Virtual data rooms have been a market tool unlike any other. Unfortunately, popular cloud storage services don’t offer the same kind of security as virtual data room providers, and traditional data rooms lack the efficiency a digital solution provides. That is why this industry is experiencing rapid growth.
So, what is the current state of the market, and what is in store for the future of the VDR market?
The current state of virtual data rooms
It is already impressive that the virtual data room market managed to reach an estimated valuation of almost $1.5B and is forecasted to reach $4.12B by the end of 2027. This tool has already been a fully functional addition to the business world. Through constant research and the emergence of remote work due to COVID-19, virtual data room providers were forced to adapt to new circumstances and come up with new, breakthrough solutions.
One of the strongest markets for this solution is North America. As this is the land of economies like Canada or The United States of America, businesses were eager to adopt any tool that might give them some sort of advantage early. Besides North America, virtual data rooms also experienced growth in Asia and Australia and are forecasted to be in high demand until 2024.
Key market players
The virtual data room market is still far from being dominated by a single corporation. However, some of the key players in this industry are Vault Rooms Inc., Citrix Systems Inc., iDeals Solutions, and ShareVault. All provide the space with some solution that the other might lack, filling in the gaps in the market, and creating a more tight-knit offer for businesses looking to invest in a virtual data room solution.
According to Mordor Intelligence, the virtual data room market is still nearer a fragmented market full of new providers than a consolidated one with just a few major players. The companies listed above are just some out of dozens of leading solutions.
This virtual data room market is far from reaching its full potential. It will further develop, and new solutions will be introduced to the industry. What will the future of virtual data rooms look like?
Hope for the future
Many reports share different predictions about virtual data rooms. One of the more positive conclusions is that the virtual data room market is expected to develop with a compound annual growth rate (CAGR) of 14.7% between 2020 and 2027. That kind of growth would be optimal for the further introduction of new data room solutions.
The future might be filled with mergers and acquisitions not only supported by virtual data rooms but also facilitated between the providers. Through the incorporation of companies like TriLine GRC and Thedocyard, Ansarada is widening its reach on the market. This provides a more competitive landscape but also an initiative for future development.
One of the differentiating factors between virtual data room solutions will be their implementation of AI. Some providers are already experimenting with AI-based reports, suggestions, and other features that might come in handy for their users. However, not all providers are currently working on artificial intelligence implementations and might never decide to do so.
The future of virtual data rooms in the UK
The United Kingdom is in the same virtual data room market category as Europe and North America. It has experienced growth and will continue to develop, although not as quickly as Asia or Australia. This means that development is still going to happen, and new solutions will be introduced the same way as in countries that have the largest market share.
Virtual data rooms are a solution that big businesses can use in all the major aspects of their company dealings. Countries like Canada or the US are already reaping the benefits of their use, being the key customers in the industry.
The future might still be unsure, but if the market continues its growth, we will witness a divide between AI use by some providers and a completely different developmental strategy from others. As for the UK market, it looks like it will continue to grow, although at a slower rate than the Asian or Australian market. We can only wonder what else virtual data room providers are going to surprise us with in the future.