Personal device ecosystem: The lucrative market of hyper-connectivity

IMAGE CREDIT:
Image credit
iStock

Personal device ecosystem: The lucrative market of hyper-connectivity

Personal device ecosystem: The lucrative market of hyper-connectivity

Subheading text
Tech companies race to build their personal device ecosystems to capture an increasing market of always-online users.
    • Author:
    • Author name
      Quantumrun Foresight
    • January 25, 2023

    Since the 2010s, numerous industries have adapted their operations to integrate their assets with the Internet of Things (IoT). This digital networking paradigm connects physical devices with sensors that digitally communicate with software and platform technologies in ways that generate numerous benefits, including infinite automation applications, cost-reduction, labor efficiencies, customized services and more. Meanwhile, in the consumer market, IoT technology has driven tech companies to become the next ultimate personal or multi-device ecosystem.



    Personal device ecosystem context



    According to the news website Insider, it’s estimated that there will be 64 billion IoT devices by 2025. It has become common for a household or an individual to own at least three different devices. A personal or multi-device ecosystem is a system that runs on many types of gadgets with varied capabilities and operating systems (OS), such as Android, Mac, and Windows. Employees want to use their own devices to get the job done, whether company-owned or employee-owned (BYOD, bring your own device). In addition, enterprise mobility has allowed for the use of devices specifically for different industries, including smartphones, wearables, tablets, laptops, head-mounted, and machines that can be attached to vehicles. 



    Because of the rapid developments in IoT devices and infrastructures, consumers have come to expect to be always online and to be able to manage a suite of devices. Smart homes have become the poster child of this trend, where people can manage and monitor their appliances and gadgets from their smartphones. Even better, some of these devices can be automated to self-manage. Lights automatically turn on and can be programmed to turn off again as needed, reducing overall energy consumption. A smart fridge can send notifications on what food needs to be bought or is about to run out. However, by connecting constantly to the Internet, users have more exposure to potential data tampering and privacy threats. Thus, cybersecurity and privacy are critical factors in determining whether a personal device ecosystem will succeed or fail.



    Disruptive impact



    Because of the expanding market of personal device ecosystems, many tech companies are creating optimized devices to work well together. A prime example is the Apple ecosystem comprising of Apple Watch (smartwatch), Macbook (laptop), iPhone (smartphone), AirPods (Bluetooth earphones), and iPad (tablet). Users can seamlessly interconnect these devices for an intuitive productivity workflow. For example, iPhones can be connected to Macbooks for seamless file transfers. In addition, users can check their iMessage directly from their Macbooks. Thus, when someone buys any Apple device, they’re not just buying a gadget, they are entering an entire ecosystem that can result in lifelong and continuous brand consumption.



    The Apple business model and ecosystem’s success has resulted in other companies emulating this model and trying to gain market share, including Xiaomi and Samsung. In particular, Google is heavily investing in transitioning to promoting itself as a digital ecosystem instead of just supporting the Android OS. Previously, the tech firm was interested in highlighting Android as the common denominator among many devices, particularly smartphones. However, the company is now pushing its gadgets to users, particularly the Chromebook and the Pixel smartphone. In addition, the company launched the Made for Google certification program in 2017, which verifies if a third-party accessory is compatible with the Google ecosystem. In addition, the Google gadget store now offers only company-made devices. The store previously carried other brands, including Samsung and Huawei.



    Implications of personal device ecosystems



    Wider implications of the personal device ecosystems may include: 




    • Tech companies and brands investing in their own app stores and accessory manufacturing hubs, leading to more employment in this industry.

    • Fewer open-source platforms as brands encourage users to stick to their respective systems.

    • Firms focusing on creating an ultimate suite of smart home devices as this market continues to grow.

    • Increased risks of hacking as personal devices become more interconnected. This development can lead to more data theft and smart home takeovers.

    • The increasing use of biometric authentication, such as voiceprints and faceprints, to enhance device security. However, these biometric data can also be hacked or cloned.



    Questions to comment on




    • If you have a personal device ecosystem, what do you like most about it?

    • What are the other potential dangers of interconnected devices?


    Insight references

    The following popular and institutional links were referenced for this insight: