Virtual Data Room Market

Global Virtual Data Room Market Size (2024 to 2029)

The global virtual data rooms market is projected to increase from USD 1.96 billion in 2023 to USD 4.56 billion in 2029, at a CAGR of about 15.1% over the forecast period.

A virtual data room (VDR) is an online database or classic cloud storage adopted by enterprises to store and share huge amounts of information and documents. The use of the virtual data room is becoming more and more popular. Authorized users have access to data stored digitally on the server. Most legal data is confidential and, therefore, requires high security. Therefore, companies focus on the secure exchange of data by improving their services and software during a commercial agreement. Many organizations are opting for virtual data room solutions to protect their financial data while sharing it with other parties to a business agreement.

As the use of a virtual data room becomes increasingly popular, authorized users have access to digital information on the server. Most legal data is confidential and requires high security. As a result, businesses are focusing on the secure exchange of data, improving their services and software during business. Increased traffic in major data management establishments, such as data centers that are not designed to perform secure transactions, is a major factor in the demand for the VDR market.

Market Growth and Trends:

The IT and telecommunications sector is likely to garner a significant share of the worldwide market in the coming years. Security protocols for opening, sharing, and printing documents create a detailed activity path for participants and listeners in the VDRs.

Blockchain-based technologies are emerging to improve VDR security across the IT ecosystem. Virtual data room applications extend traditional activities as most businesses shift towards digital platforms. Many leading IT and telecommunications companies have integrated technologies that could provide them with a fast and efficient flow of information and communication.

The virtual data room has evolved throughout the IT space to become a promotional tool for the whole company, thus finding wide applications for agreements in various companies of the end-user segment with the growing application of cloud technology.

Global Virtual Data Room Market Drivers and Restraints:

In recent years, the global virtual data room market has experienced significant growth due to its adoption in large companies as well as small and medium-sized companies, as it has become an important tool in many companies. The growing demand for risk management, the need for intellectual property, the growing adoption of the cloud, and the increasing amount of business data resulting from business transactions have fuelled the demand and need for virtual data rooms. The primary driver of growth in the virtual data room industry is its edge over physical data rooms. Furthermore, cloud services for virtual data rooms are an emerging market in which companies can invest. However, concerns about data breaches are a major limiting factor for the growth of the global virtual data room market.

Impact of COVID-19 on the global virtual data room market:

Although the COVID-19 pandemic has brought the entire world to a standstill, it has become a boon to some industries, like Virtual Data Rooms. The trend of work-from-home has encouraged companies to invest in advanced technologies like virtual data rooms to offer security and authenticated access to their information. The same is considered to continue for some time in the future, promoting the worldwide revenue for this business.

GLOBAL VIRTUAL DATA ROOM MARKET REPORT COVERAGE:

This research report on the global virtual data room market has been segmented and sub-segmented based on the business function, deployment mode, component, organization size, and region.

Global Virtual Data Room Market - By Business Function:

• Workforce management

• Finance

• Marketing and Sales

• Legal

The Finance Division is foreseen to register the most substantial market share in the outlook period. In terms of deployment type, the virtual data room market is divided into on-premises and cloud.

Global Virtual Data Room Market - By Deployment Mode:

• Software

• Services

The services are further segmented into managed services and professional services. The professional services are classified as consulting services and support and maintenance. Based on organization size, the virtual data room market is separated into small, medium-sized, and large enterprises.

Global Virtual Data Room Market - By Component:

• Software

• Service

Global Virtual Data Room Market - By Organization Size:

• SMEs

• Large

Global Virtual Data Room Market - By Region:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

North America is supposed to dominate the global virtual data room market, which should be followed by the Asia-Pacific. Most of this geographic division is accredited in developed economies such as Canada and the United States. Growth is due to its fundraising, increased mergers and acquisitions, and joint ventures. The Asia-Pacific region is expected to represent the second-largest share of the global virtual data room market. Most countries like China, Japan, India, New Zealand, and Australia use virtual data rooms in all industries due to infrastructure development and the expansion of national companies.

Key players in the market:

The main providers of the global virtual data room market include:

1. Citrix (United States)

2. Intralinks (United States)

3. Firmex (Canada)

4. Datasite (United States)

5. iDeals Solutions (United States)

6. Drooms (Germany)

7. EthosData (United Kingdom)

8. SecureDocs (United States)

9. Brainloop (Germany)

10. Ansarada (Australia)

11. SmartRoom (United States)

12. CapLinked (United States)

13. Vault Rooms (United States)

14. Vitrium Systems (Canada)

15. Onehub (United States)

16. ShareVault (United States)

17. HighQ (United Kingdom)

18. DFIN (United States)

19. FORDATA (Poland)

20. Digify (Singapore)

These providers have adopted various organic and inorganic growth strategies, such as new product launches, partnerships, collaborations, and mergers and acquisitions, to expand their presence in the global virtual data room market.

Recent Developments:

• In April 2019, Citrix Systems announced its Citrix SD-WAN (in particular, a virtual instance of its SD-WAN device) and Citrix ADC (Application Delivery Driver), which was to be available in May 2019 at GCP Marché.

• In August 2018, Intralinks established a relationship with Capco, a technology and management consulting leader dedicated to the financial services sector. The relationship could help thousands of its business users collaborate securely with an easy-to-manage centralized framework.

• In March 2020, Merrill Corporation was renamed Datasite to reflect the transformation of the business and to focus on technologies to ensure success throughout the life cycle of mergers and acquisitions.

• In November 2019, Drooms declared the initiation of its new branches in Barcelona and Madrid, Spain, to reinforce its business teams covering southern Europe and the United Kingdom.