Europe's physical security market is seeing growing demand for cloud-based platforms, artificial intelligence and integrated security systems in 2026.
Asia's physical security market is continuing to grow in 2026, led by investment in data centers and critical infrastructure, even as customers demand more from security technology than surveillance and access control alone, according to executives from Axis Communications, Gallagher Security and Suprema.
Across the region, buyers are placing greater emphasis on cybersecurity, interoperability and operational efficiency. Video analytics, biometrics, mobile credentials and cloud platforms are attracting interest, but their value increasingly depends on how well they work with existing enterprise and security systems.
“The physical security market in Asia remains strong in 2026, but the focus has shifted,” said Joe Fan, Regional Marketing Manager for Asia at Gallagher Security.
According to Fan, activity in 2025 was driven in part by post-pandemic infrastructure upgrades and early discussions around cloud adoption. This year, customers are placing greater weight on business outcomes, cybersecurity resilience and how security systems can support operations beyond asset protection.
Data centers emerge as a leading growth market
Data centers stand out as a common growth area among the three suppliers, reflecting demand for stronger security at facilities supporting digital and AI infrastructure.
Gallagher identifies Singapore, Malaysia and Indonesia as particularly active markets for data center security, while pointing to ports, airports, utilities and energy operators as important customers in East Asia. Premium commercial buildings are also investing in access and visitor management systems to improve tenant experience and workplace flexibility.
Suprema CEO Hanchul Kim reported strong project activity in Vietnam, Singapore and Indonesia, especially among government organizations, advanced manufacturers, major enterprises and data center operators.
For these operators, the requirement is no longer limited to securing a building's main entrance. Kim said data centers are increasingly extending identity verification to server rooms and individual rack cabinets, creating demand for more granular access policies.
The trend also has an international dimension. Kim said multinational data center operators and enterprises expanding into Asia often bring security specifications established at their North American or European operations, creating opportunities for suppliers and integrators able to meet those requirements locally.
Ettiene Van Der Watt, Vice President for Asia Pacific at Axis Communications, also highlighted transportation, industrial applications and critical infrastructure, where operators are managing increasingly connected environments.
“Customers are increasingly looking beyond traditional surveillance towards solutions that can strengthen security while also supporting safety, operational resilience and better decision-making,” he said.
Security systems converge
One of the most consistent messages from the interviews is that users increasingly want security systems to operate as an interconnected environment rather than a collection of standalone products.
For access control, this can mean linking an access event to relevant video footage, synchronizing permissions with HR systems or using occupancy information to support building management.
Fan cited these workflows as examples of how access control, video surveillance, visitor management and perimeter systems can improve both security and everyday operations.
Van Der Watt outlined a broader approach combining radar to detect movement, video for verification, analytics for interpretation, access control to manage entry and network audio as part of a response.
“The real value comes when technologies complement one another,” he said.
He emphasized the importance of open systems and standards such as ONVIF, which allow customers to combine equipment from different manufacturers rather than become dependent on closed ecosystems.
Kim made a similar point from the access control perspective. Customers are “not asking for integration simply to reduce the number of screens,” he said. Instead, they want to link identities, events, locations and video to give operators more context.
This is also changing what integrators must deliver. System design increasingly involves defining how events move between platforms, how access decisions are coordinated and which information operators need when an incident occurs.
AI moves security toward real-time response
AI and edge analytics are playing a greater role in this shift by helping systems identify and classify events as they happen, rather than relying solely on retrospective investigation.
Axis describes its approach as Scene Intelligence, in which cameras generate structured metadata from visual information. Van Der Watt said this can support security responses as well as applications such as occupancy analysis, traffic monitoring, process improvement and safety management.
“Historically, much of physical security was reactive: an event happened, video was recorded and someone investigated afterwards,” he said.
For access control, the focus is also shifting toward higher-assurance authentication. Kim said customers increasingly want biometric verification combined with RFID or mobile credentials, particularly at critical facilities where lost, shared or cloned cards pose risks.
He pointed to the convergence of edge AI, multi-factor authentication and device-level cybersecurity, including hardware measures intended to protect biometric templates and encryption keys.
Meanwhile, Gallagher is seeing increased interest in mobile credentials stored in Apple Wallet and Google Wallet, reflecting organizations' efforts to reduce their dependence on physical cards.
Together, these developments suggest that customer demand is moving beyond the capabilities of individual devices toward systems that can generate trustworthy information and make it usable in real time.
Cloud adoption follows different paths
Cloud is gaining importance in Asian physical security, although the suppliers do not expect every customer to follow the same deployment model.
Suprema sees demand for cloud-native access control that can manage users, credentials and policies across sites without traditional on-premise servers. Kim said these deployments can reduce the infrastructure that integrators need to maintain while allowing centralized administration.
Axis, by contrast, expects hybrid architectures combining edge, on-premise and cloud resources to become increasingly important. Van Der Watt said deployment choices must account for connectivity, cybersecurity, data handling and regulatory requirements.
This flexibility matters in a region where technology standards, cloud policies and restrictions on data vary considerably across countries.
Regulation and skills pose challenges
The same fragmentation could constrain growth in 2027, despite continued investment in digital infrastructure and demand for integrated security.
Kim identified differing privacy laws, biometric data rules, data residency requirements and procurement practices as obstacles to deploying consistent security systems across Asia.
Multinational customers often want uniform security policies across their regional operations, he said, but suppliers must balance those expectations with local requirements. “Success will therefore depend on combining global consistency with local flexibility,” Kim said.
Van Der Watt also highlighted country-specific product certifications and evolving cybersecurity regulations, which can complicate regional deployments and product rollouts.
Gallagher sees a further challenge within the integration channel itself. Fan pointed to shortages of digital and software expertise, alongside the difficulty of upgrading legacy installations while managing budgets and cybersecurity requirements.
“Integrators are now expected to provide expertise in cybersecurity, software integration, APIs, and managed services, in addition to traditional installation and commissioning capabilities,” Fan said.
Looking to 2027, the growth opportunity is not limited to new buildings or additional hardware. Suppliers see potential in linking security with wider building operations and making better use of information from existing systems.
For Asian systems integrators, this points to a market in which technical expertise, open-platform integration and knowledge of local regulations may be as important to winning business as the devices they install.