Omdia has found that 84% of the International Security Management Association (ISMA) members stated that their 2023 physical security budget will be the same or higher than their 2022 budget. This percentage increased to 90% when only Chief Security Officers (CSOs) working for companies with a turnover of over $20 billion (USD) were included. The findings are part of an Omdia research report titled “Chief Security Officer (CSO) Insights”.
Niall Jenkins, a principal consultant at Omdia, commented that the general increase in 2023 budgets is a positive story for the physical security industry. He opined that security equipment vendors and systems integrators in the enterprise market can feel confident in the medium-term outlook.
"14% of leading CSOs stated they expect their video surveillance budget to increase by more than 20% over the next three years. Physical access control budgets are expected to increase at a slightly lower rate over this time frame.”Niall Jenkins
The report also explored the main reasons driving budget change across different physical security solutions. Budget changes for drones, and other new security solutions, were predominantly driven by the emergence of new technology, while 40% of CSOs stated that perimeter security budget is directly impacted by an update in their threat or risk assessment.
Normal replacement cycles, pricing, and changes in the security footprint remain important drivers of security budget change for CSOs.