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2020

Virtual Data Room Market

Virtual Data Room Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component, Deployment Model, Organization Size, Business Function and Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2019-2026

IC : Software and Services

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Author's: Pramod Borasi and Shadaab Khan | Onkar Sumant
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Virtual Data Room Market Statistics: 2026

The global virtual data room market size was valued at $1.3 billion in 2018, and is projected to reach $3.63 billion by 2026, growing at a CAGR of 13.70% from 2019 to 2026. Virtual data room (VDR) is online repository of information that is used by companies to securely store and share critical and confidential corporate data, and is most commonly used during deals. This application is used in various business cycles such as bankruptcy, due diligence, mergers & acquisitions, private equity, fundraising, clinical studies, and organizational restructuring.  

The virtual data room market trends include increase in volume of business data arising from different mergers and acquisitions done by companies and various data privacy regulations imposed by the government. In addition, surge in need for intellectual property and risk management fuels the growth of the market. However, various cyber security issues in virtual data room hamper the growth of the market. Conversely, surge in adoption among SMEs and increase in investing by various organizations in virtual data room technology solution are expected to present major opportunities for the expansion of the market in future.

Virtual Data Room Market

The BFSI sector dominated the virtual data room market 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 customers and minimize the risk of cyber-attacks. 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 end users for improving their decision-making capability.

Virtual Data Room Market
By Component
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Solution is projected as one of the most lucrative segments.

The report focuses on the growth prospects, restraints, and trends of the virtual data room market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the virtual data room market.

Virtual Data Room Market
By Deployment Mode
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On-premise is projected as one of the most lucrative segments.

Segment review

The global virtual data room market is segmented into component, deployment model, organization size, business function, industry vertical, and region. In terms of component, the market is bifurcated into solution and service. Depending on deployment model, the market is segmented into on-premise and cloud. By organization size, it is divided into large enterprises and small- and medium-sized enterprises (SMEs). In terms of business function, the market is classified into marketing & sales, legal, finance and workforce management. As per industry vertical, it is segmented into BFSI, retail & e-commerce, government, healthcare, IT & telecom, construction, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Virtual Data Room Market
By Organization Size
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Large enterprise is projected as one of the most lucrative segments.

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.

Virtual Data Room Market
By Business Function
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Finance is projected as one of the most lucrative segments.

Top impacting factors

Rise in need to securely store & transact massive volume of data during merger and acquisition

With continuous increase in volume of data and rise in data sources, organizations have focused on organizing and securely storing this data. The advanced capabilities such as access security, document security, and user interface of virtual data room have led to development of powerful platforms on which merger & acquisition (M&A) can be managed effortlessly. The virtual data room solution is not only limited to due diligence processes, but also is becoming a medium for managing the entire deal cycle. In addition, virtual data room providers use 256-bit and 512-bit encryption to secure confidential data of their buyers. Thus, BFSI institutions leverage these benefits of VDRs for their routine business activities and use them as corporate repositories and sharing information, thereby fueling the growth of this market. Furthermore, crucial functions of virtual data room such as granting different levels of secure access for various stakeholders, editing of documents, search function, and intelligent file indexing are boosting the demand for this solution, which significantly contributes toward the growth of this market.

Virtual Data Room Market
By Industry Vertical
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BFSI is projected as one of the most lucrative segments.

Increase in demand from venture capitals

The adoption of virtual data room solution is increasing by the venture capital firms, as it enables these firms to conduct the processes associated with offering due diligence & document preparation in an efficient and cost-effective approach as compared with physical data rooms. Increase in number of venture capital deals in 2017 led to higher demand for virtual data rooms. In addition, various firms have increased their usage of virtual data rooms due to the benefits offered by these services over physical alternatives, such as time & money savings and the possibility to involve a larger number of bidders in deals. For instance, till September 2017, the demand from venture capital firms represented 39.8% of total revenues for the virtual data rooms industry. Thus, such extensive demand from venture capitals for VDR software is expected to boost the growth of the global virtual data room market.

Virtual Data Room Market
By Region
2026
North America 
Europe
Asia-Pacific
LAMEA

Asia-Pacific would exhibit the highest CAGR of 19.90% during 2019-2026.

Key Benefits for Stakeholders:

  • The study provides an in-depth analysis of the global virtual data room market along with the current & future trends to elucidate the imminent investment pockets.
  • Information about key drivers, restrains, and opportunities and their impact analysis on the market size is provided in the report.
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
  • The quantitative analysis of the global virtual data room market from 2019 to 2026 is provided to determine the market potential.

Virtual Data Room Market Report Highlights

Aspects Details
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By Component
  • Solution
  • Service
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By Deployment Mode
  • On-Premise
  • Cloud
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By Organization Size
  • Large Enterprises
  • Small & medium enterprises (SMEs)
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By Function
  • Finance
  • Compliance & Legal
  • Marketing & Sales
  • Workforce Management
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By Industry Vertical
  • BFSI
  • Retail & E-commerce
  • Energy & Utilities
  • Healthcare
  • IT & Telecom
  • Construction & Real Estate
  • Other
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Russia, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Australia, Singapore, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Brainloop AG, Intralinks, Inc., Citrix Systems, Inc., Firmex Inc., ShareVault, Vault Rooms, Inc., EthosData, CapLinked, Inc., Merrill Corporation, Drooms GmbH

Analyst Review

Virtual data room helps organizations to organize, share, and track all the data stored on a centralized server. In addition, virtual data room provides enhanced security to confidential information, intellectual property, and legal documents of clients. Furthermore, increase in volume of business data arising from different mergers & acquisitions and various data privacy regulations imposed by the government propel the growth of the market. In addition, surge in need for intellectual property and risk management fuels the growth of the market. However, rise in risk of various cyber security issues in virtual data room hampers the growth of the market. Conversely, increase in adoption among SMEs and surge in investing by various organizations in advanced deal rooms are expected to present potential growth opportunities for the global market during the forecast period.

The CXOs further added that North America and Europe are the prime consumers of these systems. However, Asia-Pacific is expected to experience significant growth in the near future, owing to increase in adoption of virtual data room services by various governments and businesses in the developing economies, such as India and China. Some of the key players profiled in the report include Brainloop AG, Caplinked 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.

Author Name(s) : Pramod Borasi and Shadaab Khan | Onkar Sumant

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Virtual Data Room Market

Global Opportunity Analysis and Industry Forecast, 2019-2026