The global market for virtual data rooms is growing because of a rising demand for highly secure solutions for document exchanges between businesses and legal bodies. VDR solutions are also employed in healthcare projects in cases where it is necessary to communicate confidential information to a variety of stakeholders. Virtual data rooms are also used to aid in fundraising activities, which require transparency and document management.

The market for virtual data rooms can be classified into two types of deployment: on-premises or cloud-based. The cloud-based segment is expected to dominate the market during the forecast period. In 2021, it accounted for 67% of global revenue. This is mostly due to the low-cost benefits provided by cloud-based VDR solutions compared to alternatives that are hosted on premises. In addition, the use of cloud-based VDR solutions by SMEs is expected to boost the market.

VDR solutions are extensively used in the BFSI sector (banking and financial services, and insurance) to simplify deal processes. Additionally, they are used by real estate firms to transfer documents for property purchases and sales. The COVID-19 pandemic has also accelerated the need for remote work which is causing the adoption of secure document transfer tools like VDRs.

The demand for VDR solutions is expected to grow from emerging economies such as China, India, and Southeast Asia. These countries are experiencing rapid growth in their economies and digitalization creates an environment that favors business transactions including mergers and purchases. This, in turn, will increase the demand for effective, secure digital solutions.

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