No, the Philips Hue Outdoor motion sensor does not necessarily have to be located near the bridge to work. The sensor communicates with the Philips Hue Bridge via the ZigBee protocol, but it can be installed in different places in and around the house as long as it remains within the ZigBee network of the Bridge.

The sensor is wireless and battery-powered, which allows for flexible installation without having to place it directly near the bridge.