The Virtual Data Room Market

The global market for virtual datarooms is growing rapidly due to the rising the demand for highly secure solutions to exchange documents between companies and officials of the law. VDR solutions are also utilized in healthcare projects in cases where it is necessary to share confidential information with a number of stakeholders. Additionally, fundraising activities require transparency and proper document organization which drives the use of virtual data rooms.

The virtual data room market can be divided into two different deployment methods: on-premises or cloud-based. Cloud-based models are expected to dominate the market over the forecast period. In 2021, it accounted for 67% of global revenue. This is due in large part to the cost-effective benefits offered by cloud-based VDR solutions compared to on-premises alternatives. SMEs are likely to be embracing cloud-based VDRs, which will increase this sector.

VDR solutions are widely used in the banking, financial services and insurance (BFSI) sector to facilitate streamlined deal processes. Real-estate firms also use VDRs to transfer documents in the context of purchasing and selling property. Additionally to that, the COVID-19 epidemic accelerated the necessity of remote work, driving the adoption of secure document transfer tools like VDRs.

VDR demand is expected to increase in emerging economies such as China, India, Southeast Asia and many more. These countries are undergoing rapid economic growth and digitalization, which creates a favorable environment for business transactions, including mergers and acquisitions. This will in turn fuel the demand for secure, efficient digital solutions.