According to Gartner’s “Virtual Data Rooms Market Guide 2019–2027,” global revenues for virtual data room solutions are projected to reach $4.2 billion in 2022.
What’s driving growth in virtual data rooms?
Despite the fact that these statistics indicate an increased usage of virtual data rooms, there appears to be growing awareness among companies of the advantages offered by secure data storage facilities (e.g., cloud computing). And the need to move data securely from one user to another has become increasingly important.
Increased data generation
One of the main drivers behind the rise of the virtual data rooms market is obviously data generation. Over the last 20 years, global data volumes have increased dramatically, growing by an average rate of almost 50% per year. The data room helps to provide context for the large amounts of data.
Growing need for data security
If companies worldwide are generating, storing, collecting, analyzing, and using more data than ever before, then they must protect their data. Because Facebook owns and tightly controls user data, they’re worth $900 billion dollars. Breaches cost companies big time because they lose sensitive customer data. As a result, there’s an increasing need for virtual data rooms (VDRs) of all kinds.
Compliance
Data privacy regulations are expected to become increasingly important as they continue to evolve. Data privacy has become an important issue for companies because they must comply with regulations regarding personal data protection. Therefore, even if a company hasn’t previously thought of itself as a “data company”, it may now consider doing so because it wants to protect its customer data from potential breaches. It’s not just a case of suffering a data breach; if you don’t take steps to prevent breaches from happening again, then there could be serious consequences.
M&A Deals
More M&As have led to increased VDR deals. However, VRDs (Virtual Deal Rooms) have become ubiquitous among business communities, significantly accelerating deal closing processes and adding additional value by helping companies close deals faster than if they were not using them.
Increased use across multiple sectors
Other industries, including health care, have begun adopting VRDs for their own data storage needs. Data breaches happen everywhere — from small mom-and-pop shops to large corporations. But they’re not just happening at big firms anymore; even smaller organizations are falling victim to cybercrime. And when these attacks occur, the costs associated with them run into millions of dollars. So
How can a VDR help a business and in M&A Deals?
Data room services not only save companies valuable time by reducing their need for storage space, but they’re also safer than traditional methods. With each new advancement in technology, VDRs become increasingly secure and efficient.
Data room services help companies store and share their most important business documents securely online. They’re invaluable when working through complex transactions involving confidential information. Data room services help companies store and share their most important business documents securely online. They’re invaluable when working through complex transactions involving confidential information.
A VDR (Virtual Data Room) allows companies to securely store their most important business documents for easy access by authorized personnel at any time.
Auditing documents makes it easier for everyone involved to know exactly where things stand at any given time. Acquisition teams can use VR/AR software as a way of discovering which products they’re most interested in acquiring.