The global market for virtual data rooms is growing rapidly due to a surge in demand for highly secured solutions for document exchanges among organizations and legal entities. Additionally, healthcare projects often require sharing confidential information with multiple stakeholders which is the reason for the widespread adoption of VDR solutions. Furthermore, fundraising activities demand transparency and a well-organized document, thereby propelling the use of virtual data rooms.
In terms of the deployment mode, the market for virtual data rooms is categorized into on-premises and cloud-based. The cloud-based segment accounted for around 67 percent of the global revenue share in 2021 and is expected to dominate in the coming years. This is due in large part to the cost-effective benefits provided by cloud-based VDR solutions compared to alternatives that are on-premises. Furthermore, the widespread adoption of cloud-based VDR solutions among SMEs is expected to boost this market further.
VDR solutions are widely used in the BFSI sector (banking as well as financial services and insurance) to speed up deal processes. Real estate firms also use VDRs to transfer documents in the context of purchases and sales of property. In addition to this, the COVID-19 epidemic increased the necessity of remote work which led to the development of secure document transfer tools such as VDRs.
The demand for VDR solutions is expected to rise from emerging economies such as China, India, and Southeast Asia. These countries are experiencing rapid economic growth and digitalization which creates a favorable environment for business transactions, including mergers and acquisitions. This will also increase the need for secure, efficient digital solutions.
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