The industry will continue to grow as the value of its services becomes more widely accepted
New York, NY (PRWEB) September 11, 2014
Since its relatively recent conception, the Virtual Data Rooms industry has experienced strong growth as it becomes a standard tool in many businesses. Prior to virtual data rooms (VDRs), physical data rooms were used by businesses to review documents and other data in a secure premise. The development of VDRs has broken down traditional barriers such as geographic location and time coordination. Companies are now able to upload data to online servers so that clients may view information without costs associated with travel, physical space rental and opportunity cost of time in transit between locations.
Over the past five years, the industry has experienced the majority of its demand from operators involved in mergers and acquisitions, initial price offerings, licensing and real estate. According to IBISWorld Industry Analyst Dmitry Diment, “The onset of the recession slowed industry growth due to poor performance in these key markets, however, the increasing adoption of technology allowed strong growth to continue.” As a result, the industry has grown at an estimated annualized rate of 16.7% over the five years through 2014. Rising investor sentiment and a greater percentage of services conducted online in 2014 is expected to assist the industry to grow 13.7% to reach $879.9 million in 2014.
Over the next five years, the industry is expected to remain on a path of strong growth. “Demand for the industry will continue to be driven by key markets such as law firms, investment banks and venture capital firms,” says Diment. Industry profit margins are expected to experience downward pressure, as new participants enter the industry. Barriers to entry are moderate because of the requirement for skilled labor and initial capital investment; however, rapid revenue growth and high profit margins are expected to attract new entrants. Enterprises are expected to grow behind the overall industry over the five-year period.
For more information, visit IBISWorld’s Virtual Data Rooms in the US industry report page.
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IBISWorld industry Report Key Topics
The Virtual Data Room industry provides clients with virtual data rooms (VDRs), which are secure document sharing and storage solutions geared toward legal due diligence, mergers and acquisitions (M&A), initial public offerings (IPO), bankruptcies and other information-sensitive applications.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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