Virtual Data Room Market by Data Storage & Management (Database, Content), Security (Encryption, DRM, DLP), Document Type (Contracts & Agreements, IP), Application (M&A Due Diligence, Document Management, Audit, Compliance) - Global Forecast to 2029
[335 Pages Report] The virtual data room market is projected to grow from USD 2.5 billion in 2024 to USD 5.6 billion by 2029, at a CAGR of 18.1% during the forecast period. A virtual data room’s capability to provide a hierarchical document structure within an enterprise, streamlining document management and enhancing user experience, is expected to drive the adoption rate. Integrating AI and ML technology to automate the redaction process is expected to further enhance the document management capabilities offered by virtual data room solutions. Market growth is expected to be further driven by the need to centralize data access points for secured digital documents involved in critical business processes and applications.
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Market Dynamics
Driver: The need to streamline due diligence process and improve collaboration among stakeholders
The traditional M&A due diligence process involves the physical sharing of confidential documents, which raises security concerns. A virtual data room exchanges documents among end users, streamlining the intricate due diligence process. It offers encryption and access control, which allows only approved individuals to access the documents. This boosts collaboration among team members through real-time document sharing. It also improves communication by streamlining document management for easy access, allowing standard communication, and using secure messaging protocols to improve clarity and lower mistakes.
Restraints: The rise in hybrid environments leads to unauthorized access and malware attacks
As organizations steadily work in hybrid environments, the challenge of securing sensitive information across diverse platforms intensifies. This environment exposes data to various threats, including unauthorized access, phishing, and malware attacks. With data being exposed to a wider range of threats in this environment, businesses may become reluctant to implement virtual data room solutions due to the increased risk of breaches arising from reduced user certainty. As a result, businesses may place security above convenience, which may hinder market growth.
Opportunity: Integration of AI and ML technology to automate redaction process and improve document management
The integration of Artificial Intelligence and Machine Learning into virtual data room software improves task automation and data analysis and optimizes document management. Vendors offering Al-powered virtual data rooms such as SS&C Intralinks, Datasite, and Box categorize and tag documents, detect anomalies, and provide predictive analytics, leading to informed decision-making and increased efficiency. ML-integrated virtual data rooms can also automate redaction and identify sensitive information with minimal human intervention.
Challenge: The rise of cyber threats is susceptible to data breaches
Virtual data rooms handle sensitive financial data and proprietary information as they attract targets for cybercriminals to gain unauthorized access. As per Verizon's 2022 DBIR (Data Breach Investigations Report), 82% of data breaches involve a human error, including malware and the use of stolen credentials. Also, IBM reveals that one in five companies that suffer data breaches is infiltrated due to lost or stolen credentials, 17% are breached via a direct phishing attack. Virtual data room software providers must implement robust security measures to safeguard their organizations, end users, and employees against data breaches and cyberattacks.
Virtual Data Room Market Ecosystem
By service, professional services will register for a larger market share during the forecast period.
As organizations engage in more complex transactions, such as mergers and acquisitions, the need for consulting, advisory, and training services has surged. These services facilitate the effective deployment and utilization of virtual data room technologies, ensuring compliance with regulatory standards and enhancing data security. Additionally, the rise of cloud technology and remote work has accelerated the adoption of virtual data rooms, making professional services essential for navigating these evolving business landscapes.
By end user, tech firms will register the highest CAGR during the forecast period.
The focus on innovation and digital transformation fuels tech firms' increasing adoption of virtual data rooms. They provide secure, scalable, and efficient solutions for managing vast amounts of sensitive data to facilitate secure collaboration, mergers and acquisitions, and fundraising activities. Virtual data rooms also offer advanced features such as AI-driven analytics, automated workflows, and enhanced data security, which align with the tech industry’s demand for innovative and efficient tools. Additionally, tech firms focus on agility and remote work, further accelerating the need for virtual data rooms that support seamless, secure access to critical documents from multiple locations.
By application, M&A due diligence will register the largest market size during the forecast period.
During the M&A process, sensitive information, such as financial records, legal documents, and operational data, is securely shared among multiple parties. The virtual data room provides a secure and central platform where certain users can access shared documents in real-time for review. The ability to check user behavior, manage document access, and generate audit trails makes virtual data rooms dependable in high-stakes transactions. In conclusion, demand for virtual data room solutions is strong and continues to rise globally, along with a rise in M&A volume and complexity, bolstering market demand for these complex processes.
By region, North America will register the largest market size during the forecast period.
North America has a strong tech infrastructure, with companies such as SS&C Intralinks, Datasite, and Ansarada making innovations in cloud computing, cyber security, and AI technologies that are critically linked to the functionality and security of virtual data rooms. As organizations prioritize data security, the demand for secure document storage and sharing solutions has surged. Virtual data rooms provide high-grade security features that help safeguard confidential information, making them essential for businesses handling sensitive data, particularly in industries like finance and healthcare.
List of Top Virtual Data Room Market Companies
The virtual data room software and service providers have implemented several organic and inorganic growth strategies, such as product upgrades, new product launches, partnerships, agreements, business expansions, and mergers and acquisitions, to strengthen their offerings in the market. Some major players in the virtual data room market include SS&C Intralinks (US), Box (US), Datasite (US), Thomson Reuters (Canada), Donnelley Financial Solutions (US), Microsoft (US), Google (US), Ansarada (Australia), PandaDoc (US), Egnyte (US), iDeals (UK), SmartRoom (US), Vitrium Security (US), ShareVault (US), ForData (Poland), EthosData (UK), CapLinked (US), Imprima (UK), Midaxo (US), FuseBase (US), Onit (US), FirmsData (India), Confiex Data Room (India), Drooms (Switzerland), Bit.ai (US), DCirrus (India), Virtual Vaults (Netherlands), Firmex (US), Deallink (Brazil), PactCentral (US), and DocullyVDR (UAE).
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Report Metrics |
Details |
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Market size available for years |
2019–2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
USD (Billion) |
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Segments Covered |
Offering, Document Type, Technology, Application, End User, and Region |
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Geographies covered |
North America, Asia Pacific, Europe, Middle East & Africa, and Latin America |
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Top Virtual Data Room Market Companies covered |
SS&C Intralinks (US), Box (US), Datasite (US), Thomson Reuters (Canada), Donnelley Financial Solutions (US), Microsoft (US), Google (US), Ansarada (Australia), PandaDoc (US), Egnyte (US), iDeals (UK), SmartRoom (US), Vitrium Security (US), ShareVault (US), ForData (Poland), EthosData (UK), CapLinked (US), Imprima (UK), Midaxo (US), FuseBase (US), Onit (US), FirmsData (India), Confiex Data Room (India), Drooms (Switzerland), Bit.ai (US), DCirrus (India), Virtual Vaults (Netherlands), Firmex (US), Deallink (Brazil), PactCentral (US), and DocullyVDR (UAE). |
This research report categorizes the virtual data room market based on offering, document type, technology, application, end user, and region.
By Offering:
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Software by Type
- AI Contract Analytics
- Document Sharing System
- AI-assisted Redaction
- Audit Trials and User Analytics
- Collaboration Tools
- AI Translation
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Software by Deployment Mode
- Cloud
- On-Premises
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Services
- Professional Services
- Consulting & Advisory
- Integration & Deployment
- Data Room Training
- Asset Onboarding & Data Migration
- Managed Services
By Document Type:
- Financial Statements
- Contracts & Agreements
- Legal & Corporate Governance
- Intellectual Property (IP) & Employee Records
- Other Documents
By Technology:
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Data Storage & Management
- Cloud Computing
- Database Management
- Content Management
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Security
- Encryption
- Digital Rights Management (DRM)
- Firewall and Intrusion Detection Systems (IDS)
- Multi-Factor Authentication (MFA)
- Data Loss Prevention
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Classification & Collaboration
- Secure Messaging and Q&A Modules
- Version Control
- Metadata Tagging & Categorization
- Automated Document Classification
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Intelligence & Search
- Artificial Intelligence
- Natural Language Processing
- Optical Character Recognition
By Application:
- M&A Due Diligence
- Document Management
- Franchise Management
- Audit, Risk and Compliance Management
- Access Control & Permission Management
- Asset & Workflow Management
- Fundraising and IP Management
- Auto-Forwarding and Topics Mapping
- Other Applications (Bankruptcy and Restructuring, Board Communications, Lease Management, Bid Management, and Litigation Management)
By End User:
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Business Sector
- Financial Services
- Legal & Law Firms
- Accounting & Auditing Firms
- Tech Firms
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Corporate Enterprises
- Real Estate
- Healthcare
- Pharmaceuticals & Life Science
- Manufacturing
- Others (Energy and Mining, Education, and media)
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Role Specific Users
- Investors
- Financial Analysts
- Auditors & Accountants
- Consulting Firms
- Others
By Region:
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North America
- US
- Canada
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Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
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Asia Pacific
- China
- Japan
- India
- South Korea
- Australia and New Zealand (ANZ)
- ASEAN
- Rest of Asia Pacific
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Middle East & Africa
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Middle East
- KSA
- UAE
- Bahrain
- Kuwait
- Rest of the Middle East
- Africa
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Middle East
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Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
Recent Developments:
- In October 2023, Diligent and DFIN partnered to streamline SEC compliance and ESG reporting through a combined solution. This integration allows users to leverage Diligent's ESG data management tools alongside DFIN's ActiveDisclosure SEC filing software, easing real-time collaboration and audit-ready reporting. The partnership aims to significantly reduce costs and time associated with ESG reporting, with Diligent ESG saving users 50% in auditing costs and up to 80% in data collection time. As regulatory demands increase, the solution is designed to help organizations meet compliance requirements efficiently and effectively.
- In August 2023, Datasite announced the acquisition of MergerLinks, a London-based financial data platform that aids finance professionals in finding deal information and connecting with investors and advisors. This acquisition aligns with Datasite's strategy to enhance its offerings in the mergers and acquisitions (M&A) sector. MergerLinks provides access to vetted data on over 240,000 M&A professionals and 9,000 advisory firms, enabling users to highlight potential deal partners. By integrating MergerLinks into its platform, Datasite aims to streamline the deal-making process, reduce friction, and refine client outcomes, making it easier for dealmakers to manage transactions from ideation to execution.
- In June 2023, Thomson Reuters announced its acquisition of legal technology provider Casetext. Casetext specializes in AI-driven legal research and document analysis tools, which enhance the efficiency of legal professionals. The acquisition aims to strengthen Thomson Reuters' legal offerings and expand its capabilities in the legal tech market. Casetext's products, including its AI assistant Cocounsel, will be integrated into Thomson Reuters' existing legal solutions, providing customers with advanced tools to streamline their workflows. This move reflects a growing trend in the legal industry towards using technology to improve legal services and reduce costs. The deal is expected to close in the third quarter of 2023, pending regulatory approvals and customary closing conditions.
- In April 2022, DFIN partnered strategically with CrossCountry Consulting to enhance the IPO process through its Venue virtual data room and other financial services. This collaboration aims to provide clients with a comprehensive suite of tools at every stage of the IPO lifecycle, from due diligence to post-integration optimization. By combining DFIN's ability in financial reporting and SEC compliance with CrossCountry's advisory capabilities, the partnership streamlines regulatory reporting and improves operational efficiency for businesses navigating complex IPO requirements. This partnership will serve clients across industries, including financial services and healthcare.
- In October 2021, DFIN partnered with Hong Kong FinTech Week 2021's Global Fast Track program to support the growth and development of fintech startups. Through this partnership, DFIN will provide participating startups access to its Venue virtual data room and other financial compliance solutions. It aims to help fintech companies streamline their operations, navigate regulatory requirements, and accelerate their growth trajectories. By leveraging DFIN's ability in financial services and its suite of digital solutions, the Global Fast Track program aims to foster innovation and drive the success of fintech startups in Hong Kong and beyond.
Frequently Asked Questions (FAQ):
What is a virtual data room?
A virtual data room is a secure online repository or software tool for document storage and distribution. This tool is used during the due diligence process preceding a merger or acquisition (M&A) to review, share, and show the company's essential documentation. With the globalization of business and increased scrutiny to reduce costs, virtual data rooms are widely accessible, at once available, and offer a more secure document management process. A virtual data room allows attorneys, accountants, internal and external regulators, and other interested parties to have a centralized access point. It offers a central system that reduces errors and time. It also provides communication transparency based on the type of audit; the level of access and authority varies.
What is the total CAGR expected to be recorded for the virtual data room market during the forecast period?
The market is expected to record a CAGR of 18.1% during the forecast period.
What are the key drivers supporting the growth of the virtual data room market?
The factors driving the growth of the virtual data room market are the increasing demand for hierarchical document organization for ease of navigation, the capability to offer unified and centralized access points to assess and efficiently share digital documents, and the need to streamline the due diligence process and improve collaboration among stakeholders.
Which key end users prevail in the virtual data room market?
The key end users gaining a foothold in the virtual data room market are end users in business sectors such as financial services, legal and law firms, accounting and auditing firms, tech firms, corporate enterprises, and role-specific users such as investors, financial analysts, auditors and accountants, and consulting firms.
Which are top companies in virtual data room market?
Some major players in the virtual data room market include SS&C Intralinks (US), Box (US), Datasite (US), Thomson Reuters (Canada), Donnelley Financial Solutions (US), Microsoft (US), Google (US), Ansarada (Australia), PandaDoc (US), Egnyte (US), iDeals (UK), SmartRoom (US), Vitrium Security (US), ShareVault (US), ForData (Poland), EthosData (UK), CapLinked (US), Imprima (UK), Midaxo (US), FuseBase (US), Onit (US), FirmsData (India), Confiex Data Room (India), Drooms (Switzerland), Bit.ai (US), DCirrus (India), Virtual Vaults (Netherlands), Firmex (US), Deallink (Brazil), PactCentral (US), and DocullyVDR (UAE). .
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The virtual data room market research study involved extensive secondary sources, directories, journals, and paid databases. Primary sources were industry experts from the core and related industries, preferred virtual data room providers, third-party service providers, consulting service providers, end users, and other commercial enterprises. In-depth interviews were conducted with various primary respondents, including key industry participants and subject matter experts, to obtain and verify critical qualitative and quantitative information, and assess the market’s prospects.
Secondary Research
In the secondary research process, various sources were referred to, for identifying and collecting information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from other secondary sources, such as journals, government websites, blogs, and vendors' websites. Additionally, virtual data room spending of various countries was extracted from the respective sources. Secondary research was mainly used to obtain key information related to the industry’s value chain and supply chain to identify key players based on software, services, market classification, and segmentation according to offerings of major players, industry trends related to software, deployment mode, services, document type, technology, application, end users, and regions, and key developments from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and virtual data room expertise; related key executives from virtual data room solution vendors, SIs, professional service providers, and industry associations; and key opinion leaders.
Primary interviews were conducted to gather insights, such as market statistics, revenue data collected from software and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped understand various trends related to technologies, applications, deployments, and regions. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and end users using virtual data room solutions, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of virtual data room software and services, which would impact the overall virtual data room market.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the bottom-up approach, the adoption rate of virtual data room solutions and services among different end users in key countries concerning their regions contributing the most to the market share was identified. For cross-validation, the adoption of virtual data room solutions and services among industries and different use cases concerning their regions was identified and extrapolated. Weightage was given to use cases identified in different regions for the market size calculation.
Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included the analysis of the virtual data room market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socio-economic analysis of each country, strategic vendor analysis of major virtual data room providers, and organic and inorganic business development activities of regional and global players were estimated. With the data triangulation procedure and data validation through primaries, the exact values of the overall virtual data room market size and segments’ size were determined and confirmed using the study.
Global Virtual Data Room Market Size: Bottom-Up and Top-Down Approach:
Data Triangulation
Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included the analysis of the virtual data room market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socio-economic analysis of each country, strategic vendor analysis of major virtual data room providers, and organic and inorganic business development activities of regional and global players were estimated. With the data triangulation procedure and data validation through primaries, the exact values of the overall virtual data room market size and segments’ size were determined and confirmed using the study.
Market Definition
A virtual data room is a secure digital platform that allows easy and productive conduct of a high-value transaction such as merger, acquisition, IPO, capital rise or debt security offering by safely sharing confidential company information with potential buyers, advisors, and partners. As per CapLinked, a virtual data room provides secure storage for digital documents and limits access to only those who are authorized to view them. This type of online data room is used extensively for business transactions, including the due diligence process, M&As, IPOs, private equity agreements, banking, and investments. Stakeholders can securely access documents at specific times, from any platform, and from anywhere in the world with an internet connection. Businesses, governments, and other organizations have found a wide variety of uses for virtual data room for document sharing and collaboration.
STAKEHOLDERS
- Risk assessment and software developers.
- Virtual data room vendors
- Cloud service providers
- Consulting service providers
- Business owners
- Distributors and value-added resellers (VARs)
- Independent software vendors (ISVs)
- Managed service providers
- Support & maintenance service providers.
- System integrators (SIs)/Migration service providers
- OEMs
- Technology providers
Report Objectives
- To define, describe, and predict the virtual data room market by offering (software [by type and deployment mode] and services), document type, technology, application, end user, and region.
- To provide detailed information related to major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the market growth.
- To analyze the micro markets with respect to individual growth trends, prospects, and their contributions to the total market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the virtual data room market
- To analyze the opportunities in the market and provide details of the competitive landscape for stakeholders and market leaders.
- To forecast the market size of five main regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
- To profile the key players and comprehensively analyze their market rankings and core competencies.
- To analyze the competitive developments, such as partnerships, product launches, and mergers & acquisitions, in the virtual data room market
- To analyze the impact of the recession across all regions in the virtual data room market
Available Customizations
With the given mrket data, MarketsandMarkets offers customizations as per your company’s specific needs. The following customization options are available for the report:
Product analysis
- Product quadrant, which gives a detailed comparison of the product portfolio of each company.
Geographic analysis
- Further breakup of the North American virtual data room market
- Further breakup of the European virtual data room market
- Further breakup of the Asia Pacific virtual data room market
- Further breakup of the Middle Eastern & African virtual data room market
- Further breakup of the Latin America virtual data room market
Company information
- Detailed analysis and profiling of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in Virtual Data Room Market
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