Genetec Inc. (“Genetec”), the global leader in enterprise physical security software, today shared the results of its 2025 State of the Physical Security Report. Based on insights from over 5,600 physical security leaders worldwide, including more than 100 responses from Australia and New Zealand (including end users, channel partners, systems integrators, and consultants) the report offers a comprehensive analysis of evolving trends in physical security operations.

Hybrid cloud adoption grows as organisations seek flexibility and control

As Australia and New Zealand organisations evaluate cloud solutions for physical security, most are prioritising a hybrid strategy that aligns with operational needs, budget constraints, and storage requirements. This pragmatic and flexible deployment approach allows critical data and applications to be managed both on-premises and in the cloud.   At the same time, just 62% of end users stated they were not currently using any cloud in the physical security environment.

According to the report, 38% of end users envision hybrid deployments as their preferred approach within the next five years, compared to just 16% favouring fully cloud-based implementations and 19% planning to remain fully on-premises.  Seventy-nine per cent of respondents said that the benefit of continuous updates and software upgrades was their leading motivation for choosing a hybrid deployment followed by cost savings (64%).

This preference for hybrid cloud is echoed by consultants and channel partners, with 71% of consultants planning to recommend hybrid deployments in the next five years.

This data not only reflects the rising demand for adaptable deployment models but also highlights a measured approach to cloud adoption as the industry matures.

By focusing on operational realities, varying costs of the cloud, and evolving security requirements, organisations will be better positioned to successfully adopt the cloud at a pace and cost that reflects their needs.​

“There’s no all-or-nothing with a hybrid-cloud approach. Businesses remain in total control of how they deploy their systems across various locations. With an open ecosystem, they can implement the best technology—whether on-premises or in the cloud— that meets their business needs and avoid unnecessary compromise, without ever being locked into proprietary solutions. This allows them to deploy, scale, and upgrade systems faster, streamline processes, and strengthen their security posture in the most efficient and effective ways,” said Christian Morin, Vice President Product Engineering, Genetec Inc.

IT departments become central to decisions

A decade ago, physical security systems in large organisations were typically managed by personnel in specialised security departments. However, the increasing adoption of cloud and hybrid-cloud solutions, the rise in cybersecurity threats, and the need to align physical and digital security have led IT teams to take an increasingly prominent role in influencing the acquisition and deployment of physical security systems.

According to the report, 78% of end users say physical security and information technology (IT) departments now work collaboratively. Additionally, IT departments are taking on an increasing role in the buying process, with over half of end users, systems integrators, and consultants reporting that IT teams are now actively involved in physical security purchasing decisions.

“The evolving role of physical security is reshaping how organisations secure both their people and digital networks. With IT at the forefront of implementing cloud and hybrid solutions, physical security operations are becoming more resilient, data-driven, and adaptable to evolving threats," Morin added.

AI adoption grows as industry prioritises practical applications

The report reveals a significant rise in the interest toward AI adoption in physical security, with 32% of end users planning to implement AI-powered features in 2025, representing a rise year on year. This heightened interest aligns with a strategic, purpose-driven approach. With 41% of end users seeing AI as a tool to streamline security operations, organisations are focusing on practical applications, such as refining threat detection and automating routine processes, with intelligent automation as the ultimate goal.   However, half of all respondents are also concerned about how AI generated data could use used while 55% are also concerned about their vendors following responsible or ethical AI practices. 

George Moawad, Country Manager – Oceania at Genetec

George Moawad, Country Manager – Oceania at Genetec, added, “This year’s State of the Physical Security Report suggests that end users are looking not just to deploy leading edge technology solutions but favouring vendors who they can trust with their valuable data to support new AI workloads in a hybrid computing environment.  To achieve strong security in a hybrid cloud environment, IT teams will need to embrace new methods of managing physical security and rethink their approach to the challenge.”

Survey methodology

Genetec Inc. surveyed physical security professionals from August 12th to September 15th, 2024. Following a review of submissions and data cleansing, 5,696 respondents (including end users, channel partners, and consultants) were included in the sample for analysis. Survey samples were run across all regions including North America, Central America, the Caribbean, South America, Europe, the Middle East, Africa, East Asia, Southern Asia, South-Eastern Asia, Central Asia, Western Asia, and Australia-New Zealand.  

About Genetec

Genetec Inc. is a global technology company that has been transforming the physical security industry for over 25 years. The company’s portfolio of solutions enables enterprises, governments, and communities around the world to secure people and assets while improving operational efficiency and respecting individual privacy.

Genetec delivers the world's leading products for video management, access control, and ALPR, all built on an open architecture and designed with cybersecurity at their core. The company’s portfolio also includes intrusion detection, intercom, and digital evidence management solutions.   

Headquartered in Montreal, Canada, Genetec serves its 42,500+ customers via an extensive network of accredited channel partners and consultants in over 159 countries.