The European video surveillance market in 2025 is being shaped by two powerful forces:the General Data Protection Regulation (GDPR) and the EU Artificial Intelligence (AI) Act.
The European video surveillance market in 2025 is being shaped by two powerful forces: regulatory frameworks such as the General Data Protection Regulation (GDPR) and the EU Artificial Intelligence (AI) Act, and a steady shift toward AI-driven hybrid systems that balance performance with privacy.
For physical security systems integrators and consultants, these developments are redefining how technology is designed, deployed, and trusted across the region.
Regulation driving responsible innovation
The impact of GDPR on video surveillance is now well understood. What began as a privacy regulation has evolved into a foundation for ethical data management and system design. According to Steven Kenny, Manager of the Architect & Engineering (A&E) Program, EMEA, at Axis Communications, “GDPR set a high bar and continues to shape the way data is handled, stored, and protected.”
Kenny explained that GDPR’s maturity has had a ripple effect on video analytics, particularly those with artificial intelligence capabilities. “Today’s analytics applications categorise behaviour, identify vehicles, or even display demographic traits, thanks to training on extensive datasets,” he said. “The EU AI Act is forcing organisations to look more closely at how that training occurs. What data was used? Was it collected and labelled ethically? Are there biases hidden in the dataset that could lead to profiling?”
These questions are central to how the EU AI Act seeks to prevent discrimination and misuse of data. Kenny noted, “We’ve all seen the consequences of poor data practices – from high-profile scandals like Cambridge Analytica to unlawful examples of discriminatory profiling – and the EU AI Act is designed to stop that at the source.”
David Needham, EMEA Business Development Manager at Axis Communications, added that these regulations are not stifling innovation but guiding it toward safer, more transparent practices. “With GDPR and the AI Act now working together, innovation in video surveillance has been contained within clear ethical boundaries,” he said. “Privacy, human rights, and transparency aren’t barriers anymore, because they’re built into the process from the start.”
This shift has increased customer confidence in technology vendors. “End users can now have far greater trust that technology vendors are developing solutions responsibly under frameworks that demand accountability and fairness. If they fail to do so, the penalties can be severe,” Needham emphasized.
For many manufacturers, the alignment of innovation with regulation has become a competitive advantage. Christian Cabirol, Chief Technology Officer at MOBOTIX AG, said, “At MOBOTIX, we see GDPR and the EU AI Act not as limitations, but as accelerators of responsible innovation. These frameworks are setting new benchmarks for trust, transparency, and data ethics – all essential pillars of modern video technology.”
Cabirol added that the company’s long-standing emphasis on privacy aligns with this direction.
“‘Made in Germany’ has always meant ‘privacy by design’ for us: decentralized architectures, on-edge processing, and encrypted data flows are core to our development philosophy. The AI Act will further strengthen this approach by rewarding solutions that combine intelligence with accountability – an area where MOBOTIX has been leading for years.”
AI, cloud, and hybrid systems gaining ground
Across Europe, artificial intelligence is becoming a defining feature of modern surveillance systems. As AI capabilities mature, their role in efficiency and operational decision-making is expanding. “We’ve seen a surge of AI adoption in Europe because users are coming around to the efficiencies it can bring,” said Needham.
He pointed to practical applications of AI in surveillance management: “For example, AXIS Camera Station Pro includes a function called Free Text Search, which uses AI to let operators type a simple description like ‘DHL van’ or ‘man wearing a blue hat’ and instantly locate matching footage. What might once have taken hours of scouring footage can now be done in seconds.”
This kind of functionality illustrates the potential of AI to improve situational awareness and response time. However, Needham cautioned that education remains crucial.
“Despite the momentum, there’s still a degree of anxiety around AI. Manufacturers need to provide clearer education and guidance to help users understand both the advantages and limitations of AI.”
One key consideration is processing power. “Processing power is often overlooked; advanced analytics naturally place greater demand on servers, but this can be alleviated by the application of specialist hardware or analytics suited to run on the network edge,” he said.
AI adoption is also being reinforced by the growth of hybrid and cloud-based video systems. “Cloud adoption is growing, though perhaps more steadily than early forecasts suggested,” Needham explained. “Cam-to-cloud technologies already offer clear benefits for certain types of deployment, and their role is set to expand in the coming years.”
The hybrid model, combining local and cloud-based infrastructure, is currently the dominant approach across Europe. “Most organisations are choosing hybrid topologies which combine a mixture of on-premise and cloud infrastructure,” Needham noted. “Many end users want to record video locally to reduce bandwidth and cloud storage costs, but also want the option to record directly to the cloud in case local storage fails – something we provide as part of AXIS Camera Station Edge.”
Hybrid systems are seen as a practical balance between reliability, flexibility, and scalability – a combination especially attractive for multi-site operations or organisations seeking to future-proof their investments.
Cabirol from MOBOTIX agreed that hybrid architectures are becoming the preferred choice for European customers. “We’re seeing steady growth across all three domains, but hybrid systems are gaining the most traction,” he said. “Many customers want the flexibility and scalability of cloud architectures while retaining the control and cybersecurity of on-premises systems.”
He added that MOBOTIX’s modular design supports this balance: “MOBOTIX addresses this balance through our modular approach: from the powerful on-edge AI of our MOBOTIX ONE platform to seamless integration with MOBOTIX HUB and cloud environments. AI is now the foundation of nearly every project – from perimeter protection to predictive maintenance.”
Balancing analytics with compliance
The European market remains particularly sensitive to privacy and compliance, even as demand for intelligent analytics grows. Integrators are expected to deliver systems that extract operational value from video data while remaining within legal frameworks.
Cabirol described this balance as a defining characteristic of the market. “This balance defines the European security market. Customers demand innovation, but not at the cost of compliance,” he said.
He explained how decentralized edge intelligence allows data to be analyzed directly within the camera, minimizing exposure of personal data.
“MOBOTIX enables both: our decentralized edge intelligence allows data to be analyzed directly within the camera, minimizing transmission and storage of personal data. Advanced analytics, such as behavior detection or object classification, can thus operate within GDPR-safe parameters,” he said. “This approach is not only compliant but also operationally efficient and highly scalable.”
Kenny from Axis also emphasized that regulations have become an integral part of technology design. “Innovation in video surveillance has been contained within clear ethical boundaries,” he said. “End users can now have far greater trust that technology vendors are developing solutions responsibly.”
For integrators, this means that compliance is not just a checkbox but a design consideration from project inception. Whether deploying AI-powered cameras or configuring cloud storage, system architects must ensure that data processing, retention, and transmission comply with regional laws.
The road ahead for integrators and consultants
As Europe’s video surveillance market continues to evolve in 2025, the focus is clearly on responsible intelligence. Hybrid topologies are enabling scalable deployments, AI is improving operational efficiency, and regulation is driving ethical innovation.
For physical security integrators, this convergence offers both challenges and opportunities. They must understand the nuances of compliance while designing systems that are adaptable and future-ready. The growing demand for hybrid and edge-based AI systems suggests that technical expertise in these areas will be increasingly valuable.
Needham summed up the trend succinctly: hybrid solutions “will likely continue to dominate, offering a key mix of reliability, flexibility, and scalability.”
Meanwhile, as Cabirol noted, the broader direction of the market points to trust and accountability as competitive differentiators.
“The AI Act will further strengthen this approach by rewarding solutions that combine intelligence with accountability,” he said.
The result is a European surveillance landscape defined not only by technological sophistication but also by ethical maturity. Privacy and performance no longer stand in opposition – they are now intertwined pillars supporting the next generation of intelligent security systems.