Top 5 Physical Security Trends for 2026

The fast-paced development of physical security systems creates an exclusive business opportunity for service providers who operate in the ISP and telecom sectors. Global telecom leaders move beyond basic connectivity services by delivering Video Surveillance as a Service (VSaaS) as a part of cloud-based security solutions and value-added services (VAS). This experience gives them the advantage of establishing as a security-focused business partner.

The following analysis examines the top five security trends for 2026 to enhance telecom revenue growth and customer retention through prospective market position.

1. Cloud-First & Edge-Empowered VSaaS

Cloud-native video surveillance has become an essential requirement for modern security systems.

Organizations around the world continue to abandon local server infrastructure in favor of subscription-based cloud services with centralized management systems. Cloud VSaaS solutions from telecom partners allows businesses to control multiple sites through a single interface, which also reduces their capital costs. The VSaaS market continues to expand with hybrid solutions that perform edge analytics before storing data in the cloud. The VSaaS market will exceed US$8 billion during the forecast period ending in 2034.

What you, as an ISP/telecom VAS provider, should consider:

• Package VSaaS and cloud storage as a bundled service with connectivity (e.g., CPE + camera + cloud recording).
• Offer tiered pricing based on archive storage/AI-based analytics levels (basic recording vs. AI alerts).
• Use your network strengths (latency, QoS) to deliver differentiators like real-time alerts or remote access for customers.

 

2. AI-Driven Analytics & Behavioural Security

Intelligent analytics is no longer an option. It has become a requirement. In the field of physical security, AI-based video surveillance now recognizes faces, unique visitors, identifies license plates, and sends alerts to mobile apps in real time. In the context of VSaaS, this means that the service does not simply store video, but it creates additional value by turning video into useful business insights.

Implications for your telecom and ISP business:

• Partner for VSaaS platforms, like Aipix VSaaS Solution, that embed AI analytics (face/license plates/container number recognition, occupancy analytics).
• Highlight use-cases for your ISP/telecom customers: retail loss prevention, logistics yard visibility, smart-city monitoring.
• Use analytics and archive storage as an upsell tool (starting from basic recording vs. “intelligence” tier) to increase ARPU.

 

3. 5G, Edge & Real-Time Monitoring

The combination of 5G technology with edge computing and VSaaS is a primary competitive factor during 2026 in the telecom industry. The high data transfer speeds of 5G networks enable instantaneous transmission of video from multiple security cameras, as well as comprehensive city monitoring. Edge-AI technology working with cameras enables real-time analytics that reduces network traffic while speeding up data processing.

 

Opportunity for ISPs/Telecoms:

• Offer “surveillance premium” connectivity (e.g., 5G/edge bundles) for physical security as a service.
• Position VSaaS with edge compute as a VAS: low-latency live monitoring for critical infrastructure, smart-city or enterprise campuses.
• Your network and edge infrastructure assets should be used to develop distinctive services which differ from standard cloud provider offerings.

 

4. Convergence of Physical Security + Access Control (ACaaS) + Cybersecurity

Physical security will merge with digital security through the single platforms. The main trend is joining them for unified managing video surveillance (VSaaS), access control (ACaaS) and cybersecurity by 2026. Physical security systems will integrate compliance functions with identity management and continuous trust verification capabilities.

 

Why this matters for VAS providers:

• You can offer integrated security packages for sale which include cameras + access control + cloud storage + audit of compliance features.
• Provide managed security services: e.g., alerting, video monitoring, automated responses.
• Use your experience with network security and identity-management to provide complete VAS solutions for customers in the B2B and B2C segment.

 

5. Data Sovereignty, Privacy & Hybrid Cloud Models

The transfer of video and physical security data to cloud platforms has created new challenges regarding data location and privacy and regulatory compliance.

The combination of regulatory needs (GDPR, NIS2, eIDAS 2.0) and rising identity-based security concerns has established hybrid cloud systems with edge/in-region storage as the standard solution. The physical security market shows a projected growth to reach $500 billion during 2026.

Strategic action for ISPs/Telecom VAS providers:

• Offer region-based cloud / edge storage options (local data centres, country-specific storage) to meet regulatory &-trust requirements.
• Communicate privacy, encryption, multi-factor authentication and SLA capabilities in your VSaaS offerings.
• Use hybrid cloud (edge + central cloud) to optimise cost, performance and regulatory compliance.

 

Putting It All Together. Get 2026 Telecom VAS Growth Plan

ISPs and telecoms should focus on developing a multi-level physical security system which expands alongside their core connectivity operations.

1. Starter package: Basic VSaaS (camera + cloud recording) bundled with connectivity.
2. Standard package: Add AI analytics (motion detection, face recognition) + 5G/edge premium.
3. Premium package: Full convergence — VSaaS + ACaaS + cyber/identity services, region-based data storage, 5G/edge real-time monitoring.
4. Managed service add-ons: Monitoring, alerting, incident response, video-forensics, multi-site dashboards.

ISPs/telecoms need to move beyond basic connectivity sales. Now they should offer security intelligence and reliable compliant services to their customers. The physical-security environment of 2026 focuses on delivering insights through integrated service models instead of depending on hardware solutions.

 

Conclusion

In 2026 the physical security arena will be defined by:

• Cloud-first, edge-enabled VSaaS
• AI analytics turning raw video into insights
• 5G + edge compute enabling real-time, large-scale monitoring
• Converged physical/cyber/access solutions
• Hybrid cloud, data sovereignty and compliance as differentiators

The five trends highlight a direct roadmap for ISPs and telecom VAS providers to generate recurring revenue in 2026. Moreover, they open up wide upselling, differentiation opportunities together with improved customer interaction.

Telecom operators and ISPs will transition in 2026 from basic connectivity provision to become a strategic security partner for customers through adoption of these trends. Achieve leadership status in physical security transformation through implementation of these five trends in your 2026 product and service development plan.