The virtual data room market is growing fast due to an increase in demand for highly secure solutions for document exchanges between organizations and legal entities. VDR solutions are also used in healthcare projects where it is required to share confidential information with many stakeholders. Additionally, fundraising activities require transparency and a well-organized document which is driving the use of virtual data rooms.
In terms on the mode of deployment, the virtual data room market is divided into on-premises as well as cloud-based. The latter segment was responsible for 67 percent of the revenue share in 2021 and is expected to be the dominant segment during the forecast time. This is primarily due to the cost-effective benefits offered by cloud-based VDR solutions compared to alternatives that are hosted on premises. SMEs are expected to adopt cloud-based VDRs, which is expected to boost this sector.
VDR solutions are widely used in the banking and financial services and insurance (BFSI) sector to speed up deal processing. Similarly, they are also used by real estate firms to transfer documents to facilitate property purchases and sales. The COVID-19 epidemic has also increased the need to work remotely and is driving the adoption of secure document transfer tools such as VDRs.
The demand for VDR solutions is expected to increase from emerging economies like China, India, and Southeast Asia. These countries are experiencing rapid economic growth, and digitalization creates an environment that is conducive to business transactions like mergers and purchases. This will create demand for efficient and secure digital solutions.
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