The Virtual Data Room Market
The virtual data room market is growing fast due to a surge in the demand for highly secure solutions for document exchanges between legal and business entities. VDR solutions are also employed in healthcare projects where it is required to share confidential information with many stakeholders. Virtual data rooms are also used to aid in fundraising activities that require transparency and document management.
In terms of deployment method the virtual data room market is classified into on-premises and cloud-based. The cloud-based segment is expected to dominate the market over the forecast period. In 2021, the cloud-based segment accounted for 67% of the world’s revenue. This is mostly due to the low-cost benefits offered by cloud-based VDR solutions as compared to alternatives that are on-premises. Additionally, the increasing use of cloud-based VDR solutions by SMEs is expected to boost this segment further.
VDR solutions are widely used in the banking and financial services, and insurance (BFSI) sector to help streamline deal processes. Additionally, they are used by real estate firms to transfer documents for property purchases and sales. In addition, the COVID-19 epidemic increased the necessity for remote work and prompted the use of secure document transfer tools like VDRs.
The demand for VDR solutions is expected to grow from emerging economies like China, India, and Southeast Asia. These countries are undergoing rapid economic growth and digitalization that creates a favorable environment for business transactions, such as mergers and acquisitions. This will create demand for efficient, secure digital solutions.