As the industry looks ahead to the year beyond AI headlines, the conversation is widening. Infrastructure readiness, emerging sensing technologies and a tightening regulatory framework are all set to play a defining role in how physical security evolves in 2026. In this report-style article, Andreas Beerbaum, VP of global sales and services, physical security, for Hexagon’s Safety, Infrastructure and Geospatial division, shares his perspective on the trends that will shape investment decisions and operational priorities over the next 12 months.
By Andreas Beerbaum
When predicting the key trends for 2026, artificial intelligence is impossible to ignore. Its impact on the physical security sector is already significant. However, AI is only part of the picture. Other technologies and developments will also play an important role in shaping the next 12 months.
Deploying AI-powered video solutions depends on having the right infrastructure in place. Traditionally, video management systems have been installed on premises, requiring substantial investment in hardware, ongoing maintenance and periodic upgrades. For many organisations, particularly those operating across multiple sites, that model is becoming less sustainable.
Cloud-based video management systems, commonly referred to as VSaaS, are increasingly being adopted as an alternative. These platforms provide users with improved access to video feeds from IP cameras, often from multiple vendors, enabling them to view, manage and control systems remotely. When combined with generative AI and video analytics, VSaaS can enhance situational awareness, support faster response times and streamline post-incident investigations.
A traditional CCTV system relies heavily on human operators to monitor live feeds or review recorded footage. This becomes increasingly difficult as camera numbers grow, often far outstripping available personnel. Video analytics addresses this challenge by continuously analysing footage in real time, acting as a second set of eyes and alerting teams to potential threats before incidents escalate.
A further advantage of a cloud-first video strategy is the reduction in on-site hardware. Fewer servers and appliances mean lower energy consumption and a reduced carbon footprint, an important consideration for many European organisations working towards environmental targets.
Alongside developments in video, LiDAR is moving from early-stage interest to practical deployment. Throughout 2025, the technology has featured in an increasing number of security projects. One example is energy company EG.D, part of the E.ON group, which has deployed LiDAR to improve the safety and security of electricity substations across its network.
Demand for LiDAR in perimeter security continues to grow. Analysts value the global market at USD 1.38 billion in 2025, with strong growth expected over the coming years. In 2026, wider adoption of 3D LiDAR detection systems is likely across sectors, including critical infrastructure, aviation and rail, data centres, correctional facilities and logistics operations.
Another important trend is the improved sharing of video evidence. Over the past five years, almost every UK police force has deployed, or is in the process of deploying, digital evidence management systems. A key driver has been the need to make it quicker and easier for businesses, particularly retailers, to share CCTV footage electronically.
Legislative and policy developments are reinforcing this shift. The Crime and Policing Bill, along with guidance from the British Retail Consortium, points to an increase in reported retail crime and, as a result, a higher volume of video evidence. The National Police Chiefs’ Council has made clear that retailers should submit full CCTV footage and images of suspects as quickly as possible after an offence.
In this context, VSaaS is becoming an attractive option for many retailers. Cloud-based systems enable larger chains with centralised control rooms to retrieve and submit footage more quickly, while smaller retailers can share evidence efficiently without relying on physical media. The integration of body-worn video, now widely used by retail staff, further supports this approach.
All of these developments are taking place against a backdrop of regulatory change. From the UK’s Terrorism (Protection of Premises) Act 2025 to Germany’s KRITIS-Dachgesetz and ongoing amendments to the EU AI Act, regulatory compliance will be a major focus in 2026.