US a strong player in global PSIM market to 2024

ALBANY, N.Y.—A new report from Transparency Market Research projects that the global PSIM market will grow from $823 million in 2015 to about $3.8 billion by 2024, at an 18.7 percent CAGR, with the North American segment commanding a large presence throughout.

“In the U.S., the market is largely driven by more demand for situation awareness,” Yogendra Chauhan, assistant manager—information and communication technologies with TMR, told Security Systems News. This is because of “real-time data where the companies are looking for solutions that will help them not only mitigate possible threats, but at the same time have more input in terms of the analytics for the future.”

TMR predicts that more real-time analytic solutions will be integrated into PSIM solutions, reducing the number of interfaces a user would need to review, according to Chauhan.

Growing at a roughly 18 percent CAGR over the time period, the North American market will grow from around $284 million to near $1.3 billion by 2024. The North American market will make up about 33 percent of the global market in 2024.

The Asia-Pacific region will see a faster growth rate during this forecast period, causing the North American market share to drop slightly by 2024—about one percent. North America will still be the market leading geography.

One of the global drivers for the market is “a growing demand for centralized security,” according to Prasad Chougule, TMR's research analyst—information and communication technologies, told SSN. “There are so many disparate security systems, and companies or organizations are trying to find a centralized solution so that they can manage and control the entire security system with just a single user interface.”

The report examines several key end user categories, including retail, BFSI, telecom and IT, government, hospitality, industry manufacturing, energy, and health care. Chauhan said he expects retail to see a high growth rate in the market, but for government to remain the largest share to 2024.

Technologies in the PSIM market are trending toward zero latency, Chougule said, which can help users “enhance their incident management and situational awareness.”

TMR also expects PSIM adoption to increase among emerging economies, such as in India, the Middle East and Africa. “In these regions there are a lot of security threats present, and government and cities are trying to implement a secure solution so they can provide … security to their citizens,” Chougule said.

High costs that are associated with PSIM deployments, including required hardware and on-premise installation, could inhibit the market, according to Chauhan.

Another factor that hinders the market growth is the lack of a universal solution that brings together all disparate systems. “For the very same reason, we see a lot of third party service providers—the integrators, the value-add resellers—who are further customizing … PSIM solutions to fill the gap,” Chauhan said.