Virtual Data Room Statistics, Trends And Facts 2023

Virtual Data Rooms (VDRs) have become an essential tool for businesses that need to securely share confidential information with external parties, such as investors, partners, or clients.

VDRs are cloud-based platforms that provide a secure environment for sharing and storing confidential data, including financial reports, legal documents, and intellectual property.

In this article, we will explore virtual data room statistics that demonstrate the growing importance of VDRs in today’s business world.

Key Virtual Data Room Statistics 2023 – MY Choice

The global virtual data room market was valued at $1.13 billion in 2020 and is expected to reach $3.66 billion by 2028. (Source: Grand View Research)
In 2020, North America held the largest market share for virtual data rooms, accounting for 41.3% of the global market. (Source: Grand View Research)
The financial services sector is the largest user of virtual data rooms, accounting for 38% of the total market share. (Source: Global Market Insights)
In 2020, the average deal size for virtual data room transactions was $125 million. (Source: Intralinks)
Virtual data rooms are commonly used for M&A transactions, with 94% of dealmakers using them for due diligence. (Source: Merrill Corporation)
72% of businesses that use virtual data rooms report increased efficiency in their deal-making processes. (Source: Merrill Corporation)
The use of virtual data rooms has increased dramatically in recent years, with the number of data rooms created in 2020 growing by 81% compared to 2019. (Source: Firmex)
The COVID-19 pandemic has accelerated the adoption of virtual data rooms, with a 65% increase in data room usage in Q2 2020 compared to Q1 2020. (Source: Intralinks)
91% of M&A professionals believe that virtual data rooms will become the standard for all M&A transactions in the future. (Source: Merrill Corporation)
The global virtual data room market is projected to grow at a CAGR of 14.5% from 2021 to 2028. (Source: Grand View Research)

Virtual Data Rooms (VDRs) are online repositories of data that allow businesses to securely store, share, and manage their confidential documents. VDRs are typically used for due diligence in mergers and acquisitions, fundraising, and other transactions that require the sharing of sensitive information. In recent years, the use of VDRs has grown exponentially, as businesses seek to streamline their operations and ensure the security of their data.

Market Size and Growth

The VDR market is expected to grow at a compound annual growth rate (CAGR) of 12.9% from 2021 to 2028, reaching a market size of $4.21 billion by 2028. This growth is driven by the increasing adoption of VDRs in industries such as healthcare, banking, and real estate, as well as the growing need for secure and efficient data sharing solutions.

Industry Adoption of Virtual Data Rooms

The use of VDRs is prevalent across a wide range of industries, including:

Mergers and Acquisitions: 96% of M&A professionals use VDRs for due diligence, and 80% of M&A deals involve the use of a VDR.
Investment Banking: 92% of investment bankers use VDRs, and 75% of investment banking transactions involve the use of a VDR.
Legal: 90% of law firms use VDRs for due diligence and document management.
Real Estate: 85% of real estate professionals use VDRs for property transactions and due diligence.
Life Sciences: 78% of life sciences professionals use VDRs for clinical trials and intellectual property management.

Benefits of Virtual Data Rooms

The benefits of using VDRs for secure data sharing include:

Enhanced Security: VDRs offer advanced security features such as two-factor authentication, access controls, and encryption to protect confidential data from unauthorized access.
Streamlined Workflow: VDRs allow multiple parties to access and collaborate on documents in real-time, reducing the time and resources required for document management.
Increased Efficiency: VDRs eliminate the need for physical document storage and reduce the time and cost associated with printing and shipping documents.
Improved Compliance: VDRs provide an auditable record of document access and activity, ensuring compliance with industry regulations and legal requirements.

Virtual Data Room Features

Key features of virtual data rooms include:

Document Management: VDRs provide a central location for document storage, organization, and version control.
Collaboration Tools: VDRs allow multiple parties to access and collaborate on documents in real-time, with features such as commenting, task assignment, and notifications.
Reporting and Analytics: VDRs provide real-time data on document activity, including document views, downloads, and user activity.
Custom Branding: VDRs can be customized with the company’s branding, including logos and color schemes.

Virtual Data Room Security

Security is a top concern when it comes to sharing confidential data, and virtual data rooms offer a range of features to ensure data security. Here are some security features commonly found in VDRs:

Two-Factor Authentication: This adds an extra layer of security to the login process by requiring users to provide a second form of authentication, such as a text message or token.
Access Controls: VDRs allow administrators to set permissions for users, limiting access to specific documents or features.
Encryption: Data encryption is used to protect sensitive information while it’s in transit and at rest.
Watermarking: Some VDRs add watermarks to documents to prevent unauthorized sharing or printing.
Audit Trails: VDRs provide an audit trail of user activity, so you can track who accessed what documents and when.

Virtual Data Room Pricing

Virtual data rooms can range in price from a few hundred dollars to several thousand dollars per month, depending on the size of the organization, the amount of data storage needed, and the features required. Some VDRs charge per user, while others charge a flat fee. Here are some factors that can affect VDR pricing:

Storage: The amount of data storage needed can affect pricing. Some VDRs charge per GB, while others offer unlimited storage.
Features: Advanced features such as custom branding, reporting, and analytics can add to the cost.
Users: Some VDRs charge per user, while others offer unlimited users for a flat fee.

Conclusion

Virtual data rooms are a vital tool for businesses that need to share confidential data with external parties. With advanced security features, streamlined workflow, and real-time collaboration, VDRs provide an efficient and secure solution for document management. As businesses continue to adopt digital solutions and remote work becomes more prevalent, the demand for VDRs is expected to grow. By understanding the market trends and the benefits of VDRs, businesses can make informed decisions about implementing this technology to streamline their operations and protect their sensitive data.