The global IT asset disposition (ITAD) market size was valued at USD 18,572 million in 2021, and it is expected to increase to USD 51,377 million by 2030 at a CAGR of 12% during the forecast period (2022–2030). Asia-Pacific, along with Europe, is expected to have the largest share in the market.
IT asset disposition (ITAD) recycles, repurposes, and repairs outdated IT equipment in an environmentally beneficial way. An IT organization can market its assets internally or hire an expert. Repurposing an IT device’s internal components prevents electronic waste. It prevents plastics and heavy metals from entering the environment.
Although some firms have an organized cycle for replacing electronic devices, others must decide whether to restore, resell, recycle, or dispose of outdated technology. Asset management, accession, and risk management handle aspects of the IT asset disposition process internally. A company may also work with ITAD outside firms.
Typically, these companies offer secure data destruction and electronic trash recycling. ITAD suppliers help clients dispose of IT assets while cutting costs and recovering equipment value. The growing awareness of the customers about the necessity for proper IT asset disposal is behind its growth. Businesses emphasize the benefits of cloud computing. Therefore, the migration from on-premise to cloud is a market driver for IT disposition.
IT asset disposition has a reverse value chain, not a forward one. Reducing costs and boosting profits are critical in a forward value chain, but cost reduction, environmental restrictions, and profit maximization are emphasized in a reverse value chain. IT asset disposition value chain includes end-users, product acquisition, reverse logistics, inspection and disposition, refurbishment, and distribution and sales.
Growing E-Waste Volume, Increasing Environmental Protection Awareness, and Increasing Usage of Cloud-Based Technologies to Drive the IT Asset Disposition Market
Electronic devices and IT assets, such as mobile phones, wearables, computers, servers, and peripherals, must be discarded appropriately when they become obsolete or end their valuable lives. Commonly referred to as electronic waste or e-waste, these electronic products are destined for recycling or refurbishment. Inefficient management of e-waste or improper practices of handling e-waste frequently leads to e-waste accumulation, potentially polluting the environment and habitats, harming humans, and endangering wildlife.
The volume of e-waste does not decrease as technological advancements continue to drive demand for the most modern electronic devices and IT assets. Consequently, the expanding quantities of e-waste have become a global issue. The necessity of a well-organized and secure plan to dispose of electronic waste and obsolete IT equipment is growing. Several state and federal environmental, data security, and privacy protection regulations have been drafted to ensure that electronic waste is disposed of properly. Significant financial penalties may be imposed for any violation of these standards.
Increasing environmental awareness among individuals and businesses is also driving the adoption of proper e-waste disposal practices. As part of their corporate social responsibility initiatives, several companies worldwide recycle, recover, or prioritize the safe and secure disposal of e-waste and obsolete IT assets. These factors bode well for the growth of the IT asset disposition market over the forecast period. Also, the growing awareness of the benefits of cloud-based computing, and consequently, the continued migration from on-premise to cloud-based services, is a significant factor propelling the expansion of the IT disposition market.
IT assets, such as storage devices and servers, and other peripherals and support infrastructures, such as networking equipment, cables, uninterruptible power supplies (UPS), physical security systems, and environmental controls, are used on-premises to be disposed of appropriately. Their data is cleansed before the company transitions from on-premise to cloud-based services. Therefore, businesses are turning to IT Asset Disposition (ITAD) service providers to dispose of their unwanted or obsolete IT equipment secure and environmentally responsible.
Impact of COVID-19
The advent of the noble Coronavirus harmed the economies of every country. To slow the spread of the disease, the government declared lockdowns, resulting in the cessation of production, the closure of all work environments, the restriction of public interactions, and the temporary suspension of global manufacturing and trading activities. The pandemic presented unique challenges to businesses of all sizes when dealing with IT hardware that had reached its maximum capacity.
Historically, IT companies were primarily concerned with the rate of development, which necessitated the effective management of redundant equipment. The transition to remote work necessitated businesses’ purchase of new IT equipment during the pandemic. Concerns were raised about how companies would handle the resulting increase in electronic or IT asset waste due to the rise in IT asset purchases related to remote working. As a result of the pandemic, the demand for IT asset disposition services increased significantly.
The COVID-19 pandemic prompted businesses to adopt the “work from home” model and encourage employees to use their own IT resources. As working from home became the norm, companies began to dispose of their obsolete and unused IT assets, increasing demand for ITAD solutions.
Regional Insights
The Asia-Pacific market will account for USD 25,440 million by 2030, expanding at a CAGR of 14%, whereas Europe is anticipated to have a value of USD 12,813 million with an annual growth rate of 11% by 2030.
Existing infrastructure in the Asia-Pacific region has been modernized due to the development of new technologies and digitalization. The rapidly expanding information technology markets in China, Japan, and India have propelled these nations to the forefront of the ITAD industry. According to the United Nations University, India generates approximately 3.2 million metric tons of e-waste annually, ranking it third behind China and the United States. To effectively manage and guarantee the secure disposal of any e-waste or IT asset waste, the demand for IT asset disposal (ITAD) services has increased.
North American expansion is also anticipated during the forecast period. The region’s economic development will be primarily driven by the thriving information technology industry and the proliferation of cloud data centers. In addition, the presence of numerous ITAD service providers in the area, such as Apto Solutions, Inc., Sims Lifecycle Services, Inc., and Iron Mountain, Inc., among others, is already contributing to the region’s growth. Consequently, widespread adoption of cloud-based technologies is anticipated to generate optimistic growth prospects for the market.
Key Highlights
- The global IT asset disposition market was valued at USD 18,572 million in 2021, and it is expected to increase to USD 51,377 million by 2030 at a CAGR of 12% during the forecast period (2022–2030).
- Based on asset type, the segmentation is done as computers/laptops, smartphones and tablets, peripherals, storage, and servers. The computer/laptop segment is expected to have the most significant share during the forecast period, with USD 22,254 million at a CAGR of 12%.
- Based on end-user, the market is segmented as BFSI, IT and telecom, government, energy and utilities, healthcare, and media and entertainment. The IT/telecom industry is expected to expand at a CAGR of 13% and reach the value of USD 16,772 million by 2030.
- Region-wise, Asia-Pacific will account for USD About Straits Research Pvt. Ltd.
- Straits Research is a market intelligence company providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision-makers. Straits Research Pvt. Ltd. provides actionable market research data, especially designed and presented for decision making and ROI.
- Whether you are looking at business sectors in the next town or crosswise over continents, we understand the significance of being acquainted with the client’s purchase. We overcome our clients’ issues by recognizing and deciphering the target group and generating leads with utmost precision. We seek to collaborate with our clients to deliver a broad spectrum of results through a blend of market and business research approaches.25,440 million at a CAGR of 14%, whereas Europe will account for USD 12,813 million at a CAGR of 11% by 2030.
