IT Asset Disposition Market Size, Share, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

  • TBI775332
  • November 29, 2020
  • Global
  • 132 pages
  • Lucintel
                                              

Industry Insights, Market Size, CAGR, High-Level Analysis: IT Asset Disposition Market

The global IT Asset Disposition market size was estimated to be USD 13.7 billion in 2018 and is likely to expand at a CAGR of 10.8% over the forecast period. The ever-growing demand for consumer electronics, coupled with rising consumer awareness regarding the need for efficient disposition of IT assets, is driving the adoption of ITAD services. Furthermore, prevailing regulations that mandate secure and environmentally compliant disposal of e-waste is contributing toward the market growth. According to the Harvard Business Review, there are more than 550 laws in the U.S. related to IT asset disposition including the Sarbanes-Oxley Act (SOX) and the Fair and Accurate Credit Transactions Act (FACTA). In addition to above mentioned factors, the on-going paradigm shift toward cloud-based services has resulted in the obsolescence of IT hardware/infrastructure, which in turn is creating a significant opportunity for the market. ITAD service providers streamline disposition of IT assets, while minimizing inventory costs and maximizing recouping of losses for enterprises. The imminent need to maximize asset value recovery is further impelling market growth. As per the International Telecommunication Union (ITU) report on global e-waste, 2017, e-waste generation is supposed to rise significantly from 44.7 metric tons in 2014 to 52.2 metric tons in 2021. High amount of e-waste generation is bound to have negative impacts on the environment. Thus, as a part of CSR activity, businesses worldwide are either recovering, recycling, or focusing on safely disposing their electronic waste, which is expected to drive the IT asset disposition market significantly. However, concerns with respect to ensuring data security while disposing the assets pose a challenge to the market growth. In addition, high capital investment and requisite certification to gain recognition create challenges for new entrants in the market. Though IT asset disposition is relatively an expensive and time-consuming activity, it is extremely crucial for business enterprises with massive IT infrastructure. Asset

Type Insights of IT Asset Disposition Market

There are various IT assets that need efficient disposition to minimize e-waste generation. These include computers/laptops, smartphones and tablets, peripherals, storage devices, servers, and other IT equipment. The computer/laptops segment captured a prominent share, accounting for over 40% of the total market value in 2018 and is expected to grow significantly during the forecast period. This is due to increasing inclination of enterprises toward refurbishing and recycling obsolete computers/laptops. On the other hand, the smartphones and tablets segment is estimated to expand at a CAGR exceeding 8% over the forecast period. Technological advances leading to new smartphone purchases and resulting obsolescence of old smartphones is driving demand for IT asset disposition services in the mobile device segment. In 2018, Hootsuite Inc., a social media management platform, reported around 5.1 billion mobile users accounting for 68% of the worldwide population. With mobile phone penetration expected to increase further in the coming years, the demand for related disposition services is expected to surge. End-use Insights IT asset disposition services are used by enterprises across different industry verticals such as BFSI, IT and telecom, government, energy and utilities, healthcare, and media and entertainment. The media and entertainment segment is expected to witness considerable growth, expanding at a CAGR of over 11% during the forecast period. The rising demand for media content among millennials is likely to supplement the adoption of technologically advanced IT assets, which in turn, is expected to boost the demand for IT asset disposition services. IT and telecom is also expected to grow prominently and account for a value share exceeding 30% by 2025. Advances in technology and resulting need for hardware compliance is driving hardware obsolescence, which is creating the need for IT asset disposition. In the wake of intensifying market competition in the telecom industry, companies are emphasizing on efficiently managing and disposition of the existing assets and reduce the operational cost by opting for proper ITAD services.

Regional Insights of IT Asset Disposition Market

Asia Pacific is expected to register a CAGR of over 12% during the forecast period owing to the advent of digitalization and technology advancements, which has led to the replacement of older infrastructure. Countries such as Japan, China, and India are the leaders in ITAD services considering the thriving IT markets in these countries. As per the United Nations University, it is estimated that India generates about 2 million metric tons of e-waste annually, among which 82% is from personal devices. To ensure and manage safe disposition of the e-waste generated, demand for ITAD services has surged in India over the last few years. North America accounted for more than 15% of the overall revenue in 2018. The growth in the region is credited to the presence of a booming IT market and rising number of cloud data centers in the region. Furthermore, the presence of numerous ITAD service providers and widespread adoption of cloud-based technologies is expected to augment the market growth.

Market Share Insights of IT Asset Disposition Market

ITAD vendors offer various services such as data destruction, decommissioning, redeployment, remarketing, and recycling of retired IT equipment and hardware. Key players operating in the global ITAD market include Apto Solutions Inc.; Iron Mountain Incorporated; CloudBlue Technologies Inc.; Dataserv Group; Dell Inc.; Hewlett Packard Enterprise Development LP; ITRenew Inc.; TES-AMM Pte Ltd.; LifeSpan International; Sims Recycling Ltd; TBS Industries; and Ingram Micro. Some enterprises have chosen to create their own service lines to deal with the used equipment while others opt for services from ITAD vendors. ITAD vendors are focusing on obtaining certifications such as Responsible Recycling (R2) and other higher certifications in order to get recognition and establish themselves in the market.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of IT Asset Disposition Market Research Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2015 to 2025 in each of the sub-segments. For the purpose of this study, this market research report has segmented the global IT Asset Disposition market report based on asset type, end use, and region:

Asset Type Outlook (Revenue, USD Billion, 2019 - 2030)

  • Computers/Laptops
  • Smartphones and Tablets
  • Peripherals
  • Storages
  • Servers
  • Others

End-use Outlook (Revenue, USD Billion, 2019 - 2030)

  • BFSI
  • IT & Telecom
  • Government
  • Energy and Utilities
  • Healthcare
  • Media and Entertainment
  • Others

Table of Contents
Chapter 1. Methodology and Scope                  1.1. Research Methodology                  1.2. Research Scope & Assumptions                  1.3. List of Data Sources                  1.4. List of AbbreviationsChapter 2. Executive Summary                  2.1. IT Asset Disposition (ITAD) Market - Industry Snapshot & Key Buying Criteria, 2015 - 2025                  2.2. Market Summary                  2.3. IT Asset Disposition (ITAD) Market, 2015 - 2025Chapter 3. IT Asset Disposition (ITAD) Market Variables, Trends & Scope                  3.1. Market Segmentation         
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