The global virtual dataroom market is booming due to the growing the demand for highly secure solutions for document exchanges between businesses and conduct an audit processes with the VDR officials of the law. Additionally, healthcare-related projects often require sharing sensitive information with multiple stakeholders which encourages the use of VDR solutions. Furthermore, fundraising activities demand transparency and proper document organization which drives the use of virtual data rooms.
In terms of deployment method, the virtual data room market is categorized into on-premises and cloud-based. The cloud-based segment is expected to dominate the market for the forecast period. In 2021, it held 67% of the global revenue. This is mostly due to the cost-effective benefits offered by cloud-based VDR solutions when compared with on-premises alternatives. SMEs are expected to embrace cloud-based VDRs, which is expected to boost this segment.
VDR solutions are widely used in the banking and financial services and insurance (BFSI) sector to streamline deal processes. They are also utilized by real-estate companies to transfer documents to facilitate property purchases and sales. The COVID-19 pandemic has also accelerated the necessity to work remotely and is driving the adoption of secure document transfer tools like VDRs.
The demand for VDR solutions is expected to rise from emerging economies such as China, India, and Southeast Asia. These countries are undergoing rapid economic growth and digitalization which creates an ideal environment for business transactions, including mergers and acquisitions. This will increase the need for secure, efficient digital solutions.