The global virtual dataroom market is booming because of the rising demand for highly secure solutions to exchange documents between companies and authorities governing legal matters. Additionally, healthcare projects often require sharing sensitive information with multiple stakeholders, which drives the adoption of VDR solutions. Virtual data rooms are also employed for fundraising which require transparency and document organization.
The market for virtual data rooms can be divided in two modes of deployment: on-premises or cloud-based. Cloud-based VDR is expected to dominate the market for the forecast time. In 2021, it was a part of 67% of global revenue. Cloud-based VDRs are less expensive than on-premises solutions. SMEs are likely to adopt cloud-based VDRs, which will boost this sector.
VDR solutions are extensively used in the BFSI sector (banking as well as financial services and insurance) to speed up the process of making deals. They are also utilized by real estate companies to transfer documents to facilitate property purchases and sales. The COVID-19 pandemic has also accelerated the need to work remotely which is causing the adoption 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 economies, and digitalization creates an environment that is favorable to transactions in business, such as mergers and purchases. This is expected to increase the demand for effective and secure digital solutions.
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