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Virtual Data Rooms in the UK - Market Research Report (2014-2029)

Thomas Weale Thomas Weale London, United Kingdom Last Updated: August 2024 SIC SP0.030

Revenue

£215.4m

2024-25

£215.4m

Past 5-Year Growth

Profit

£XX.Xm

Employees

765

Businesses

88

Wages

£XX.Xm

Virtual Data Rooms in the UK industry analysis

Virtual data rooms are primarily used for sensitive information-related business transactions like mergers and acquisitions (M&As) and initial public offerings (IPOs). While the financial and legal sectors are the main market for these services, other industries that require confidential document management can also benefit from virtual data rooms. Virtual data room tech is constantly getting better. People are choosing digital over old-fashioned paper filing systems. The NHS reported that only 20% of its organisation is embracing digital maturity in 2022-23 paving the way for more virtual data rooms to step in.
Revenue is set to climb at a compound annual rate of 2.4% to reach £215.4 million over the five years through 2024-25, despite weak M&A and IPO activity during periods of economic uncertainty. The pandemic led to a drop in downstream business transactions. A swift rebound followed this, as M&A and IPO activity was revived and players benefitted from increased usage as companies used online data repositories as a means of enhancing online collaboration between dispersed employees. Demand is set to climb through 2024-25 as inflationary pressures have eased and investment is picking up as the industry gains sales from more markets. However, interest rate hikes have weighed on investor sentiment, spurring a slowdown in the volume of business transactions and making companies fearful of M&A activity. Revenue is forecast to grow by 3.4% in the current year.
Revenue is forecast to climb at a compound annual rate of 4% to reach £262.4 million over the five years through 2029-30. Despite remaining constrained in the near term, the volume of downstream business transactions requiring virtual data rooms for due diligence is forecast to pick up as economic conditions improve. Companies will keep using their money to pay off debts they racked up during the pandemic and the high living costs crisis as profit picks up. The continued hike in electronic information storage by businesses will support sustained revenue growth in the coming years, with more advanced AI and cloud technology services ramping up the need for storage space.

Trends and Insights

  • Digital transformation propels growth in virtual data rooms. The rise in remote working, coupled with an increase in online business transactions, has pushed companies to adopt digital tools such as virtual data rooms.
  • Digitalisation boosts demand for virtual data rooms. The growing digitalisation trend amongst businesses has fuelled demand for virtual data rooms, particularly for the secure management of sensitive documents across sectors like legal, commercial real estate, and loan administration.
  • London's thriving finance and legal sectors lure virtual data room companies. The capital's dense finance and legal industries drive high demand, along with its abundance of skilled labour making it an ideal hub for startups and multinational companies.
  • Intense competition and employee cost hinder industry newcomers. With leading global software companies controlling the market and a shortage of skilled labour, new entrants face steep costs and competition to differentiate themselves and establish a strong foothold.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 2.8 % over the past five years, to reach an estimated £215.4m in 2024.

Trends and Insights

Economic uncertainty has constrained downstream demand

  • Economic uncertainty following spiked inflation in 2022-23 and hiked interest rates caused corporate decision-makers to delay M&A negotiations, slowing demand for virtual data rooms used for M&A due diligence.
  • Additional trends and insights available with purchase
Virtual Data Rooms in the UK
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

As soon as the economic skies clear, expect downstream business transactions to ride the recovery wave

  • The volume of downstream business transactions will likely remain underwhelming in the short term as damage from the cost of living pressures remains and the economy continues grappling with sharp interest rates.

Biggest companies in the Virtual Data Rooms in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
Datasite UK Ltd
89.8
Cloud SG UK Ltd
49.8
Intralinks Ltd
25.2

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Virtual Data Rooms in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Due diligence for mergers and acquisitions, Capital raising and Due diligence for initial public offerings. Due diligence for mergers and acquisitions is the largest segment of the Virtual Data Rooms in the UK.

Trends and Insights

Virtual Data Rooms streamline due diligence for mergers and acquisitions (M&A)

  • Virtual data rooms enable M&A due diligence by automating the secure exchange of large volumes of sensitive documents.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry provides clients with virtual data rooms, which are secure document sharing and storage solutions geared toward legal due diligence, mergers and acquisitions, initial public offerings, bankruptcies and other information-sensitive applications.

What's included in this industry?

Due diligence for mergers and acquisitionsCapital raisingDue diligence for initial public offeringsEnterprise activities

Companies

Datasite UK LtdCloud SG UK LtdIntralinks Ltd

Purchase this report to view all 3 major companies in this industry.

Related Terms

DUE DILIGENCECLOUD COMPUTINGDATA ENCRYPTION

Industry Code

SIC 2007

SIC 62.01 - Virtual Data Rooms in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Digital transformation propels growth in virtual data rooms. The rise in remote working, coupled with an increase in online business transactions, has pushed companies to ado...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Digitalisation boosts demand for virtual data rooms. The growing digitalisation trend amongst businesses has fuelled demand for virtual data rooms, particularly for the secur...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

London's thriving finance and legal sectors lure virtual data room companies. The capital's dense finance and legal industries drive high demand, along with its abundance of ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Intense competition and employee cost hinder industry newcomers. With leading global software companies controlling the market and a shortage of skilled labour, new entrants ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Datasite UK leads due to a strategic formation. By focusing solely on its virtual data room platform, Datasite UK has effectively streamlined operations, offloading less prof...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Datasite UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Cloud SG UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Intralinks Ltd's performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Datasite UK Ltd, and factors influencing its performance in the industry
  • Description and key data for Cloud SG UK Ltd, and factors influencing its performance in the industry
  • Description and key data for Intralinks Ltd, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

GDPR tops regulatory impact in the industry. This directive mandates stringent safeguards and strict compliance in data processing, affecting overall data security and custom...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Profit remains steady despite market challenges. Fierce price competition and pandemic-induced cash flow issues have tested profitability, although strong demand and low vari...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Virtual Data Rooms in the UK industry in United Kingdom in 2024?

The market size of the Virtual Data Rooms in the UK industry in United Kingdom is £215.4m in 2024.

How many businesses are there in the Virtual Data Rooms in the UK industry in 2024?

There are 88 businesses in the Virtual Data Rooms in the UK industry in United Kingdom, which has grown at a CAGR of 4.4 % between 2019 and 2024.

Has the Virtual Data Rooms in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Virtual Data Rooms in the UK industry in United Kingdom has been growing at a CAGR of 2.8 % between 2019 and 2024.

What is the forecast growth of the Virtual Data Rooms in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Virtual Data Rooms in the UK industry in United Kingdom is expected to grow.

What are the biggest companies in the Virtual Data Rooms in the UK market in United Kingdom?

The biggest companies operating in the Virtual Data Rooms market in United Kingdom are Datasite UK Ltd, Cloud SG UK Ltd and Intralinks Ltd

What does the Virtual Data Rooms in the UK in United Kingdom include?

Due diligence for mergers and acquisitions and Capital raising are part of the Virtual Data Rooms in the UK industry.

Which companies have the highest market share in the Virtual Data Rooms in the UK in United Kingdom?

The company holding the most market share in United Kingdom is Datasite UK Ltd.

How competitive is the Virtual Data Rooms in the UK industry in United Kingdom?

The level of competition is high and increasing in the Virtual Data Rooms in the UK industry in United Kingdom.

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Methodology

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Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

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