The State of Physical Security

December 19, 2025

How modernisation, AI and partnerships are setting a new strategic security framework

Physical security is undergoing profound change: with increasing system integration, ever-greater interconnection with IT, data-driven processes and the growing importance of AI, security is becoming a factor in operational efficiency and resilience. Genetec’s report ‘The State of Physical Security 2026’ shows that companies increasingly view physical security not only as protection for people and assets, but as a business function that enhances business value. For the global study, Genetec surveyed 7,368 physical security professionals from companies of various sizes and industries.

Security managers in companies are increasingly recognising how new technologies can improve the protective function and responsiveness of their security systems and are therefore open to investment. In the face of new security threats, they rely on solid technological expertise in the area of physical security. That is why they work closely with the IT department internally and with partners and providers externally. Together, they can master complexity, close gaps, standardise systems and develop more intelligent, resilient protection concepts.

Physical security influences business success

The survey results show a rapid change in the way physical security departments work and add value. They not only provide protection, but also support decision-making processes, operational procedures and organisation-wide collaboration.

Security is thus becoming a strategic control variable. Over 70 per cent of respondents already use integrated or unified systems for video management and access control. The most important reasons for modernising old solutions in the areas of video management and access control are integration with new technologies (60 per cent) and access to new functions (51 per cent). The following systems were most frequently replaced in 2025: cameras (61 per cent), access control (56 per cent), video management systems (40 per cent), readers and cards for access control (36 per cent).

Minimising cyber risks through standardisation

The boundaries between digital and physical threats are becoming increasingly blurred. The survey results suggest that with the increasing interconnectedness of physical security systems, protecting IoT and edge devices is now a key operational requirement.

In light of ever-evolving security threats, demand is growing for unified platforms for physical security, cybersecurity and business intelligence. 37 per cent of the companies surveyed report an increase in physical or digital incidents, with large companies reporting as many as 48 per cent. The most common cyber attacks are phishing (50 per cent), malware (41 per cent), device hacking (40 per cent) and social engineering attacks (36 per cent).

Due to the increasing networking of physical security systems, cooperation with the IT department is not only sensible, but indispensable. Physical security measures must be continuously developed to protect networks, people and property. Unified and integrated systems enable holistic security management and improved decision-making.

AI: Great interest accompanied by uncertainty

According to the report, industry interest in AI has doubled compared to the previous year.

On average, 21 per cent of the companies surveyed use AI/LLM-based functions and 26 per cent use analysis and visualisation tools.

AI can make physical security more efficient by detecting anomalies, predicting incidents and enabling faster, more secure decision-making. However, the technology must be used and managed with care. AI-supported analyses, for example, only offer added value if they are accompanied by responsible data use and clear operational goals. To exploit the potential of AI, networked systems and seamless data exchange are required. According to the report, the main objectives of AI integration are the automatic triggering of events (55 per cent), the complete automation of repetitive tasks (48 per cent), and the automatic filtering and classification of events and the automatic coordination of emergency tasks (46 per cent each).

However, while confidence in AI is growing, uncertainties remain regarding its implementation. Only 29 per cent of end users surveyed said they had no concerns about AI. At the same time, 70 per cent are concerned about the design and implementation of AI systems. Concerns exist in particular regarding the use of data and a lack of understanding of the technology.

Cloud and hybrid models: flexibility instead of dogma

Today’s businesses are primarily focused on managing workloads flexibly. As a result, the adoption of the cloud in the form of hybrid models is gaining momentum. Cloud-based appliances and edge devices are changing the way security is implemented and maintained. These components provide easy connectivity across applications and locations, facilitate scaling and improve agility through automatic software updates, remote diagnostics and fewer service calls. Companies cite automatic updates and easy implementation as the most important reasons for using the cloud, as well as easier maintenance of systems and servers in the network.

Compared to 2024, the use of hybrid cloud for physical security environments has increased by 2 per cent to 45 per cent. 48 per cent still rely on pure on-premises solutions and 7 per cent on pure cloud solutions.

61 per cent of planners expect cloud migration to increase in the next twelve months and 72 per cent expect hybrid models to predominate in the next five years.

Collaboration as a driver of innovation

With increasing complexity, companies need long-term, reliable partners. Today, technology partners not only support projects, but also modernisation programmes, AI implementations and cloud transformations. System integrators and manufacturers are now regarded as trusted partners who can enable meaningful change and protect technology investments in the long term.

Expertise in design and deployment, as well as active commitment to responsible innovation, are particularly in demand. 73 per cent of companies state that the future viability and stability of the provider of physical security systems are crucial. Product performance (45 per cent) and pricing (43 per cent) also follow as key criteria.

From protection to value creation: the future of physical security

The Genetec Report shows that physical security has long since evolved beyond its protective function and has become a strategic success factor for companies. Key drivers of this development are unified platforms and integrated systems for holistic security management, as well as increasing collaboration between IT and security teams and external partners.

Another important component is the targeted use of cloud technologies for better collaboration and resilience. AI-based solutions also reduce false alarms and ensure automation and better decision-making.

The most successful organisations will be those that use technology in a targeted, networked manner with a focus on people – and understand security as an integral part of their corporate strategy.

Download the full report ‘The State of Physical Security 2026’ from Genetec here

Author: Andreas Flemming, Area Sales Director DACH, Genetec Germany

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