The Virtual Data Room Market

The global virtual data room market is booming due to the increasing the need for highly secured solutions for document exchanges among legal and business entities. VDR solutions are also utilized in healthcare projects where it is required to communicate confidential information to a variety of stakeholders. Additionally, fundraising activities require transparency and good document organization and this is a major reason for the adoption of virtual data rooms.

In terms of deployment method, the virtual data room market can be classified into on-premises or cloud-based. The cloud-based segment is expected to dominate the market during the forecast time. In document management for manufacturing 2021, the cloud-based segment accounted for 67% of global revenue. Cloud-based VDRs are cheaper than on-premises solutions. Moreover, the adoption of cloud-based VDR solutions among SMEs is expected to grow this sector further.

VDR solutions are used widely in the BFSI sector (banking and financial services, and insurance) to speed up the process of making deals. They are also employed by real estate companies to transfer documents to facilitate property purchases and sales. The COVID-19 epidemic has also increased the need for remote work which is driving the use of secure document transfer tools like VDRs.

VDR demand is expected to increase in emerging economies such as China, India, Southeast Asia and more. These countries are experiencing rapid growth in their economies and digitalization provides an environment that favors business transactions including mergers and purchases. This will in turn fuel the need for secure, efficient digital solutions.