When predicting hot topics for 2026, no list would be complete without addressing the impact of artificial intelligence (AI) on the physical security sector. However, there are other technologies and trends that will likely shape and define the next 12 months, says Hexagon‘s Andreas Beerbaum.
Building the infrastructure for AI adoption with VSaaS
Deploying bandwidth-hungry AI-powered video solutions relies on having the right foundation in place. Historically, video management systems (VMS) have been installed on-premises, requiring significant investments in infrastructure, maintenance and upgrades. However, cloud-based VMS solutions (otherwise known as VSaaS – video-surveillance-as-a-service) are becoming increasingly popular with organisations operating across multiple sites.
For these organisations, a VSaaS platform provides better access to allow users to view, manage and control video feeds from IP cameras (often from multiple vendors) from anywhere. Combined with powerful generative AI capabilities, a VSaaS platform can enhance situational awareness, improve response times and streamline post-incident investigations.
A ‘traditional’ CCTV system relies on human operators either monitoring live video feeds or reviewing recorded footage. This can be difficult given that the number of cameras will inevitably outnumber personnel, in some cases by 100 or 1,000 to one. This is where generative AI (video analytics) steps in, offering a second set of “eyes” that work tirelessly in the background, analysing video feeds in real-time to detect potential threats and alert teams before incidents escalate.
An added benefit of a cloud-first video management strategy is the reduction of on-premises hardware. Cloud-based systems lower energy consumption and carbon footprints – a priority for many European organisations striving to meet environmental goals.
LiDAR switches from a buzzword to business case
At the start of 2025 LiDAR was hailed as the ‘next big thing’ in physical security. The buzz has continued, as LiDAR took centre stage in new security projects. For example, energy company EG.D (part of the E.ON group) deployed LiDAR to improve the safety and security of electricity substations across its network.
The demand for LiDAR in perimeter security continues to grow. Analysts value the global market at USD 1.38 billion in 2025, rising to USD 4.07 billion in the next eight years.
Expect to hear more in 2026 about the use of 3D LiDAR detection systems in a wide range of sectors, notably critical infrastructure, aviation and rail, data centres, correctional facilities, warehouses and logistics operations.
Better sharing of video evidence
In the past five years almost every UK police force has either deployed, or is in the process of rolling out, digital evidence management technology. One of the main drivers: making it quicker and easier to electronically request and receive CCTV and other video footage from businesses, particularly those in the retail sector.
The Crime and Policing Bill currently progressing through parliament would repeal the ‘immunity’ afforded to shoplifters stealing goods valued at £200 or less. Furthermore, the British Retail Consortium (BRC) now recommends that retailers report every crime, assuring a coming increase in the volume of video evidence to be shared in 2026. In addition, the National Police Chiefs’ Council’s‘ Retail Crime Action Plan’ states that ‘retailers should send CCTV footage of the whole incident and an image of the shoplifter via the digital evidence management system as quickly as possible after an offence has been committed.’
Retailers are investing heavily and the BRC estimates the cost of crime prevention at £1.8 billion per year, a 52% increase from 2022/23. Given these changes, the VSaaS model is an attractive proposition for a growing number of retailers. This shift to a cloud-first strategy will support the work being done by police forces. It will also mean that larger chains with centralised control rooms can retrieve and submit footage from individual stores faster, while smaller retailers will be able to share footage more efficiently, without the need to save it to a USB or disc.
The latest VMS solutions also support the integration of body-worn video, which is being widely adopted by retailers (particularly larger businesses in the UK) both for in-store and delivery staff.
Riding the regulatory rollercoaster
The coming year promises major changes in the regulatory landscape for the physical security industry. In addition to the Crime and Policing Bill, other relevant legislation includes the UK’s Terrorism (Protection of Premises) Act 2025 (Martyn’s Law), the KRITIS-Dachgesetz, which impacts critical infrastructure operations in Germany, and the EU AI Act, which is currently being amended by the European Commission.
The next 12 months promises to be a year of innovation, investment and improvement in physical security. For organisations large and small, there will be access to highly advanced technologies and deployment models that were either unaffordable or inconceivable just a few years ago.
Andreas Beerbaum is the VP of global sales and services, physical security, for Hexagon’s Safety, Infrastructure & Geospatial division and a key leader behind Octave, the proposed software spin-off from Hexagon AB. Octave’s portfolio will help customers design, build, operate and protect more effectively, enabling clearer insights and better incident response.
For more Hexagon news, click here
