Global Video Index, Q3 2014
 GfKs Future of TV study

GfKs trends and forecasting data
Ericsson mobility report

8 | Tech Trends 2015

Tech Trends 2015 | 9

Wearable technology

Technology

WEARABLE
TECHNOLOGY
Wearables may be the most talked about consumer electronics
sector at the moment, but so far sales have failed to impress.
So where is the tipping point for the wearables market?
Our research provides numerous insights
into consumer mindsets when it comes
to wearable tech. Firstly, there is little
clarity around the benefits. In the very
near future they might be capable of
recording every aspect of our lives and
connecting to our surroundings via the
Internet of Things but so far it is fitness
and activity trackers that people have been
buying and this appears to be because
their functions are easy to understand
and communicate, compared to say a
smartwatch. People dont understand the
need for companion devices, and would
prefer device self-sufficiency. For instance,
56% of people we surveyed said they
would like a smartwatch that operates
independently of a smartphone. Brands are
rightly focusing their efforts on achieving
this tipping point.

aspirational (fashion and UX) connects

with the functional (benefits). Historically,
each phase of device adoption has been
accompanied with a breakthrough in
UX and the look of the device. Our data
tells us that 35% of consumers believe
it is important that tech products look
good. For wearables, with their physical
closeness to the consumer, this is even
more important, making style a second key
tipping point.

Acceleration of demand
will only happen when the
aspirational connects with
the functional.

Sensors look set to be the next big thing

for wearables. Gyroscope, fingerprint,
accelerometer, proximity, ambient light
and heart rate monitors will appear not
just in fitness trackers but smartphones,
wearable glasses, smartwatches, smart
bands, and smart jewelry. Sensors are
particularly appropriate for smart clothing
because they are accurate and hidden
so this could become a tipping point
for wearable tech take-up. Ultimately,
consumers will be looking to have the
benefits of wearable technology within
their clothing of choice, rather than to

User experience (UX) is another barrier.

Wearable devices are currently more likely
to appeal to geeks and the tech-savvy
early adopters who have a higher tolerance
towards the existing, often clunky and
unattractive designs. As with other
consumer electronic products, acceleration
of demand will only happen when the

Of course the technology itself is

important. They may be yet to hit the
mass market, but when smartwatches
become more versatile, well see a growth
in sales. Moving from email notifications,
navigation and music control to making
payments and providing personal ID means
wearables will appeal to more consumers.

40%
In 2014, 40%
of wearable
device sales
in France,
Germany and
the UK were
generated in
the fourth
quarter

acquire new clothing simply because it

comes with wearable technology. In a
survey carried out in 2014, we found 69%
of people in the UK would wear clothes or
jewelry with integrated activity trackers,
with bracelets (33%) and shoes (26%)
the most popular overall. Men were more
interested in connected clothes t-shirts,
shoes and belts, whilst women preferred
jewelry necklaces, bracelets and rings.
Need to know:
Our data shows that 2.9m wearables
were sold in 2014 in Great Britain,
Germany and France. 40% of sales
were generated in the fourth quarter,
coinciding with Christmas purchases.
65% of consumers would buy a
smartwatch from a tech brand,
compared to only 6% who would buy it
from a fashion brand.
The need for wearables to look good isnt
lost on the market leaders: Apple has
hired Burberrys ex-CEO, and Google has
partnered with luxury brand LVMH.

Our analyst, Jan Wassman, says:

While the idea of relevant digital information
accessed at a glance is highly appealing,
early wearable designs have so far failed to
impress consumers. The lack of developers
offering killer apps to evangelize beta
products such as Google Glass not to
mention the lack of effective marketing has
left early buyers unclear how to use their
recently acquired purchases. Many people
have delayed initial smartwatch purchases
until they have seen the much-anticipated
offer from Apple in spring 2015.
It wont be until wearable devices link data
sensed about users with their immediate
surroundings, and deliver timely, relevant
information and offers, that the true benefits
of wearables will be realized. We are on
the cusp of a significant shift in the next
phase of evolution of wearable technology
as strong design meets great UX, creating
opportunities for much wider wearable
applications, but were not there yet. Apple
may hold the key.

Source: GfK trends and forecasting data

GfK point of sales data
GfK Wearables study, 2014
 

10 | Tech Trends 2015

Tech Trends 2015 | 11

The cashless society

Technology

THE CASHLESS SOCIETY

Will it be the technology providers, retailers, mobile manufacturers
or banks that convince consumers to adopt mobile wallet? Or will
consumers confound us and choose to do something completely
different altogether just like theyve done before?
Mobile payment is being adopted
all over the world in different ways,
whether it is via SMS transactional
payments, direct mobile billing,
mobile web payments (WAP), mobile
banking apps or contactless near field
communication (NFC). In developing
countries mobile payment solutions
have been used successfully as a way
of bringing financial services to the
unbanked population, but widespread
consumer adoption has not yet
happened in any market developed
or developing and is by no means
guaranteed. So what role might mobile
payment have as part of a cashless
society of the future?
As with anything new, people need
to understand the benefits before
theyll move to the next big thing. For
payments, this is even more important.
Firstly, consumers in the developed
world have many established ways
of paying for goods and services and
without a clear consumer benefit they
will be slow to adopt new ways to pay, if
they do at all. The UK is one of the most
advanced payment markets globally,
but it took 16 years for the majority of
consumers to use debit cards regularly.

Secondly, the benefits have to be more

compelling than convenience. Integrating
payment with loyalty rewards and discount
vouchers with personalized, contextdriven rewards certainly meets the criteria.
Add technologies that provide 100%
confidence and reassurance that payment
and personal details are secure, and you
have reasons for even the most reluctant
consumer to adopt mobile wallet.

The benefits have to be

more compelling than
the convenience.
The rapidly changing retail landscape will
also be a key influencing factor. In a number
of markets, retailers already offer payment
solutions with integrated banking services
and reward schemes. Providing payment
within a shopping app allows the retailer
to fine-tune offers and rewards, creating
closely targeted, customized products and
experiences. Combined with the potential
rise of proximity payment solutions (checkin and out via the app) and the end of the
traditional checkout part of the physical
retail journey, retailer closed-loop solutions
offer strong competition to broader-based
digital wallets.

1/5
mobile users
has used their
device to make
a payment

Need to know:
Currently only 4% of consumers pay
for day-to-day items like groceries and
fuel using their mobile phone, but more
than 11% of consumers expressed
an interest in this and this figure is
higher still for Millennials.
One in five mobile users has used
their device to make a payment.
Our analyst, Alexander Zeh, says:
Apple Pays entry to the market could
be a genuine game-changer with its
upmarket early adopter base, focus
on customer experience, existing
e-commerce platforms and strong

brand. Apple has overcome the barriers

of handset fragmentation and mobile
operators wanting to facilitate the
transaction. Simultaneously, Samsung
has been developing a response to
Apple Pay with Paypal, maximizing
the security strengths of handsets
fingerprint scanners to authorize
payments. But as banks and payment
providers gear up to launch real-time
solutions within the secure hub of
mobile banking, we still cannot rule
them out of the market. They are
trusted globally by billions of consumers
and businesses for their security and
payment system resilience.

Source: GfK Financial Research Survey

GfK trends and forecasting data

12 | Tech Trends 2015

Tech Trends 2015 | 13

Connected cars

Technology

CONNECTED CARS
Safety, economy and entertainment are the three main benefits
of the connected car. They are the advantages that drivers appear
ready and willing to embrace, but less willing to pay more for.
So which companies will benefit most from the new value chain
the connected car will create?
So far, car manufacturers have tended
to use digital technology to enhance
the in-car entertainment experience,
but more recently attention has moved
to connecting cars to external sources
for safety, telematics and infotainment.
These benefits are easy to communicate,
and data from our multi-country
Connected Car study shows significant
interest in a range of possible new vehicle
concepts, particularly amongst younger
auto/technology engaged consumers.

connectivity between the driver, their

surroundings and road users.

The vehicle is no longer

solely the province of the
automotive manufacturer.

Choosing the right brand partnerships

will be essential to help companies
succeed in unfamiliar territory not
just software and telco brands, but car
marques too. Which operating system
should they go with? With no dominant
player as yet, some auto manufacturers,
for example Hyundai Sonata, have opted
to give their end-users the choice to
connect their smartphones to either
Android Auto or Apples CarPlay. This is
an expensive route and low appetite for
consumers to pay more for the benefits
of the connected car suggests that car
brands will need to make a definitive
choice between Android and Apple in
the near future.

The immediate impact of the connected

car is already being felt in the insurance
and vehicle maintenance markets where
the use of telematics, for example, is
helping to reduce insurance premiums
for some young drivers. Automatic
connected cars with personalized
routing feedback are estimated to
save drivers up to 30% in fuel costs.
Infotainment, including advanced
navigation systems, are also appealing.
All of these features require greater

One major implication of the shift to

connected cars is that the vehicle is no
longer solely the province of the auto
manufacturer. The market is opening
up to a wider range of companies
including technology manufacturers,
digital entertainment companies, mobile
operators, software designers, content
and financial services providers.

34%
More than
one third of
consumers
would consider
pay-as-you-go
cars

Need to know:
Accidents are the main concern globally
(37%), ahead of fuel costs (36%), the
cost of repairs (31%) and traffic (32%).
Costs associated with driving are the
main concern in developed markets
(Germany, UK and US). Safety is the
main concern in developing markets
(Brazil, China and Russia).
Self-driving cars appeal to 66%
of respondents.
44% would consider car sharing/
lift-sharing/ride-sharing/carpooling,
(highest in Brazil 57%, lowest in
Germany 34%).
More than one third (34%) would
consider pay-as-you-go cars
(highest in China 55%, lowest in
Germany/UK 23%).

Our analyst, Frank Haertl, says:

The overall spend on a vehicle is unlikely
to change dramatically, but connectivity
has the potential to completely alter the
automotive value chain. As the demand
to connect their vehicle to personal
preferences and surroundings grows
amongst consumers, so that cost of
connection will create new (relatively
small) revenue streams for mobile
operators and software developers.
More significantly, the connected car will
impact other existing revenue streams
such as the cost of insurance and repairs.
Whether it is the mobile operator,
operating system or car manufacturer,
the key battleground this year will be
over who takes ownership of the most
valuable asset the data.

Source: GfK Connected Car study, 2014

14 | Tech Trends 2015

Tech Trends 2015 | 15

Smart home, smart city

Technology

SMART HOME, SMART CITY

In the future were told that cities, homes and our lives will be
connected and smarter. In reality, how long will it take before
people adapt their homes to make them smart, and will concerns
about personal rights and data privacy hinder the evolution of the
smart city and home?
It seems inevitable that the future home
and city will soon be connected in some
way. However haphazardly at first, our
environment will increasingly be linked to
the Internet of Things from the heating
in our homes, to our cars, to street lighting
and road safety. At the moment, Googleowned Nest seems to be positioned to
maximize the smart home opportunity,
enabling links to other devices such as
Jawbone health trackers, Whirlpool home
appliances and even the DriveStyle app in
Mercedes-Benz cars. But are consumers
ready to invest to connect their homes?
And what will brands do with the resulting
big data they gather?

Governments and municipal

authorities will drive initial
growth of smart homes
and smart cities.
GfK data from a survey in the UK in Q4
2014 shows an overwhelmingly positive
response to the idea of a fully connected
smart home, with more than three quarters
keen on the idea. The sticking point is that
only 35% said they would be willing to pay
to make their homes smart. There are
differences by age and these explain the
problem: around half of those aged 18-34
are prepared to pay (49% of 18-24 yearolds and 52% of the 25-34 age group), but

16 | Tech Trends 2015

that drops sharply to 21% of people 54 and

older. And this is the crucial figure because
achieving the real gains of a smart home
will stem from having a fully integrated
system which demands a significant and
long-term investment. We have observed
a similar response in research carried out in
Germany, where 50% of homes are rented.
This sort of expenditure and commitment
is more likely to be made by the older
generation who own their homes, or using
Plug & Play solutions.
At the moment it seems likely that people
who do want to live in a smart home may
be able to do so by making one initial
investment in a hub and/or platform to
which smart products can be added to over
time. Samsungs Smart Things and Apples
HomeKit are two such examples.
Communicating to home owners the
benefits of an investment in a smarter
home is a similar challenge to that in
the wearable tech sector. The eventual
winners will be those companies that offer
compelling reasons for consumers to spend
their money on connecting their homes,
as well as overcoming any technological
issues. We think take up will be slow and
players need to be realistic. Consumers
will start with smart meters and remote
controls, upgrading and investing when the
benefits and usability become clearer and
not before.

77

52%
Over half of
people within
the 25-34 age
group would
pay to make
their home smart

72

Our analyst, Robert Wucher, says:

Governments and municipal authorities
will drive initial growth of smart homes
and smart cities, drawn by the energy
saving benefits of machine to machine
(M2M) technology to best manage
resources. So not only will consumers
benefit on an individual level from being
connected, but also there will be an
impact on the broader world through
more efficient connected cities. Connected
homes will of course generate real-time
data. Whilst mining it could help solve
basic, previously unsolvable problems, it
will also create new challenges around
personal data control, and possibly even
individual rights. So as we enter a new
world of the smart home and smart city,
everyone in the value chain needs to be
very clear on how to collect, store and use
the resultant big data on behavior.

35%
While UK consumers showed
an overwhelmingly positive
response to the idea of
a fully-connected smart
home, only 35% said they
would be willing to pay to
make their homes smart.

Source: GfK UK smart home survey, 2014

GfK Germany smart home survey, 2014

Tech Trends 2015 | 17

The data divide

Technology

THE DATA DIVIDE

As we look ahead, we see a future where more and more data
is captured and mined for information on individuals from
their purchase behavior to their health, household bills to their
driving style. The question is who owns this data and how might
consumers manage it?
Theres no question that people care
about their privacy. Teenagers tell us they
are already very careful on social media
our global consumer trends data shows
that 48% of 15-19 year olds agree with
the statement it is important to actively
manage my online ID and information.
But they are unclear how their data
might be used in the future, and just like
everyone else, not all are equipped to
navigate privacy.
However, there is a value exchange. In
GfKs Global Young Shopper Survey run
at the end of 2014, consumers aged 1621 put customization high on their list of
expectations for future retail experiences.
47% of 16-21 year olds in the US want
to buy products unique to them, and 42%
want the store to talk to their mobile
phone to tell them about products that
match their needs. Its not just young
shoppers that are willing to trade their
personal information where they see a
direct benefit to them this result was
mirrored across all consumer groups.
Where the benefit is clear, data worries
fade into the background. For instance,
drivers in Western Europe are happy
to have telematics tracking installed
in their vehicles to save money on
their vehicle insurance premiums, and
there are clear indications that health
insurers are investigating a similar

18 | Tech Trends 2015

approach. But brands must be careful

not to go too far as soon as the data
divide is breached, privacy concerns
come into sharp relief. Fitness trackers,
smartwatches and health-related apps
all have access to unprecedented insight
into an individuals behavior and this
will only increase as the Internet of
Things becomes more accepted. Any
ill-advised use of personal data (such
as misplaced ads on social media sites)
or unmet guarantees of information
security will inevitably result in loss of
trust. The nirvana will be a point where
consumers feel the more I give, the
better the service I get back.

47%
In the US, 47%
of 16-21 year
olds want to
buy products
unique to them

encryption services such as Blackphone

that stop unwanted monitoring.
But this wont be a big data utopia
where the information held on
consumers is equal. We believe personal
data management will become an
increasingly polarized area, with
the tech savvy, affluent customers
controlling access to their information,
while others struggle to organize how
their data is used. The key here and
to the future is to give consumers the
information, tools and power to be in
control of their own data.

data is used or exploit their personal

details. Brands that push the boundaries
will quickly fall out of favor. However, a
compelling proposition can encourage
more risky behavior. For example, some
free mobile app downloads will allow the
collection of personal and identifiable
information without the users knowledge.
Consumers are currently vulnerable to
being exploited in situations like this,
making the need for the industry to adopt
best practice critical, before breaches
of personal data security lead to the
enforcement of stricter rules.

Our analyst, Norbert Wirth, says:

Social media has given consumers the
power to name and shame brands that
undermine trust in how their personal

Brands that push the

boundaries will quickly fall
out of favor.

Source: GfKs global young shopper survey, 2014

GfKs trends and forecasting data

Drivers in Western
Europe are happy to
have telematics tracking
installed in their vehicles.
For brands and businesses, privacy
management will become a point of
differentiation, where consumers choose
to deal only with those companies they
trust to treat their information with
respect. As people become more aware
of what they can control, a whole new
sector will blossom: well see an increase
in the use of ad-blocking software as
some consumers react to personalized
ads, of apps tracking apps, and

Tech Trends 2015 | 19

Security

Technology

SECURITY
How will consumers views towards security change in 2015 and
beyond? What does the Internet of Things mean for digital security?
Which companies will benefit in the future?
2014 was blighted by the muchpublicized cyberattack on Sony Pictures
Entertainments infrastructure, and the
Russian hacking gang CyberVor stealing
1.2bn usernames and passwords. With
global media coverage of these issues,
consumers are aware of how vulnerable
corporations are to hacking even the
largest ones, and how exposed they are
to cybercrime.
When maintaining a level of security
online, the challenge is to constantly
stay ahead of cyber criminals evolving
methods. This was a topic of discussion at
the International Consumer Electronics
Show (CES) in 2015, where for the first
time a significant group of 82 exhibitors
focused on security.
The proliferation of smartphones,
third-party apps and cloud services has
created a treasure chest of personal data
and passwords that attract criminals. To
remain appealing and competitive, some
apps have been launched too quickly, with
chinks in their armor. In the rush to release
contactless and mobile payment apps,
some providers may be compromising
security, including sensitive financial data.
Others may even have been developed
by the criminals themselves and contain
Malware. Some have already boasted of
compromising iCloud services.
Easy-to-crack passwords are a big risk.
According to Digital Shadows, 2015 is

20 | Tech Trends 2015

likely to be the first year when passwords

start to be phased out in favor of a number
of multi-factor options. Next year may well
be the first year of multi-factor by default.

Well see an exponential

increase in the attack
surface available for
cyber criminals.
The next big concern is the Internet
of Things. We have already seen one
site accessing personal webcams and
broadcasting the content. Consider the
possibility that connected cars could be
compromised, even whilst in transit, or
that hackers gain entry to homes with
connected entry systems. Jamison Nesbitt,
founder of Cyber Senate, a community of
global cybersecurity businesses, has gone
as far as to say that (the IoT) is the main
cybersecurity risk for 2015. It presents
unique security challenges in terms of
the number of connected devices present
there are millions of hackers out there that
could compromise these interconnected
systems. We have sacrificed security
for efficiency.
The general consensus is that along
with the growing number of devices,
applications and Things, well see an
exponential increase in the attack surface
available for cyber criminals. Security is
going to be a key issue in 2015.

Our analyst, Ranjiv Dale, says:

Cyber security can seem a threat that
doesnt impact people directly, with
financial institutions, companies or
governments often footing the bill when
things go wrong. However, as viruses
have affected users computers in the
past, leading to investment in anti-virus
software, so we also expect a change in
consumer attitudes towards the use of
connected devices in the future. Rather
than using a wide variety of security
solution providers, consumers are likely to
migrate to a handful of trusted companies
to address their security concerns.
Companies that are trusted to develop
secure applications, or proactively protect
consumers from external threats, will be
the main beneficiaries.

1.2bn

2014 was blighted by

the much-publicized
cyberattack on Sony
Pictures Entertainments
infrastructure, and the
Russian hacking gang
CyberVor stealing 1.2bn
usernames and passwords.

Tech Trends 2015 | 21

Augmented reality

Technology

AUGMENTED REALITY
Augmented reality looks ready to add a virtual layer to the physical
world from museum visits to shopping, medical procedures to
education. Indeed there are a myriad of opportunities to inject
virtual objects into physical reality, as well as to harness the data
generated by this virtual layer to meet emerging consumer needs.
Look beyond its gaming applications
and we can see augmented reality (AR)
increasingly becoming more of a fixture
in the future. Retailers are already
leading the way using AR technology
that allows consumers to visualize
virtual objects in their real worlds to
help consumers make up their minds.
Specifically, by replicating their homes
using a camera and screen from a
mobile device, IKEAs augmented reality
app allows people to place items from
the retailers catalogue into their own
living rooms. Online clothing retailer
ASOSs Fashion Finder AR technology
allows shoppers to upload their
photos to try on different styles in a
virtual fitting room. Going one step
further, Swedish start-up Volumental
is aiming to bring your body online,
experimenting with 3D printing and
imaging to create designer clothes
precisely tailored to customers bodies.
In a more general sense, CAD software
and Oculus are increasingly being used
to design store layouts as well as to
mock up prototype products in near
real-time.
Augmented reality takes on a new
meaning with big data. Wearables

22 | Tech Trends 2015

will provide a hands free overlay of

information such as navigation and
notifications. Layering Google Now,
with its predictive search based on
geolocation, browsing activity and
email content, will allow wearables to
provide information such as flight times
and delays when an email containing a
boarding pass is sent to a Gmail account.
With AR available across mobile, tablet,
browser, glass, smartwatch, etc., Googles
ubiquity creates an opportunity to
provide a constantly present layer of
information for those deeply embedded
in its ecosystem. While Google would
seem to have an upper hand and be a
potential leader, the vast number of
connected devices and services that
will provide the ability to gather and
feedback data on our behavior and
preferences. This will happen particularly

in conjunction with the Internet of

Things, where many companies will vie to
combine the physical with the virtual.
Amidst this crystal ball-gazing one thing
is certain: we live in the real world and
want to experience the physical objects
that are part of any augmented reality
experience. Indeed the Skylanders game,
programs and collectible characters are
evidence of this fact. Companies that
will lead the way in augmented reality
development will not only find a way to
enhance the physical experience, but will
also ensure that people stay grounded in
the world around them.
Our analyst, Kevin Taylor, says:
Virtual and real worlds are moving
closer together, enabled by an evergrowing amount of data flowing in both
directions. As more devices come online

and the Internet of Things becomes a

reality, players will have the opportunity
to leverage real-time big data analytics
to provide consumers a more useful and
engaging augmented reality experience.
This is when AR will have a real chance
to reach its potential. Now is the time
for brands to get creative and find ways
to utilize the power of data to create
amazing augmented reality experiences.

With real-time big data

analytics, players will be able
to provide consumers
a more engaging augmented
reality experience.

Retailers are already leading

the way using augmented
reality technology that
allows consumers to
visualize virtual objects in
their real worlds.

Tech Trends 2015 | 23

Questions? Contact us!

TechTrends@gfk.com

About GfK

GfK is the trusted source of relevant market and consumer information that enables its clients to make smarter decisions.
More than 13,000 market research experts combine their passion with GfKs long-standing data science experience. This
allows GfK to deliver vital global insights matched with local market intelligence from more than 100 countries. By using
innovative technologies and data sciences, GfK turns big data into smart data, enabling its clients to improve their competitive
edge and enrich consumers experiences and choices.
www.gfk.com

GfK. Growth from Knowledge

GfK 2015