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June 5, 2023


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84% of leading CSOs expect 2023 physical security budget to match or exceed 2022, Omdia reveals

New research from Omdia has found that 84% of leading Chief Security Officers (CSOs) have the same or higher physical security budget in 2023 compared with the equivalent budget in 2022. Author of the report and Principal Consultant at Omdia, Niall Jenkins, provides further insight.

44% of the CSOs surveyed stated that their budget is higher in 2023 and 40% stated that their budget will remain the same. Only 17% of respondents stated that their physical security budget will be lower this year. Note, percentages are rounded to nearest whole number so do not always add to 100%.

The research comes from a Chief Security Officer Insights report, where Omdia partnered with the International Security Management Association (ISMA) to gain unique insight from 163 currently practising CSOs.

98% of those who responded to the survey represent companies with revenues over $1billion (USD) and have responsibility for their organisation’s physical security across global operations.

Budget increases a positive story for the physical security industry

The increase in 2023 budgets is a positive story for the physical security industry in the short-term. The trend is even more optimistic when looking at larger revenue companies.

90% of CSOs working for companies with a turnover of over $20 billion (USD) stated that their budgets would increase or remain the same. This is an increase of 6% compared with all respondents surveyed.

Security equipment vendors and systems integrators in the enterprise market can also feel confident in the medium-term outlook. Of the CSOs surveyed, 14% stated that they expect their video surveillance budgets to increase by more than 20% over the next three years.


Image credit: Arthon Meekodong/AlamyStock

A similar trend was identified in the physical access control market with half of all CSOs anticipating an overall increase in budget over the same period.

The only solution type where a significant percentage of CSOs expect a decrease in security budget is in manned guarding. Changes in security footprint, both people and buildings, is the primary driver of this budget shift.

Budgets are being re-focused on new solutions

The security industry has several important market drivers that impact budget allocation decisions. These include new technology availability, pricing changes, updated risk assessments, new threats, changes in the operational footprint, and normal replacement cycles.

Change in an organisation’s overall security footprint is having a material impact on the manned guarding industry. Fewer locations, or people on site, require less manned guarding resource to protect them.

Omdia-CSO84-Graphic-23In new physical security solutions, including drones, budget changes are predominantly being driven by the emergence of technology.

Only a small percentage of CSOs stated that normal replacement cycles were relevant.

For more entrenched solutions, such as video surveillance and physical access control, the reasons impacting a change in budget are more varied. Normal replacement cycles have slightly more impact on the access control market while new threats and risk assessments will impact any change in the video surveillance budget comparatively more regularly.

However, a range of market drivers are important for both solutions.

For perimeter security solutions, 40% of CSOs surveyed stated that budget is directly impacted by an update in their threat or risk assessment.

Understanding the drivers of budget change is important to assess the longer-term opportunities and risks for security solutions as they navigate the changing requirements and demands of CSOs.

About the research, Omdia and ISMA

The research presented is part of an Omdia report titled Chief Security Officer (CSO) Insights. The first chapter of the report covering Physical Security Budgets is available to download for free from the Omdia hub, here.

Or download the full Chief Security Officer Insights report, here.

Part of Informa, Omdia formed out of legacy research brands Ovum, IHS Markit Technology, Tractica and Heavy Reading in early 2020. Bringing decades of industry experience, world-class research and consultancy, and actionable insights in over 200 markets, Omdia helps reveal risk, identify opportunities and reimagine possibilities. Its coverage includes AI, cyber security, physical security and critical communications, smart building and energy infrastructure, and more.

ISMA is a global not-for-profit organization that brings together senior security executives to share knowledge, best practices, and experiences in the field of corporate security management. All major industries are represented in the ISMA membership, including 25+ companies in the FTSE 100, DAX, and CAC40, together with more than half of the Fortune 100 and 25% of the Fortune 500.

Note, percentages are rounded to nearest whole number so do not always add to 100%.

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