Virtual Data Room (VDR) Industry: Key Players & Market Share Analysis

Due to the rising demand for effective and secure solutions for managing documents , the virtual data room (VDR) industry has grown substant...

Due to the rising demand for effective and secure solutions for managing documents, the virtual data room (VDR) industry has grown substantially in recent years. According to market research, the global VDR market is projected to reach a value of $3.02 billion by 2025, demonstrating a compound annual growth rate (CAGR) of 14.9%.

As the demand for virtual data rooms continues to rise, several key players have emerged in the market, offering a range of features and services. This article explores the leading players in the virtual data room industry and their respective market shares.

What is Virtual Data Room?

A virtual data room (VDR) is an online platform designed for the secure storage and sharing of confidential documents.

Virtual data rooms have become an essential tool in various industries, especially during complex business transactions, such as M&A, IPOs, due diligence, bankruptcy, and restructuring. Here are the main reasons for that:

1. Enhanced security: VDRs employ robust security measures such as encryption, watermarks, access controls, and two-factor authentication to safeguard sensitive information, enhancing data protection.

2. Efficient document management: Dataroom software streamlines the document management process by offering features like indexing, version control, and search capabilities.

3. Seamless collaboration: Data rooms enable real-time collaboration among multiple stakeholders involved in the transaction.

4. Easy accessibility: Users can access a data room online 24/7 from any location with an internet connection.

5. Cost and time savings: By eliminating the need for physical data rooms, VDRs reduce costs associated with printing, courier services, and on-site visits.

Top 3 Best Virtual Data Room Providers

According to Terry Snyder, “The key factors to consider when choosing a data room provider are security features, customer support, vendor’s reputation, and pricing”. He also highlights the importance of virtual data room reviews as a great source for gathering insights and feedback from other users.

Let’s learn about key players in the virtual data room industry paying attention to those factors.

1. iDeals

iDeals is a leading virtual data room provider trusted by 1 million users from 175,000 companies all over the world.

Users choose iDeals for robust security and document management features, among which are:

1. Built-in redaction — for blacking out all confidential information from the document.

2. Fence view — for preventing screenshots and unauthorized viewing by giving access to specific sections of a document.

3. Granular access control — for setting precise permissions for individuals or groups, ensuring that only authorized users can view, edit, or download specific documents.

4. Detailed audit trail — for keeping a comprehensive record of all user activities, document views, and interactions, providing transparency.

5. Advanced Q&A — for asking and responding to questions, leaving comments, and collaborating on documents. 

6. Customizable branding — for customizing the organization's branding elements, providing a consistent user experience aligned with the company's visual identity.

iDeals’ customers also highlight the following advantages:

● Excellent customer care: The provider is known for its professional customer service specialists and their exceptional response times — 30 seconds via chat, 25 seconds via phone, and 30 minutes via email.

● User-friendliness: Because of its intuitive interface, it takes minutes to start using the platform. Besides, iDeals provides 30 days of preparation time for free, which gives you an opportunity to try out the software and make sure it suits your needs.

● Customizable pricing packages: Depending on your project type, needed features, security requirements, and desired level of support, the provider customizes the final price for a VDR, so you don’t pay extra.

2. Ansarada

Ansarada has been a trusted provider of data room services since 2005, catering to the needs of over 400,000 users worldwide.

The tools and services customers appreciate the most in Ansarada are:

1. Q&A — for streamlining communication with internal and external parties, receiving notifications, and assigning questions.

2. Security controls — for controlling what files in the room users can view, edit, print, and save.

3. Automatic numerical indexing — for assigning numerical identifiers to documents for efficient organization and quick search.

4. Document access expiry — for setting a predefined timeframe for document access.

Here are two key reasons why users prefer Ansarada over its competitors:

● Deal workflow: This is a project management tool that helps digitize all workstreams and get clarity and control across the full deal lifecycle.

● AI automation: AI deal tools for redaction, reporting, and document organization save time and speed up the transaction. 

3. Firmex

Firmex is one of the top VDR solutions, with more than 20,000 new rooms opened every year. It serves over 4,200 customers in 110 countries.

The provider’s key features include:

1. Two-factor authentication — for extra document protection by requiring users to verify their accounts using two different methods.

2. View as other users — for letting administrators view documents from another user's perspective and ensure secure access.

3. Single sign-on (SSO) — for allowing users to access numerous projects with one set of credentials, simplifying the login process.

4. Multi-format support — for uploading and viewing various file types such as PDFs, Word, Excel, and more.

5. Document labels — for applying labels to documents, simplifying document categorization and organization.

The key benefits the vendor provides:

● 14-day trial period: Users can try out the platform for free and make sure it meets their needs.

● Unlimited virtual data rooms: This is very convenient and cost-effective when running more than one project.

● Multilingual support: Users can communicate with customer support specialists in English, French, German, and Spanish.

Market Share of Virtual Data Room Industry

According to The Insight Partners’ report, the virtual data room market is experiencing substantial growth. More precisely, the global VDR market is projected to reach $3.66 billion by 2028, growing at a CAGR of 14.5% during the forecast period.

Here are a few more trends and statistics you might be interested in:

1. Cloud-based VDR solutions: Cloud-based VDRs dominate the market, offering scalability, cost-effectiveness, and remote accessibility. They accounted for the largest market share in 2020.

2. M&A activities: The increasing number of M&A transactions, driven by globalization and strategic partnerships, is boosting the adoption of virtual data rooms.

3. Compliance and data security: Strict data privacy regulations, such as the GDPR, are driving organizations to adopt data room solutions to ensure compliance and data security during transactions.

4. Industries: Data room solutions are witnessing high demand across industries such as finance, healthcare, legal, and real estate, where secure information sharing and collaboration are critical.

5. AI integration: The integration of AI technologies enables intelligent data analytics and streamlines business processes.

6. Growing Asia-Pacific market: The Asia-Pacific region is expected to witness significant growth in the data room market due to increasing digitalization, government initiatives, and a rise in cross-border transactions.