Virtual data rooms, also referred to as VDRs, are secure online repositories that enable organizations to securely store and share confidential documents and information with external and internal collaborators. VDRs provide controlled and secured access to confidential or sensitive information while maintaining regulatory compliance. They help simplify due diligence processes during mergers & acquisitions. The global Virtual Data Room Market is estimated to be valued at US$ 4.31 billion in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising adoption of cloud based VDRs has been a key trend fueling the growth of the virtual data room market. Cloud based VDRs provide easy accessibility to crucial documents from anywhere and at any time. They eliminate the need for setting up hardware on-premises and reduce upfront costs for companies. They offer simple and scalable solutions and ensure data security through advanced encryption technologies. The cost savings and flexibility offered by cloud based VDRs have boosted their popularity among organizations. As companies across industries increasingly rely on cloud infrastructure, the demand for cloud based virtual data rooms is expected to surge in the coming years.
Segment Analysis
The global virtual data room market size is segmented by the components, deployment mode, organization size, verticals and region. Based on components, the market is divided into software and services. The services segment dominated the market in 2020 owing to the increasing demand for consulting and integration services among enterprises. Based on deployment mode, the market is bifurcated into on-premises and cloud. The cloud segment is expected to grow at a higher CAGR during the forecast period due to the scalability and cost-effectiveness offered by cloud deployment. Based on organization size, the market is classified into large enterprises and SMEs. Large enterprises held a larger market share in 2020. Large enterprises widely adopt virtual data rooms to securely store and share critical information.
Key Takeaways
The global virtual data room market is expected to witness high growth during the forecast period.
Regional analysis shows that North America region dominates the market currently owing to extensive uses of advanced technologies by organizations to handle critical data securely. The Asia Pacific region is expected to grow at the fastest rate during the forecast period due to rising digital transformation initiatives and increasing adoption of cloud computing.
Key players operating in the virtual data room market are BMC Group, Brainloop AG, Box, Caplinked, EthosData, Firmex Inc, iDeals Solutions Group, Intralinks, Merrill Corporation, ShareVault, and SecureDocs, Inc. Companies operating in this market are focusing on new product launches and partnerships to strengthen their product offerings and expand their customer base. For instance, in 2021, Intralinks launched a new product called Dealnexus CX to enable deal teams to seamlessly onboard advisors, virtual data rooms and CX technology.
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