IT Asset Disposition Market

IT Asset Disposition Market Size:

The global IT asset disposition market size reached US$ 16.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 31.9 Billion by 2032, exhibiting a growth rate (CAGR) of 7.42% during 2024-2032. The increasing e-waste regulations, growing need for environmentally responsible disposal methods, rising data security concerns, and the increasing demand for secure data destruction, cost recovery from retired IT assets, and corporate sustainability initiatives are some of the major factors driving the growth of the market.

IT Asset Disposition Market Analysis:

• Major Market Drivers: Strict e-waste regulations that mandate proper disposal and recycling of electronic devices are the major drivers of the market. The increasing data security concerns compel organizations to seek secure methods for disposing of outdated IT assets, ensuring sensitive information is permanently erased.
• Key Market Trends: The widespread adoption of cloud computing leads to frequent hardware refresh cycles and thus higher demand for IT asset disposition services which represent key trends of the market. Another trend is the rise of certified ITAD providers offering secure and environmentally compliant disposable services, addressing regulatory and security concerns.
• Geographical Trends: North America accounts for the largest region in the IT asset disposition market growth. Strict e-waste regulation, increasing data security concerns, and corporate sustainability initiatives are some of the significant factors driving the growth of the market across the region.
• Competitive Landscape: Some of the major market players in the IT asset disposition industry include Apto Solutions Inc, Cascade Asset Management, CDW Corporation, CompuCom Systems Inc, Dell Technologies Inc, DMD Systems Recovery Inc., Ingram Micro, Iron Mountain Incorporated, LifeSpan International Inc, Sims Limited, TES (SK Ecoplant Co Ltd), among many others.
• Challenges and Opportunities: The market faces various challenges including stringent regulatory compliance, ensuring data security during disposal, and managing the logistical complexities of collecting and recycling e-waste. However, the market also faces various opportunities such as growing demand for sustainable and eco-friendly disposal methods, driven by environmental awareness and corporate sustainability goals.
   

IT Asset Disposition Market Trends:

Rising Stringent E-Waste Regulations

The increasing implementation of strict environmental regulations mandating proper disposal and recycling of electronic waste are pushing organizations to adopt ITAD services to comply with legal requirements. For instance, e-waste was up 82% from 2010. E-waste is on track to rise another 32%, to 82 million tonnes, in 2030. Billions of dollars-worth of strategically valuable resources were squandered and dumped. Just 1% of rare earth element demand is met by e-waste recycling. The world's generation of electronic waste is rising five times faster than documented e-waste recycling; the UN's fourth Global E-waste Monitor (GEM) reveals today. The 62 million tonnes of e-waste generated in 2022 would fill 1.55 million 40-tonne trucks, roughly enough trucks to form a bumper-to-bumper line encircling the equator, according to the report from ITU and UNITAR. Meanwhile, less than one quarter (22.3%) of the year's e-waste mass was documented as having been properly collected and recycled in 2022, leaving USD 62 billion worth of recoverable natural resources unaccounted for and increasing pollution risks to communities worldwide. Worldwide, the annual generation of e-waste is rising by 2.6 million tonnes annually, on track to reach 82 million tonnes by 2030, a further 33 % increase from the 2022 figure. This is further boosting the IT asset disposition market statistics significantly.

Increasing Data Security Concerns

The growing need to securely erase sensitive data from obsolete IT assets drives demand for ITAD services that ensure data destruction and prevent information breaches. According to the industry report, there were 2,365 cyberattacks in 2023 with 343,338,964 victims. 2023 saw a 72% increase in data breaches since 2021, which held the previous record. A data breach costs $4.45 million on average. Email is the most common vector for malware, with around 35% of malware delivered via email in 2023. Ninety-four percent of organizations have reported email security incidents. Business email compromises accounted for $2.7 billion in losses in 2022. Information security jobs are projected to grow by 32% between 2022 and 2032. This is expected to fuel the IT asset disposition market forecast over the coming years.

Growing Corporate Sustainability Initiatives

The increasing focus of companies on sustainable practices, including environmentally responsible disposal methods for IT assets, to meet corporate social responsibility goals and enhance their green credentials. For instance, in June 2022, in a continuing effort to foster innovation in the IT asset disposition (ITAD) industry, Apto Solutions announced the launch of its new Environmental Impact Reporting Tool - offering companies real-time data specifically designed to aid in ESG reporting. An expansion of their existing proprietary Pulse platform, the tool allows clients to see the amount of greenhouse gas emissions saved from reuse and recycling activities with Apto, savings that can be easily factored into a company’s broader ESG efforts.

IT Asset Disposition Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on service, asset type, enterprise size, and industry vertical.

Breakup by Service:

• De-Manufacturing and Recycling
• Remarketing and Value Recovery
• Data Destruction/Data Sanitation
• Logistics Management and Reverse Logistics
• Others
   

Data destruction/data sanitation accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the service. This includes de-manufacturing and recycling, remarketing and value recovery, data destruction/data sanitation, logistics management and reverse logistics, and others. According to the report, data destruction/data sanitation represented the largest segment.

The growing data security and privacy concerns are crucial due to the abundance of sensitive information stored on IT assets, necessitating secure data destruction or sanitation during asset disposal or repurposing to prevent data breaches and comply with privacy regulations. Compliance requirements, such as GDPR or HIPAA, are mandating proper data sanitization before retiring or repurposing IT assets, thereby fueling the segment’s growth. Additionally, organizations prioritize reputation management by employing data destruction services to safeguard against potential data leaks or breaches, protecting their brand image. For instance, in March 2024, IBM just announced its global launch of Blancco-based IBM Data Erasure Services. Now, IBM customers worldwide can manage end-of-life data and decommissioned hardware more securely and sustainably than ever. 

Breakup by Asset Type:

• Computers and Laptops
• Servers
• Mobile Devices
• Storage Devices
• Others
   

Computers and laptops hold the largest share of the industry

A detailed breakup and analysis of the market based on the asset type have also been provided in the report. This includes computers and laptops, servers, mobile devices, storage devices, and others. According to the report, computers and laptops represented the largest segment.

This segment is primarily driven by the continuous advancements in computer and laptop technology that necessitate regular upgrades and replacements. Organizations prioritize the secure disposal of computers and laptops to protect sensitive data and comply with data protection regulations. The growing awareness of electronic waste management and the significance of recycling fuels the demand for proper disposal methods to promote environmental sustainability.

Breakup by Enterprise Size:

• Small and Medium-sized Enterprise
• Large Enterprise
   

Large enterprise represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the enterprise size. This includes small and medium-sized enterprise and large enterprise. According to the report, large enterprise represented the largest segment.

Large enterprises prioritize secure IT asset disposition to prevent data breaches and comply with regulations, requiring certified processes and documentation for data erasure and destruction. They also seek providers that can handle their scale and global reach, managing large asset volumes and offering services worldwide. Additionally, corporate social responsibility influences their choice of IT asset disposition providers, favoring those aligned with environmental goals such as recycling and minimizing e-waste.

Breakup by Industry Vertical:

• BFSI
• IT and Telecom
• Education
• Healthcare
• Manufacturing
• Media and Entertainment
• Others
   

IT and telecom exhibit a clear dominance in the market 

A detailed breakup and analysis of the market based on the industry vertical have also been provided in the report. This includes BFSI, IT and telecom, education, healthcare, manufacturing, media and entertainment, and others. According to the report, IT and telecom accounted for the largest market share.

The IT and telecom sector's rapid technological advancements result in shorter IT asset lifecycles, making proper disposal of outdated assets crucial for accommodating new technologies. Additionally, data privacy and security concerns drive the need for ensuring secure asset disposition in the IT and Telecom sector, as it handles vast amounts of sensitive consumer data. These are the factors that are impelling the segment.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest IT asset disposition market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for IT asset disposition.

The market for IT asset disposition in North America is driven by the region's high level of technological innovation and adoption, along with the presence of numerous technology-driven companies and industries. As these assets become obsolete or reach the end of their lifecycle, there is an increasing demand for proper disposal and management, fueling the need for ITAD services. For instance, in November 2023, Iron Mountain, a global leader in information management, innovative storage, data center infrastructure, and asset lifecycle management announced it has entered into a definitive agreement to acquire Regency Technologies, a leading provider of IT asset disposition (ITAD) services in the United States. Building on Iron Mountain's extensive logistics network, which already provides customers with leading information security in IT Asset Lifecycle Management (ALM), the combined platform will establish a market-leading distributed footprint for the remarketing and recycling of IT assets. This will result in enhanced environmental sustainability and increased value recovery at the end of the IT asset lifecycle.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the IT asset disposition industry include Apto Solutions Inc, Cascade Asset Management, CDW Corporation, CompuCom Systems Inc, Dell Technologies Inc, DMD Systems Recovery Inc., Ingram Micro, Iron Mountain Incorporated, LifeSpan International Inc, Sims Limited, TES (SK Ecoplant Co Ltd), etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• The competitive landscape of the IT asset disposition (ITAD) market is highly competitive with key players including Sims Recycling Solutions, Iron Mountain, and Apto Solutions. These companies offer comprehensive services like data destruction, e-waste recycling, and asset recovery. The market is characterized by a focus on security, regulatory compliance, and sustainability. Partnerships and acquisitions are common strategies to expand service offerings and geographic reach. For instance, in November 2023, circular economy-focused investment firm Closed Loop Partners joined forces with leading IT Asset Management and Disposition provider, Sage Sustainable Electronics, as a majority shareholder in the company. The investment from Closed Loop Partners’ buyout private equity fund, the Closed Loop Leadership Fund, is taking place at a critical time, amidst the rapid growth of electronic waste, increasing corporate commitments around e-waste management, and rising demand for increased transparency and data security in the IT Asset Disposition (ITAD) industry. The strategic partnership aims to accelerate the growth of Sage Sustainable Electronics and strengthen its position as a leading provider of sustainable ITAD services in North America.

IT Asset Disposition Market News:

• In June 2022, Hornbill, a leading Enterprise Service Management (ESM) technology and solutions provider, announced a new strategic partnership with CDW, a Fortune 500 technology solutions and services company. This partnership equips CDW with a leading ESM platform to offer their customer base. Hornbill’s codeless ESM solution will empower CDW customers to quickly modernize and automate service operations across every part of the organization.
• In April 2024, Compucom, a leading technology sourcing, integration, and services company, was named Solution Integrator Client Partner of the Year for its instrumental and advisory partnership in Intel’s code-named Raptor Lake and Meteor Lake processors, which contributed to the development of the AI PC Category.
• In January 2024, Iron Mountain, a global leader in information management, innovative storage, data center infrastructure, and asset lifecycle management today announced it has completed its acquisition of Regency Technologies, a leading provider of IT asset disposition (ITAD) services in the United States. Building on Iron Mountain's extensive logistics network, which already provides customers with leading information security in IT Asset Lifecycle Management (ALM), the combined platform establishes a market leader in IT asset disposition customer solutions. This will result in enhanced environmental sustainability and increased value recovery at the end of the IT asset lifecycle.

IT Asset Disposition Market Report Scope:

Key Questions Answered in This Report:

• How has the global IT asset disposition market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global IT asset disposition market?
• What is the impact of each driver, restraint, and opportunity on the global IT asset disposition market?
• What are the key regional markets?
• Which countries represent the most attractive IT asset disposition market?
• What is the breakup of the market based on the service?
• Which is the most attractive service in the IT asset disposition market?
• What is the breakup of the market based on the asset type?
• Which is the most attractive asset type in the IT asset disposition market?
• What is the breakup of the market based on the enterprise size?
• Which is the most attractive enterprise size in the IT asset disposition market?
• What is the breakup of the market based on the industry vertical?
• Which is the most attractive industry vertical in the IT asset disposition market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global IT asset disposition market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the IT asset disposition market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global IT asset disposition market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the IT asset disposition industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.