“According to a new market research report published by Inkwood Research, the Global Virtual Data Rooms Market is projected to evolve at a CAGR of 14.93% during the forecasting years of 2019-2027.”
“Browse 35 market Data Tables and 44 Figures spread over 168 Pages, along with an in-depth TOC on Global Virtual Data Rooms Market Forecast 2019-2027.”
A virtual data room (VDR) is an online repository to store critical information that is required to be shared with other parties over a secured connection. It provides due diligence for business transaction purposes, including M&A buy-side, M&A sell-side, IPOs, loan syndication, debt financing, fundraising, venture capital transactions and others. In a VDR, documents are stored in an electronic format on a central server, which can be accessed in real-time, parallel by multiple parties. The commercial usage of VDRs began post 2006. These systems were quickly adopted across various industry verticals, such as BFSI, telecom, manufacturing, biotechnology, and others. The rise in demand for online document exchange is expected to significantly grow the global virtual data rooms market over the forecast period.
Increased Adoption of Online Document Exchange Modes is Fueling the Global Virtual Data Rooms Market
Businesses are shifting their workload over to cloud-based platforms, as they facilitate real-time access, enhanced efficiency, reduced costs, and enhanced storage capacity. In the past, the geographical distance between companies created hurdles for the completion of M&A procedures, as the information exchange that took place over the involved parties’ mail, e-mail and extended conference calls was stored in physical data rooms. These methods were not only time-consuming but also costly. Companies thereby began to adopt virtual data exchange methods for the convenience they provided. This was aided by the increase in the number of internet users. Virtual data rooms facilitate secure data exchange, which has significantly benefited companies in easing their M&A deals across the globe. Thus, the increasing adoption of online data exchange methods is fueling the global virtual data rooms market growth.
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Cloud is the Fastest-growing Segment in the Global Virtual Data Rooms Market
Cloud offers several advantages, such as ease of access, cost-effectiveness, real-time monitoring & control, automated software updates, data loss prevention and disaster recovery, among others, and is therefore largely deployed. A 2017 research paper published by Open Cirrus stated that 83% of all data across the world would be cloud-based within 2020. Moreover, the advancements in this technology justify the large-scale adoption cloud deployment type. Furthermore, growing M&A transactions, initial public offerings (IPOs), and others, also create favorable opportunities for the adoption of the cloud deployment type in the global virtual data rooms market.
North America holds the Largest Share in the Overall Virtual Data Rooms Market
The market for virtual data rooms in North America held the largest share in 2018 and is projected to grow with 14.75% of CAGR during the forecast period 2019-2027, generating $945.41 million by 2027. The market in this region is primarily driven by the rapid growth in the financial sector as well as company initiatives. Organizations in the finance sector aim to facilitate the secure exchange of confidential digital data, which necessitates a robust platform and the virtual data rooms capacities. Further, Inkwood Research states that North America has witnessed the highest M&A transactions over the period 1985-2016. This can be attributed to the well-established BFSI, Biotechnology, Pharmaceutical & Life Sciences, IT & Telecommunications industries, among others. In addition, the majority of the key market players in various domains have their base in this region.
Intralinks Holdings, Inc., EthosData, CapLinked, Inc., Vault Rooms, Inc., Merrill Corporation, RR Donnelley & Sons Company, ShareVault, TransPerfect Translations Company (Deal Interactive LLC), HighQ Dataroom, Brainloop AG, Securedocs, Inc., SmartRoom, Ansarada, iDeals Solutions Group S.A., and Firmex, Inc. are the noteworthy companies in the global virtual data rooms market.
There is an increased focus by players on new product development and technological advancements to strengthen their position in the market, which has significantly increased the level of competition. In August 2015, Firmex, developed a new feature for its virtual data rooms, called, Email In, with the help of which users can email documents directly into a Firmex data room. Whereas, in March 2017, CapLinked, Inc. added an extra feature to its virtual dataroom called “FileProtect,” which enables users to revoke access to documents shared with third parties, even after being downloaded.