The Physical Security Information Management (PSIM) Market is estimated to be valued at USD 4.3 billion in 2025 and is projected to reach USD 20.1 billion by 2035, registering a compound annual growth rate (CAGR) of 16.7% over the forecast period.
Metric | Value |
---|---|
Physical Security Information Management (PSIM) Market Estimated Value in (2025 E) | USD 4.3 billion |
Physical Security Information Management (PSIM) Market Forecast Value in (2035 F) | USD 20.1 billion |
Forecast CAGR (2025 to 2035) | 16.7% |
The Physical Security Information Management market is expanding as organizations increasingly seek integrated solutions to manage complex security environments. The rise in cyber-physical threats and the need for centralized control over diverse security systems have driven demand for PSIM platforms.
Industry stakeholders have focused on enhancing situational awareness by combining video surveillance, access control, and alarm monitoring into unified software. Growing digital transformation initiatives within sectors such as industrial manufacturing have accelerated PSIM adoption to improve operational efficiency and risk management.
Additionally, regulatory requirements and the emphasis on safeguarding critical infrastructure have reinforced investment in advanced security management tools. The market is expected to grow as organizations prioritize real-time threat detection and response capabilities supported by AI and analytics. Segment growth is anticipated to be led by software components and adoption within the industrial manufacturing sector due to increasing security complexities in production environments.
The market is segmented by Component and End-Use and region. By Component, the market is divided into Software and Service. In terms of End-Use, the market is classified into Industrial Manufacturing, Residential, Retail, BFSI, Telecom & IT, Transportation & Logistics, Government & Defence Sector, Hospitality, Energy & Utility, Health Care, and Others. Regionally, the market is classified into North America, Latin America, Western Europe, Eastern Europe, Balkan & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The software segment is projected to contribute 38.9% of the PSIM market revenue in 2025, maintaining its lead among components. This dominance is driven by the essential role software plays in integrating multiple security systems and providing centralized monitoring and control.
Software solutions enable real-time data analysis, incident management, and automated response workflows, which are critical in addressing complex security challenges. The flexibility and scalability of PSIM software allow organizations to customize platforms according to evolving security needs.
Advancements in AI and machine learning have further enhanced software capabilities, improving threat prediction and operational decision-making. As organizations continue to adopt comprehensive security frameworks, the software segment is expected to sustain its market leadership.
The industrial manufacturing segment is expected to account for 23.7% of the PSIM market revenue in 2025, establishing it as a key end-user industry. Growth in this segment is fueled by the increasing need to protect critical manufacturing assets, including production facilities and supply chains, from both physical and cyber threats.
Industrial environments face challenges such as theft, sabotage, and system vulnerabilities, which have underscored the importance of integrated security management. The adoption of PSIM platforms enables manufacturers to enhance visibility over security operations, streamline incident response, and comply with safety regulations.
Expansion of smart factories and Industry 4.0 initiatives has further driven demand for advanced security solutions capable of integrating operational and security data. The industrial manufacturing segment is poised to remain a vital driver of PSIM market growth.
As per the Physical Security Information Management Market research by Future Market Insights - a market research and competitive intelligence provider, historically, from 2020 to 2024, the market value of the Physical Security Information Management Market increased at around 18.5% CAGR.
Suppliers focus on innovation with the most recent technical improvements in their security software platform to provide optimal performance and increased support. For example, Hexagon's Guardian is a next-generation physical security information management system for real-time event monitoring, management, and reaction. The Guardian can help with the following tasks: integrating data from disparate systems to provide unprecedented situational awareness; shortening the time lag between threat identification and response; centralizing and coordinating physical security operations across geographically dispersed organizations and going beyond basic alarm monitoring and retroactive forensic response.
Wireless hardware components such as wireless locks and controllers are being upgraded as wireless infrastructure develops to address the increased demand for physical security in access control. Furthermore, the expanding use of cloud technology services minimizes the need for servers and software, thereby lowering the time and expense of setting up physical equipment and offering secure remote access.
As a middleware software platform, it aids in the monitoring of numerous security devices such as sensors, access control portals, video surveillance, and building network analysis, as well as apps to administrate them via a single composite user interface. Also, PSIM solutions aid in the elimination of manual monitoring of IT infrastructure, allowing for the early discovery of faults in the security system, thereby saving end-users time and money while promoting adoption.
PSIM can automate protocols so that the same thing happens in a particular situation regardless of who is working, how talented or unskilled they are, or whether they are at the start of a 12-hour shift or the final half-hour of one. The response is always the same. This not only ensures that concerns are dealt with as quickly and efficiently as possible but also decreases responsibility for both employees and the company as a whole. PSIM also facilitates user interaction and data interchange, and it can keep individuals in sync without overloading them with information.
One of the major reasons impacting the expansion of the physical security information management business is the rise of smart cities. Smart cities are defined by the interconnection of numerous digital technologies that improve device communication while improving performance, lowering costs, and helping in the efficient use of resources. PSIM systems are commonly employed in smart cities to control traffic, monitor vehicle speed, recognize license plates, and offer parking suggestions.
The deployment of IoT-based security systems on cloud computing platforms, as well as the 'as-a-service' model, is crucial for the physical security information management industry.
The growth in security concerns among organizations globally is expected to fuel demand for the PSIM market during the projected period. The rising need for security solutions in organizations is driving the market. Because growing internet usage leads to an increase in security breaches, there is an increase in global demand for PSIM software solutions.
Asia Pacific is the most lucrative region with projected double-digit physical security information management (PSIM) market growth. Due to technological developments, the Asia-Pacific area is experiencing tremendous expansion in the BFSI security industry, and key security suppliers such as Honeywell International Inc. and Cisco System Inc. are increasing their operations in the region.
Furthermore, as private banks and financial laws expand in countries such as China and India, the Asia-Pacific market is positioned to be at the epicenter of the world's fastest-growing and soon-to-be largest wealth market.
As increased internet usage leads to a rise in security breaches, global demand for PSIM software solutions is increasing. Ransomware attacks increased by 92.7% in 2024 compared to 2024, with 1,389 attacks in 2024 and 2,690 in 2024.
The United States is expected to account for the highest market share of USD 20.1 Billion by the end of 2035. The rising need to mitigate and defend against terrorism and criminal activities, as well as to offer people a good quality of life, are likely to fuel the expansion of the physical security information management market as it supports a safe and secure environment. The several advantages it offers, such as reduced risk, increased security, cheaper operational costs, and others, contribute to the market's growth. Furthermore, increased demand for cloud computing platforms and fast digitization in industries like healthcare, retail, logistics, government and defense, power, and energy, among others, will drive the physical security information management market forward.
In April 2025, the United States Department of Energy announced USD 12 Million in funding for six new R&D projects. The aim is to develop effective cybersecurity technology that helps ensure energy delivery systems are designed, assembled, operated, and maintained in a way that allows them to survive and recover quickly from cyber intrusions. The projects will provide novel cyber-physical platform approaches and technologies for detecting and treating problems in energy delivery systems. This grant demonstrates the Biden Administration's dedication to safeguarding critical infrastructure and boosting cybersecurity in the nation's energy sector.
The software segment is forecasted to grow at the highest CAGR of over 17.4% from 2025 to 2035. Physical security information management software is a fast-increasing business category in the security industry. Its key features include the capacity to link disparate systems, give an intelligence-based scenario picture, and empower operators with active policy management. As the industry learns more about its benefits, PSIM has the potential to go beyond security and become a full-fledged site management tool.
In terms of digital transformation, 72% of information security executives have prioritized cloud computing. Cloud-based IoT software is transforming digital and physical security by enabling them to be integrated and used to better exploit data.
To obtain a better view of what is going on in the organization, they might connect cloud-based solutions that contain all information on one platform. When cloud-based access control systems are combined with a security camera feed, for example, real-time visual identification verification is possible.
Cloud-based solutions may also be combined with analytics and AI-enhanced software, allowing security personnel to spot possible security issues more effectively. Ava Aware, for example, gathers data from access logs and security camera feeds and uses analytics to trigger when unexpected behavior is observed. Rather than just using data as proof after a crime has happened, these triggers operate proactively to reduce threats and criminal conduct.
The Government and Defense segment is forecasted to grow at the highest CAGR of over 17.9% from 2025 to 2035. The government and Defense industries accounted for almost one-fifth of overall market sales in 2024. Corporate development will be fuelled by government attempts to construct smart cities, as well as an emphasis on safe city programs that heavily rely on PSIM software. Rising investments and increased usage of digitalization in the military sector globally will drive segment expansion even further. According to estimates and projections, global military spending would rise by 0.7% in real terms in 2024, reaching USD 2.1 trillion.
Among the leading players in the global Physical Security Information Management (PSIM) market are NEC Corporation, VidSys, Inc., Intergraph Corporation, NICE Systems Ltd., and VideoNEXT Federal, Inc. To gain a competitive advantage in the industry, these physical security industry vendors are investing in product launches, partnerships, mergers and acquisitions, and expansions.
Due to the growing demand for the product around the world, many new companies are expected to enter the market. This is expected to increase competition on a worldwide scale. Additionally, market growth is expected to be fueled by collaborations among current players to improve quality throughout the research period. Over the projection period, established market players are expected to diversify their portfolios and offer one-stop solutions to combat fierce competition.
In May 2025, SureView Systems, a provider of open response platforms, and ShotSpotter, a provider of police technology solutions, announced that SureView can now communicate with ShotSpotter. SureView and ShotSpotter demonstrate how combining their disparate technology may assist law enforcement to respond to incidents more swiftly. Furthermore, the presence of these things will assist in crime prevention. The combination of ShotSpotter's gunshot alerts and SureView's PSIM gives security operations teams all of the tactical information they need to respond and protect people in a single, clear picture of events.
In February 2024, AxxonSoft has made available Axxon Intellect PSIM 4.11.2. Some of the important features include support for OpenStreetMap, object masking when exporting video footage, push alerts for mobile clients, more video analytics, events handling, video archive, and SIP terminal.
In December 2024, Vidsys, Inc.'s assets and contracts have been bought by ARES Security Corporation. The acquisition places the company in a position to develop the next generation of PSIM which is required by Security Operations Centers. Security Operations Centers are an enterprise-level systems that is intelligent, responsive, that is seamlessly integrated into the physical security lifecycle of assessment, design, training, and real-time operations. They want to create a technology roadmap to help clients transition to the next generation of PSIM by merging existing Vidsys capabilities with ARES Security's industry-leading AVERT family of software products.
Similarly, recent developments related to companies in Physical Security Information Management services have been tracked by the team at Future Market Insights, which are available in the full report.
The global physical security information management (PSIM) market is estimated to be valued at USD 4.3 billion in 2025.
The market size for the physical security information management (PSIM) market is projected to reach USD 20.1 billion by 2035.
The physical security information management (PSIM) market is expected to grow at a 16.7% CAGR between 2025 and 2035.
The key product types in physical security information management (PSIM) market are software, _off-the-shelf, _customized, service, _installation/ system integration, _operation & maintenance and _consulting & training.
In terms of end-use, industrial manufacturing segment to command 23.7% share in the physical security information management (PSIM) market in 2025.
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