The virtual data room market is expected to grow exponentially at a CAGR of 15..12% for 2021-2026. This is because businesses appreciate the innumerable advantages of a room, like no need for physical storage space, less paperwork, reduced overhead costs, saves travel time and money. Moreover, it is entirely secure.

1. Virtual Data Room Industry Growth
Statistics and Trends
The virtual data room market was valued at USD . million in and is
expected to reach USD $ . billion in , at a CAGR of . % over the
forecast period – . An increase in the use of cloud storage technology
by large and small businesses is facilitating and contributing to the faster growth
of the data room for investors market. Moreover, it is a cost-e ective way to
eliminate the need for physical storage, lessen paperwork, reduce the cost and
time of travel. All these result in huge savings of time and money. The data room
software and the data room service provider market is majorly driven by the
rapid surge in demand for safe online data storage and highly secured le
sharing solutions for exchanging con dential business data, documents and
information among businesses and legal agencies. Moreover, a virtual data
room by a reputed data room service provider like Con ex Data Room delivers a
by


2. safe, bank grade security platform to organizations and business enterprises,
which helps them to store, send, and access all sensitive information such as
deal negotiations, contracts, and biding information anywhere, anytime and on
any device. The data room for M&A platform is widely preferred across many
businesses owing to its numerous bene ts, such as safe document storage, real-
time secured le sharing of document, and providing integration features with
multiple databases simultaneously.
The growth dynamics driving the virtual data rooms market
1. Increased volumes of data generation
The biggest driver of the virtual data room industry is the exponential growth in
data generation itself, more particularly due to the complexities arising from
M&A activities. Most companies view reputed data room service providers like
Con ex data room as the most reliable online data storage and secure le
sharing platform. This has resulted in volume of data in circulation globally and
consequently the virtual data room market has grown exponentially over the
past two decades and continues to grow at breakneck speed, even now.
2. Growing concern over data security and cyber-security
According to a recent global survey, one in every companies loses
intellectual and business sensitive data due to cyber-attacks. These
cyber security threats are hampering online transactions and deal
making on a large scale. Corporates often operate under pressure,
which may cause negligence and lead to cyber-attacks, especially
during M&A activity. The security breaches occur during these times
because various third-parties that they interact with use di erent
technologies. And your organization may not be able to identify,
track and prevent cyber-attack during such times as it may not be
technologically equipped to handle cyber-attacks during such times.
Facebook is only a $ billion company because it ‘owns’ and closely guards
the data that users share with it.
Data breaches in such circumstance prove very costly as many large companies
have seen over the past few years. Hence, there is a growing demand for the
bank-grade security and technologically advanced tools of deal making of
reputed virtual data room service providers like Con ex Data Room.
.Growing need to deploy speci c tools and technologies to enhance data

3. accessibility and data convergence
Most companies nowadays realize the importance and magnitude of key
features such as data accessibility, data authenticity and data convergence that
virtual data rooms provide. They o er metrics and standards that in uence data
accessibility and data convergence e ectively. Since business data is present in
di erent formats like transactional data, XML data, web based data and
structured data bases, reputed virtual data room service providers enable
sophisticated tools that help convergence and data presentation techniques to
enhance e ciency of data analysis; ensure data scalability; maintain data
integrity and consistency to support business processes e ectively.
4. Face challenges of Data Privacy and Data Integration successfully
Data privacy and data integration is a very important aspect of every business
deal, as that data is used in various applications across organizations. This
includes highly sensitive enterprise data such as customer data, employee
details, legal and other transactional data. Particularly during M&A the
integration team needs to securely integrate this data with its own organization
data. This gives rise to trust issues during and before closing of the deal. To
maintain privacy and data protection during the deal process reputed data room
service providers of data room for M&A like Con ex data room, ensure adoption
of technologies like block chain, and AI to enhance the security of their data
room for investors, and adhere their operations to regulations and data
protection laws.
5. VDR facilitate Compliance
The arrival of GDPR as well as other data protection laws are likely to be just the
beginning for data protection laws. What this means is that data security is no
longer an issue of good corporate practice or governance for companies – it’s a
regulatory compulsion.Therefore, even companies that hadn’t really considered
themselves to be data companies are using virtual data rooms to ensure that
they’re protected from the downside in case of a data breach.
There’s a growing acknowledgement among companies world over that it’s one
thing to be the target of a data breach, but it’s quite another to su er a breach
and for regulators to nd out that they had no controls in place to circumvent
such a cyber-attack contingency.
6. Growth in M&A transactions

4. As mentioned at the outset, an exponential explosion of M&A deals the world
over, has led to a massive growth in the use of the services of reputed data room
service providers and data room software.
Virtual data rooms are now universally accepted and implemented in the due
diligence process, to help signi cantly speed-up the due diligence process. This
in it’s own way, contributes to faster deals that add to aggregate annual
transaction volumes.
7. Professional and Managed Services of VDR can enhance its CAGR in the future
Virtual data room also o er professional and managed services such as secured
data storage, data management, data distribution and exchange, bank-grade
security, multi-lingual support, full text search, in-document linking, and a
variety of other advanced features.
8. Increased usage in other industries
The Virtual Data Room Market is Segmented by Type (Software,
Services), Organization Size (Small- and Medium-scale Organization,
Large Organization), Business Function (Legal and Compliance,
Financial Management, Sales and Marketing), End-user Industry
(BFSI, IT and Telecommunication, Healthcare), and Geography.
Mimicking the growth in nancial services, other industries – particularly
healthcare – have taken to using services of reputed data room service providers
like Con ex data room for their own data storage and sharing requirements.
The average cost of a data breach across several industries underlines why
companies of all stripes are investing in virtual data room technology.
How VDR helps a business grow?
Virtual data room is a military-grade secure platform for online data storage and
secure le sharing due to its advanced technology and security features. It is not
only a cost-e ective way to eliminate the need for physical storage, reduce the
use of paperwork, and decrease the cost of travel, but it also helps to enhance
your operational e ciency, reduce time waste, and is eco-friendly, Virtual data
rooms are a priceless means for helping companies to deal with storing and
sharing data, mergers and acquisitions, due diligence, and other processes
containing sensitive information.

5. The main purpose of any virtual data room is to keep, organize and share the
most valuable data during a deal in a secured location. The security protocols
around the opening, sharing, and printing documents create a detailed activity
trail for participants and auditors. Being able to see who has viewed a document
with an audit trail takes away all of the guesswork. M&A teams can use the
advanced tools of a data room for investors as a way of discovering what their
clients are most interested in.
From the buy side, businesses are able to examine all the documents to help
predict any future risks, pitfalls, and trends.
Conclusion:
IBIS World’s report showed an average annual growth rate of % in the
period - and the predictions estimate an annual growth for virtual data
room providers to be between %- %. The virtual data room market was
valued at USD . million in and is expected to reach USD $3.66
billion in 2027, at a CAGR of 15.12% over the forecast period 2021 – 2026
With the predicted growth and use of VDRs, it’s feasible to expect an exponential
increase in investments for VDR technologies.
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