PSIM market growth projected in North America
LONDON—The PSIM market in North America will grow from $3.6 billion in 2015 to around $4.9 billion in 2019, according to a new TechNavio report.
Physical security information management, or PSIM, is software that provides a platform so that a number of unconnected security applications and devices can be controlled through one interface.
If TechNavio’s growth production holds, the CAGR for PSIM in North America over the next four years would be 7.2 percent, senior industry analyst, Amrita Choudhury told Security Systems News.
“Consumers are getting aware that they need PSIM,” said Choudhury, and that’s a main market driver.
Another driver for the North American PSIM market is the need for protection against expanding criminal activities, including theft, unauthorized data access or manipulation and terrorism.
High investment costs of PSIM systems and the extensive training needed to operate the system are possible inhibitors to this market, Choudhury said. The PSIM market may also be vulnerable to competition from other, less expensive security solutions.
In 2014, the North American PSIM market was segmented between about 35 percent software and 65 percent services, Choudhury explained.
Yet, despite this, “Our estimates say that [the North American market] is more inclined toward services than software.” As such, expanding services such as consulting, training and providing technical support could be a prime market opportunity in the upcoming years.
“Mergers and acquisitions could be another way to increase revenue of the leading vendors,” in the PSIM market, Choudhury said.
To further diversify offerings PSIM providers would likely target companies that focus on new capabilities she said.
PSIM vendors offering customized solutions may be another market opportunity in North America, according to Choudhury.
Choudhury noted NICE Systems, Tyco Systems, CNL Software and Vidsys as the key vendors in this space.
She also listed AxxonSoft, Genetec, Intergraph, Mer, Milestone Systems, Verint Systems, videoNEXT and Network Solutions as other prominent vendors in the market.