Physical Security Information Management (PSIM) Market

[293 Pages Report] The global physical security information management market size is projected to grow from USD 3.5 billion in 2024 to USD 4.3 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 4.6% during the forecast period. The integration of PSIM into smart city initiatives is driving significant growth in the PSIM market as PSIM plays a pivotal role in smart cities by integrating security and traffic systems, enhancing traffic management, and public safety monitoring.

Additionally, the complexity of security systems across industries has also propelled PSIM adoption, unifying diverse security components into centralized interfaces. This integration enhances real-time monitoring and incident response, supporting modern urban security needs efficiently. As organizations prioritize integrated security strategies and smart city development continues to expand, the demand for PSIM to support diverse security requirements is expected to rise exponentially.

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Physical Security Information Management Market Dynamics

Driver: Escalating Cyber Threats Drive PSIM Adoption

With the increasing frequency and complexity of physical cyberattacks globally, businesses and organizations are increasingly turning to advanced security solutions such as PSIM to bolster their defenses and safeguard critical networked systems. For instance, research from PwC indicates that 57% of fraud involves company insiders, highlighting the potential threat posed by employees to physical security. To address these risks, organizations are implementing access control systems, video surveillance, and intrusion detection management, leading to a rising demand for PSIM software. Similarly, data from the FBI's Internet Crime Complaint Center (IC3) in 2023 revealed a 10% increase in cybercrime complaints and a historical peak of USD 12.5 billion in losses, highlighting the growing impact of cyber threats on businesses and individuals. This escalating cyber risk landscape is driving the adoption of PSIM as an integral component of comprehensive security strategies aimed at mitigating the impact of evolving cyber threats worldwide.

Restraint: Lack of Standardization Hinders PSIM Growth

The absence of standardization poses a significant obstacle to PSIM growth. Without established standards for security systems, PSIM manufacturers face challenges in interoperability and integration, leading to increased time and costs. Additionally, the lack of standardized support hampers seamless connectivity with diverse security subsystems. While efforts are made to establish standards, practical implementation remains conceptual, delaying advancements in PSIM interoperability.

Opportunity: Cloud-based PSIM Revolutionizes Security Management

Amidst the increasing complexity of security systems across industries, the adoption of cloud-based PSIM solutions presents a significant opportunity for growth. These solutions offer remote accessibility, automated processes, and user-friendly interfaces accessible via web browsers, enhancing situational awareness and operational efficiency. For instance, easypsim Cloud eliminates the need for on-premises software per site, enabling cost-effective integration of multiple small sites into centralized security control centers. Moreover, collaborations like the integration between SureView Systems and Calipsa leverage advanced technologies like deep-learning powered video analytics to optimize security operations. As organizations seek scalable, cost-efficient security solutions, cloud-based PSIM emerges as a transformative technology driving the evolution of security management towards unified, intelligent, and agile systems.

Challenge: Skilled Workforce Shortage Impedes PSIM Adoption

The shortage of skilled professionals poses a significant challenge to the growth and adoption of PSIM. With a global workforce gap of nearly 4 million, organizations struggle to recruit and retain experts proficient in security systems, data analytics, and software integration essential for deploying and managing PSIM solutions effectively. This shortage hampers deployment timelines and effectiveness, limiting organizations' ability to leverage PSIM capabilities for enhanced security operations. As organizations navigate economic uncertainties and a challenging threat landscape, closing the skills gap remains crucial for driving the successful implementation and advancement of PSIM technologies in the security market.

Physical Security Information Management Market Ecosystem

By vertical, retail & ecommerce is expected to grow at the highest CAGR during the forecast period.

The retail & e-commerce segment is experiencing the fastest growth in the PSIM market due to the substantial transformation of the retail landscape and the increasing demand for enhanced security measures. As online shopping giants reshape the industry, brick-and-mortar stores are compelled to innovate their strategies for improved customer experiences and digital integration. With physical stores evolving into experience-driven destinations, there's a growing emphasis on seamless omnichannel experiences and heightened security. PSIM emerges as a unified platform to navigate this landscape by integrating various security subsystems within retail establishments. From managing lighting, HVAC, and automatic doors to monitoring fire detection systems and CCTV cameras, PSIM provides real-time visibility and control over security measures. In the e-commerce sector, PSIM enhances security protocols by integrating with digital surveillance systems, ensuring the safety of inventory and personnel in warehouses and distribution centers. This convergence of retail and e-commerce dynamics drives the rapid adoption of PSIM solutions to address evolving security challenges effectively.

By software type, the fire safety and alarms is expected to grow at the highest CAGR during the forecast period.

The fire safety and alarms sector is poised to experience rapid growth, driven by the critical importance of integrating fire safety measures within PSIM platforms for comprehensive security and safety management. As demonstrated by various incidents, including the urgency highlighted by the Parkland high school shooting, seamless coordination between fire safety systems and security measures within PSIM frameworks is imperative to ensure occupant safety during emergencies. Integrating fire safety and alarms into PSIM enables real-time monitoring and swift response to fire-related incidents, offering organizations a holistic security approach encompassing fire prevention and emergency response coordination. With an increasing emphasis on holistic security solutions, there is a growing demand for PSIM solutions with integrated fire safety and alarm features. Leading providers like AxxonSoft exemplify this integration, offering comprehensive fire alarm monitoring and response capabilities within their PSIM platforms. This convergence of fire safety and security management strategies underscores the necessity and effectiveness of integrating fire safety within PSIM solutions.

By region, North America accounts for the highest market size during the forecast period.

North America is expected to hold the largest market share in the PSIM market due to its heightened security concerns and technological advancements. With rising security threats and incidents, there's a pressing need for sophisticated and integrated security solutions, which PSIM addresses by offering a comprehensive approach. Additionally, the growing adoption of cloud-based PSIM solutions in the region, with their scalability, affordability, and easier deployment, further contributes to the market dominance. Moreover, collaborations between leading PSIM providers and technology partners have introduced innovative integrations, enhancing PSIM capabilities and making them more appealing to North American organizations. Furthermore, companies like Genetec Inc. are focusing on advancing PSIM technology in critical sectors such as transportation, commercial enterprises, government, and healthcare, driving the adoption of integrated intelligence solutions in the region. These factors collectively position North America at the forefront of PSIM market growth and adoption.

The key players in the physical security information management market are Hexagon AB (Sweden), Honeywell (US), Hikvision (China), Everbridge (US), Axxonsoft (Ireland), Genetec (Canada), Advancis (Germany), Entelec (Belgium), Verint (US), Vidsys (US), and others.

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Scope of the Report

The study categorizes the physical security information management market by segments - offering, software type, organization size, vertical, and region.

By Offering:

• Software
• Services

By Software Type:

• Access Control
• Video Management
• Intrusion Detection Management
• Fire Safety and Alarms
• GIS Mapping System
• HVAC

By Deployment Mode:

• On-Premises
• Cloud

By Organization Size:

• SMEs
• Large Enterprises

Vertical:

• Banking, Financial Services, and Insurance (BFSI)
• IT & ITeS
• Government
• Healthcare
• Retail and eCommerce
• Residential
• Transportation and Logistics
• Other Verticals

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America

Recent Developments

• In December 2023, Genetec announced a new version of its flagship unified security platform, Security Center, embracing a continuous delivery model for rapid innovation. Enhancements included new mapping features for smoother operator experiences in large deployments and simplified authentication setup, setting the stage for advanced workflow capabilities to streamline system management.
• In November 2023, Hikvision introduced HikCentral Professional 2.5, an upgraded integrated security management software. This release offers versatile add-on applications through the App Market, expanding functionalities for diverse business needs. The software enhances operational efficiency with simplified operations, user-friendly interfaces, and strong integration capabilities using OpenAPIs for seamless system integration and third-party device management.
• In March 2023, Advancis introduced WinGuard X5, a vendor-neutral PSIM software featuring a new core and advanced capabilities. Built on the Advancis Open Platform (AOP), it supports third-party development for customized interfaces and functions. This release empowered users to scale deployments flexibly and extend functionalities with modern APIs.
• In September 2022, AxxonSoft introduced Axxon PSIM version 1.0, a comprehensive software platform integrating video surveillance, AI video analytics, access control, fire/security alarm systems, and industry-specific solutions. This modular PSIM enables tailored security solutions, selecting required modules for site-specific needs, offering integration with diverse security devices and protocols, and supporting limitless scalability and reliability for large-scale deployments.

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