2.5 Key markets

Healthcare

In Healthcare, Nedap develops and markets SaaS solutions and care technology products that support healthcare institutions in the Netherlands in planning, registering, and administering care processes. With our solutions, we work toward a sustainable healthcare system.

Market developments

The Dutch healthcare system will undergo a major transition over the coming years. Growing demand for care, combined with fewer people to provide it, requires a shift toward an interconnected healthcare system and coordination and collaboration among professional and informal caregivers. This shift will be supported by interoperable and standardized technology.

While the shift to this new operating model for delivering and coordinating healthcare, known as network care, is still in its early stages, progress is accelerating. Network care depends on seamless information exchange among care providers, with general practitioners (GPs) playing a crucial role as gatekeepers and care coordinators.

There is also an urgent need for solutions that relieve pressure on healthcare professionals and make their work more meaningful. AI can support this by automating administrative tasks and optimizing workflows. The current regulatory landscape for integrating AI into healthcare solutions requires a careful approach.

Highlights

Nedap maintains a leading position in elderly care, disabled care, mental healthcare, and domestic help in the Netherlands. In 2025, we strengthened our market position in all sectors, with notable gains in the disabled care and mental healthcare sectors. We also entered the youth care sector. Given the significant overlap with disabled care and mental healthcare, the addition of youth care enables us to enhance service quality for existing customers. It also aligns with our strategic focus on network care.

Our Ons® Suite continues to be the leading contributor to revenue and performance. Among existing customers, we observed the expanded use of our Ons® Suite, both in the number of users and adoption of functionalities. Ons® Platform has contributed to this growth. Customers value the ability to seamlessly integrate vetted third-party software, preventing duplication of work and reducing operational complexity. Through Ons® Platform, Ons® Suite can be extended with a range of software applications, including AI-enabled services such as agentic voice communication and speech reporting. These secure services transform speech into accurate and high-quality reports, reducing the administrative burden for healthcare providers.

The scaling of MediKIT and Luna was also a factor in our revenue growth. The adoption of MediKIT by large GP organizations shows confidence in our solution and helps move the transition to network care forward. Luna, an electronic day calendar that helps people with cognitive disabilities manage activities of daily life, experienced rapid growth. Insurance coverage for Luna combined with our readiness to scale resulted in widespread adoption.

Organization

We continued to execute our strategic roadmap in 2025, with facilitating the transition to an integrated healthcare system as a central theme. The roadmap was developed with input from customers and sector organizations and provides visibility into our development priorities in the years ahead, supporting alignment across the healthcare ecosystem.

Outlook

We expect to continue our upward trajectory in 2026. Our strengthening market position brings both opportunity and responsibility. We will continue investing in the quality, stability, and scalability of our Ons® Suite, recognizing its role as critical infrastructure in the Dutch healthcare system. By prioritizing client-centric product enhancements, we aim to accelerate the adoption of MediKIT. At the business unit level, we will explore how we can better align our business model with the network care vision. The goal is to make our solutions accessible to a larger target group, so that we can drive meaningful change across the entire healthcare sector. Our revenue outlook is positive, and we have set ambitious growth objectives.

Network care remains a priority. As an active participant in the Nuts initiative, we will continue to expand secure data exchange across healthcare organizations. True to our purpose of Technology for Life, we will choose the best and most just way forward, going beyond developing reliable technology to create highly relevant and effective solutions. Part of our role is to advocate for innovation in healthcare, including through dialogue with policymakers at both European and national level to help shape the regulatory framework. The European Health Data Space (EHDS) is one development we are monitoring, as it may offer new opportunities for innovation in healthcare data management.

Livestock

In Livestock, Nedap develops technological solutions for the dairy farming industry worldwide. Alongside our network of global and local business partners, we serve dairy farmers with sensor-based cow monitoring and management solutions that improve life on the farm.

Market developments

Market conditions improved in 2025. Dairy farmers experienced higher milk prices and relatively lower costs, positively impacting investment appetite. This pattern was largely consistent across the world, with the exception of China. Economic challenges there continue despite initial signs of improvement. Tariffs and other changes in international trade dynamics had a limited impact on our performance.

With global milk demand expected to increase by 50% by 2050, the dairy industry needs to increase milk production while simultaneously navigating labor shortages, sustainability pressures, animal welfare, and compliance. This is prompting dairy farmers to rethink their operating model. We observe a move toward consolidation, resulting in larger dairy farms. The need to do more with less is driving the automation of repetitive tasks, and real-time data is becoming crucial to managing operations. As a result of these developments, the adoption of cow monitoring is accelerating, unlocking the potential of Digital Twin Technology to address dairy farmers’ biggest challenges.

Highlights

Revenue increased in 2025 driven by favorable market conditions, improved investment appetite, and a portfolio that meets the needs of dairy farmers globally. Overall revenue growth was outpaced by the growth in recurring revenue due to the adoption of as-a-service solutions such as SmartSight.

The expansion of our SmartTag range with SmartTag Ear has brought more farmers access to our proven technology, strengthening our market position. Our SmartSort sorting gate, which continued to gain traction in 2025, also increased SmartTag demand as the solutions work together to turn insight into action. Our boots on the ground approach with local teams supporting business partners and end-users contributed to customer satisfaction and success, an important factor in the adoption of our solutions.

The new and fully automated SmartTags production facility located at our Nedap Campus in the Netherlands is nearing completion. The facility will enable us to scale and speed up production as demand for our SmartTags grows.

We made significant investments in the Nedap Cow Monitoring Platform, establishing an integrated, modular platform that connects our sensors, insights, and automation tools to create unique solutions. Our platform focus in 2025 positions us to deliver greater value for business partners and dairy farmers while growing the value we capture per cow monitored on our platform.

The introduction of SmartSight marked an important milestone in 2025. SmartSight is an AI-driven innovation that uses computer vision to deliver actionable insights on cow health. The first application is Locomotion Monitoring and is used for early detection of lameness, which is one of the most costly and challenging issues in dairy farming. The launch in early October 2025 followed years of development and testing in close collaboration with dairy farmers. At the end of 2025, SmartSight was monitoring more than 50,000 dairy cows. The integration of SmartSight technology into our cow monitoring platform unlocks new valuable functionality for farmers, who have more tools and insights at their disposal to optimize the well-being and performance of each individual cow.

Organization

Our efforts to create a scalable organization with distinct teams and focus areas have proven effective. One focus is on helping customers maximize the value from the Nedap Cow Monitoring Platform with support from our local teams and partners. Another is on validating growth opportunities and developing minimum viable products. This approach ensures we optimize customer outcomes today while developing new solutions for future needs.

As a future-ready supply chain is essential to achieving our growth objectives, we advanced our supply chain initiative to maximize the availability and quality of our hardware products.

Outlook

We are well positioned to build upon our success, while recognizing that market conditions in 2026 are expected to become more challenging due to lower milk prices and geopolitical tensions. At the same time, labor shortages, regulatory pressure, sustainability expectations, and animal welfare standards continue to drive the need for greater efficiency, accelerating the adoption of cow monitoring and automation.

Our sales pipeline remains robust, and our focus remains on executing our platform strategy by combining sensors, software, and automation to reduce workload, improve efficiency, and enhance individual cow welfare. The distinctive value delivered through cow monitoring continues to drive adoption of SmartTag and our broader portfolio, while we expand Locomotion Monitoring and develop new SmartSight use cases.

Supported by an established global and local business partner network and teams close to the customer, we believe we are well positioned for the year ahead. While short-term market conditions may remain volatile, the long-term outlook remains positive.

Retail

In Retail, Nedap develops innovative inventory management solutions and serves retailers globally. Our Digital Twin Technology turns real-time data from across the retail chain into operational insights. With these insights, retailers drive sales, lower costs, and reduce losses, all while delivering seamless omnichannel retail experiences.

Market developments

The global retail market developed positively in 2025, marked by increasing investment appetite across all our regions. This was particularly evident in North America, with more retailers pursuing large-scale innovation projects.

Customer demand remains centered around inventory visibility, omnichannel retail, and the automation of core processes. Retailers are automating processes to adapt to a tight labor market and high employee turnover, and to maintain high-quality shopping experiences with leaner teams. Examples include the introduction of overhead readers to replace manual counts, as well as the adoption of self-checkout solutions.

Among fashion retailers, self-checkout solutions gained significant momentum in 2025. This service has become a customer expectation across many retail categories. At the same time, retailers benefit from improved operational efficiency and customer flows.

Highlights

Both overall and recurring revenue grew in 2025 compared with 2024. We closed new enterprise contracts with leading retailers, including Abercrombie & Fitch, Capri Group, Hema, and Aritzia, and we renewed contracts with Celio, lululemon, Mountain Warehouse, and Under Armour.

Our traditional RF systems remain a stable driver of our business. Targeted investments in our iSense operating system ensure that our RF solutions continue to meet the needs of our customers, with new software-based features that do not require additional investments in hardware. Meanwhile, the transition from RF to RFID is accelerating. Our iD Cloud platform addresses the growing demand for integrated inventory management solutions, with RFID as a foundational technology. In addition to iD Cloud Store, we see the steady, continued adoption of iD Cloud Supply Chain for item-level visibility across the supply chain.

We accelerated the development of our fixed RFID overhead solution for continuous, automated inventory tracking. This solution provides real-time insight into product availability and location, enabling retailers to proactively replenish their stock, improve in-store availability, and reduce excess inventory. The ability of the overhead solution to drive sales, lower costs, and improve the experience of customers and staff makes scaling this solution a strategic priority.

In response to customer feedback, we began providing early access to new software releases. By doing so, we support our enterprise customers in the seamless implementation of software updates, allowing sufficient time for testing and training.

Our point-of-sale and self-checkout RFID solutions, iD POS Pro and iD SCO Pro, went live in 2025. Five global retailers are participating in a large-scale proof of concept. One retailer launched self-checkout in several of its new flagship stores. Leveraging our deep understanding of customer needs and expertise in both RF and RFID technology, we developed a solution compatible with both technologies. Instead of migrating from RF to RFID all at once, our solution allows for a gradual transition by automatically deactivating RF-based tags at checkout. This significantly improves the business case for retailers. Following the successful proofs of concept, we are prepared to scale these solutions in the year ahead.

Organization

We increased our focus on customer engagement in 2025. With a dedicated North American team now in place alongside our European operations, we are able to support customers globally with the efficient deployment and adoption of our solutions. These teams work with our customers to optimize the performance of individual solutions, leverage our iD Cloud platform capabilities, and maximize their return on investment. At the same time, our new business teams remain essential to onboarding new clients onto the iD Cloud platform.

A recent deployment of our RFID-based EAS solution for a large supermarket chain in southern Europe led to the development of a new GHG emission compensation model for our solutions. The model covers GHG emissions from production to installation, as well as the equivalent of up to 10 years of energy consumption. We plan to develop this model into a customer offering. In addition to making our customers’ business models more sustainable, it also serves as an internal incentive to further optimize the energy efficiency of our solutions.

Outlook

We aim for double-digit growth in recurring revenue, driven mainly by our increasingly integrated portfolio of solutions. Our solutions work standalone or as part of an integrated inventory management platform that evolves with retailers’ needs. This allows us to add more value for retailers, as well as increase customer lifetime value. Targeted investments in our Sense solutions, the scaling of our RFID-based POS and autonomous overhead solutions, and the onboarding of customers onto iD Cloud are priorities for the year ahead. Together, our solutions create a digital twin of the physical retail environment: a single source of truth that helps retailers operate with clarity and confidence. This is a key market differentiator and a significant opportunity for growth. For 2026, we expect continued revenue growth.

Security

In Security, Nedap develops access management solutions used by leading organizations to secure people, buildings, and assets. Beyond protection, our solutions support digital transformation by turning access points into data sources, generating insights that inform better business decisions and enhance the user experience. Nedap maintains a leading market position in Europe and the Middle East.

Market developments

The security market remained stable in 2025, with large organizations continuing to rely on Nedap for their access management needs. At the same time, we are guiding customers through the transition from traditional on-premises systems to cloud-native platforms. For many customers, this shift represents more than a technology upgrade. They see the value of our systems to advance their digital transformation programs, where security delivers both protection and intelligence. Access points and interactions with security assets become data sources, and the integration of AI and analytics capabilities turns that data into insights to improve forecasting, planning, and other business processes.

Customers also view security systems in the context of the user experience, considering how employees, visitors, and other building users such as patients interact with their spaces. They look to our teams to create solutions combining hardware and software to both meet their security requirements and create a seamless experience for building users.

Highlights

Revenue increased in 2025 compared with 2024. Our on-premises access control system AEOS remains a stable driver of our business. The integration of the Nedap reader portfolio into the Security business unit has strengthened our commercial capabilities and provided new avenues for growth.

Recurring revenue as a share of total revenue continued to grow. With the scaling of cloud-based solutions including Access AtWork, Pace, and Mobile Access, we expect this trend to accelerate. Following the successful launch of Mobile Access in 2024, we initiated proofs of concept with several companies in 2025. These proofs of concept resulted in multiple long-term contracts, including a contract with ADNOC. Customers cite the frictionless experience that Mobile Access offers. The integration of Mobile Access with Google Wallet in 2025 has made our solution accessible to a larger customer base and accelerated adoption.

We continued to scale our physical identity and access management (PIAM) solution Pace. Our customers have been a valuable source of input. Their requirements, including the integration of credential and identity management into our PIAM platform, have informed our development efforts. The adoption of Pace in 2025 is evidence of the relevance of Digital Twin Technology for enterprise security management.

Within access control, AEOS maintained its position as critical security infrastructure. We remain focused on keeping the solution safe, secure, and reliable, ensuring long-term value for customers. At the same time, we supported customers in the transition to Access AtWork.

Organization

Customer centricity remains a hallmark of our business unit. As we diversify our business model from on-premises hardware to include SaaS, customers become a continuous source of insight, shaping how we deliver value. We are committed to maintaining a clear product and technology vision while remaining agile and responsive to customers’ evolving needs. The establishment of a SaaS commercial team in 2025 will support the alignment of product development with customer expectations moving forward.

Outlook

We are well positioned to seize emerging opportunities in the year ahead and expect continued revenue growth in 2026. Demand for our access control solutions remains robust, our Mobile Access pipeline is well-filled, and customer-centric enhancements to Pace are expected to accelerate adoption. Access AtWork will be expanded with features tailored to the mid-market companies and enterprises, expanding our reach. We are actively experimenting with the use of AI and data analytics to deliver both protection and intelligence through our access management solutions. As we continue to learn, test, and refine these capabilities, we are positioning Nedap not just as a security provider, but as a forward-thinking partner helping organizations optimize their operations and deliver seamless experiences.