NEW
YORK, Aug. 1, 2024 /PRNewswire/ -- The
global virtual data room (VDR) market size is estimated to
grow by USD 900.5 million from
2024-2028, according to Technavio. The market is estimated to grow
at a CAGR of 8.09% during the forecast period. Rise in continuous
monitoring of compliance-related documents is driving market
growth, with a trend towards growing market penetration
in APAC. However, data privacy issue poses a challenge. Key
market players include Ansarada Group Ltd., AvePoint, Inc.,
CapLinked Inc., Citrix Systems Inc., Confiex Data Room Pvt. Ltd.,
ContractZen Oy, datasite LLC, Digify Inc., Diligent Corp., Drooms
GmbH, EthosData Ltd., FirmRoom Inc., FORDATA sp.z o.o, iDeals group
of companies, IFCI Ltd., Quant LegalTech Pvt. Ltd., SecureDocs
Inc., SS and C Technologies Holdings Inc., Thomson Reuters Corp.,
and Yanka Industries, Inc..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Application (M and As
and IPOs, Enterprise activities, and Document warehousing),
Deployment (On-premises and Cloud-based), and Geography (North
America, Europe, APAC, South America, and Middle East and
Africa)
|
Region
Covered
|
North America, Europe,
APAC, South America, and Middle East and Africa
|
Key companies
profiled
|
Ansarada Group Ltd.,
AvePoint, Inc., CapLinked Inc., Citrix Systems Inc., Confiex Data
Room Pvt. Ltd., ContractZen Oy, datasite LLC, Digify Inc., Diligent
Corp., Drooms GmbH, EthosData Ltd., FirmRoom Inc., FORDATA sp.z
o.o, iDeals group of companies, IFCI Ltd., Quant LegalTech Pvt.
Ltd., SecureDocs Inc., SS and C Technologies Holdings Inc., Thomson
Reuters Corp., and Yanka Industries, Inc.
|
Key Market Trends Fueling Growth
The number of mergers and acquisitions (M&A) and start-ups
in China and India is on the rise, leading to an increase
in the need for secure methods to transfer critical digital assets
between companies. According to the 2021 Hurun Global Unicorn
Index, India ranked third globally
with 54 new unicorns, while China
ranked first in APAC with 74 new unicorns. Beijing, Shanghai, and Shenzhen are major cities in APAC contributing
to the Global Unicorn Index. This significant growth in unicorn
startups is expected to create new opportunities for vendors in the
Virtual Data Room (VDR) market, as companies seek reliable
solutions to protect their digital assets during M&A
transactions and other business deals.
The Virtual Data Room (VDR) market is experiencing significant
growth as businesses increasingly facilitate financial transactions
through technological advancements. However, this trend comes with
challenges such as cyberattacks and cyber threats, leading to
online security concerns and the need for secure document sharing
and data protection. VDRs provide complete information with data
authenticity, consistency, and integrity, addressing potential
attacks and ensuring data accessibility, scalability, and
convergence. Applications span across customer data, employee data,
legal data, and transactional data. Trust issues and privacy
concerns necessitate data protection and digital rights management.
New technologies like blockchain, AI, and IoT are revolutionizing
VDRs, offering secure data exchange processes and data integration.
Regulations and data protection laws necessitate professional and
managed services. Organic and inorganic growth strategies include
new product launches, product upgradations, and partnerships and
agreements. Despite challenges, the VDR market continues to evolve,
offering protected sharing solutions for intellectual data and
online security concerns.
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Market Challenges
- Virtual data rooms offer secure repositories for businesses to
store and share sensitive information. However, data privacy and
security risks persist in the market. Open-source codes in IT
infrastructure and cloud-based systems pose vulnerabilities.
Hackers can exploit loopholes and shared resources to gain
unauthorized access. In the financial services sector, where large
volumes of customer data are digitized, concerns over security,
liability, privacy, and intellectual property protection are
paramount. Vendors handling sensitive customer information face
skepticism from financial enterprises, limiting market growth.
These data privacy issues may negatively impact the virtual data
room market during the forecast period.
- In the past few years, Virtual Data Rooms (VDRs) have become an
essential tool for enterprises to share business data during deals
and operations, especially in distant locations. VDR services offer
secure online repositories for sensitive corporate information,
replacing traditional physical data rooms. Challenges like data
sharing, risk management, and intellectual property protection are
effectively addressed through these virtual platforms. Users have
control over access to documents, ensuring only authorized parties
can view or download essential business data. Activity trails and
auditing tools provide transparency, while security protocols
protect information from unauthorized access. VDRs are now common
solutions for online meeting rooms, remote work, and due diligence
processes. Cloud technology, standard internet browsers, integrated
content management, and information rights management are some
features that make VDRs reliable sources for businesses.
Governments and auditors also trust VDRs for secure-sharing
solutions. Analytics and reporting capabilities provide valuable
insights, making VDRs an indispensable part of digital solutions
for businesses. While physical data rooms still exist, the
advantages of VDRs, including ease of use, cost savings, and
enhanced security, make them the preferred choice for many.
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challenges - Download a Sample Report
Segment Overview
This virtual data room (vdr) market report extensively covers
market segmentation by
- Application
- 1.1 M and As and IPOs
- 1.2 Enterprise activities
- 1.3 Document warehousing
- Deployment
- 2.1 On-premises
- 2.2 Cloud-based
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 M and As and IPOs- The
Virtual Data Room (VDR) market holds a substantial share due to the
increasing adoption of VDR software for securing Mergers and
Acquisitions (M&A) deals and Initial Public Offerings (IPOs)
data. Both on-premises and cloud-based VDR solutions are used for
this purpose. The growth of this segment is fueled by the rising
importance of VDR software in sectors like BFSI, telecommunication,
and healthcare for maintaining confidential documents during
M&A processes. With the surge in M&A transactions,
particularly in the banking and financial services sector, the
demand for VDRs is on the rise. Notable M&A activities in
recent years include Toronto-Dominion Bank Group's acquisition of
First Horizon Corporation for USD13.4
billion and Microsoft Corp.'s acquisition of Activision
Blizzard for USD68.7 billion. As a
result, the market is expected to grow significantly during the
forecast period. Major players in this segment include Citrix
Systems, Intralinks, FIRMEX, iDeals Solutions, and Dealroom.co. The
competition in this market is intense, with vendors striving to
offer superior features and services to attract customers. New
entrants are also expected to join the market, leading to increased
competition.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
Virtual data rooms (VDRs) are digital solutions that provide a
secure platform for businesses to store, share, and distribute
company documentation during the due diligence process of mergers
or acquisitions, joint ventures, or other significant transactions.
Unlike physical data rooms, VDRs offer several advantages,
including cost reduction, increased security, and the ability to
grant access to authorized users from anywhere in the world. In a
VDR, documents are stored on a secure server, reducing the need for
physical storage and the associated costs of travel. Parties
involved in the transaction can access the documents at any time,
eliminating the need for printing and reducing the risk of
accidental destruction or loss. However, the use of VDRs also
raises security concerns, as the documents contain sensitive
business information. VDRs offer robust security features,
including encryption, access controls, and audit trails, to ensure
the confidentiality and integrity of the data. The due diligence
process in a VDR typically involves uploading company
documentation, granting access to authorized users, and managing
user permissions. The reliable source of the data is crucial to
ensure the accuracy and completeness of the information shared. In
summary, Virtual data rooms offer businesses a secure,
cost-effective, and efficient way to store, share, and distribute
company documentation during the due diligence process, reducing
the need for physical storage and travel while ensuring the
security and confidentiality of the data.
Market Research Overview
Virtual data rooms (VDRs) are secure online repositories that
facilitate the exchange and management of sensitive corporate
information during the due diligence process. They have become a
common solution for businesses involved in financial transactions,
mergers and acquisitions, joint ventures, and other deal-making
activities. VDRs provide reliable access to documents and
information for multiple users, offering control and security that
surpasses physical data rooms. Technological advancements in
digital solutions have led to the widespread adoption of VDRs,
enabling businesses to share and access information more
efficiently. However, online security concerns, cyber threats, and
potential attacks pose challenges to data integrity, consistency,
and accessibility. VDRs are used to store and manage various types
of data, including customer data, employee data, legal data,
transactional data, and intellectual property. Trust issues,
privacy, and data protection are critical concerns for businesses,
leading to the development of digital rights management, secure
document sharing, and data integration solutions. The services
segment of the VDR market includes professional services and
managed services. Organic growth strategies, such as new product
launches and product upgradations, and inorganic growth strategies,
such as partnerships and agreements, business expansions, and
acquisitions, are driving market growth. Applications of VDRs
extend to various industries, including finance, healthcare, real
estate, and manufacturing. Regulations and data protection laws are
also shaping the market, with solutions like blockchain and AI
being explored to enhance data security and protect sharing
solutions. Despite the benefits of VDRs, challenges such as
accidental destruction, printing, cost reduction, and security
concerns persist. Addressing these challenges and ensuring data
scalability, data convergence, and data consistency are essential
for the continued growth and success of the VDR market.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- M And As And IPOs
- Enterprise Activities
- Document Warehousing
- Deployment
-
- Geography
-
- North America
- Europe
- APAC
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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