Global Virtual Data Room Market Size to Double by 2026

Nov 19, 2021

3 min


virtual data room market, data room

Last September, the online research platform Research and Markets released a report forecasting that the global market size for online data room software will go from USD 1.6 billion in 2021 to USD 3.2 billion by 2026. The main reasons for this growth are the shift to online business due to COVID-19 and the expected increase in M&A.

Why COVID-19 impacted the virtual data room market

As remote work reached unprecedented levels due to the COVID-19 pandemic, companies have had to adopt new tools for working with partners who are in other locations. This includes using virtual data rooms to share documents during corporate processes such as due diligence, mergers and acquisitions, startup fundraising and others.

This explains why virtual data rooms are expected to demonstrate an all-time high 15.12% CAGR (Compound Annual Growth Rate) between 2021 and 2026.

Virtual data room market forecasts

According to the Research and Markets report, small and medium enterprises will be the fastest-growing virtual data room market segment. But the number of large enterprises that are adopting virtual data room software is also on the rise, and this trend is expected to continue during the forecast period.

As geographical regions, the report forecasts the VDR market will grow most in the APAC region, particularly China, Japan, India, and Singapore. This means there are opportunities for smaller virtual data room vendors to introduce virtual data room solutions for numerous sectors in that region.

SS&C Intralinks predicts record for global mergers & acquisition transactions in Q4 2021 

Besides the general impact of the COVID-19 pandemic, the VDR market growth is directly impacted by the increasing numbers of merger and acquisition transactions worldwide. 

Though global M&A dropped during the early days of the pandemic, it soared to new heights as mass vaccinations took place and restrictions eased, as this Nasdaq news article from last August reports.

Indeed, as a result of the recovery of the COVID-19 pandemic, mergers and acquisitions surged during the third quarter of 2021. According to Refinitiv data quoted by Reuters, “merger activity produced deals worth $1.52 trillion in the three months to September 27, up 38% from the same quarter last year and more than any other quarter on record“.

And this trend is expected to continue. The SS&C Intralinks Deal Flow Predictor, an indicator of future M&A announcements, forecasts that M&A activity will reach a new record in the last quarter of 2021.

According to Ken Bisconti, Co-Head of SS&C Intralinks, the company predicts “an increase of more than 10% in M&A volume compared to Q4 2020, with Latin America carrying outsized volume. While we continue to keep a close eye on the impact of inflation, COVID-19 resurgence and geopolitical issues, it appears that dealmakers are poised to continue charging forward.

Main virtual data room vendors

As the demand for VDR services grows yearly, so does the number of virtual data room providers in the market. There are currently dozens of VDR services on offer worldwide. Our findings show that some of the best data room providers in 2021 out there are:

  1. iDeals
  2. DataSite
  3. Citrix Systems
  4. Intralinks
  5. DealRoom
  6. WatchDox
  7. Firmex
  8. Digify
  9. Venue

Check out the Data Room Provider Rankings to find and test the optimal VDR solution.