Virtual data rooms store information or data in the online repository. This data room provides repository from where the data is hosted online and can be shared with the third party over a secured connection. Rising adoption of cloud storage solution and services by enterprises is expected to aid in growth of the market. These data rooms provide a cost-effective solution that helps in eliminating the need of physical storage, which in turn helps in reducing the usage of paper.
Increasing adoption of online document exchange is expected to be a major driving factor for growth of the market
Enterprises are increasingly shifting their business and workload to the cloud for improving efficiency, enhance storage capacity, and reduce costs. These enterprises are adopting various tools for data exchange such as GESMES, SDMX-ML, XML, CSV, and ESMS, as these aid in increasing the flexibility while exchanging and transmission of the documents. This is expected to propel growth of the virtual data room market.
Social media is another driving factor that is driving growth of the market. According to the Coherent Market Insights analysis, in 2017, It is estimated that the number of internet users were 3,582,000,000 and 40% of the world's population had access to the internet and the internet users are expected to rise up to 5 billion users by 2020. However, with increase in number of internet user will extract more documents from the internet which means it positively impacts on the growth of the virtual room market.
Lack of customization and technical expertise are among the major challenges that may restrain the market growth
Users are adopting virtual data room solutions have no control over infrastructure or data, which could lead to data breaches. Additionally, service provider have authority of enforcing the services related policies over the user. Moreover, lack of technical proficiency is also another factor for hindering growth of the market.
Virtual Room: Taxonomy
By Component Type
By Business Functionality
- Marketing and Sales
- Workforce management
By Organization Size
- Small and Medium Enterprises(SMEs)
- Large Enterprises
- BFSI( Banking Financial Sector Industry)
- Retail and Consumer goods
- IT and Telecom services
- Government, Healthcare
- Media and Entertainment
- Travel and Hospitality
On the basis of region, the global virtual data room market is segmented into:
- North America
- Asia Pacific
- Latin America
- Middle East
Virtual Room Market: Regional insights
North America is expected to be dominant in the global virtual data room market over the forecast period. Due to the massive growth in the business deals and transactions, such as mergers and acquisitions, joint ventures, and fundraising across the region due to the rapid expansion of SMEs (small and medium) enterprises as well as the higher development of infrastructure.
For instance, companies such as Merrill Technologies Group, Firmex Hungary Inc., and IntraLinks are some of the major players in the region. Synchronoss Technology acquired IntraLinks in January 2017, for expanding its VDR business (Virtual Data Room). Thus, M&A (merger and acquisition) helps in gaining the competitive advantage in the market. Therefore, the North America will remain the dominant region.
Global Virtual Data Room Market: Competitive Background
Some of the leading players operating in the global virtual room market include Ansarada, Brainloop virtual data room, Caplinked, Citrix Technologies, Drooms Gmbh next generation virtual data room, EthosData virtual room, Firmex, Ideals Solution, Intralinks, and Merril technologies.
Global Virtual Data Room Market: Key Developments
- In August 2018, Diligent Corporation, an enterprise governance management company and provider of secure board collaboration solutions acquired Brainloop, the supplier of virtual data room software used within the enterprise for high-security collaboration on confidential documents. The purpose of acquisition was to expand governance cloud offering with secure virtual data rooms for the enterprise.
- In October 2016, Drooms introduced the next generation data room, Drooms NXG. Drooms NXG offers a direct machine-based translation of documents uploaded to the data room and Drooms NXG has an auto red-flag feature – with the platform’s algorithms being able to independently analyze the content of a data room and filter out the relevant information to enable user-based assessment.
- In February 2019, The Gateway Program Development Corp., announced a launch of its virtual data room to provide potential bidders with important technical information about the Hudson Tunnel project.