The world market for PSIM (Physical Security Information Management) software is estimated to have more than doubled between 2009 and 2011. That is according to a new report from a market research company. However, it remained below $100 million in 2011, with limited awareness identified as the greatest inhibitor of market growth.
Short-term growth expectations are slightly lower than forecast in IMS Research’s previous edition of the report. In addition to the limited awareness of the platform, confusion over the definition of PSIM and, more importantly, what it does, remains a key limitation to faster growth.
Research Manager and report author Niall Jenkins says: “Growth forecasts for PSIM software revenues in 2012 and 2013 are lower than previously expected. In general, the industry has required time to get its message across to potential customers and this remains a challenge. There has also been a lack of new entrants in the market to drive marketing and education of the potential benefits of the technology. This is unusual for new technology markets and is directly related to the upfront cost and resource required to build a PSIM platform creating a high barrier to entry.”
Despite these challenges, the research firm predicts that the longer-term opportunities for the market remain strong, especially in emerging regions such as Latin America, the Middle East, India and China.
Jenkins adds: “By 2014, the market is predicted to be back on track with previous forecasts. Customer referrals will continue to be a strong sales generator with vendors specialising in specific vertical markets by accident as much as by design. A number of vendors have also identified healthcare and high-end commercial as emerging markets for the platform, offering new opportunities for well-placed vendors in the future.”
