Physical Security Market 2023 —Transformation:

The physical security market is undergoing a transformation, with a notable shift towards cloud and hybrid solutions. This shift is driven by several factors, including cyber threats, limitations of local security infrastructure, economic considerations, technological advancements, and the vulnerability of Local Area Networks (LANs). Key trends and considerations in this evolving landscape include:

  • Rapid Adoption of Cloud Solutions:
    • The adoption of cloud-based solutions for physical security has accelerated significantly. A survey indicates that 44% of end users report that more than 25% of their physical security setups are now in the cloud or use a combination of cloud and on-premises solutions. This represents a substantial increase from the previous year.
  • Diminishing Cybersecurity Concerns:
    • Cybersecurity concerns related to cloud-based solutions are diminishing among end users. Previously, perceived cybersecurity risks were a primary factor deterring organizations from adopting cloud-based security systems. However, there is a noticeable shift in attitudes, reflecting growing confidence in the cybersecurity measures implemented by cloud solution providers.
  • Channel Partner Expectations:
    • Channel partners anticipate increased demand for cloud and hybrid solutions. A significant 74% of channel partner respondents expect more of their current customers to embrace cloud connectivity for security in the coming year. Additionally, 39% of channel partners prioritize cloud-based solutions whenever possible, and 52% offer such solutions upon customer request.
  • Integration of IT and Physical Security:
    • The rising adoption of cloud-based physical security systems has led to increased collaboration between IT and physical security departments. A majority (55%) of end users indicate that the IT department has access to physical security data. As technology adoption grows and remote access becomes more common, the partnership between IT and physical security is expected to continue evolving.
  • Hybrid Approach Gains Favor:
    • A hybrid approach, combining on-premises and cloud-based solutions, is emerging as the preferred strategy for many organizations. Sixty percent of end users express the intention to deploy a security strategy that integrates both types of solutions. The transition to hybrid systems is already underway, with 15% of organizations storing video surveillance data both locally and in the cloud.
  • Flexibility and Adaptability:
    • The future outlook favors hybrid cloud deployment, providing organizations with flexibility and adaptability. By seamlessly blending local infrastructure with the power of the cloud, organizations can optimize their physical security installations to meet evolving business needs. A hybrid approach ensures agility and adaptability to provide the required capabilities as security needs evolve.

In summary, the physical security market is experiencing a shift towards cloud and hybrid solutions driven by factors such as enhanced cybersecurity measures, increased demand from end users, and the need for flexible deployment strategies. This evolution reflects a recognition of the advantages offered by cloud technology in addressing contemporary security challenges.