a better time in history to be in the security business. Security ... on the lookout for larger systems that can be impl
THE ISC WEST ISSUE March 2018
SECURITY MARKET INDEX www.securityindustry.org Table of Contents SIA Security Market Index
1
Security Video
5
Security Systems Integration
6
Mass Notification
6
Bonus: Automation & Robotics – The Future of Security?
7
The Security Industry Association (SIA) The Security Industry Association (SIA) is the leading trade association in the electronic physical security industry, with more than 800 corporate and organizational members. SIA protects and advances its members’ interests by: • Advocating for pro-industry policies and legislation on Capitol Hill and throughout the 50 states • Producing leading-edge global market research • Creating open industry standards that enable integration • Advancing industry professionalism through education and training • Opening global market opportunities For more information about this publication or SIA’s other research and technology programs, products and services, contact Ron Hawkins, SIA’s director of industry relations, at (301) 804-4713 or
[email protected]. For information on SIA membership call us at (301) 804-4700 or visit our website at www.securityindustry.org. Security Industry Association 8405 Colesville Road, Ste. 500 Silver Spring, MD 20910 Tel: (301) 804-4700 Fax: (301) 804-4701 www.securityindustry.org © Copyright 2018. ALL RIGHTS RESERVED
A Bimonthly Measure from the Security Industry Association
Security Industry Optimistic, Poised for Upturn
T
he security industry started 2018 on a positive note, and it’s getting more bullish as the year progresses. Ninetyfive percent of security industry professionals polled in the SIA Security Market Index (SMI) survey in early February 2018 say that current business conditions are positive, with 42% saying they are “excellent.” This marks a slight uptick from December, when 91% of respondents considered current conditions to be either “excellent” or “good.” Overall, security industry professionals expressed optimism about the current state of the industry, and many predicted even more improved conditions over the next quarter. Sixty-three percent of survey respondents expect business conditions to be at least “a little better” in three months, and 32% expect conditions to be “much better.” One integrator noted: “There has never been a better time in history to be in the security business. Security is changing to be a critical element to the business enterprise strategy.” A security products manufacturer added: “We have had several consecutive quarters of growth,
and expect the trend to continue.” Overall, confidence in the security industry is on the rise, with the Security Market Index climbing from 68.5 in December 2017 to 72 in March 2018. This also marks a small uptick from a year ago – the February 2017 SMI was 71.2. The improvement is primarily due to increased gains in the number of new orders, new product introductions and capital equipment spending. Any Index higher than 50 indicates that security industry professionals are largely confident in their business prospects. This month’s Index marks a rebound from a slight dip in confidence in December. The Security Market Index measures the current status and future expectations of security industry executives through a select survey of SIA members. The Index’s goal is to provide a macro-view of confidence levels in the security industry while closely examining nine specific business measures: • Number of employees or hours worked • Marketing spending • Product production or service output • Capital equipment spending
SIA Security Market Index, March 2018
68.5 DECEMBER 2017
72 MARCH 2018
Overall, the Index survey measures general business conditions but also gauges nine elements to reach one Index number that signals security industry executives’ confidence. The elements are: • Number of Employees or Hours Worked • Marketing Spending • Product Production/Service Output • Capital Equipment Spending • Product Inventories/Service Backlogs • R&D Spending • New Product/New Service Introductions • Product/Service Sales • New Orders/New Contracts
Source: SIA Security Market Index, March 2018
1
SIA Security Market Index, March 2018 Source: SIA Security Market Index, March 2018
100 80 60
March 2018
December 2017
October 2017
June 2017
August 2017
April 2017
February 2017
December 2016
July 2016
October 2016
April 2016
February 2016
December 2015
August 2015
October 2015
June 2015
April 2015
February 2015
November 2014
July 2014
September 2014
April 2014
January 2014
October 2013
July 2013
April 2013
January 2013
October 2012
July 2012
April 2012
January 2012
July 2011
October 2011
April 2011
January 2011
July 2010
October 2010
April 2010
January 2010
40
Security industry professionals experienced a small climb in overall confidence in the first few months of 2018, with the majority reporting increases in new orders, new product or service sales, and new product introductions. Other factors, such as the number of employees or hours worked, remained steady compared to December 2017.
• Product inventories or service backlogs • R&D spending • New product or service introductions • Product or service sales • New orders or contracts The majority of these factors showed improvement in the first few months of 2018. Capital equipment spending saw improvement, from 42% of survey respondents seeing increased spending in December to 56% by February. Product inventory also saw a small uptick, from 39% in December to 41% in early 2018. One factor driving this improvement is the shorter turnaround time demanded
by end users for new projects. One manufacturer noted that “we continue to invest in infrastructure to enhance our integrators’ ability to quickly quote and sell product.” Another added that more new customers are looking for solutions rather than existing customers, and they are often on the lookout for larger systems that can be implemented quickly. “We’re starting to see larger projects, as well as higher camera counts within those projects,” said one SMI participant. “Budget seems to be there, and customers seem very focused, not ‘shopping around.’” Customers are also requesting projects that
Overall Rating of Current Business Conditions of Company Excellent
Good
Average
Fair
March 2018
42%
53%
5%
0%
December 2017
44%
47%
9%
0%
October 2017
46%
46%
8%
0%
August 2017
45.8%
39.6%
8.3%
6.3%
38%
58%
4%
0%
June 2017 April 2017
36%
41%
18%
5%
February 2017
47.4%
42.1%
10.5%
0%
December 2016
43%
42%
0%
15%
October 2016
50%
33%
0%
17%
July 2016
18%
61%
9%
12%
April 2016
25%
55%
7%
13%
February 2016
20%
60%
8%
12%
Source: SIA Security Market Index, March 2018
Current business conditions are largely positive in early 2018, with the vast majority of security professionals surveyed in February 2018 considering conditions to be either “excellent” or “good,” in a slight improvement over December conditions, where 9% of respondents considered conditions merely “average.”
2
need to be tailored to their specific needs. Seventy-eight percent of security industry leaders say they are increasing their R&D spending in early 2018, compared to 65% in December 2017. One consultant noted that they have several new projects in the works that require R&D to succeed, and a manufacturer noted that “the market is at the leading edge of major transformation, and to maintain our leadership, we need to continue to create solutions for the market as it will be, not as it is.” This notes a potential shift in end users’ risk appetites when it comes to cutting edge solutions, and early adopters may be driving faster innovation within the industry. See the bonus section on page 7 on trends and technology that will be affecting the security industry in the next five years. End users are also driving an increased focus on cybersecurity within physical security systems. According to one SMI respondent: “Enterprises continue to realize their physical security infrastructure is a cyber risk, and they continue to put their foot down with vendors shipping shoddy gear. That’s good for the vendors with a clue.” Moving toward ISC West in April, security industry professionals are also ramping up their product introductions – 82% say they are increasing product or service introductions, compared to 68% in December 2017 and 76% a year ago in February 2017. Some areas showed either slight decreases or leveled growth in the first quarter. While the percentage of security industry professionals reporting increases in the number of new orders rose from 88% in December to
Expected Business Conditions for Company in Next Three Months MARCH 2018
■ ■ ■ ■ ■
Much Better A Little Better No Change A Little Worse Much Worse
DECEMBER 2017
32% 66% 5% 0% 0%
■ ■ ■ ■ ■
Much Better A Little Better No Change A Little Worse Much Worse
OCTOBER 2017
26% 60% 14% 0% 0%
■ ■ ■ ■ ■
Much Better A Little Better No Change A Little Worse Much Worse
AUGUST 2017
36% 56% 8% 0% 0%
■ ■ ■ ■ ■
Much Better A Little Better No Change A Little Worse Much Worse
27% 56% 17% 0% 0%
Source: SIA Security Market Index, March 2018
Over the next three months, security industry professionals largely expect positive change, with 95% expecting conditions to improve.
95% in early 2018, the rate of product or service sales increases slowed from 92% in December to 89%. One respondent noted that “We’re seeing a larger portion of our business come from new, rather than existing, customers.” Seventy-six percent of SMI survey respondents for the March SMI said they were increasing their product production, compared to nearly 80% in December. The number of employees or hours worked leveled off as well, with 74% of respondents reporting increases in early 2018, compared to 72% in December 2017. Marketing spending showed a downturn also, with 56% of respondents reporting an increase in marketing spend (58% in December 2017), and 39% reporting that marketing spending is remaining steady. Five percent reported a decrease in marketing budgets. One manufacturer noted that they are “hyper-focused on outbound spending”
and will continue to “keep doing things that are working” in the face of increased demand. Another SMI participant noted that they are shifting how they communicate, and calculating what a good marketing investment is based on cost per lead generated. The Security Market Index also asks respondents to predict their levels of aggregate spending on capital equipment and plant over the next 12 months. When surveyed in February 2018, 58% of respondents noted that they were expecting to increase their levels of spending, and 37% expect the same rate of investment over the next year. Five percent expect a decrease in spending levels. These rates remain consistent with expectations in December 2017, when 59% expected increased spending, and 35% expected spending to remain level.
To provide a broader view of current business conditions, the Security Market Index also cross-checks against other surveys and reports from a select list of sources that generally match the time range and themes of the Index: • The Conference Board Consumer Confidence Index ▲ • The National Association of Realtors Home Prices ▲ • The Conference Board Measure of CEO Confidence ▲ • Chief Executive’s CEO Confidence Index ▲ The Conference Board’s Consumer Confidence Index increased to 125.4 in January 2018 from 123.1 in December, with marked improvement in consumers’ optimism about the short-term outlook. The percentage of consumers anticipating business conditions to improve over the next six months increased slightly, from 21.6% to 22%, and those expecting conditions to
Percent of Respondents Saying They Will Increase Activity or Dollars in:
March 2018
December 2017
October 2017
August 2017
New Orders
95% Increase
88% Increase
88% Increase
80% Increase
Product/Service Sales
89% Increase
92% Increase
80% Increase
81% Increase
New Product Intro
82% Increase
68% Increase
64% Increase
71% Increase
Employees/Hours
74% Increase
72% Increase
81% Increase
73% Increase
Capital Equip Spend
56% Increase
42% Increase
54% Increase
48% Increase
Source: SIA Security Market Index, March 2018
New orders saw a jump in early 2018 with 95% of survey respondents reporting increases, compared to 88% in December. The rate of increase in product/service sales improved slightly, and new product introductions leapt forward, with 82% reporting increased introductions, the highest rate in the past year.
3
Change Forecast in Number of Employees One Year from Now ■ Up less than 10% – 48.41%
JANUARY 2018
■ Up 10 to 19.9% – 11.9% ■ Up over 20% – 4.37% ■ Down over 10% – 0.80% ■ Down less than 10% – 4.37% ■ No Change – 30.16%
30.16% 48.41%
4.37% 0.80% 4.37%
11.9%
Seven out of 10 CEOs surveyed in Chief Executive’s January 2018 CEO Confidence Index intend to increase the size of their workforce in 2018. The majority of executives surveyed expect both profits and revenues to climb in the coming year. Data courtesy of Chief Executive magazine
worsen increased from 9% to 9.8%. According to Lynn Franco, Director of Economic Indicators at The Conference Board: “Consumers’ assessment of current conditions decreased slightly, but remains at historically strong levels. Expectations improved, though consumers were somewhat ambivalent about their income prospects over the coming months, perhaps the result of some uncertainty regarding the impact of the tax plan. Overall, however, consumers remain quite confident that the solid pace of growth seen in late 2017 will continue into 2018.” Consumers’ outlook on the job market also improved. The proportion expecting more jobs in the months ahead remained unchanged at 19%, but those anticipating fewer jobs declined from 15.9% to 11.8%. Regarding housing sales, a trend of strong demand and weak supply is taking its toll on the real estate industry. According to the
National Association of Realtors, existinghome sales (including single-family homes, townhomes, condominiums and co-ops) sank 3.2% in January 2018 to a seasonally adjusted annual rate of 5.38 million. After December’s decline, sales are 4.8% below January 2017 and at their slowest pace since September 2017. The median existing-home price for all housing types in January hit $240,500, up 5.8% over January 2017 and marking the 71st straight month of year-over-year gains. Total housing inventory at the end of January rose 4.1% to 1.52 million existing homes available, but it’s 9.5% lower than a year ago. “The underproduction of single-family homes over the last decade has played a predominant role in the current inventory crisis that is weighing on affordability,” says Lawrence Yun, NAR chief economist. “However, there’s hope that the tide is finally turning. There was a nice jump in new home
construction in January, and homebuilder confidence is high. These two factors will hopefully lay the foundation for the building industry to meaningfully ramp up production as this year progresses.” CEOs are largely positive at the start of 2018. According to Chief Executive’s January 2018 CEO Confidence Index, more than 250 U.S. CEOs expect overall business conditions to be “very good” within a year, ranking them 7.62 out of 10 – one of the highest confidence ratings on record since the magazine started tracking it in 2000. The most positive rankings came from CEOs of large companies, with several reporting that the corporate tax cut and repatriation of foreign earnings provisions are freeing up funds for capital investments. Looking forward, seven out of 10 CEOs surveyed intend to increase the size of their workforce throughout 2018, as well as capital expenditures. The majority of CEOs surveyed expect revenues and profits to rise. Some CEOs are advising caution, however. One commented that “We have strong momentum going into 2018, but I am concerned that there’s an irrational element driving the success of the stock market and the bubble will burst in a big way within the next six to 18 months.” The Conference Board Measure of CEO Confidence bounced back in the fourth quarter of 2018, now reading 63 instead of Q3’s 59 (any reading higher than 50 points reflects more positive than negative responses). CEOs’ short-term expectations for growth in mature and emerging markets improved in Q4, and they were most optimistic about short-term prospects in the U.S. CEOs surveyed anticipate hiking prices by 2.1%, compared to 1.3% in late 2016. Regarding current economic conditions, 71% of CEOs surveyed by The Conference Board said conditions are better compared to six months ago, and 47% expect economic conditions to improve over the next six months.
THE ISC WEST ISSUE March 2018
SECURITY MARKET INDEX
Behind the SIA Security Market Index The Security Market Index, a bi-monthly survey and report, measures overall industry confidence in addition to specifics by executives’ product and service focus. A select group of top leaders, representing the SIA membership, is surveyed throughout the month of publication via a series of emails with a link to an online and confidential questionnaire. Respondents can add comments to most recurring questions. When comments are referenced in this report, they are not attributed to any specific individuals or member firms. 4
www.securityindustry.org Table of Contents SIA Security Market Index
1
Security Video
5
Security Systems Integration
6
Mass Notification
6
Bonus: Automation & Robotics – The Future of Security?
7
The Security Industry Association (SIA) The Security Industry Association (SIA) is the leading trade association in the electronic physical security industry, with more than 800 corporate and organizational members. SIA protects and advances its members’ interests by: • Advocating for pro-industry policies and legislation on Capitol Hill and throughout the 50 states • Producing leading-edge global market research • Creating open industry standards that enable integration • Advancing industry professionalism through education and training • Opening global market opportunities For more information about this publication or SIA’s other research and technology programs, products and services, contact Ron Hawkins, SIA’s director of industry relations, at (301) 804-4713 or
[email protected]. For information on SIA membership call us at (301) 804-4700 or visit our website at www.securityindustry.org. Security Industry Association 8405 Colesville Road, Ste. 500 Silver Spring, MD 20910 Tel: (301) 804-4700 Fax: (301) 804-4701 www.securityindustry.org © Copyright 2018. ALL RIGHTS RESERVED
A Bimonthly Measure from the Security Industry Association
Security Industry Optimistic, Poised for Upturn
T
he security industry started 2018 on a positive note, and it’s getting more bullish as the year progresses. Ninetyfive percent of security industry professionals polled in the SIA Security Market Index (SMI) survey in early February 2018 say that current business conditions are positive, with 42% saying they are “excellent.” This marks a slight uptick from December, when 91% of respondents considered current conditions to be either “excellent” or “good.” Overall, the security industry professionals expressed optimism about the current state of the industry, and several predicted even more improved conditions over the next quarter. Sixty-three percent of survey respondents expect business conditions to be at least “a little better” in three months, and 32% expect conditions to be “much better.” One integrator noted: “There has never been a better time in history to be in the security business. Security is changing to be a critical element to the business enterprise strategy.” A security products manufacturer added: “We have had several consecutive quarters of growth,
and expect the trend to continue.” Overall, confidence in the security industry is on the rise, with the Security Market Index climbing from 68.5 in December 2017 to 72 in March 2018. This also marks a small uptick from a year ago – the February 2017 SMI was 71.2. The improvement is primarily due to increased gains in the number of new orders, new product introductions and capital equipment spending. Any Index higher than 50 indicates that security industry professionals are largely confident in their business prospects. This month’s Index marks a rebound from a slight dip in confidence in December. The Security Market Index measures the current status and future expectations of security industry executives through a select survey of SIA members. The Index’s goal is to provide a macro-view of confidence levels in the security industry every two months while closely examining nine specific business measures: • Number of employees or hours worked • Marketing spending • Product production or service output • Capital equipment spending
SIA Security Market Index, March 2018
68.5 DECEMBER 2017
72 MARCH 2018
Overall, the Index survey measures general business conditions but also gauges nine elements to reach one Index number that signals security industry executives’ confidence. The elements are: • Number of Employees or Hours Worked • Marketing Spending • Product Production/Service Output • Capital Equipment Spending • Product Inventories/Service Backlogs • R&D Spending • New Product/New Service Introductions • Product/Service Sales • New Orders/New Contracts
Source: SIA Security Market Index, March 2018
1
SECURITY VIDEO
Confidence Surges for Video Surveillance Market
E
ighty-six percent of video surveillance professionals consider current business conditions to be either “excellent” or “good” in early 2018, with the majority increasing the number of employees or hours worked (86%), product production (86%), capital equipment investments (71%) and research and development (86%). Compared to the overall As larger projects with Security Market Index for higher camera counts March 2018, the surveillance and faster turnaround market is doing very well, times come in, with a segment-specific Index video surveillance of 82, compared to the 72 overall Index. professionals are Surveillance respondents increasing their noted that they are seeing product inventories. much larger projects come in, with higher camera counts but faster turnaround times, which is driving 57% of surveillance professionals to increase their product inventories. All of the surveillance segment professionals surveyed in February say they are seeing increases in sales and new orders. Over the next three months, 43% of surveillance professionals expect business conditions to be “much better,” and a further 57% expect conditions to be at least “a little better.” Surveillance manufacturers and solution providers are largely confident with current business conditions, and many report increases in product production and R&D spending. Over the next three months, all surveillance professionals surveyed for the March Security Market Index believe business conditions will be at least “a little better.”
INDEX COMPARISON Security Market Index, Video Surveillance Segment:
82 Security Market Index, Overall:
72 EXPECTED BUSINESS CONDITIONS OVER THE NEXT THREE MONTHS
MARCH 2018 - SMI Overall: Much Better:
32%
A Little Better:
63%
Video Surveillance Segment: Much Better:
43%
A Little Better:
57% DECEMBER 2017 - SMI Overall: Much Better:
26%
A Little Better:
60%
Video Surveillance Segment: Much Better:
33%
A Little Better:
50%
Source: SIA Security Market Index, March 2018
5
SECURITY SYSTEMS INTEGRATION
Sales and New Orders on the Rise for Integrators
N
early all security integrators surveyed for the March 2018 Security Market Index are seeing increases in the number of new orders coming in, and 80% are seeing increased sales. One integrator declared that “there has never been a better time in history to be in the security business.” Compared to the overall Security Market Index results, security integrators are seeing above-average increases in the number of employees or hours worked, R&D spending, product or service production, and new orders. They are slightly below average when it comes to increases in
marketing spending, capital equipment investments, product inventory and product or service introductions. Looking ahead, 60% of integrators surveyed are planning to increase their investment in equipment or plant over the
INDEX COMPARISON Security Systems Integrators Segment: 71 SMI Overall: 72 Confidence in Current Business Conditions SMI Overall Excellent: 42% Good: 53% Security Systems Integrator Segment Excellent: 40% Good: 60%
next 12 months, compared to 58% in the SMI overall. Their short-term expectations for business conditions is largely positive; over the next three months, 80% of integrators believe conditions will be either “much better” or “a little better.”
All of the security systems integrators surveyed for the March SIA Security Market Index consider current business conditions to be positive, and the segment’s individual Index is in line with the overall Index, at 71 and 72 respectively. Source: SIA Security Market Index, March 2018
While more government investment might go to surveillance, access control, security doors and perimeter security after a terrorist incident, some governments are adding mass notification to improve communication between first responders and security teams. Cloud-based mass notification is also in a unique position to grow in the U.S., as the Federal Risk and Authorization Management Program (FedRAMP) provides a new standardized approach to security
assessment, authorization and continuous monitoring for cloud products and services. The certification is not mandated, but it will affect how software-as-a-service (SaaS) and cloud vendors work with government agencies, Brooks writes. “Once a company is certified by FedRAMP, additional measures to buy or maintain vendors’ solutions is required,” adds Brooks. “The cost savings will appeal to many government agencies as they look at the total cost to own a system.”
MASS NOTIFICATION
Terrorism, Natural Disasters Push the Mass Notification Industry Forward
M
ass notification made national headlines in January, when an employee mistakenly sent out a full missile-defense alert during a standard emergency warning system test in Hawaii. While this demonstrates the continuing need for improvement to user interfaces and controls, IHS Markit’s Security & Building Technologies analyst Robert Brooks says that the market for mass notification systems is moving forward. According to IHS Markit research, mass notification system software is expected to grow at a compound annual growth rate (CAGR) of 6.8% from 2017 to 2021, reaching $293.1 million in 2021. Higher rates of catastrophic events – from terrorist attacks in Western Europe to natural disasters in the U.S. – are driving interest in this technology. Cloud and software-based solutions open up new channels of communications during emergencies, which means more people could be contacted faster. 6
BONUS
Automation & Robotics – The Future of Security?
A
s the security industry prepares for ISC West, to be held April 10-13, 2018, at the Sands Expo Convention Center in Las Vegas, professionals are considering the impact of a potential disrupter in the industry – robotics. This year’s ISC West will include an Unmanned Security & Safety Expo, focusing on unmanned aerial vehicles (UAVs), unmanned ground robotics and vehicles (UGVs), counter-drone solutions and other software and applications. The past several years have seen the emergence of multiple types of security robots, which can be used for patrols, surveillance and more. However, is the industry ready for them? According to a report from Market Research Future, the security robots industry is currently growing at a CAGR of 8.5%, and it is expected to continue to grow at an exceptional rate.
How Much of an Effect Do You Expect Robotics to Have on the Security Industry in the Next Five Years?
11%
It will revolutionize the industry.
21%
It will have a significant impact.
It will lead to changes in some areas.
16%
52%
It will have little to no impact. Source: SIA Security Market Index, March 2018
7
BONUS Automation & Robotics – The Future of Security? Which Emerging Technology Do You Think Will Have the Most Significant Impact on Security in the Next Five Years?
45% Artificial Intelligence
4%
10% Drones
9% Cybersecurity
0%
32% Other
I Don’t See Any of These Technologies Having Significant Impact in the Next Five Years
Security Robots Source: SIA Security Market Index, March 2018
Various end users have begun using security robots for patrols, including shopping centers, warehouses, and as of May 2018, the Indianapolis Motor Speedway. In this edition of the SIA Security Market Index, we asked security professionals what impact they expect robotics to have on the industry over the next five years. While most agreed that robotics will trigger some changes, it was debatable how much, and when. One survey respondent noted that the first-generation models aren’t ready for center stage in any security department, and another respondent said that future versions could have real potential to disrupt the industry for the better. Robots aren’t the only new technology making waves in the security industry. We asked security professionals to predict which emerging technology will have the most significant impact on the industry within the next five years, and artificial intelligence (AI) won out. Forty-five percent of respondents said AI will have the biggest impact on the security industry moving forward, and given its broad range of applications, it’s easy to see why. AI is being integrated into everything from video surveillance analytics to biometrics to building automation to smart cities and more. One manufacturer respondent noted that “We are going to continue to see the lines between ‘safe’ and ‘smart’ disappear. AI combined with IoT and the use of analytics to derive other information than security 8
data, as well as the movement towards more ‘prevention’ technologies, is what will contribute to the biggest changes we’ll see over the next few years.” Drones were another popular technology when it comes to disrupting the status quo. According to one security consultant, “Previously, space was two-dimensional. UAVs change it to 3D space, just like manned flight did for the transportation industry.” As security professionals have to consider how they will address drone threats, they’re also considering how to make use of drones’ potential benefits in perimeter security and surveillance. With the FAA estimating there will be 420,000 commercial drones in use by 2021, this is a technology that cannot be ignored. The global market for commercial drone applications is projected to be worth $127.3 billion by 2020, according to a PwC report published in May 2016, and security is set to account for $10 billion of that, behind only infrastructure, agriculture and transportation. In a 2017 IFSEC survey, 16% of security professional respondents say they already deploy drones, and 60% either already use drones or could see themselves doing so eventually. One of the benefits of drones is the low cost – at ISC East in New York City, November 2017, former NYPD Commissioner Ray Kelly called drones “the poor man’s helicopter” in his keynote address. The IFSEC survey found that the
top three applications for security drones include: suspect tracking, security guard tour applications, and license plate recognition. There are still plenty of concerns when it comes to drones, according to IT governance association ISACA’s “The Rise of the Drones” white paper, 75% of information security professionals surveyed say privacy and security are their biggest concerns about the business use of drones. Sixty-five percent say most organizations that would benefit from the use of drones are unprepared to address the necessary security and privacy requirements, and 63% do not believe their existing staff has sufficient expertise to evaluate drone security. Only 25% said they think the benefits of drones currently outweigh the risks, but an additional 48% say the benefits may outweigh security and privacy risks in the future, when those concerns have been more thoroughly addressed. Cybersecurity might not be an “emerging” technology these days, but 9% of SMI respondents said it would have the biggest impact on the industry over the next five years, especially where it connects to physical security systems. One survey respondent noted that “enterprises continue to realize their physical security infrastructure is a cyber risk, and they continue to put their foot down with vendors shipping shoddy gear.” End users’ demands for cyber-secure products will likely force investment in this area as savvy vendors use stronger cybersecurity as a competitive advantage.
