Global Virtual Data Rooms Market to Reach $2.4 Billion by 2024

Virtual data rooms, also known as deal rooms, present an online data repository or cloud storage for data storage and sharing. The storage of data in virtual database allows organizations to control the data and allow only authorized users to access the information. Originally meant to facilitate cooperation among organizations engaged in M&A transactions, virtual data rooms have experienced notable evolution in terms of applications and functions. These advanced repositories are perfect options not only for secure information sharing, but also for data protection as they rely on sophisticated tools to encrypt uploaded documents. Amid the COVID-19 crisis, the global market for Virtual Data Rooms is projected to reach US$2.4 Billion by 2024, registering a compounded annual growth rate (CAGR) of 14.8% over the analysis period. United States represents the largest regional market for Virtual Data Rooms, accounting for an estimated 30.9% share of the global total. The market is projected to reach US$807.3 Million by the close of the analysis period. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 18.7% over the analysis period.

The global virtual data room market is exhibiting phenomenal expansion due to the increasing adoption of the platform across a diverse spectrum of industries coupled with burgeoning business data volumes from deals and rising demand for intellectual property and risk management. Recent advances related to virtual data rooms have extended their functionality and application scope to various end-users across a diverse spectrum of industries. Virtual data rooms are finding increasing adoption among financial, marketing, legal and workforce management organizations to store documents or business-critical information. Demand for virtual data rooms is also fueled by increasing data traffic in prime data management business like data centers, which are not intended to perform secure and safe transactions. The use of bank-grade data encryption technology by providers has made virtual data rooms highly secure platforms. The emergence of blockchain provides companies with the opportunity to further increase the security level. The market is likely to be propelled by increasing adoption of virtual data room services by organizations and governments across developed economies including the US and Canada owing to strong focus on technological innovation. Virtual data rooms hold immense scope across emerging economies such as India where a large number of local players collaborate with international firms and operate as outsource supporters for clients across developed markets.

The IT & telecom sector is anticipated to remain the leading end-user of data rooms and hold the major share of the global virtual data room market in the coming years. The platform is finding increasing adoption in the sector for facilitating deals and ensuring safe storage and transfer of data. The emergence of blockchain-based technologies to further improve security level of virtual data rooms across the IT ecosystem is expected to benefit the segment.