The global business landscape is rapidly changing, especially after the Covid-19 pandemic. Where businesses were shut down, people were left jobless, economies trembled, and supply chains were distorted, a massive number of businesses were able to create new ways of functioning.
As a result, virtual data rooms came into prominence. Although online data room software has been a vital component in the financial sector for more than a decade now, its dominance in other industries started mainly during the pandemic. Expectedly, data room software became a global scale business solution employed by businesses of all sizes and types.
Today, we are going to discuss some important facts about the global virtual data room market: its key players, geography, and ways of addressing the ever-growing cybersecurity issues. But before that, let’s define what a virtual data room is.
Virtual data room definition
Virtual or electronic data room software is primarily a secure, digital document storage platform with many other functionalities. That said, a virtual data room is used for storing, sharing, and automating data management processes by companies, professionals, businesses, firms, enterprises, governments, banks, service providers, charities, nonprofits, etc.
Virtual data rooms offer one of the safest modes of business communication as they provide a highly secure and complete virtual workspace. As a result, you can use them for data management, data sharing, real-time data editing, online business meetings, brainstorming, public conversations, and end-to-end private chats.
Last but not least, data room services are regularly used by enterprises for unusual or money-rich transactions. These include fundraising, real estate trades, joint ventures, and many more.
Top 3 facts about global virtual data room market
1. Key virtual data room market players
Based on the regions of dominance, the key players in the global virtual data room market include:
- Citrix Systems (USA)
- iDeals Solutions (China and USA)
- SS&C Intralinks (USA)
- Drooms (Germany)
- ForData (Poland)
- Ansarada (Australia)
- Datasite (USA)
- Vitrium Systems (Canada)
- Onehub (USA)
- ShareVault (USA)
- Digify (Singapore)
- Diligent Corporation (USA)
- DocuFirst (USA)
- Caplinked (USA)
- SmartRoom (USA)
To find out more about the top-rated data room provider, head over to: https://dataroom-providers.org/citrix/.
2. Geography of the virtual data room market
Based on market segmentation, North America is the largest consumer of virtual data rooms. That’s mainly because of a growing number of mergers and acquisitions in the area.
Businesses in this region adopted the latest technologies like IoT, Artificial Intelligence, and virtual data rooms to manage their business operations including mergers and acquisitions of course.
From virtual data room vendors’ perspective, North America will remain a dominating market for the next 4-5 years because of growing data security concerns and M&As.
On the global scale, it’s estimated that the virtual data room market is projected to cross the $3 billion figure by 2026.
3. Cybersecurity issues and virtual data rooms
These days, cyberthreats still remain the biggest concern for the corporate sector and a massive hurdle in online data sharing.
The most challenging part for the financial sector during the pandemic was how to share and manage business documents in M&As safely. Apart from manual negligence, even the trustable platforms were vulnerable to cyber threats due to the involvement of third parties.
In the circumstances mentioned above, virtual data rooms stood out as reliable channels for M&A due diligence. That’s because virtual data room providers introduced hard-to-beat security features that gave tough time to hackers and cybercriminals.
Data room vendors not only ensured VDR security but gave the users full control over data flow. Here is what differentiates VDR technology from other similar solutions:
- Control over data flow. During M&As, the company sharing data with buyers can easily control who would have access to specific documents and who wouldn’t.
The VDR administration can restrict users from saving, downloading, printing, scanning, or making changes to any document.
Besides, using the fence view feature for documents prevents any user from accessing highly sensitive data, while access-based permissions prevent taking a photograph or screenshot of any document. This technology can save your data from both internal and external threats.
- Transparency. Transparency is another additional benefit that VDRs bring to M&As or similar transactions. That said, while using VDRs, a detailed audit report can be generated by authorized users. This report provides every minute detail about all virtual data room activities. Any irregular activity can be traced, and culprits can be easily found.
Summing it up
With cybersecurity being the biggest driver for VDR market growth — and North America being the dominant M&A region — it is needless to say that virtual data rooms are here to stay. Expectedly, the virtual data room market value will cross the $3 billion figure by 2026.
To stay in line with the trend, consider using a data room for your business. Check out the list of dominant players in the market, opt for the best-fitting solution, and reap enormous benefits for your business!