The virtual data room market was valued at USD 690.59 million in 2019 and is expected to reach USD 1607.41 million by 2025, at a CAGR of 15.12% over the forecast period 2020 - 2025. Increasing adoption of cloud storage technology is contributing to the growth of the global virtual data room market, as it is a cost-effective way to eliminate the need for physical storage, reduce the use of paperwork, and decrease the cost of travel.
- As the use of virtual data room is becoming increasingly popular, authorized users are granted access to the information that is stored electronically on the server. Most of the legal data is sensitive, and hence, needs high security, thus, businesses are focusing on secured data sharing, thereby enhancing their services and software during business deals.
- The increasing traffic in the prime data management establishments, such as data centers, that are not designed to perform secure transactions, is a great factor driving the demand for VDRs.
- Over the past few years, the VDR market has experienced prominent growth, due to its adoption across various enterprises as an important tool, along with the increasing demand for risk management, need for the intellectual property, and an increasing amount of business data arising from business deals thereby fueling the demand and requirement for VDRs.
Scope of the Report
A virtual data room serves as a repository for data that is hosted online and used for sharing of information over a secured connection, which is critical and confidential and cannot be shared with a third-party. These virtual data rooms can be used by anyone who frequently exchanges critical and confidential document that offer critical services, such as secure data storage, data management, and sharing.
Key Market Trends
IT and Telecom Sector is Expected to hold a Significant Market Share
- VDRs have emerged into online meeting rooms for everyone involved in an agreement. Co-operation between parties has become simpler and more reliable since VDR tools are available for use throughout the deal journey. The security protocols around the opening, sharing, and printing documents create a detailed activity trail for participants and auditors.
- Blockchain-Based technologies are emerging to enhance VDR security across the IT ecosystem. Virtual data room applications are being extended beyond M&A activities, as most of the business operations are conducted online these days. Many prominent IT & Telecom companies have integrated technologies that could offer them quick and efficient information and communication flow.
- The virtual data room has evolved across the IT space to become a tool to promote the entire venture, thereby widely finding applications for deals across various end-user segment ventures with the growing application of the cloud technology.
North America is Expected to Hold Largest Market Share
- North America occupied the largest share of the virtual data room market, due to the increasing adoption of virtual data room services by various government and businesses in developed economies, such as Canada and the United States, which are emphasizing innovation in these existing solutions.
- The rising demand for easy and secure methods for the storage of critical data and the increasing need for transparent and efficient data sharing options are fueling data security and secured sharing solutions, which is likely to be in great demand across the region, during the forecast period.
- Moreover, the growing fundraising, rising number of mergers and acquisitions, and joint ventures with some of the prominent players have fueled the market across the region.
The virtual data room market is highly competitive and consists of several major players. Few of the players are expanding their existing business across the emerging economies, with the innovation in the cloud and storage technology. Some of the new companies are increasing their market presence thereby moving across the untapped market space.
- April 2019 - Citrix Systems announced its Citrix SD-WAN (specifically, a virtual instance of its SD-WAN appliance) and Citrix ADC (application delivery controller) that will be available next month on the GCP Marketplace. Citrix Taps Google Cloud Platform for Virtualized SD-WAN Offering
- August 2018 - Intralinks entered into a relationship with Capco, a leading management and technology consultancy dedicated to the financial services industry. The relationship will assist a strategic platform that could be used to help Capco for thousands of users across its business to collaborate securely with an easy-to-manage centralized administration.
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