Virtual Data Rooms in the US - Industry Market Research Report

On Lock: Growing Competition from New Entrants Will Likely Constrain Industry Profit Growth

Virtual data room (VDR) operators derive demand for services from several massive markets. Demand is almost split between law firms and investment banks and venture capital and private equity firms. Operators provide these clients with secure document-sharing and storage solutions geared toward information-sensitive applications such as legal, due diligence, mergers and acquisitions, initial public offerings, bankruptcies and more. Because of this, VDRs are highly reactive to the overall performance of the economy. During the period, VDRs have experienced volatile growth, which has largely followed the general economy. In 2020 downstream demand was crushed as the global economy faltered, investor uncertainty soared, and M&A activity came to a screeching halt. Despite the massive decline early in the period, revenue for virtual data rooms is expected to grow at a CAGR of 1.5% to $1.5 billion over the five years to 2023, including 6.6% growth in 2023 alone, when profit is expected to reach 15.4%.

This industry provides clients with virtual data rooms, which are secure document sharing and storage solutions geared toward legal due diligence, mergers and acquisitions, initial public offerings, bankruptcies and other information-sensitive applications.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.