Virtual Data Storage Market: Global Industry Analysis and Forecast (2023-2029)

Virtual Data Storage Market was valued at US$ 1.71 Bn. in 2022. Virtual Data Storage Market size is expected to grow at a CAGR of 14 % through the forecast period.
Virtual Data Storage Market Overview:
The virtual data market is primarily being pushed by the sharp increase in demand for extremely secure solutions for transmitting private documents and information between enterprises and legal organizations. Additionally, Virtual Data Storage (VDS) offers businesses a secure platform that enables them to communicate and keep sensitive customer information like contract details, deal negotiations, and bidding information from one location to another. Due to its various advantages, including document storage, real-time document transfers, and simultaneous provision of integration features with many databases, the VDS platform is favored by many enterprises.

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2022 is considered as a base year to forecast the market from 2023 to 2029. 2022’s market size is estimated on real numbers and outputs of the key players and major players across the globe. The past five years' trends are considered while forecasting the market through 2029. 2020 is a year of exception and analysis, especially with the impact of lockdown by region.
Virtual Data Storage Market Dynamics:
Market Trend: huge amounts of data must be safely stored and transferred during mergers and acquisitions, which is a growing necessity. The creation of strong platforms on which merger and acquisition (M&A) may be managed with ease is the result of the improvement in capabilities such as access security, document security, and user interface of virtual data rooms. 256-bit and 512-bit encryptions are used by virtual data storage providers to secure and transfer their customers' personal information. As a result, BFSI institutions employ virtual data storage for their regular business operations and as corporate repositories and information exchange tools, which is what is driving the visual data storage market's growth.

Market Drivers: The use of virtual data storage solutions by venture capital companies is growing as it helps these firms to undertake the procedures related to providing due diligence & document creation more effectively and economically than with physical data storage. The number of venture capital transactions increased in 2022, which increased the demand for virtual data storage. Additionally, a lot of businesses have increased their use of virtual data storage due to the advantages these services have over physical equivalents, including the ability to involve more bidders in agreements and the ability to save time and money. The demand for virtual data storage from venture capital firms accounted for 39.8% of all sector revenue in 2022. The virtual data storage market is thus expected to increase as a result of the extensive demand from venture capitalists for VDR software.

Companies that manufacture medical devices and conduct clinical research frequently require volunteers to take part in biomedical studies, and as a result, they are responsible for maintaining the security of patient-specific classified medical information. Therefore, a reliable and secure platform is required to enable these businesses to fully govern this sensitive data. Throughout the forecast period, it is expected to accelerate the growth of the virtual data storage market. Additionally, it is expected that from 2022 to 2029, there will be a significant increase in the demand for virtual data storage solutions to facilitate multiple licensing agreements between different businesses.

These solutions will allow patent owners to securely and separately share their patented discoveries with prospective partners. Several legal bodies and governmental entities are becoming more and more in demand for VDR tools. These solutions assist these businesses in maintaining and securely transferring the sensitive information and files of numerous clients. The VDR system also aids a variety of legal clients, such as legal counsel, general secretariats, and others, in managing each stage of insolvency procedures, including bankruptcy, composition with creditors, forced administrative liquidation, and receivership.

Market Restraints: The most important components of the virtual storage ecosystem are data security and confidentiality. It is expected that the government's rigorous laws and rules on virtual computing will limit visual data storage market growth. The Information Technology Act 2000, for instance, contains a provision made by the Indian government. The rule states that any illegal activity associated with computational models or transactions involving private data or information shall be punished. Government-enforced rules and regulations like these are likely to impede visual data storage market growth.

The corporation may lose control over data because the data is stored outside of the infrastructure. Even though the worries are mostly irrational and hypothetical, consumers may have legitimate worries about the service provider's capabilities and operating procedures due to consumers' immaturity and lack of awareness of virtual services, especially in developing and undeveloped nations. The adoption of virtual-based storage is expected to be hampered by worries about privacy and security.

Market Opportunity: Organizations have concentrated on managing and securely keeping this data due to the constant increase in data volume and rise in data sources. The construction of strong platforms on which mergers & acquisitions may be managed with ease is made possible by the development of advanced features such as access security, document security, and user interface of virtual data storage. The use of virtual data storage is not just restricted to due diligence procedures; it is increasingly being used as a tool for managing the whole deal cycle.

Additionally, virtual data storage providers encrypt their customers' private information using 256-bit and 512-bit algorithms. As a result, BFSI institutions employ VDRs as corporate repositories and for information exchange in their everyday operations, which helps to drive the market's growth. The oil and gas business is currently moving toward consolidation, necessitating rigorous due diligence procedures. Furthermore, well logs must be transferred securely during consolidation operations because the oil and gas projects contain a significant amount of seismic data. As a result, it is expected to fuel market growth between 2023 and 2029.
Virtual Data Storage Market Segment Analysis:
Based on Deployment Type, The cloud-based market sector accounted for more than 65 % of revenue in 2022. This can be ascribed to the significant effort made by leading market participants to provide cloud-based VDR solutions globally. The simplicity of accessibility from anywhere in the world is the main advantage of cloud-based solutions. The cloud-based VDR solution became more popular among businesses due to its low cost and simplicity of deployment. It is expected to experience significant growth over the forecast period as a result.

Small and Medium Enterprises (SMEs) favor them due to the reduced cost-benefits of cloud-based solutions compared to on-premise solutions. In the upcoming years, it is expected that this aspect will support market growth. Additionally, features like 24-hour support and maintenance services provided by cloud service providers guarantee little to no service interruption.



Based on the Component, The solution segment accounted for more than 70% of global revenue in 2022. This is due to the quickly growing need for VDR software across a variety of applications, including mergers and acquisitions, financial audits, in- and out-licensing, fundraising/IPOs, and bid management, among others. Global demand for a highly secure and organized solution has increased significantly as a result of other applications including audit and compliance, restructuring and bankruptcy, and clinical trials. As a result, the solution segment was able to generate a sizable amount of revenue.

Key market participants including Intralinks, Inc., Ansarada Pty Ltd, Data site, and Firmex are aggressively pursuing the provision of Artificial Intelligence-powered (AI-Powered) solutions while placing a substantial emphasis on developing advanced VDR solutions. Clients can receive real-time based information on the bidder's actions and their target areas thanks to our AI-powered virtual data storage solution. Additionally, AI-powered solutions save clients' time by automating the sorting of documents and handling of reporting. As a result, it is expected to support the AI-powered market from 2023 to 2029 at a CAGR of around 20%.
Regional Insights:
The North American region dominated the market with a 35 % share in 2022. The large investments made by the major market participants, such as Data site, EthosData, Citrix Systems, Inc., and Intralinks Holdings, Inc., are responsible for the sizeable share. These businesses have been successful in integrating virtual data storage as a crucial component of their business plans. The increasing acceptance of virtual-based solutions and the rising demand for employee collaboration are further factors driving the growth of the virtual data storage market. The significant number of large businesses, law firms, and government organizations in the area increased regional demand. Additionally, the region's businesses are likely to face fast-growing cybersecurity challenges, which will drive market growth.

The Asia Pacific region is expected to witness significant growth at a CAGR of 12% through the forecast period. The need for security solutions to move critical documents across enterprises is increased by the sharp increase in startup and merger and acquisition activity across important growing nations like China and India. Wherein, the requirement for safe solutions to transfer crucial documents and information across organizations fueling the virtual data storage market growth in the region. Several Asia Pacific nations, including Singapore, China, Japan, and India, are experiencing explosive growth in the real estate market. As a result, it is expected that the demand for secure document sharing during the acquisition or sale of real estate will accelerate the growth of VDR solutions in the market.

The objective of the report is to present a comprehensive analysis of the global Virtual Data Storage Market to the stakeholders in the market. The past and current status of the market with the market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the market with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the market to the decision-makers.

The reports also help in understanding the Virtual Data Storage Market dynamic, and structure by analyzing the market segments and projecting the Virtual Data Storage Market size. Clear representation of competitive analysis of key players by Vehicle type, price, financial position, product portfolio, growth strategies, and regional presence in the Virtual Data Storage Market make the report investor’s guide.
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Virtual Data Storage Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 1.71 Bn.


Forecast Period 2023 to 2029 CAGR:
14%
Market Size in 2029:
US $ 4.27 Bn.


 Segments Covered:
by Deployment Type
Cloud Based
On-premise


by Component
Solution
Services


by Enterprise Type
Large Enterprises
SMEs


by Business Function Outlook
Marketing and sales
Legal and compliance
Finance
Workload Managemen



Virtual Data Storage Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (razil, Argentina Rest of South America)
Key Players
1. Brainloop AG
2. CapLinked, Inc.
3. Citrix Systems, Inc.
4. Drooms GmbH
5. EthosData
6. Firmex Inc.
7. Intralinks, Inc.
8. Merrill Corporation
9. ShareVault
10. Vault Rooms, Inc
11. FirmRoom
12. Imprima
13. FORDATA sp. z o.o.
14. Citrix Systems, Inc.
15. Ansarada Pty Ltd.
16. Brainloop AG
17. Onehub Inc.
18. Avrsure AB

Frequently Asked Questions:

1] What segments are covered in the Virtual Data Storage Market report?
Ans. The segments covered in the Virtual Data Storage Market report are based on Deployment Status, Component, Enterprise size, and Business Function outlook.

2] Which region is expected to hold the highest share in the Virtual Data Storage Market?
Ans. The North America region is expected to hold the highest share in the Virtual Data Storage Market.

3] What is the market size of the Virtual Data Storage Market by 2029?
Ans. The market size of the Virtual Data Storage Market by 2029 is expected to reach US$ 4.27 Bn.

4] What is the forecast period for the Virtual Data Storage Market?
Ans. The forecast period for the Virtual Data Storage Market is 2023-2029.

5] What was the market size of the Virtual Data Storage Market in 2022?
Ans. The market size of the Virtual Data Storage Market in 2022 was valued at US$ 1.71 Bn.