Just a few months into 2026, predictions on the state of the physical security market continue to show positive momentum, even with the massive shift settling over the industry. 

While we’ve been focused on analytics and data over the last several years, with new iterations of artificial intelligence such as generative A.I. and agentic A.I. taking center stage, another evolution is happening. It can be seen in collaborations, partnerships and acquisitions. 

Manufacturing companies with complementary services or technologies that can provide a full integration package are moving forward. One of the most recent telltale signs of evolving industry direction is the merger of two powerhouses in cloud-hosted offerings: Brivo, Bethesda, Md.; and Eagle Eye Networks, Austin, Texas. Brivo provides cloud-hosted access control and Eagle Eye Networks offers cloud A.I. video surveillance. 

Technology companies are changing strategies as they realize where the physical security industry is headed and work to achieve their goals with partnerships or other technology collaborations. Motorola Solutions, Chicago, is another example. The company acquired Blue Eye, Salt Lake City, focusing on A.I.-enabled remote video monitoring to automate response and threat detection. It also agreed to acquire InVisit to enhance Avigilon Alta, its cloud-based visitor management solution used for commercial security.

Software fuels innovation

The systems integration business is moving quickly and decidedly away from standalone hardware to an IT and service-focused business. Hardware is still essential, of course, but now, software, APIs, unified interfaces, open systems and cloud-hosting are yielding a clearer pathway to the future. This aligns with what end-users want: end-to-end solutions with integrated functionalities that are simple to use, can be remotely managed and controlled; this places physical security into a proactive, rather than reactive, position. 

The move to software-centric solutions is decidedly the industry’s No. 1 trend, as identified in an annual study conducted by the Security Industry Association (SIA), Silver Spring, Md. The SIA 2026 Megatrends report is a deep-dive into industry direction, with insights driven by top influencers and investors. SIA wrote that the security industry has witnessed a move from hardware being the dominant force to software, which shapes the user experience.

Hardware providers, SIA’s report stated, are reinventing their role to avoid becoming commoditized peripherals: “Hardware remains the lifeblood of the industry—­producing the critical data that software and A.I. depend on to deliver value—which means hardware must evolve beyond simple sensing to become intelligent, integrated and indispensable. Manufacturers are embedding software and A.I.-lite analytics directly into devices, transforming them from passive endpoints into active contributors within a system of systems.”

Security, as part of the built environment, is now more valuable to building owners, encompassing IT, operations, management and control systems. This puts systems integrators at the project planning table with key decision-makers from the onset. In the 2026 global State of Physical Security report by Genetec Inc., Montreal, physical security is now a strategic business function, strengthening IT collaboration and decision-making. 

Security means business

“As it becomes more tightly woven into the broader fabric of the enterprise, security is emerging as a genuine enabler of business outcomes—helping organizations work more cohesively, respond more effectively, and stay focused on long-term goals,” said Christian Morin, chief security officer and vice president of product engineering at Genetec. 

Another key trend identified in the study is the demand for unified systems, which is increasing as companies focus on upgrading existing solutions. According to the study, 60% of respondents say their main motivation for replacing legacy technology is to integrate new capabilities—with software the core enabling mechanism. 

End-users want more from their systems and the ability to transcend security, safety and risk management, helping them reduce expenses and make decisions faster with a lower total cost of ownership. 

For systems integrators, the move to software, services and integrated functionality underscores the importance of developing new business strategies. Integrators need to find manufacturers who are joining forces with top-tier software providers. Look for companies offering solutions to typical and nontraditional use-case scenarios—not those simply focused on hardware as a standalone component. Systems integrators can also choose to work with or even acquire software- and IT-based firms to adapt their direction. With these solutions come the ability to provide proactive detection, remote monitoring and management from a centralized software browser, giving the end-user full control of the future of enterprise security. 

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