Study: PSIM market to grow to $2.8b by 2021
A couple days after PSIM maker VidSys touted one aspect of the new Frost & Sullivan PSIM study, F&S itself today sent out a release about this study.
The projections are most interesting part of the release, I think. F&S projects the global PSIM market is set to grow from a $142.9 million in 2011 to a $2.79 billion by 2021.
When I spoke to VidSys CTO James Chong the other day, he said that his company’s commercial business is on the rise. The Frost & Sullivan study says that’s the way it’s going to go. Revenue generation from will shift from solely to include more critical infrastructure to first responders and commercial entities in the future.
The biggest driver will be “word of mouth” about PSIM capabilities, the study says. Frost and Sullivan even gave that phrase its very own acronym—“WOM.” That’s a new one for me.
There’s not a lot of WOM yet, because most enterprises are still grappling with the convergence of physical security and IT security.
From the news release: "The majority of security integrators are focused on solutions they are used to and their unwillingness to learn information technology and implement software products is restraining the PSIM market," explains [Krzysztof] Rutkowski. "This is a major challenge because awareness of customers may not be improved by the systems integrators."
As such, being a well established player in the PSIM and security market is crucial for market success. Value added products will be able to capture more of the market share.
"Being well recognized in the market sends a positive message to the customers on expertise and future reliability in terms of installation and upgrades support," says Rutkowski. "Another key aspect to success is the value a PSIM provider can add to the solution i.e. a computer-aided dispatch (CAD) option or a command and control (C2) centre."
The study advises video and access control systems companies to "tie up with PSIM players" to avoid being edged out.