IMS Report: Lack of Awareness Stalls PSIM Growth
Global sales of physical security information management (PSIM) more than doubled from 2009 to 2011, but failed to reach $100 million in 2011, according to a report from IMS Research.
The main factor that has held back growth is awareness, the firm said. As a result, IMS has lowered its short-term forecasts for the technology. In addition to limited awareness of the platform, confusion over just what PSIM is and what it does, are preventing faster growth for the technology.
“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,” said Niall Jenkins, IMS research manager and author of the PSIM report. “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.”
Challenges aside, IMS forecasts that longer-tem opportunities in the PSIM market remain strong, particularly in emerging regions like Latin America, the Middle East, India and China.
“By 2014, the market is predicted to be back on track with previous forecasts,” Jenkins said. “Customer referrals will continue to be a strong sales generator with vendors specializing 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.”