The global IT asset disposition 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). IT asset disposition (ITAD) is an instrument designed and practiced to focus on recycling, repurposing, and repairing obsolete IT equipment in a sustainable and environmentally friendly manner. An IT organization can dispose of its IT assets internally or hire an experienced vendor. The internal components of an IT device can be repurposed, preventing them from becoming electronic waste. This aids in preventing waste like plastics and heavy metals from entering the environment.
Although many businesses have a structured cycle for the replacement of electronic devices, businesses with old hardware must decide whether to refurbish, resell, recycle, or dispose of it. When performed internally, parts of the IT asset disposition process are handled by the asset management, accession, and risk management teams. A company may also collaborate with external firms that specialize in ITAD.
Typically, these businesses offer secure data destruction and environmentally responsible electronic waste recycling. ITAD suppliers specialize in restructuring the disposition of IT assets for their clients while reducing costs and potentially recovering equipment value. Increasing consumer awareness of the need for efficient IT asset disposition can be credited with the growth of the IT asset disposition market. In addition, businesses emphasize the benefits of cloud computing; consequently, the paradigm shift from on-premise to cloud is a significant market driver for IT disposition.
Unlike the forward value chain, the IT asset disposition market possesses a reverse value chain. In a forward value chain, decreasing costs and increasing profits are two essential goals, whereas, in a reverse value chain, cost reduction, environmental regulations, and profit maximization are emphasized. The IT asset disposition value chain consists of six steps: end-users, product acquisition, reverse logistics, inspection and disposition, refurbishment, and distribution and sales.
Electronic devices and IT assets must be discarded appropriately when they become obsolete or end their valuable lives. These electronic items destined for recycling or refurbishment are commonly referred to as electronic waste or e-waste. Nonetheless, inefficient management of e-waste or improper practices of handling e-waste frequently results in e-waste accumulation, potentially polluting the environment and habitats, harming humans, and endangering wildlife. The volume of e-waste shows no diminishing as technological advancements continue to drive the demand for the most up-to-date electronic devices and IT assets.
Consequently, the growing quantities of e-waste have become a global concern. The need for a well-organized and secure plan to dispose of electronic waste and obsolete IT equipment is increasing. Several state and federal environmental, data security, and privacy protection regulations have been drafted to ensure the correct disposal of electronic waste. Any failure to comply with these norms can result in significant financial penalties.
Increasing environmental consciousness among both individuals and businesses is also driving the adoption of proper e-waste disposal methods. As part of their corporate social responsibility initiatives, several companies worldwide recycle, recover, or prioritize the safe and secure disposal of e-waste and old IT assets. All of these factors augur well for the growth of the IT asset disposition market during the forecast time frame.
Growing awareness of the advantages of cloud-based computing, and consequently, the continued migration from on-premise to cloud-based services, is a significant driver of the IT disposition market's expansion. IT assets, such as storage devices, servers, and other peripherals and support infrastructures, such as networking gear, cables, uninterruptible power sources (UPS), physical security systems, and environmental controls, are used on-premise to be appropriately disposed of. The available data is sanitized before the company transitions from on-premise to cloud-based services. Therefore, businesses are increasingly turning to IT Asset Disposition (ITAD) service providers to dispose of their unwanted or obsolete IT equipment secure and environmentally responsible.
IT assets near the end of their service life must be disposed of using the appropriate procedures. Regardless of the importance of ITAD, many businesses lack a clear understanding of ITAD and its rules, making it challenging to manage ITAD procedures. As a result, many companies and consumers, especially in developing nations, dispose of their IT assets improperly to save money on the costs associated with their proper clearance.
Furthermore, some organizations delegate the disposal of their assets to third-party service providers, who frequently lack visibility into the command and accountability structure. Real-time tracking and accurate reporting of IT assets aid in preventing incorrect disposal. Due to a lack of awareness regarding device visibility and governance, businesses are unaware of the risks posed and how they can be mitigated. It is anticipated that organizations’ disposition of IT assets in violation of environmental and government regulations will be a barrier to market expansion.
IT Asset Disposition Market Opportunities:
The emerging trend of Going Green implies executing tasks in a manner that protects the environment. It manifests itself in numerous ways, including energy-efficient devices, recycling, environmentally-friendly vehicles, clean energy sources, and green buildings. In addition, computing has contributed to preserving the environment following the green computing concept. Green computing essentially uses computers and their assets in an environmentally responsible manner. It also studies engineering, designing, manufacturing, utilizing, and discarding computing or IT devices to minimize environmental impact.
The increasing intensity of reducing the carbon footprint generated by IT assets of businesses and related industries raises awareness regarding the disposal of obsolete IT computing devices and their replacement with energy-efficient alternatives. Various environmental non-profits, industries, and governments have launched numerous programs to promote green computing. For example, the IT industry is concentrating on green computing. Reductions in paper usage, equipment recycling, virtualization, power management, green manufacturing, and cloud computing are the most important initiatives undertaken in green computing.
Companies are gradually recognizing the significance of green technology and its potential to improve environmental sustainability by greening the entire life cycle of technologies and IT products, including research, production, use, and disposal. This will likely provide lucrative growth opportunities for the ITAD market, as companies worldwide adopt environmentally friendly initiatives.
The advent of the noble Coronavirus caused damage to the economies of all nations. To slow down the widespread of the disease, the government declared lockdowns, which resulted in the cessation of production, the closure of all work environments, the restriction of public interactions, and the temporary suspension of manufacturing and trading activities worldwide. The pandemic presented organizations of all sizes with unique challenges when dealing with IT hardware that had reached the end of its capacity.
In the past, IT companies were primarily concerned with the rate of development, which demanded efficient management of redundant equipment. Nevertheless, the transition to remote work necessitated businesses' purchase of new IT equipment during the pandemic. The increase in remote working-related IT asset purchases sparked concerns about how companies would deal with the resulting rise in electronic or IT asset waste. In the aftermath of the pandemic, IT asset disposition service providers experienced a surge in demand for their services.
The COVID-19 pandemic prompted organizations to adopt the "work from home" model and encourage employees to utilize their personal IT assets. As working from home emerged as a new norm, organizations started disposing of their obsolete and unused IT assets, driving demand for ITAD solutions.
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%. This growth can be attributed to the growing tendency of businesses to refurbish and recycle obsolete computers/laptops. Moreover, smartphones/tablets are anticipated to grow at a CAGR of 14% and reach a market value of USD 13,883 million by 2030.
Technological advances regarding the purchase of new smartphones and the subsequent obsolescence of older smartphones/tablets are driving up demand for IT asset disposition solutions. With the introduction of new, technologically advanced smartphones, smartphone penetration is expected to increase in the coming years, resulting in a surge in demand for related disposal services.
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. The media and entertainment segment is expected to have a value of USD 15,284 million, with a CAGR of 14% during the forecasted period.
Technology advancements and the resulting need to upgrade existing hardware to meet regulatory requirements drive hardware obsolescence. This generates a demand for IT asset disposal. In the telecom industry, companies that opt for ITAD services emphasize the efficient disposal and management of existing assets and the reduction of operational costs and environmental impact in response to intensifying market competition.
The regions into which the global IT asset disposition market share is segmented are North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia-Pacific, along with Europe, is expected to have the largest share in the market. Asia-Pacific will have a market share of USD 25,440 million with a CAGR of 14% by 2030, whereas Europe will have a forecasted value of USD 12,813 million with a CAGR of 11% by 2030. The growth witnessed in Asia-Pacific is primarily attributable to the development of new technologies and digitalization, which have resulted in the modernization of the existing infrastructure. The rapidly expanding information technology markets in countries like China, Japan, and India have led to these nations' status as industry leaders in ITAD services.
According to the United Nations University, it is estimated that India generates approximately 3.2 million metric tonnes of e-waste annually, placing it in third place behind China and the United States. Demand for IT asset disposal (ITAD) services has increased over the past few years to effectively manage and ensure the secure dumping of any e-waste or IT asset waste produced.
Growth in the region of North America is also witnessed during the forecast period. The thriving information technology market and the proliferation of cloud data centers will be the primary drivers of economic expansion in the region. In addition, the presence of many ITAD service providers in the area, such as Apto Solutions, Inc., Sims Lifecycle Services, Inc., and Iron Mountain Incorporated, amongst others, is already supporting the region's growth. As a result, widespread adoption of cloud-based technologies is anticipated to provide optimistic growth prospects for the overall market.