Asia Pacific IT Asset Disposition Market

Market Overview

The value of the worldwide IT asset disposal market size was estimated to be USD 18,572 million, and it is anticipated that it would expand to USD 51,377 million by 2030 at a CAGR of 12% throughout the period that is being forecasted (2022–2030).

IT asset disposal, often known as ITAD, is a procedure via which unused pieces of computer equipment can be discarded. This may be accomplished without causing any harm to the environment. The vendors provide their services to the organisations, which in turn assists them in remarking, recycling, and remarketing the various types of computer equipment. As a result, issues related to the environment, potential legal problems, and pointless expenses associated with repairs and replacements are no longer an issue. The administrational headaches, personnel expenses, and storage-related questions are just some of the reasons why many businesses choose to outsource their IT asset disposal (ITAD) activities. Another motivation for many of these businesses is to prevent future problems.

 IT asset disposal, also known as ITAD, is a tool that focuses on recycling, reusing, and repairing old IT equipment in a way that is sustainable and kind to the environment. ITAD is a method that has been created and implemented. A company that works in information technology has the option of selling off its IT assets in-house or contracting with an experienced provider. There is the potential for a device used in information technology to have its internal components reused, so saving them from being discarded as electronic trash. This helps to reduce the amount of garbage, such as plastics and heavy metals, that is released into the environment.

Even while many companies follow a predetermined schedule for the replacement of electronic equipment, companies that are in possession of outdated hardware still have to make the decision on whether or not to dispose of it, recycle it, resell it, or refurbish it. When the process of disposing of IT assets is carried out internally, some aspects of it are managed by the asset management, accession, and risk management teams respectively. A corporation could also work with other companies that are experts in ITAD and partner with them.

Typically, these companies provide services for the safe destruction of data as well as the recycling of electronic trash that is responsible to the environment. ITAD vendors are experts in reorganising the disposal of IT assets for their customers, with the goal of lowering expenses and maybe recovering some of the value of the equipment. The expansion of the Asia Pacific IT asset disposition market may be attributed, in part, to the rising level of consumer knowledge regarding the importance of effective IT asset disposition. In addition, organisations are placing a greater emphasis on the benefits of cloud computing; hence, the paradigm change from on-premise to cloud computing is a big market driver for IT disposal.

On the IT asset disposal market, there is also something called a reverse value chain, which contrasts with the forward value chain. In a forward value chain, two of the most important objectives are to bring down costs and boost profits; on the other hand, in a reverse value chain, the priorities are to bring down costs, comply with environmental rules, and make the most profit possible. End-users, product acquisition, reverse logistics, inspection and disposition, refurbishment, and distribution and sales are the six processes that make up the value chain for the Asia Pacific IT asset disposition market process.

Asia Pacific: 27202.44 million USD (2030 value); CAGR: 14.85%

Market Dynamics

Drivers

In a similar vein, in October 2019, the Bhopal Municipal Corporation and the Central Population Control Board collaborated to establish India's first e-waste clinic in Bhopal. One of the most important factors driving growth in the Asia Pacific IT Asset Disposition market has been the possibility of data breaches. Because of the all-time highs attained by piracy and data-based assaults, businesses have been seeking for effective ways to tackle these problems. Sadly, a large number of individuals are ignorant of the fact that a significant number of data breaches occur as a result of devices that are deemed to be obsolete being dumped. When firms are getting rid of their IT assets, they often neglect the data security in the process. Data that is supposed to be secure ends up being stored in a location such as a warehouse, where anybody may access it and use it for malicious reasons. Hard drives aren't wiped, computers aren't erased, and safe data ends up lying someplace in a warehouse where anybody may find it, take it with them, and use it for bad reasons. ITAD services can assist in avoiding instances like this and can reduce risk by entirely erasing data from any devices that have been disposed.

The United Nations Environment Programme (UNEP) estimates that the amount of hazardous trash produced annually by electronic rubbish, often known as "e-waste," ranges between 20 and 50 million metric tonnes, and the need for innovative technology is only increasing. These estimations put pressure on users and manufacturers to come up with solutions that will assist in lowering the quantity of electronic trash that is being produced in developing nations all over the world. ITAD companies provide the convenient service of acquiring and removing surplus information technology equipment for the purpose of environmentally responsible disposal, recycling, or resale. Additionally, it is possible that they will be in charge of securely decommissioning your data centre.

Restraints

When an IT asset has reached the end of its useful life, the essential procedures and protocols need to be followed in order to ensure that it is disposed of in an appropriate manner. Businesses need to be aware of the regulations and environmental issues that are related with the correct disposal of IT assets in order for them to be able to make educated judgments about the use of IT asset disposition services or their avoidance of such services. In addition, in order to reduce the costs associated with the appropriate disposal of assets, many people and businesses, particularly in less developed nations, dispose of their obsolete information technology assets in an inappropriate manner. This is especially prevalent in the context of information technology. In addition, businesses frequently dispose of their assets by handing management of these responsibilities over to third-party service providers. However, these providers usually do not have insight into the chain of command, and thus, they are not held accountable for their conduct. Accurate reporting and monitoring of the assets in real time might prevent an inappropriate sale or disposal of assets, which would be beneficial to the organisation.

Regional Analysis

By the year 2030, Asia-Pacific will account for a market share that is equivalent to USD 25,440 million, and its CAGR will be 14%. The expansion that has been seen in the Asia-Pacific region is mostly related to the introduction of new technologies and digitization, both of which have led to the modernisation of the infrastructure that was already there. The fast growing information technology marketplaces in countries such as China, Japan, and India have contributed to these countries' standing as industry leaders in ITAD services. Other countries, like as India, have also joined this group. It is estimated by the United Nations University that India produces roughly 3.2 million metric tonnes of e-waste each year, which places it in third position behind China and the United States of America. Over the past several years, there has been a growth in the demand for IT asset disposal (ITAD) services, which are designed to efficiently manage and assure the safe disposal of any e-waste or IT asset waste that is generated.

Segmental Analysis

Computers and laptops, smartphones and tablets, peripherals, storage, and servers make up the different categories in this segmentation, which is done based on the kind of asset. It is anticipated that the computer and laptop category would have the most significant share during the projected period, with USD 22,254 million and a CAGR of 12%. This expansion might be linked to the trend that corporations are developing to restore and recycle old computers and laptops. In addition, it is expected that the market value of smartphones and tablets would increase at a compound annual growth rate of 14% and reach USD 13,883 million by the year 2030.

A rise in demand for IT asset disposition solutions can be attributed to the rapid advancement of technology, namely with regard to the acquisition of new smartphones and the eventual obsolescence of existing smartphones and tablets. It is anticipated that the prevalence of smartphones will expand in the future years as a consequence of the launch of new technologically superior smartphones. This is predicted to cause a surge in demand for services linked to the disposal of cellphones.

The market is divided into the following categories: business and financial services, information technology and telecommunications, government, energy and utilities, healthcare, and media and entertainment. It is anticipated that the information technology and telecommunications business would grow at a compound annual growth rate of 13% and reach a value of USD 16,772 million by the year 2030. The media and entertainment sector is anticipated to have a market value of USD 15,284 million, with a compound annual growth rate (CAGR) of 14% over the period of analysis.

Obsolescence of hardware is typically caused by technological improvements and the subsequent necessity to replace current hardware in order to conform to regulatory standards. Because of this, there is an increased demand for the disposal of IT assets. In order to better compete in an increasingly cutthroat market, businesses in the telecommunications sector are increasingly turning to ITAD services. These businesses place a premium on the effective disposal and management of existing assets, as well as the reduction of both operational costs and the impact on the environment.