The global market for virtual datarooms is booming due to the surge in the demand for highly secure solutions for document exchanges between organizations and officials of the law. VDR solutions are also employed in healthcare projects in cases where it is necessary to provide confidential information to many stakeholders. Furthermore, fundraising activities demand transparency and well-organized documents which is driving the use of virtual data rooms.

The virtual data room market can be divided in two modes of deployment: on-premises or cloud-based. The latter segment was responsible for 67 percent of the revenue share in 2021 and is expected dominate over the forecast period. Cloud-based VDRs are less expensive than on-premises solutions. Moreover, the adoption of cloud-based VDR solutions among SMEs is expected to grow this segment further.

VDR solutions are extensively used in the BFSI sector (banking, financial services, and insurance) to help streamline deal processes. Similarly, they are also utilized by real-estate companies to transfer documents to facilitate property purchases and sales. Additionally to this, the COVID-19 epidemic accelerated the requirement for remote working, driving the adoption of secure document transfer tools such as VDRs.

The demand for VDR solutions is expected to rise from emerging economies like China, India, and Southeast Asia. These countries are experiencing rapid growth in their dataroomphoto.com/role-of-virtual-data-room-in-the-audit-process/ economies and digitalization has created an environment that is favorable to business transactions like mergers and purchases. This will in turn fuel the need for secure, efficient digital solutions.