IT Asset Disposition Market Size, Share, Industry Report

Updated on : Oct 22, 2024

The global IT asset disposition market size is projected to grow from USD 18.4 billion in 2024 and is anticipated to be USD 26.6 billion by 2029, growing at a CAGR of 7.6% during the forecast period from 2024 to 2029.

Factors such as Early replacement of IT assets with newer versions to keep up with new technologies, and Adoption of cloud-based solutions and data center consolidation provide market growth opportunities for the IT asset disposition market.

IT Asset Disposition Market Forecast to 2029

To know about the assumptions considered for the study, Request for Free Sample Report

IT asset disposition Market Dynamics

Driver: Adoption of circular economy principles into IT asset management strategies

Circular economy initiatives play a pivotal role in propelling the ITAD (IT Asset Disposition) market forward. The concept of a circular economy involves creating a closed-loop system where products and materials are reused, refurbished, and recycled rather than being disposed of as waste. In the context of ITAD, this means extending the lifespan of IT assets through sustainable practices by refurbishing and remarketing, aligning with the principles of reduce, reuse, and recycle. As companies become more cognizant of environmental impact and resource conservation, there is a growing emphasis on incorporating circular economy principles into their IT asset management strategies.

The adoption of circular economy principles in ITAD is driven by a dual commitment: minimizing electronic waste and maximizing the utility of IT assets. Rather than following a linear model of production, consumption, and disposal, businesses are increasingly recognizing the economic and environmental benefits of a circular approach. ITAD services that align with circular economy principles focus on the responsible disposal of electronic equipment, emphasizing refurbishment and recycling to extract value from retired assets. This not only addresses environmental concerns associated with e-waste but also contributes to the efficient use of resources by extending the life cycle of IT equipment. In this way, circular economy initiatives are shaping the ITAD market by fostering sustainability, resource efficiency, and a more responsible approach to IT asset disposition.

Restraint: Safe disposal of legacy IT systems

Legacy IT systems often contain hazardous materials, such as lead, mercury, or certain chemicals, that pose environmental and safety risks. Disposing of these aging IT assets inappropriately can contribute to electronic waste (e-waste) problems and environmental contamination. As organizations upgrade their technology, the disposal of legacy systems becomes a critical consideration in the IT Asset Disposition (ITAD) lifecycle. Unlike modern equipment designed with recycling and environmental considerations in mind, older technologies may lack the same eco-friendly features.

ITAD service providers must employ specialized expertise to identify and manage the hazardous materials within these older technologies. They must prioritize the safe extraction and disposal of potentially harmful substances. Additionally, refurbishing or repurposing components where possible can contribute to sustainable ITAD practices, minimizing the environmental impact associated with the disposal of legacy IT systems. It underscores the importance of implementing responsible ITAD processes that consider the unique challenges posed by older technology.

Opportunity: Adoption of cloud-based solutions and data center consolidation

As businesses move toward cloud-based solutions and data center consolidation, there is an increasing demand for ITAD (IT Asset Disposition) services. While cloud migration involves transferring data, applications, and IT infrastructure to cloud platforms, data center consolidation aims to centralize computing resources. In both cases, companies are left with decommissioned IT assets that require proper disposal and management.

The need for ITAD services in the context of cloud migration and data center consolidation arises from several reasons. Firstly, as businesses move their operations to the cloud, on-premises hardware becomes obsolete, necessitating responsible disposal of servers, storage devices, networking equipment, and other IT assets. Secondly, in data center consolidation efforts, where organizations seek to optimize efficiency and reduce operational costs, decommissioning of redundant data center equipment becomes a critical step.

ITAD services are equipped to handle the complexities associated with large-scale IT infrastructure decommissioning. These include tasks such as data sanitization to ensure sensitive information is securely erased, logistics management for the physical removal of equipment, and environmentally sustainable disposal methods such as recycling and refurbishment.

By engaging ITAD services, businesses can navigate the challenges associated with the disposal of outdated IT assets, ensuring compliance with data protection regulations and environmental standards. This trend underscores the integral role that ITAD providers play in supporting businesses throughout the entire IT lifecycle, from procurement and deployment to decommissioning and disposal, particularly in the evolving landscape of cloud-centric and consolidated IT infrastructures.

Challenge: Inadequate infrastructure for recycling

The challenge of inadequate infrastructure for recycling in the ITAD (IT Asset Disposition) market is rooted in the limited availability of well-established facilities and processes designed for the proper recycling of electronic components, especially in specific geographic regions. Electronic devices contain a variety of materials, including metals, plastics, and hazardous substances, making responsible disposal crucial for environmental sustainability. However, the absence of robust recycling infrastructure can impede the effective and environmentally friendly management of discarded IT assets. Without adequate infrastructure, there may be a higher likelihood of improper disposal practices, such as incineration or dumping, leading to environmental pollution and health hazards. Additionally, the lack of recycling facilities can limit the recovery of valuable materials from IT assets, contributing to resource inefficiency.

IT Asset Disposition Market Ecosystem

The IT asset disposition market is competitive. It is marked by the presence of a few tier-1 companies, such as Dell Inc. (US); IBM (US); Hewlett Packard Enterprise Development LP (US); Iron Mountain, Inc. (US); and Sims Limited (Australia). These companies have created a competitive ecosystem by focusing on partnership, collaboration, and acquisition to achieve competitive advantage.

IT asset disposition Market Segmentation

Data sanitization/data destruction segment to hold the largest share of market during the forecast period

The data sanitization/data destruction segment led the IT asset disposition market for services during the forecast period. The growing need for the proper disposal of IT assets and the threat of important information stored in old assets getting leaked are fueling the demand for data destruction/data sanitization services. Due to the importance of data security for any company, the complete destruction of data or information from an asset is imperative before its physical destruction or transition to the next phase of asset disposition. This proactive measure aims to minimize the risks associated with data breaches, financial implications, and threats to the brand image. IT asset disposition service providers leverage advanced software and solutions for comprehensive device sanitization to ensure the absolute destruction of data. Blancco Drive Erasure is a robust data sanitization solution for PCs, laptops, servers, and loose drives offered by Blancco Technology Group (US). The specialized software and appliances required for this process are used by an experienced IT asset disposition service provider, which provides certification that the data was sanitized according to common industry standards, such as the US's National Institute of Standards and Technology (NIST) Special Publication 800-88.

Server segment to display highest CAGR during forecast period

The global surge in Internet and social media applications, along with the introduction of technologies like software-defined networking and virtualization, has led to a widespread increase in the utilization of servers and data centers. Servers, which are designed for prolonged uninterrupted operation, consist of essential components such as Central Processing Units (CPUs), high-performance RAM, and one or more hard drives. Several factors contribute to the growing deployment of advanced servers, including technological advancements and a rising number of businesses transitioning to cloud-based services. Many companies adopt a regular cycle of refreshing their data centers with networking or server upgrades every three to four years. The escalating threat of data breaches has compelled data center providers to implement secure disposal practices for data and equipment before decommissioning.

Media & entertainment segment to grow at the highest CAGR during the forecast period

The media and entertainment industry requires a continual and frequent refresh cycle for IT assets to meet the demands of graphic and audio production programs and software demands. As the industry increasingly prioritizes environmentally conscious strategies, there is an increased demand for effective e-waste disposal and data sanitation. Technological advancements have also fueled a significant demand for IT asset disposition services within the media and entertainment sector, which encompasses the delivery of television and radio programs, online games, and advertisements. Due to the industry's heavy reliance on technology, it undergoes constant evolution to keep pace with ongoing technological developments. This rapid adoption of new technologies mandates the safe disposal of obsolete assets, particularly storage devices, where data wiping is crucial due to the confidentiality of stored data.

In the media and entertainment industry, data destruction services are widely employed, given the industry's nature, where online and web penetration drives the need for high-end servers and extensive storage capacity. Once data has been thoroughly wiped from these devices, they can be repurposed for further use by internal staff or external clients.

Asia Pacific to grow at the fastest CAGR during the forecast period.

The Asia Pacific IT asset disposition market is poised for significant growth during the forecast period, driven by the establishment of regulatory policies governing the proper disposal of IT assets. These policies aim to mitigate environmental hazards associated with retired IT equipment by prohibiting their disposal in landfills. In Asia Pacific, initiatives such as the Extended Producer Responsibility (EPR) schemes, notably implemented in Japan and South Korea, incentivize manufacturers to take responsibility for end-of-life products. This approach contributes significantly to the growth of the ITAD market. Additionally, regulatory frameworks like the Personal Data Protection Law in China and the Personal Data Protection Act in India, coupled with GDPR compliance requirements for multinational companies, accentuate the importance of data security.

IT Asset Disposition Market by Region

To know about the assumptions considered for the study, download the pdf brochure

Key Market Players

The IT asset disposition companies is dominated by globally established players such as Dell Inc. (US); IBM (US); Hewlett Packard Enterprise Development LP (US); Iron Mountain, Inc. (US); Sims Limited (Australia); 3stepIT (Finland); TES (Singapore); Apto Solutions Inc. (US); LifeSpan International Inc. (US); Total IT Global (UK); Flex IT Distribution (Netherlands); Ingram Micro (US); CSI Leasing, Inc. (US); Inrego AB (Sweden);Tier1 (UK); Atea (Norway); OceanTech (US); Blancco Technology Group (US); Renewtech (Netherlands); BRP Infotech Pvt. Ltd.(India); CHG-MERIDIAN (Germany); Park Place Technologies (US); TBS Industries Inc. (US); ReluTech (US);and Prolimax (Netherlands). These players have adopted service launches/developments, contracts, collaborations, agreements, and acquisitions for growth in the market.

Want to explore hidden markets that can drive new revenue in IT Asset Disposition Market?

Unlock Insights

Scope of the Report

IT Asset Disposition Market Highlights

The study categorizes the IT Asset disposition market based on Service, Asset Type, Organization Size, Vertical and Region

Recent Developments

• In August 2023, Hewlett Packard Enterprise (US) collaborated with Cyxtera (US) to offer Asset Upcycling Services, allowing organizations to recover value securely and sustainably from retired hardware. As part of this collaboration, HPE facilitates the purchase of old hardware when customers deploy new, more efficient infrastructure with Cyxtera.
• In March 2023, Redington Limited (India) partnered with Dell Inc. (US) to promote sustainability initiatives in India. Through this partnership, Redington would offer Dell's Asset Resale and Recycling Services (ARRS) to help businesses securely and sustainably manage legacy IT equipment, reducing environmental impact.
• In January 2022, Iron Mountain, Inc. (US) acquired ITRenew (US), a global leader in mission-critical data center lifecycle management solutions. ITRenew became the platform for Iron Mountain’s Global IT Asset Lifecycle Management business, enhancing its ability to provide end-to-end services for the hyperscale, corporate data center, and corporate end-user device segments.

Frequently Asked Questions (FAQs):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst