2.1 Market trends & developments
External developments shape the opportunities and challenges clients face. We continuously monitor trends to stay agile and create forward-looking solutions that help our customers stay ahead. By anticipating and responding to changing dynamics, we also ensure the resilience and continuity of our company. These include shifting customer needs, emerging (AI) technologies, changing compliance requirements, and a volatile geopolitical landscape.
Demographic developments
Across the world, structural labor shortages challenge organizations to transform their business models. In healthcare, the labor shortage issue is exacerbated by an aging population, which increases demand for care and shrinks the workforce. In livestock, dairy farmers face pressure to meet the growing demand for dairy despite limited labor availability. Retailers are struggling to meet their workforce needs, which compromises customer experience and business performance. Organizations face heightened security pressures, needing to safeguard people, buildings, and assets amid high staff turnover.
These developments create a growing need for automation. Meeting customer needs requires continuous investments in innovation, as well as a thoughtful approach to our platform solutions, where hardware and software solutions complement each other to optimize and automate processes. The integration of AI into our solutions will also open up new opportunities for automation.
AI
AI has the potential to transform how professionals work, improving efficiency, driving more informed decision-making, and enabling better outcomes. In healthcare, AI can reduce workload-related pressure and stress experienced by healthcare professionals by streamlining and automating administrative tasks. At the same time, the use of AI in healthcare is subject to heightened regulatory, ethical, and societal scrutiny. In Europe, the regulatory framework for AI in healthcare is evolving and emphasizes safety, transparency, and accountability. As a result, integrating AI into our technologies requires careful consideration and robust risk management. At Nedap, we develop AI-enabled features in a responsible and controlled manner, with a focus on transparency, security, and long-term trust. We also actively engage in dialogue with policymakers to help shape an innovative climate that supports responsible AI adoption in healthcare.
Geopolitical landscape
The geopolitical landscape remained volatile, causing uncertainty and impacting global business. In 2025, the impact of US tariff policy on Nedap was limited. Demand for our products in the US has remained solid.
Our subscription-based services make us more resilient, with lower one-off costs and lower risk for customers. Nedap's organization-wide focus on bringing supply chains closer to the customer also contributes to our resilience. For the Security business unit, ongoing geopolitical tensions drive consistent demand for access control systems that protect people, buildings, and assets.
Compliance and risk
Regulation continues to change, and requirements differ by region and industry. Keeping up with these changes requires ongoing attention and investments. Our security practices are aligned with well-established security frameworks and help us operate confidently in regulated markets.
At EU level, the Network and Information Security Directive (NIS2) has entered into force, although various member states, including The Netherlands, have not yet adopted national NIS2 transposition legislation. The Dutch cyber security law (“Cyberbeveiligingswet”; Cbw) is this proposed transposition law. The Cbw is expected to be adopted by the parliament in 2026, with possible phased implementation. Nedap closely monitors developments and is prepared for this new law to enter into force.
The EU AI Act introduces new rules for how AI systems are developed and used. Nedap has an AI policy in place that provides guidance on the responsible use of AI within the company and within our products. This policy supports decision-making that is consistent with the AI Act and other applicable laws and regulations.
In terms of data protection, we see a growing demand for local and regional data hosting. Nedap already supports hosting on European or sovereign cloud solutions. In certain regions, including parts of the Middle East, local hosting requirements may present challenges due to legal or operational constraints. We actively monitor these developments and work with customers to identify appropriate solutions.