The virtual data room market is expected to grow at a CAGR of 6.69%, reaching a market size of US$4,609.891 million in 2030 from US$3,337.163 million in 2025.
The significant rise in demand for highly secure solutions for transmitting private documents and information between enterprises and legal authorities is majorly driving the virtual data room market growth. Additionally, the virtual data room (VDR) offers businesses a secure platform that enables them to communicate and keep sensitive customer information including contract details, deal discussions, and bidding information from one location to another. Major companies are reporting an increase in their revenue owing to the booming adoption of VDR solutions. For instance, according to BOX's annual report published in 2023, the revenue generated per year has significantly increased from USD 770,770 thousand in 2020 to USD 990,874 thousand in 2022, thereby signifying a 28.5% increase.
Further, various companies are focusing on product development leading to market expansion. AvePoint launched Confide, a virtual data room, in January 2022 to help businesses manage their requests for sensitive data and collaborate more securely. The only virtual data room that offers the highest level of security and initiation efficiency is Confide, which is fully integrated with Microsoft 365 and hosted on the user's cloud tenancy. For instance, Telefonica Tech opened the new Virtual Data Centre (VDC) node in Ashburn, Virginia.
Organizations are concentrating on organizing and securely keeping essential data due to the constant increase in data volume and rise in data sources. The creation of strong platforms on which merger and acquisition (M&A) may be managed with ease is made possible by the development of sophisticated features such as access security, document security, and user interface of virtual data rooms. Additionally, virtual data room providers encrypt their customers' private information using 256-bit and 512-bit algorithms. As a result, BFSI institutions utilize the advantages of VDRs for everyday business operations and employ them as corporate repositories and information exchange tools, which supports market expansion.
As per the data published by the Office of National Statistics, the overall value of outbound M&A (UK corporations buying foreign companies) was £12,631 million in 2019 which rose to £ 27,539 million in the year 2020. In addition, domestic M&A, or UK firms buying other UK companies, totalled £1.8 billion in the first quarter of 2023, down £2.1 billion from the fourth quarter of 2022 (upwardly revised to £3.9 billion) and £2.6 billion from the first quarter of 2022. M&A poses a wide range of issues, including those related to the exchange of proprietary information, intellectual property, personnel data, capitalization tables, and various business contracts that result in a big pool of data.
Moreover, M&A poses a wide range of issues, including those related to the exchange of proprietary information, intellectual property, personnel data, capitalization tables, and various business contracts that result in a big pool of data. Companies engaged in M&A gather the data, screen it, and present it while keeping the transaction's confidentiality & data security in mind. In addition, institutions can securely share secret data without the need for physical data rooms by using virtual data rooms.
The BFSI is the highest market segment because it is the most into and participates in private deals such as financing, IPOs, and mergers and acquisitions. The VDR becomes essential in the banking and finance industry while arming these institutions to quickly process transactions in compliance with the rigid regulatory standards by helping to provide a security platform for the storage and exchange of sensitive financial documents, regulatory filings, and due diligence reports. Besides, the BFSI has much to deal with data security and confidentiality, making it also relevant in this case since it will allow safe communication and collaboration between parties in key financial transactions.
The increasing demand for technologies for securing critical data storage and transferring is fueling the market growth for virtual data rooms in the country. Additionally, the presence of companies such as Vault Rooms Inc., Citrix Systems Inc., and ShareVault in the country is also one of the reasons behind the market growth in the United States. The need for virtual data rooms is also increasing in banking and financial institutes for file storing and data transmission, the massive banking and financial activities in the USA are giving an edge for market growth.
Moreover, the increasing number of product launches by companies in the U.S. is also one of the driving factors for virtual data rooms. For instance, Telefonica Tech set up their Virtual Data Centre in Ashburn, Virginia which is designed particularly to assist businesses in moving their workload to a cloud environment that will keep their data safe, easy to access, and secure along with accessibility.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Virtual Data Room Market Size in 2025 | US$3,337.163 million |
| Virtual Data Room Market Size in 2030 | US$4,609.891 million |
| Growth Rate | CAGR of 6.69% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Million |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Virtual Data Room Market | |
| Customization Scope | Free report customization with purchase |