The COVID-19 pandemic is “working like a charm” for the cybersecurity market with changing business models and increasing cyber threats.

The global market should reach almost $434 billion by 2030, up from $120 billion in 2019, according to a new study by P&S Intelligence. It expects a compound annual growth rate (CAGR) of 12.6% through 2030.

Major market players include Trend Micro, Cisco, FireEye, McAfee, Check Point Software Technologies, Palo Alto Networks, Fortinet, Broadcom, IBM and Juniper Networks.

Shifting Business Models

Companies are shifting to the work-from-home model and focusing on essential health care services. IT departments are finding it hard to detect cyber threats on individual employees’ computers. And bad actors also are creating a large number of fake COVID-19 related websites with malicious intentions.

This has led to a sharp surge in demand for cybersecurity offerings, benefiting the market — and partners who sell security.

Cloud security is picking up among SMBs.

Small and medium businesses should see an even CAGR through 2030 — 15.3%. That’s because they’re rapidly moving to cloud computing, while focusing on regulatory compliance for the protection of sensitive customer data.

Security monitoring generated the most revenue in 2019 based on use case. This is due to increased focus on potential threats, monitoring and tracking suspicious events in real time, and meeting regulatory compliance.

Among industry segments, the fastest market growth should be in health care. That’s due to the focus on enhanced patient care; complying with government regulations; using cloud software; adopting to the remote monitoring approach; and using enhanced technologies like IoT, machine learning and cloud computing.

In the coming years, Asia Pacific will have the highest CAGR in the cybersecurity market. That’s due to increasing awareness of countering cyberattacks, and high demand for data protection and encryption products and services. Also driving this is the rising need for a centralized network infrastructure view, growing penetration of mobile internet and new cybersecurity laws.

M&A the State of Play

To reach a wider customer base and consolidate their position, some security companies are engaging in M&A to: