Economic stress was the leading cause of project delays in 2024

office workspace — *ferrantraite / E+ via Getty Images*

Genetec shared the results of their 2025 State of the Physical Security Report, including hybrid-cloud security, artificial intelligence (AI), and staff concerns.

According to the report, 43% of end users envision hybrid deployments as their preferred approach within the next five years, compared to 18% favoring fully cloud-based implementations and 17% planning to remain fully on-premises. This preference for hybrid-cloud is echoed by consultants and channel partners, with 66% of consultants planning to recommend hybrid deployments in the next five years.

The report also found that 49% of end users delayed projects in 2024 and 45% in 2023. However, in 2023 supply chain issues were the main reason, but in 2024 the cause was economic uncertainties.

Since 2021, both end users and channel partners have consistently reported staffing issues. And the outlook for 2025 points to ongoing concerns. Seventy-two percent of channel partners expect to continue to have hiring challenges while only 6% believe it will improve, according to the report.

The report states that 77% 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 more than 50% of end users, systems integrators, and consultants reporting that IT teams are now actively involved in physical security purchasing decisions.

The report reveals a significant rise in the interest toward AI adoption in physical security, with 37% of end users planning to implement AI-powered features in 2025, up from just 10% in 2024. This heightened interest aligns with a strategic, purpose-driven approach. With 42% of end users seeing AI as a tool to streamline security operations, organizations are focusing on practical applications, such as refining threat detection and automating routine processes, with intelligent automation as the ultimate goal.

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Taelor Sutherland is the Associate Editor at Security magazine. Sutherland covers news affecting enterprise security leaders, from industry events to physical & cybersecurity threats and mitigation tactics. She is also responsible for coordinating and publishing web exclusives, multimedia content, social media posts, and a number of eMagazine departments. Sutherland graduated in 2022 with a BA in English Literature from Agnes Scott College.