Did you know that the virtual data room market is expected to hit the $2.7 billion figure by 2025, growing at the CAGR (compound annual growth rate) of 14.4%?
The electronic data room market has experienced rapid growth, but what fueled that growth? Well, business operations involve sharing and storing sensitive information, and that information surely requires a secure platform to be protected reliably. That’s where online data room software comes into play, as it offers a complete suite of digital tools for bank-grade data security.
Additionally, here’s a list of some other factors fueling the growth of data room software:
- An ever-growing need to improve risk management
- Growing number of secured business deals
- Rising demand for intellectual property
Key market Dynamics
Let’s have a look at some of the mind-boggling facts behind the fast growth of the virtual data room market and how it’s catering to the needs of today’s fast-paced digital world.
Increased volume of business data: VDR due diligence
Virtual data rooms have transformed the way businesses conduct due diligence for mergers and acquisition activities.
Businesses of all sizes across the globe are now embracing digital solutions such as data room services that boost the overall productivity of the company.
Online data room software has emerged as the most reliable source for storing and sharing confidential corporate data for the parties involved in M&A activities and other significant business transactions.
That’s because, with VDR, you can precisely control who can access the data in the online repository, making the electronic data room extremely valuable for facilitating financial transactions.
On top of that, progressive machine learning and blockchain technologies are now taking electronic data room security to a whole new level.
Cyber security issues
On average, almost 300,000 websites are hacked each day. And on a global scale, over 60% of businesses have experienced some kind of cyberattack.
This proves that cyber threats are massively influencing the safety of online transactions and data. Companies usually operate under pressure, which often leads to a lack of awareness of cyber dangers.
Since the third party involved in the due diligence process uses various technologies, companies are more vulnerable to data breaches.
That’s where digital platforms such as virtual data rooms come to the rescue. Dedicated data room software comes with built-in security mechanisms such as end-to-end encryption, secure socket layer protection, multi-factor authentication, etc., to protect sensitive corporate information.
Also, online data room software gives you control over who can access the data in the repository.
Businesses of all sizes are always seeking ways to cut down costs while improving productivity. Paper-based documents aren’t just heavy to lug around but cost a lot of money.
Hence, virtual data rooms come in very handy as it eliminates the costs that come with physical storage of documents, including paper, printing, clippers, folders, etc.
Also, data room software helps you track and monitor every type of transaction.
Even though technological needs aren’t constant, and different businesses require different solutions and products, it seems that the electronic data room market will only grow.
With the ongoing advancements being made, adopt new features and develop new products to help industries survive and prosper.
Choosing the best data room services for your business
It is safe to say that a virtual data room is one of the robust digital tools that can help you scale your business while cutting down costs related to M&A, etc., but one little mistake can cost you everything.
With so many virtual data room providers in the market, it can be a daunting task to choose the right digital solution for your business.
Hence, do your homework, and this is what you need to keep in mind while comparing different data room vendors:
- Your budget constraints
- Data security certifications and standards
- Whether the tool is easy to use since not everybody is tech-savvy
- Customer support
- Features that are crucial for your business
- Customizability options
- Unlimited storage as you will be uploading a bulk of data
Prominent virtual data room players
Here’s a list of some of the major data room services providers that might perfectly fit the needs of your business.
- Citrix Systems, Inc.
- Merrill Corp.
- Intralinks, Inc.
All in all, take your time and map out all the workflow before choosing the digital solution for your organization.
Yes, the hype is real. A virtual data room has to be your next business priority if you intend to scale your business and encourage efficiency while also lowering the possibility of redundant activities.
The popularity of the electronic data room market demonstrates its importance in today’s fast-paced digital business environment.
Nothing compares to the legacy of virtual data rooms as no other file-sharing platform can streamline the business operations as online data room software does.