The global market of data room software is expected to increase from $1.6 billion in 2021 to $3.2 billion by 2026, at a Compound Annual Growth Rate of approximately 14.5% during this period. Numerous factors such as the increasing importance of business data due to complexities occurring during M&A activities and the transition to remote work during the coronavirus pandemic are accelerating the implementation of online data room software.

Virtual Data Room (VDR): Top 7 Facts about the Market

How COVID-19 Has Changed the Global Virtual Data Room Market

The coronavirus crisis is changing and will continue to change the way people live and do business, and the mergers & acquisitions sector isn’t an exception. In a very short period of time, thousands of companies have been closed, millions of employees were sacked and supply chains have been thrown into disorder. While the global economy starts to recover, it will be a long process. The M&A sector has survived and healed from past economic troubles, including the burst of the dot-com bubble at the beginning of the 2000s and the Great Recession of 2007-2009. Well-known and just emerging uncertainties in the business world have already made buyers delay and even cancel their acquisition plans.

However, the pandemic had not only financial consequences, as COVID-19 had affected M&A deals in numerous ways. With the whole world working remotely, digitalization has become even more crucial for all business players. The effective utilization of innovative technologies and techniques has become essential as buyers, vendors, top executives, financial and legal advisors, and even administrators adapt to the rough environment. The M&A ranks in the United States of America dropped by more than 50% in the first quarter of 2020 compared to 2019, but it started to recover, including through the wide usage of data room services.

Nowadays, virtual data rooms like are an innovative answer to business expectations that have only become higher in recent years. These products help to boost operational efficiency, raise deal speed and increase collaboration.

7 Interesting Facts about the Virtual Data Room Market

While the virtual data room market faces some difficulties due to the economic crisis, it’s expected that it will become significantly bigger in the future. Here are several facts about the forecast changes to consider.

  1. North America is expected to maintain the largest market share when it comes to the virtual data room market. It is connected with the increasing M&A activities and the development of cutting-edge technologies, such as IoT and AI in the region.
  2. The international electronic data room market reached $1.49 billion in 2019 and is expected to value $3.2 billion by 2026.
  3. Ground-breaking technologies like Blockchain and Machine Learning are used to improve VDR security and the level of data protection.
  4. Although VDRs are known as solutions for M&A, they are also widely leveraged for loan syndication, private equity, and venture capital across multiple industries.
  5. The majority of the data room providers offer cloud-based that are more popular and widely used.
  6. Among the most famous data room providers are, Citrix Sharefile, Firmex, SmartRoom VDR, DataRooms.Com, HighQ, V-Rooms, SecureDocs, DocSend.
  7. The most serious challenges for the virtual data room market are cyber threats as the information stored in electronic storage is more prone to cyber-attacks.

Although the needs for technology aren’t static and different industries usually demand different products and solutions, it seems that the VDR market will only grow. With ongoing improvements being made, create new products and adopt new features to help businesses survive and thrive.

How to Pick the Best Virtual Data Room for Your Business

Virtual data rooms can be a powerful tool for scaling your business and reducing costs on M&As. But a mistake costs a lot here too. With so many attractive offerings on the Internet, it can be difficult to make a choice. Here are a few simple tips to bear in mind:

  • analyze your needs and capabilities: what exactly are you planning to achieve with a VDR?
  • identify preferred features: what is more important for your company?
  • consider your budget: how much can your business spend?
  • read a reliable data room review to see your options;
  • check a data room comparison to examine the solutions in detail;
  • go to the site of the preferred vendor to learn more about the product;
  • test the solution by free trial.

This brief instruction will help you select the winner.

Protecting and sharing important documents virtually is a new normality today. The usage of online data room software only increases in popularity in the next decade and the market for these solutions grows. Therefore, in order to scale your enterprise, improve your collaboration, encourage efficiency, and conceivably lower the number of redundant tasks, VDRs should be your next business priority.