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

Jonathan Burns Jonathan Burns New York, United States Last Updated: April 2024 NAICS OD4593

Revenue

$1.5bn

2024

$1.6bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

5,214

Businesses

308

Wages

$XXX.Xm

Virtual Data Rooms in the US industry analysis

Virtual data room (VDR) operators derive demand for services from several massive markets. Demand is almost split between law firms and investment banks and venture capital and private equity firms. Operators provide these clients with secure document-sharing and storage solutions geared toward information-sensitive applications such as legal, due diligence, mergers and acquisitions, initial public offerings, bankruptcies and more. Because of this, VDRs are highly reactive to the overall performance of the economy. During the period, VDRs have experienced volatile growth, which has largely followed the general economy. In 2020 downstream demand was crushed as the global economy faltered, investor uncertainty soared, and M&A activity came to a screeching halt. Despite the massive decline early in the period, revenue for virtual data rooms is expected to grow at a CAGR of 1.5% to $1.5 billion over the five years to 2023, including 6.6% growth in 2023 alone, when profit is expected to reach 15.4%.In 2021, the industry was bolstered by rapid M&A activity as investor uncertainty fell, corporate profit returned, and private investment returned. Growth in 2021 nearly offset the massive declines experienced in 2020. Other operators who have a bigger presence in the document warehousing specialty were able to offset the declines entirely. Document warehousing is anticyclical by nature since, regardless of the state of the economy, companies in downstream markets will always need a place to safely store sensitive documents. Thus, companies with a higher presence in document warehousing were better equipped to weather the economic downturn.Going forward VDRs will benefit from an expected reversal of several detrimental economic trends plaguing the current period. For example, investor uncertainty is anticipated to normalize, following heightened levels at the end of the previous period. This, along with a rapid return of corporate profit, will bolster M&A activity across the economy. With more business taking place online, VBAs are also expected to become a more normal service for companies outside of the normal markets, which is expected to further bolster growth through the end of the period. Nonetheless, revenue for Virtual Data Rooms is expected to rise at a CAGR of 2.5% to $1.7 billion over the five years to 2028, when profit is likely to total 15.4%.

Trends and Insights

  • Despite COVID-19, the industry has continued to grow strongly, driven by the growing internet traffic volume and heightened merger and acquisition activity.
  • Document warehousing remains stable throughout the period. Due to the nature of the service, it's not really something you can undo since companies will always seek to protect their data regardless of the state of the economy.
  • Companies in this industry are located in proximity to their major clients. Major clients, such as telecommunication companies, are often located in major US cities.
  • Top companies dominate the industry. With more than 50% of revenue being represented by the four largest companies.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 1.5 % over the past five years, to reach an estimated $1.5bn in 2024.

Trends and Insights

Low-interest rates through much of the period result in rapid acquisitions within the industry

  • Within the industry, there has been a high level of M&A activity throughout the period.
  • Additional trends and insights available with purchase
Virtual Data Rooms in the US
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

The economic outlook is somewhat uncertain

  • Demand from major markets will vary based on economic growth. The economic outlook remains somewhat uncertain as the Federal Reserve continues to raise interest rates, which may result in an economic slowdown.

Biggest companies in the Virtual Data Rooms in the US

Company
Market Share (%)
2023
Revenue ($m)
2023
Profit ($m)
2023
Profit Margin (%)
2023
Citrix Systems, Inc.
336.3
63.9
19.0
IntraLinks Holdings Inc.
237.8
16.6
7.0
Donnelley Financial Solutions, Inc.
98.2
6.5
6.6

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

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

Industry revenue is measured across several distinct product and services lines, including Mergers and acquisitions, initial public offerings, Enterprise activities and Document warehousing. Mergers and acquisitions, initial public offerings is the largest segment of the Virtual Data Rooms in the US.

Trends and Insights

Mergers and acquisitions, initial public offerings

  • M&As and IPOs account for over half of the VDRs product offering, by far, pulling in the most business for this industry.
  • 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?

Providing virtual data rooms for mergers and acquisitions and initial public offeringsProviding virtual data rooms for bankruptcies and corporate restructuringProviding virtual data rooms for licensing, real estate and intellectual property rightsProviding virtual data rooms for document warehousing and other purposes

Companies

Citrix Systems, Inc.IntraLinks Holdings Inc.Donnelley Financial Solutions, Inc.

Purchase this report to view all 4 major companies in this industry.

Related Terms

CLOUD COMPUTINGSOFTWARE AS A SERVICE (SAAS)DUE DILIGENCEELECTRONICALLY STORED INFORMATION (ESI)

Industry Code

NAICS 2017

NAICS 51821 - Virtual Data Rooms in the US

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

Despite COVID-19, the industry has continued to grow strongly, driven by the growing internet traffic volume and heightened merger and acquisition activity.

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

Document warehousing remains stable throughout the period. Due to the nature of the service, it's not really something you can undo since companies will always seek to protec...

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

Companies in this industry are located in proximity to their major clients. Major clients, such as telecommunication companies, are often located in major US cities.

In this chapter (1)

  • Business Locations

Charts

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

Tables

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

Detailed analysis

  • Geographic spread of the industry across North America, 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

Top companies dominate the industry. With more than 50% of revenue being represented by the four largest companies.

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

Several operators have expressed heightened levels of M&A activity within the industry. This allows companies to expand their expertise and product offerings.

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 Citrix Systems, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of IntraLinks Holdings Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Donnelley Financial Solutions, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Citrix Systems, Inc., and factors influencing its performance in the industry
  • Description and key data for IntraLinks Holdings Inc., and factors influencing its performance in the industry
  • Description and key data for Donnelley Financial Solutions, Inc., and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

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

Analyst insights

Companies benefit from favorable economic conditions; however, they have the breadth of services to service economic slowdowns.

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

Software's replicability reduces purchase and depreciation costs for producers. Business software producers have become some of the most profitable companies in the economy.

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

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • 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 US industry in United States in 2024?

The market size of the Virtual Data Rooms in the US industry in United States is $1.5bn in 2024.

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

There are 308 businesses in the Virtual Data Rooms in the US industry in United States, which has grown at a CAGR of 2.1 % between 2019 and 2024.

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

The market size of the Virtual Data Rooms in the US industry in United States has been growing at a CAGR of 1.5 % between 2019 and 2024.

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

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

What are the biggest companies in the Virtual Data Rooms in the US market in United States?

The biggest companies operating in the Virtual Data Rooms market in United States are Citrix Systems, Inc., IntraLinks Holdings Inc. and Donnelley Financial Solutions, Inc.

What does the Virtual Data Rooms in the US in United States include?

Providing virtual data rooms for mergers and acquisitions and initial public offerings and Providing virtual data rooms for bankruptcies and corporate restructuring are part of the Virtual Data Rooms in the US industry.

Which companies have the highest market share in the Virtual Data Rooms in the US in United States?

The company holding the most market share in United States is Citrix Systems, Inc..

How competitive is the Virtual Data Rooms in the US industry in United States?

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

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Data Processing & Hosting Services in the US
  • Law Firms in the US
  • IT Consulting in the US
  • Internet Publishing and Broadcasting in the US

International industries

  • Data Processing & Hosting Services in Canada
  • Cloud Storage Services in Australia
  • Cloud Hosting and Data Processing Services in Australia
  • Data Processing and Web Hosting Services in New Zealand
  • Data Processing & Hosting Services in the UK

View all industries in United States

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Key data sources in the US include: 

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  • US International Trade Commission

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  • Industry federations or regulators
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