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The IT asset disposition (ITAD) market size is estimated to grow by USD 14.85 billion at a CAGR of 11.48% between 2023 and 2028. The market is experiencing significant growth driven by several key factors. The increasing emphasis on regulatory compliances surrounding data security is compelling organizations to seek efficient ITAD solutions. Moreover, the growing adoption of cloud computing and the Bring Your Own Device (BYOD) trend are generating a substantial volume of retired IT assets, further driving the demand for ITAD services. Additionally, the rising proliferation of Internet of Things (IoT) devices is contributing to the expansion of the ITAD market as organizations seek to manage and dispose of obsolete hardware securely and responsibly. This market analysis and report includes important information on drivers, trends, and challenges during the forecasted period.
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The market is witnessing significant growth propelled by various factors. Key among them is the stringent regulatory landscape, including the HIPAA security rule, which mandates secure data handling and disposal practices, driving the demand for ITAD services. Companies like Iron Mountain Incorporated and Homeboy Recycling are at the forefront, offering comprehensive IT lifecycle solutions to address evolving regulatory requirements and ensure data and information protection. Additionally, the proliferation of BYOD trends and the need for energy-efficient products are driving organizations to adopt ITAD programs to manage old assets efficiently while navigating obstacles and embracing the evolution of technologies.
The market is propelled by stringent ISO standards and regulatory requirements governing data destruction and environmental protection. Lifecycle management services, including asset recovery and cloud migration, are vital for organizations like Morgan Stanley Smith Barney and Netflix. Data security, especially in the healthcare segment under HIPAA security rule, drives demand for trusted providers like Iron Mountain Incorporated and ERI. With BYOD trends and evolving technologies, IT lifecycle solutions offered by companies like Homeboy Recycling and Amazon are crucial. Energy-efficient products and comprehensive ITAD programs, such as those offered by TES's Chief Commercial Officer, address obstacles while ensuring data and information protection.
The growing implementation of regulatory compliances regarding data security is a major factor driving the market growth. Data privacy regulations have changed the way that companies, organizations, and governments can dispose of their unwanted equipment. Many companies do not have the strong market position that is required to address the implementation of these regulations. In addition, companies across the world must have processes in place to ensure that personally identifiable information is always protected.
Market players are responsible for maintaining best practices for thorough data sanitization so that none of the customer's private data is left vulnerable, thereby ensuring the security and protection of customer data. Thus, the growing need to comply with regulations by companies is expected to drive the growth of the market during the forecast period.
Increasing strategic partnerships and acquisitions by market players is a major trend influencing market growth. Market players are adopting strategies such as mergers and acquisitions (M&A), partnerships, and collaborations to expand their global presence and gain a competitive advantage. For instance, in November 2021, International Business Machines Corp. acquired SXiQ, an Australian digital transformation services company specializing in cloud applications, cloud platforms, as well as cloud cybersecurity.
Likewise, in August 2020, market player CompuCom Systems Inc. partnered with Office Depot to provide a suite of IT hardware and service offerings to small and mid-sized businesses to support their remote workplaces in the US. Consequently, the increase in the number of strategic partnerships by players will drive the market growth and trends during the forecast period.
The lack of budget is a major challenge hindering the market growth. Most organizations do not set aside a specific budget for the disposal of IT assets because they find the process or services to be prohibitively expensive or unmanageable. Besides, the equipment may also be recycled or repurposed; therefore, it must be disposed of legally and sustainably, necessitating the application of conventional regulations. The low resources of the organization, particularly small and medium enterprises (SMEs), are another important factor where budgets are rarely provided.
Moreover, failing to provide necessary funds, selecting a low-cost provider, or failing to dispose of assets properly could result in significantly higher costs. Further, this would pose a risk to workers and environmental health, as well as security threats. Hence, such factors may impede the growth of the market during the forecast period.
In the industry application segment of the market, various sectors such as healthcare, finance, and technology, rely on ITAD services for efficient asset management and data security. Organizations adhere to ISO standards to ensure compliance and best practices throughout the asset lifecycle. Asset recovery and data destruction services safeguard sensitive information, including Persona Identifying Information (PII), while supporting environmental protection goals. Companies like Morgan Stanley Smith Barney and The World Bank Group trust ITAD providers like ERI for secure asset disposal and data sanitization. Cloud-based computing and migration initiatives drive the need for ITAD services, especially in data centers managed by tech giants like Netflix and Amazon. With lifecycle management services and adherence to industry standards, the ITAD market continues to play a crucial role in maintaining data integrity and environmental sustainability across diverse industries.
The large organizations segment will account for a major share of the market's growth during the forecast period.? Large organizations often have complex IT infrastructures with diverse sets of equipment and a significant volume of data to manage. Large enterprises deal with vast amounts of sensitive data. Securely disposing of IT assets, including computers, servers, storage devices, and peripherals, is important to prevent data breaches and comply with stringent data privacy regulations.
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The large organizations segment was valued at USD 7.59 billion in 2018. ITAD services offer scalability to manage the disposition of a large volume of equipment efficiently. Outsourcing these services to specialized providers ensures a streamlined and secure process for managing IT assets, which will increase the demand for ITAD services, which in turn may have a positive impact on the growth of the market during the forecast period.
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North America is estimated to contribute 37% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Due to the adoption of new technologies, the presence of high regulatory standards, as well as increased awareness of the conservation of the environment the North American market is anticipated to grow significantly. In addition, some key players in the regional market are Hewlett Packard Enterprise Co., Dell Technologies Inc., and International Business Machines Corp.
Moreover, factors such as the growing IT market, the rising number of cloud data centers, the presence of several service providers, and the widespread adoption of cloud-based technologies are anticipated to propel the growth of the regional market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Our market research and growth report covers detailed analyses of the market’s competitive landscape and offers information on 20 market companies, including:
Apto Solutions Inc., Blancco Technology Plc, BRP Infotech Pvt. Ltd., CompuCom Systems Inc., DataSpan Inc., Dell Technologies Inc., EOL IT Services Ltd., Hewlett Packard Enterprise Co., Ingram Micro Inc., International Business Machines Corp., Iron Mountain Inc., LifeSpan International Inc., Ocean Enterprises LLC, Renewtech, Sims Ltd., SK Inc., TBS Industries Inc., Total IT Global, and Xeptor BV
The market growth analysis report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market is witnessing significant growth, driven by the increasing adoption of ISO standards and the rising emphasis on data destruction and lifecycle management services. Companies like Morgan Stanley Smith Barney and Iron Mountain Incorporated are leading the way in offering comprehensive IT lifecycle solutions, including asset recovery and environmental protection services. With the proliferation of cloud-based computing and BYOD trends, organizations are turning to cloud migration solutions provided by industry players like ERI and Amazon. Strict regulatory requirements, particularly in the healthcare segment, such as the HIPAA security rule, further underscore the need for robust data and information protection measures. As technology continues to evolve, the demand for comprehensive ITAD programs is expected to rise, with companies like TES pioneering energy-efficient products and innovative solutions.
The market is experiencing a surge in demand, fueled by factors such as the need to protect Persona Identifying Information and adhere to stringent regulations. Key players like The World Bank Group and Netflix are actively engaging in responsible asset disposal practices, often collaborating with specialized firms like Homeboy Recycling to manage old assets efficiently. Companies like TES, led by TES's Chief Commercial Officer, are pioneering the development of the comprehensive ITAD program to address the evolving landscape of technology and ensure secure data handling. The market also witnesses advancements in consolidation efforts and the establishment of state-of-the-art facilities like the Las Vegas facility, reflecting the industry's commitment to sustainability and innovation amidst the Evolution of technologies.
The market is witnessing significant growth, driven by various factors such as the implementation of NAID AAA standards. The proliferation of the IT & telecom segment and the adoption of technologies like virtualization and cloud are further boosting market expansion. Companies, including Apple, are embracing initiatives like Workspace ONE 2111 and iOS 15 to enhance their work processes and ensure environmental safety in IT asset disposal. Legislative measures concerning e-waste are also influencing market dynamics, particularly among small and medium-sized companies investing in reverse logistics and de-manufacturing to optimize IT equipment disposal. Moreover, the emergence of online auction platforms is facilitating the sales of used equipment and driving ITAD market segmentation based on Asset Type such as Digital Storage Devices.
The market growth and forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
IT Asset Disposition (ITAD) Market Scope |
|
Market Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.48% |
Market Growth 2024-2028 |
USD 14.85 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.96 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3 Step IT Group Oy, Apto Solutions Inc., Blancco Technology Plc, BRP Infotech Pvt. Ltd., CompuCom Systems Inc., DataSpan Inc., Dell Technologies Inc., EOL IT Services Ltd., Hewlett Packard Enterprise Co., Ingram Micro Inc., International Business Machines Corp., Iron Mountain Inc., LifeSpan International Inc., Ocean Enterprises LLC, Renewtech, Sims Ltd., SK Inc., TBS Industries Inc., Total IT Global, and Xeptor BV |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market trends and analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Industry Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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