The market for virtual data rooms is growing due to an increase in the need for highly secured solutions for document exchanges among legal and commercial entities. Additionally, healthcare initiatives often require sharing confidential information with multiple stakeholders, which drives the adoption of VDR solutions. Furthermore, fundraising activities demand transparency and well-organized documents, thereby propelling the use of virtual data rooms.

In terms of the deployment mode, the market for virtual data rooms is categorized into on-premises and cloud-based. Cloud-based VDR is expected to dominate the market for the forecast time. In 2021, the cloud-based segment accounted for 67% of the global revenue. Cloud-based VDRs are more cost-effective than on-premises solutions. SMEs are likely to adopt cloud-based VDRs, which will boost this segment.

VDR solutions are used widely in the BFSI sector (banking and financial services and insurance) to simplify the process of making deals. Real estate firms also use VDRs to transfer documents in the context of purchases and sales of property. Additionally to that, the COVID-19 epidemic increased the necessity of remote work and led to the adoption of secure document transfer tools such as 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, such as mergers and acquisitions. This will also increase the demand for secure, efficient digital solutions.

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