According to a recent report published by Allied Market Research, titled, "Virtual data room Market by Component, Deployment Model, Organization Size, Business Function, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global market was valued at $1.30 billion in 2018, and the virtual data room market forecast is projected to reach $3.63 billion by 2026, growing at a CAGR of 13.70% from 2019 to 2026.
A virtual data room (VDR) is a series of commercial extranets that provide an online repository of data. Businesses use a secure virtual data room to share critical information with external customers and partners in a secure, online environment. The primary goal of virtual data room is to support complex processes and business processes, which require sharing of confidential data with third parties beyond their firewall. In addition, virtual data room helps developers to protect their documents and critical information from vulnerabilities while deploying the security level that matches their application needs. Furthermore, increase in volume of business data arising from different mergers & acquisitions done by companies and various data privacy regulations imposed by the government drive the growth of the market. In addition, surge in need for intellectual property and risk management fuels the growth of the market. However, increase in risk of various cyber security issues in virtual data room hampers the growth of the market. Conversely, increase in adoption among SMEs and rise in investment by various organizations in virtual data rooms is expected to present major opportunities for the expansion of the market in the near future.
The finance segment dominated the virtual data room market industry in 2018 and is projected to maintain its dominance during the forecast period, owing to the increase in adoption of virtual data room solution for storing documents, sharing files, securing classified documents, and conducting financial transactions. Furthermore, legal & compliance segment is expected to grow at a significant CAGR during the forecast period, owing to the use of this solution by legal firms to secure legal documents storage, corporate fundraising, litigation, bankruptcy, M&A documents.
The BFSI sector dominated the virtual data room industry in 2018 and is projected to maintain its dominance during the forecast period, owing to rise in adoption of this solution for providing security to the confidential information of the customers and reducing the cyber-attacks on the customers. Furthermore, the IT & Telecom sector is expected to grow at a significant CAGR during the forecast period, owing to its unique features of storing and delivery accurate information to the end user for improving their decision-making capability.
By region, the global virtual data room market was dominated by North America in 2018 and is expected to maintain this trend during the forecast period. The major factors driving the growth of the market in this region includes growing adoption of virtual data room solution by government and businesses in developed economies, such as Canada and the United States. However, Asia-Pacific is expected to witness the highest growth rate during the forecast period, owing to the growing data and increasing number of mergers and acquisitions in the region.
Key Findings of the Study:
- By component, the solution segment led the virtual data room market, in terms of revenue in 2018.
- On the basis of deployment model, the cloud segment accounted for the highest virtual data room market share in 2018.
- Depending on industry vertical, the BFSI segmented accounted for the highest virtual data room market share in 2018.
- Region wise, North America generated the highest revenue in 2018.
The report analyses the profiles of key players operating in the market Brainloop AG, Caplinked Inc., Citrix Systems Inc., Drooms GmbH, Ethos data, Firmex Corporation, Intralinks Holdings Inc., Merrill Corporation Ltd., shareVault, and Vault Rooms Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.