The Global Market for Virtual Data Rooms is Forecast to Reach US$2.6 Billion by 2024

Hyperconnected Business Ecosystems & the Need for Dynamic Sharing of Sensitive Information Drives Demand for Virtual Data Rooms, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Virtual Data Rooms market. The global market for Virtual Data Rooms is forecast to reach US$2.6 billion by 2024, driven by digitalization of everything and the resulting hyperconnected world which is fundamentally changing the way people and businesses share information and collaborate across geographic borders.

Sharing of sensitive and confidential information is important and commonplace in the enterprise sector especially when it comes to business dealings such as mergers and acquisitions, property sales, financial audits, resolving legal litigations, equity funding and initial public offering (IPO) invitations/fund raising, real estate transactions and investment transactions and for completion of bankruptcy resolution processes, among others. In addition, sharing of information is also a prerequisite for board communications, and corporate reporting. Over the last decade virtual data rooms (VDRs) managed in the cloud have grown in popularity and prominence in the enterprise sector. With the proliferation of cloud computing technologies and its emergence as the future of IT coupled with increased acceptance of public cloud services, VDRs have witnessed parallel gains in acceptance. VDRs are defined as an online data and information storage and sharing platform and/or data repositories that allows parties to an agreement to efficiently and securely access, share and exchange sensitive information across geographic boundaries. Essentially a virtual form of the traditional physical data room, VDR replicates the same function over the Internet but with added safety, security, efficiency, scalability, convenience and cost effectiveness.

Benefits of VDRs driving their popularity as the most preferred support platform for content collaboration include advanced security features and benefits; more personalized and customized control over shared documents; automatic generation of audit trail and activity tracking of all collaboration and communication conducted; data synchronization benefits and email integration; mobile integration and automatic notifications; multi-functional file management options; superior data protection and encryption support as compared to other file sharing platforms and services; accelerated deal closures and time savings; elimination of the need for live and physical meetings; better control over document access and usage; greater convenience and comfort; secure workspace; better transparency and accountability which is vital for final negotiations and lower expenditures, better preservation of documents as compared to paper documents, easy access from anywhere, anytime and on any device; simplified transactions and  more positive deal outcomes as investors and/or negotiating parties get more and complete information; automatic creation of backup of all uploaded files/data; efficient support for multiple users; and flexible pay per use pricing offered by most VDR services.        

VDRs are also being increasingly used for routine day-to-day information sharing as part of routine business processes such asset purchases, loan syndication, supply chain secure document sharing, among others. Guided by cost benefits SMBs have emerged and will continue to drive a large chunk of future growth in the VDR services market. With most SMBs migrating to a paperless work environment coupled with the expensive option of developing on-premise enterprise infrastructure such as corporate extranets for storage and file sharing, increasing number of SMBs will adopt VDR services in the coming years. Among the end-use markets, healthcare and pharmaceutical sectors will emerge as a lucrative opportunity, driven by increased drug development, outsourced clinical trial activity, drug licensing collaborations, patent filing activity and the growing need to protect IP property.

As stated by the new market research report on Virtual Data Rooms the United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 18.5% over the analysis period led by robust development of the internet infrastructure in terms of broadband speeds and capacity; rapid adoption of cloud computing services in the enterprise sector; growing appetite for cost and productivity enhancing IT technologies and solutions; increased worker mobility deployments in the enterprise sector; increase in mergers and acquisitions transaction value supported by healthy economic growth and greater investor confidence in economic and fiscal policies.    

     

Major players in the market include Ansarada pty Limited, Box Inc., Brainloop, CapLinked, Citrix Systems Inc., DealDocs, Donnelley Financial LLC, Drooms, EthosData, Firmex Inc., HighQ Solutions Limited, iDeals™ Solutions Group S.A., Intralinks Holdings Inc., Merrill Data Site, SecureDocs Inc., ShareVault, SmartRoom, TransPerfect Deal Interactive and Vault Rooms Inc. among others.  

The research report titled “Virtual Data Rooms: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific, Latin America and Rest of World.

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