Physical security outlook 2026: 10 trends shaping the industry

2025 confirmed that the role of the security leader continues to grow. Physical security programs are now expected to operate with precision, adaptability, and alignment to business priorities. 

Security Magazine’s 2025 Benchmark Report shows 63% of organizations now run enterprise-wide SOCs or GSOCs, confirming security’s role as a strategic function.

As we move into 2026, security teams are being asked to align with business goals, guide technology decisions, and deliver insights that drive risk management across the enterprise.

Let’s review the state of physical security and explore ten trends driving the industry forward.

Physical security 2025 recap 

Security Magazine’s 2025 Benchmark Report provides a clear snapshot, based on insights from hundreds of security leaders across sectors.

This year’s report focused on how programs are structured and how teams are responding to new demands, covering roles, responsibilities, technology, training, and budgets.

Here are four standout takeaways:

• Workplace violence was the top security concern for the fourth straight year.
• Director is now the most common senior security title, ahead of VP and C-level roles.
• 50% of teams reported budget increases, down from 63% the year before.
• 63% of organizations now operate a SOC or GSOC with enterprise-wide coverage.

The message is clear. Security directors are still focused on traditional risks while integrating new tools and technologies, all under tighter constraints.

Here are 10 trends shaping physical security, along with our predictions for the future. 

1. Cloud-based security platforms will gain ground

Cloud adoption is accelerating. According to a major physical security manufacturer, 75% of security leaders plan to move away from on-prem systems in the next 12 months, drawn by the promise of remote management, easier scaling, and lower infrastructure costs.

Still, the biggest hurdle remains moving massive HD video feeds to the cloud, which is being addressed through edge computing.

Top Reasons for Moving to Cloud-Based Security Platforms

Priority	Commonly Cited By Security Leaders
Remote system management	Important for multi-site ops
Easier scalability	Reduces reliance on physical infrastructure
Lower infrastructure costs	Cuts hardware and on-site maintenance
Faster system updates	Keeps platforms current without downtime
Improved multi-site support	Enables centralized visibility and control

 

SiteOwl Insight Cloud adoption is about control and visibility at scale. Read how one security team accelerated a 3-year project timeline by 50% with SiteOwl. https://getsiteowl.com/wake-forest-university-case-study/

In 2026, cameras and local appliances will handle AI analytics on-site, from object detection to behavior analysis, sending only metadata or short clips to the cloud. The result will be less bandwidth strain, faster alerts, and a cloud strategy that actually works at scale.

2. Access Control as a Service (ACaaS) will hit critical mass

Access Control as a Service (ACaaS) is moving from niche to necessary. Its appeal is straightforward because it solves the three biggest headaches of traditional access control: high upfront costs, complex multi-site management, and limited integration with IT and HR systems.

ACaaS is growing at over 15% annually, driven by enterprise demand and what industry leaders now see as a more flexible model.

Industries driving adoption include:

• Retail: High employee turnover and geographically dispersed locations make centralized credential management a must.
• Healthcare: Around-the-clock access requirements and compliance needs (like HIPAA) demand reliable systems with detailed audit trails.
• Commercial Real Estate: Managing multiple tenants across properties calls for flexible access scheduling and remote control.
• Higher Education: Campuses with thousands of users and dozens of buildings need scalable, policy-driven access tools.
• Logistics and Warehousing: Fast-moving operations benefit from real-time access updates and centralized oversight across multiple facilities.

As more industries prioritize flexibility, scalability, and integration, ACaaS is positioned to become the new standard for modern access control.

3. Data center security will get a hardware refresh

The data center industry is growing exponentially. With investments projected to reach $1 trillion by 2027. Physical security remains the foundation of data center operations. 

Core systems such as perimeter detection, video surveillance, access control, and biometrics still matter. But in 2026, the stakes are higher.

Security teams are now contending with autonomous threats, stricter compliance demands, and the growing complexity of digital infrastructure. 

The traditional perimeter is giving way to identity-first models and data-centric security strategies.

Key drivers include:

• End-of-life milestones for legacy devices
• Performance demands of AI-powered applications
• A shift toward embedded security at the hardware level
• New compliance mandates and regulatory audits

The result is a sweeping hardware refresh across the sector. For data centers, resilience starts at the rack, and in 2026, outdated gear won’t cut it.

4. Mobile credentials will continue to replace physical badges

The legacy physical badge, built on outdated, easily cloned technologies such as 125 kHz cards, has become a growing liability.

Mobile credentials, using Bluetooth Low Energy (BLE) and Near-Field Communication (NFC), offer a more secure and convenient alternative. They simplify identity management, reduce hardware dependencies, and improve the user experience.

 

Physical Badges vs. Mobile Credentials

Category	Legacy Physical Badges	Mobile Credentials
Technology	125 kHz proximity cards	BLE (Bluetooth Low Energy), NFC
Security	Easily cloned or spoofed	Encrypted, device-bound, harder to duplicate
Management	Manual issuance, replacement and deactivation	Cloud-based provisioning and remote revocation
User Experince	Requires separate badge	Works with mobile-enabled access control systems

Moving into 2026, mobile credentials will be the primary access method for any modern, forward-thinking organization. The security, manageability, and user experience benefits are too significant to ignore, making the replacement of physical badges an essential strategic goal.

5. Security Operations Centers (SOCs) will expand their role

Security Operations Centers are taking on a larger mandate. Once focused on alarm response, they are now expected to lead enterprise-wide risk management.

A recent survey of 282 security leaders revealed a growing operational strain. Alert volumes have reached a point where many SOCs can’t keep up, forcing teams to leave critical threats uninvestigated.

To keep pace, many SOCs are building automation into their core. AI agents now handle most alert triage, carry out end-to-end investigations, and can take direct action, quarantining endpoints or isolating network sessions without waiting for manual input.

As automation takes over routine tasks, human analysts can focus on strategic threat hunting and more complex decision-making. The result is faster response, better visibility, and more efficient use of resources.

6. AI in video analytics will get more practical

The maturity of AI in video analytics is defined by its ability to reliably filter out noise and deliver highly specific, actionable intelligence. 

It’s moving from “detecting motion” to “understanding context and behavior.”

Modern systems can now assess who is in a scene, what they’re doing, and when that behavior matters. They can distinguish between a swaying tree, an animal, or a person loitering near a restricted area after hours. This shift helps teams filter out noise and focus on what’s actionable.

As accuracy improves, AI-powered analytics are becoming less of a niche tool and more of a standard part of daily operations across industries. 

7. Guarding models will become more hybrid

Traditional guarding models built around fully staffed, on-site teams are becoming harder to sustain. Labor costs are rising, staffing is inconsistent, and human vigilance alone can’t scale.

To stay effective, many organizations are adopting hybrid models that combine on-site personnel with remote monitoring, AI-assisted video analytics, and automated response systems. 

The focus is shifting from headcount to capability. Smart deployment of technology cameras, sensors, AI, and remote guards delivers better outcomes than relying solely on boots on the ground.

In 2026, success won’t be measured by the number of guards, but by how well security teams use every available tool.

8. Security budgets will be under more scrutiny

Security budgets will face increased scrutiny as leaders push for spending that clearly ties to risk reduction and operational ROI. That means security leaders need to reframe the conversation. 

No more positioning security as a cost center. It has to be seen as a strategic investment. This requires a fundamental shift in presentation:

From CapEx to OpEx
Budget requests will increasingly favor as-a-Service (aaS) models (like ACaaS and VSaaS) over large, episodic capital expenditures. This aligns security spending with IT and Finance preferences for predictable, scalable operating costs tied to ongoing service value, rather than depreciating assets.

From Activity to Impact

The conversation must move past inputs (e.g., “We bought 50 cameras” or “We hired 10 guards”) to measurable outcomes. The justification for new AI, for example, is not its technical prowess, but its ability to deliver a 90% reduction in false alarms, which translates directly into cost savings by reducing wasted operator time and accelerating incident response.

Security teams that can speak in outcomes, not inputs, will be the ones who get funded.

9. Cross-functional reporting will change how security fits

The traditional placement of physical security under Facilities or Operations is no longer effective. Blended threats demand unified oversight, and security data is increasingly vital to broader business functions from compliance to continuity planning.

As reporting lines change, security leaders must adapt how they communicate and justify their programs.

From Technical to Strategic

Conversations can’t center on camera specs or sensor counts. What matters is risk reduction, ROI, and how security investments support business goals.

Speak the Language of Risk

Boards and executives care about fiduciary duty, regulatory compliance, business continuity, and shareholder value. Every security initiative should be framed through that lens.

The more aligned security is with enterprise priorities, the more influence it earns at the table.

10. Lifecycle management will shift from compliance to capability

Physical security is moving beyond a compliance-first mindset. The focus now is on long-term system performance, operational resilience, and full lifecycle visibility.

It’s no longer enough to check the boxes. Teams are planning, documenting, and maintaining systems with capability in mind from initial design through installation, maintenance, and upgrades.

Lifecycle-focused platforms like SiteOwl, acquired by ASSA ABLOY to expand its digital offerings, are leading this change. These tools give teams end-to-end visibility from design and installation to ongoing maintenance and upgrades, helping reduce downtime and extend system performance.

Security leaders who treat lifecycle management as an operational asset, not just a regulatory requirement, will build systems that last and scale.

Build measurable physical security capabilities

Physical security is no longer about reacting to threats. It’s about building systems that are strategic, measurable, and built to scale. 

The most effective security leaders are now expected to deliver more than coverage they must show outcomes, reduce risk, and prove value.

With a powerful, centralized lifecycle platform, security teams can accelerate project timelines by up to 40%, drastically reduce system downtime, and align strategic spend across departments.

See for yourself how proactive security teams are planning smarter, spending strategically, and managing physical security like the business-critical operation it is.

Request a demo and start turning your security strategy into measurable impact!