Electronic Data Room Market Growth Projections

The recent data room software advances proved that digital deal-making can be equally convenient, effective, and secure. As companies from various market segments continue to shift towards remote cooperation, more exciting trends arise.

Let’s outline the most promising electronic data room market tendencies, insights, and projections by exploring the after-effects of the COVID-19 pandemic, the latest research, and top data room providers. 

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Electronic data room market growth projections

The electronic data room market has been on a rapid growth spurt since 2018. At first, only companies in the technological sectors showed the most interest. Then, however, others quickly joined the evolving market after realizing that data room software is much more cost-effective and functional than traditional data storage and exchange solutions.

In response to increased demand, virtual data room providers began catering tailored solutions to different sectors and causes. Consequently, the market is now teeming with suitable data room software products for all needs and sizes. It seems like the market’s expansion is just beginning — leaving room for greater growth. 

Here are a few quick facts from a virtual data room report by MnM:

  • The global electronic data room market is estimated to grow from AUD 1.87 billion in 2020 to AUD 3.6 billion by 2026
  • The Compound Annual Growth Rate (CAGR) for the same forecast period is estimated at 14.4%
  • North America will continue to hold the market’s largest share
  • The Asia Pacific region will grow at the highest CAGR, eventually surpassing Europe and equaling North America
  • Tech startups, real-estate, and M&A will drive the data room software market in the Asia Pacific region, Australia in particular.

The effects of COVID-19 on data room software

The initial peak in data room software usage started with the need for increased data handling security while simultaneously trying to cut costs. However, in 2020, businesses across the globe faced a set of unprecedented challenges. The COVID-19 crisis presented two major deal-making disruptors:

  • Travel restrictions, such as closed borders, stay-at-home rulings, and public transportation limitations
  • Safety precautions, for example, the ban on group gatherings

Enter: virtual data room providers. An electronic data room is a tool that doesn’t require the physical presence of either participant, making it safe during a global pandemic. 

VDR companies worldwide quickly stepped up to meet the newly-discovered needs allowing their clientele to continue facilitating complex deals, including international mergers, investment due diligence, and more. Additionally, some data room providers crafted solutions specific to different regions and sectors.

This way, the thriving healthcare sector, for instance, realized plenty of options for gathering and storing medical research data, collaborating with other facilities, and digitizing patient info without compromising confidentiality.

  • Insight: The healthcare analytics market is expected to reach AUD 107 billion by 2026 at the current CAGR of 27.5%, according to Fortune Business Insights.

Top-5 data room providers

Currently, electronic data room market growth is very encouraging on many levels. The continuously expanding demand will bring out more effective solutions and further improve remote deal-making across all industries.

However, at the same time, the existing and potential data room software users are conflicted. With so many providers on the market, how does one choose the best one for their organization?

Below are brief descriptions of the leading virtual data room providers on the Australian market.

  1. iDeals

Since 2008, iDeals Solutions has catered to all-sized firms and form various industries. With a particular focus on remote due diligence, mergers and acquisitions, and life sciences, iDeals offers a comfortable range of options when it comes to pricing and services. 

Additionally, the company provides 24/7 multilingual support and universal device adaptation, enabling convenient international transactions. The top three benefits of the iDeals electronic data room are:

  • Highest-level, certified security protocols and practices
  • Intuitive interface and versatile feature collection
  • Affordable pricing plans for any firm size with a 30-day free trial
  1. Ansarada

Ansarada has been on the market since 2005 with a distinct focus on M&A. This data room software provider focuses on simplicity and functionality above all else. While it streamlines the adaptation process, some users report a lack of features compared to other VDRs.

Ansarada stands out for its AI automation and option for unlimited users. Ansarada’s best data room software features include:

  • Easy-to-navigate interface and simplistic design
  • A variety of tools and services designed specifically for M&A
  • Constantly evolving adaptability
  1. DataSite

DataSite’s mother company, Merrill, dates back to 1967, giving this electronic data room decades of market expertise and insight. DataSite works primarily with large financial institutions, so their price structure is slightly above the industry average.

According to user reviews, DataSite lacks fundamental options and features. However, it still remains a go-to choice for large financial corporations. DataSite’s electronic data room most mentioned advantages include:

  • Tailored solutions for all industries
  • Versatile support and training solutions
  • A simple yet effective tool for large enterprises
  1. Intralinks

Intralinks data room software provider has the longest VDR track record on the market. After holding leading positions in the fintech sector for over 25 years, Intralinks developed a wide range of products and solutions for various electronic data room needs.

Intralinks offers straightforward tools with rudimentary feature sets and fast adaptability. Such simplicity has been marked insufficient for emerging startups and multi-sector enterprises. However, at the same time, Intralinks remains a good choice for large financial and legal firms. Intralinks data room software features include:

  • Simple interface with several usage options
  • Comprehensive user tracking analytics
  • Intuitive file management instruments
  1. SecureDocs

SecureDocs has offered a forward-looking approach to electronic data room setup and usage since 2012. With low-range pricing and quality feature set, SecureDocs is an excellent choice for small to mid-scale startups in various industries.

SecureDocs takes pride in its intuitive navigation system and highly visual analytics. Users can choose between short and long-term options but lack room for advanced features and customization. Here are a few SecureDocs advantages:

  • Instant usability
  • Transparent pricing and a free trial period
  • Strong support team with quick response times

Key electronic data room features in Australia

When selecting data room software, Australian companies have a unique set of challenges. Luckily, understanding the specific requirements of any given firm and the available features on the market can give users an upper hand.

Here are the most common challenges for choosing suitable data room software and the specific VDR features that address them.

  • The time difference is Australia’s biggest obstacle with international deal-making. Communicating with partners from Europe and the Americas via calls is nearly impossible, and email responses may take much longer than planned. 

To overcome the time zone barriers, choose an electronic data room that offers:

  • Versatile device deployment
  • Detailed user tracking
  • Interactive Q&A
  • Digital signatures
  • Multi-layered access privileges
  • User and data volumes are hard to estimate when setting up an electronic data room. What’s more, some deals progress onto other levels while in motion, growing larger in scope and involving more participants. 

To facilitate a deal of any size, consider virtual data room providers with:

  • The option to include unlimited guest users
  • Sufficient storage volumes without file-type restrictions
  • An ability to switch between service packages in case the deal enters a different level
  • Security is the number one concern of all data room software users, disregarding industry and location. The good news is that plenty of virtual data room providers take document confidentiality seriously and comply with sophisticated industry standards.

    Evaluate the security level of any given electronic data room by checking:
    • Industry-acknowledged certifications such as SOC 2 or ISO 27001
    • Top-level physical data center security
    • Time and IP access restrictions
  • Lack of human interactions during remote deal-making took many users out of their comfort zone at the beginning of the global pandemic. However, as data room providers offered more and more adaptive solutions, the deal flow achieved a new normal.

    Take advantage of building personal connections with partners and investors by going with an electronic data room that offers:
    • Zoom integration
    • Live-chats with an option for video and audio messages
    • Multi-channel user notifications
  • Speed and availability are other universal challenges that affect data room software users and providers. Since data rooms are tech-driven, it makes sense that they need to be built and maintained using the most advanced technological standards.

    Look for data room providers who guarantee:
    • At least 99.5% uptime
    • Not less than 200 Mbps transfer speed
    • Data servers located in your region

Final word

The electronic data room market continues to expand its horizons and present new opportunities. To make the right data room software choice, it’s crucial to focus on an individual company’s needs and preferences. Remain on the lookout for the next rising data room trends, and don’t settle on a provider until you’re completely satisfied.

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