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Salt & Pepper Unveils ‘IoT Trust Deficit’ Report Highlighting Consumer Anxiety in Smart Home Market

ByEthan Lin

Oct 8, 2025

Salt & Pepper, a leading European IoT development and strategy firm, announced the core findings of its “IoT Trust Deficit” report, revealing that consumer anxiety over security and usability is the primary constraint on the multi-billion-dollar smart home market. The comprehensive survey of 1,200 consumers across the UK, Germany, the Netherlands, and Denmark found that an overwhelming 81.1% would be more inclined to purchase an IoT device if it featured an official EU cybersecurity certification or “trustmark.”

The report confirms that this widespread anxiety—dubbed the “Trust Deficit”—has a direct financial impact on the industry, with 21.7% of consumers reporting they have been stopped from purchasing a specific IoT device due to security concerns.

Key findings from the survey demonstrate the scale of the problem:

  • Risk Over Reward: More than half (52.5%) of current smart device owners believe the perceived security and privacy risks are equal to or greater than the benefits they receive.
  • Knowledge Gap: Despite high anxiety, 66% of consumers admit they know very little or nothing about existing security regulations like the GDPR or the forthcoming AI Act, underscoring the need for a simplified, recognizable trust mechanism.
  • Usability Concerns: Beyond security, the study highlights critical user experience failures, with 26% of consumers in the Netherlands specifically frustrated by devices from different brands failing to work together.
  • Gender and Privacy Divide: The report also uncovered a significant gender gap in privacy concerns: 45% of women expressed a fear of devices listening or recording without consent, compared to 35% of men.

The report concludes that the key to unlocking the market’s full potential is directly addressing this deficit. The overwhelming demand for a Trustmark, supported by 81.1% of consumers, signals that EU regulation is viewed by the public not as a business hurdle, but as a necessary and consumer-demanded feature for peace of mind.

The full “IoT Trust Deficit” report details market-specific skepticism, generational clashes over AI adoption, and strategic principles for innovators to navigate this fragmented landscape.

About Salt & Pepper

Salt & Pepper is a specialized IoT development and strategy firm dedicated to designing and launching secure, user-centric connected products for the European and global markets. They partner with innovators to transform complex technical requirements into seamless, trustworthy consumer experiences.

Ethan Lin

One of the founding members of DMR, Ethan, expertly juggles his dual roles as the chief editor and the tech guru. Since the inception of the site, he has been the driving force behind its technological advancement while ensuring editorial excellence. When he finally steps away from his trusty laptop, he spend his time on the badminton court polishing his not-so-impressive shuttlecock game.

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