Since the outbreak of the pandemic, businesses are now operating remotely all around the globe. This tendency significantly increased the reliance of businesses on cloud-based virtual data room solutions, such as cloud storage and virtual data rooms. Back in 2020, the data room market was valued at the US $690.5, but it is estimated to reach a whopping US $1607.4 million by the end of 2026.
That’s because the increase in the adoption of cloud solutions not only provides a secured and effective platform but eliminates the need for physical storage of data, cost of travel, and a lot more. Let’s learn what other benefits data room vendors can provide, and how they will affect the data room market.
What is online data room software?
The virtual data room is a SaaS solution that allows you to share and store information. It’s a complete suite of tools from cloud document storage to multiple-factor authentication to annotation tools, voting features, watermarking, and whatnot. Data room software works like an online repository that not only facilitates the directors but fundraising and mergers and acquisitions too.
What are the main data room vendors?
The number of virtual data room providers is increasing day by day to meet the ever-growing demands of businesses.
When there are so many options to choose from, it can be a daunting task to pick one when there are so many vendors in the market. Fret not! We have picked some of the best data rooms to save you a lot of hassle and time:
- Diligent Corporation
- Nasdaq, Inc
- Citrix System
The electronic data room vendors are increasingly investing in research and development to get ahead in the virtual market. Merrill, ForData, iDeals, Digify, and SecureDocs are some of the best data room services providers in the market in 2021.
To choose an optimal solution, it is worth comparing data room services by the feature set they offer as well as other critical factors, such as security certifications, ease of use, deployment, pricing packages, and more.
Which region is leading the virtual data room market?
Recently, market research has published a comprehensive report on the global virtual data rooms market that helps the businesses entities to shape their future.
According to the research, the mind-boggling countries – North America and APAC (Asia Pacific) – have shown drastic growth in the electronic data room market. The US and Canada are also increasingly deploying cloud solutions to utilize customer data so they can remain competitive within the market.
Factors such as a rise in the volume of data and a need to store it securely without any accidental leaks contribute to the evolution of the virtual data room market. The data room software isn’t just limited to due diligence processes but is a hub for managing business deals. This explains why it is growing in popularity these days.
Virtual data room market: Deployment mode
Usually, the global market of virtual data rooms is segmented into cloud and on-premise. The majority of the business entities are opting for cloud solutions rather than the latter. Cloud portals have so much to offer, and they can be easily accessible through the internet from literally anywhere in the world.
SMEs (small and medium-sized business corporations) tend to adopt cloud storage technology because of the easy implementation and low cost. The biggest plus is the 24/7 customer support and maintenance provided by the data room vendors.
The majority of the vendors in the industry are also offering cloud solutions to lure buyers. That’s because cloud storage offers various advantages such as end-to-end encryption, easy deployment, scalability, adaptability, etc. Hence, organizations around the world are adopting cloud solutions.
Virtual data room market: Industry vertical
On the basis of industry vertical, the market is divided into different segments such as E-commerce, Healthcare, IT & telecom, BFSI, Construction & Real Estate, Energy and Utilities, and others. Of which, the BFSI sector has dominated the online data room software, and it’s projected that it will take care of the dominance in the coming years too. It’s because the electronic data room provides security and minimizes the danger of cyber-attacks.
The IT & Telecom sector comes in second place. It is expected to grow at a significant compound annual growth rate due to its peculiar features of storing and sharing important information that, in turn, enhances decision-making capabilities.
Virtual data rooms: The main reasons for usage
Speaking of the most frequently reported benefits of the data rooms, users most often report the following:
- Virtual data rooms offer easy agenda management. Management software is the need of all. How many times do we go back searching email folders so we can access the information we need for the meeting? That’s where virtual data room software comes in very handy. It helps you focus on the important aspect of the meeting – the content.
- Data room software ensures transparency. Companies have various and wide sets of stakeholders. And, if any of the shareholders need any information from the portal of the company, cloud solutions ensure availability and retrievability of the information. Hence, data stored on the data room software is secured, traceable, and tamper-proof.
The virtual data room market has evolved over the years and now is becoming an essential tool that promotes the entire venture of the businesses deals. North America, followed by Canada, occupied the largest share of the virtual data room market, by virtue of the increased adoption of cloud technology by the government and businesses. Researchers predict further developments and adoption of the virtual data room technology, so we can expect more regions to enter the VDR market in the near future.