This latest report shows that short-term growth expectations are slightly lower than forecast in the previous edition of the IMS Research report. In addition to the limited awareness of the platform, confusion over the definition of PSIM and, more importantly, what it does, remains a key limitation to faster growth.

Research Manager and report author Niall Jenkins commented: “Growth forecasts for Physical Security Information Management 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. 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.”

Despite these challenges, IMS Research predicts that the longer-term opportunities for the market remain strong, especially in emerging regions such as Latin America, the Middle East, India and China.

“By 2014, the market is predicted to be back on track with previous forecasts,” continues Jenkins. “Customer referrals will continue to be a strong sales generator with vendors specialising 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.”