The Virtual Data Room Market
The virtual data room market is growing rapidly due to a surge in the demand for highly secure solutions for document exchanges among legal and commercial entities. VDR solutions are also used in healthcare projects in cases where it is necessary to share confidential information with many stakeholders. Virtual data rooms can also be used to aid in fundraising activities, which require transparency and document organization.
In terms of deployment method, the market for virtual data rooms is divided into on-premises as well as cloud-based. The cloud-based segment accounted for around 67 percent of the revenue share in 2021 and is expected dominate in the forecast. This is primarily due to the low-cost benefits provided by cloud-based VDR solutions when compared with on-premises alternatives. SMEs are likely to be embracing cloud-based VDRs, which will boost this segment.
VDR solutions are used widely in the BFSI sector (banking as well as financial services and insurance) to help streamline deal processes. Real-estate firms also use them to transfer documents in the context of buying and selling properties. Additionally to that, the COVID-19 pandemic 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 experiencing rapid growth in their economies and digitalization creates an environment that is favorable for business transactions including mergers and purchases. This, in turn, will drive the demand for efficient, secure digital solutions.