IT Asset Disposition (ITAD) Market Size and Share|2031

The IT asset disposition market size is expected to grow from US$ 19.36 billion in 2022 to US$ 47.23 billion by 2030; it is estimated to grow at a CAGR of 11.8% from 2022 to 2030.

Analyst Perspective:

The rising demand for consumer electronics and growing consumer awareness of the significance of properly disposing of IT assets are driving the development of IT asset disposition (ITAD) services. To reduce its environmental effect, ITAD fixes, recycles, and repurposes outdated IT equipment. Reusing the internal components of IT equipment can help cut down on electronic waste. It also helps to keep plastics and heavy metals from environmental damage as they can be recycled. Additionally, the sales are influenced by the requirement for appropriate e-waste disposal methods, environmental regulations that businesses must adhere to, and the massive volume of e-waste produced. Furthermore, a rise in the need for IT asset disposal, particularly due to the growing worries regarding data security and regulatory compliance, is expected to boost the growth of the IT asset disposition market in the forecasted period. In addition, it is anticipated that in the near future, the BYOD trend, which is gaining traction and is bolstered by state-of-the-art technology, will significantly raise the need for IT asset disposal, fueling the growth of the IT asset disposition market.

Market Overview:

Information Technology Asset Disposition is referred to as ITAD. It is the safe and secure disposal of obsolete or unwanted technology assets. Recycling, repurposing, reselling, or giving these assets are all part of ITAD, which aims to minimize environmental impact and reduce e-waste. Data destruction is a step in the ITAD process that guarantees all sensitive data is removed from devices before being disposed of. By doing this, confidential data is protected from any potential security breaches. By assisting businesses in tracking their IT assets from acquisition to retirement, IT asset management plays a crucial part in ITAD procedures. An effective asset tracking system contributes to adherence to laws like GLBA and HIPAA. Organizations can expedite their asset disposal procedures and guarantee regulatory compliance by collaborating with a reputable and accredited ITAD supplier. Businesses can reduce the risk of fines and brand damage connected with inappropriate disposal methods by selecting the appropriate vendor.

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IT Asset Disposition Market: Strategic Insights

Market Size Value in	US$ 19.36 billion in 2022
Market Size Value by	US$ 47.23 billion by 2030
Growth rate	CAGR of 11.8% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Market Driver:

Increasing Volume of E-Waste is Driving the Growth of the IT Asset Disposition Market

As the lives of people are becoming ever more electrified, the demand for new electronic devices or advanced devices such as smartphones, tablets, laptops, and others are continuously coming into the market. Because of the growing innovation and launches of new electronic devices, the older ones end up as e-waste, leading to a tremendous increase in the e-waste stream and making it the fastest-growing waste stream worldwide. According to the World Health Organization (WHO), e-waste is the fastest-growing solid waste stream in the world, growing 3 times faster than the world’s population. Nevertheless, e-waste streams comprise valuable and limited resources that can be recycled properly to extend their useful life. People with low and middle incomes, especially children, are more vulnerable to the risks associated with e-waste if it is not adequately managed. This is because there are insufficient laws, recycling facilities, and training programs. Also, e-waste contains dangerous components or, if improperly handled, might produce harmful chemicals, making it hazardous waste. Hence, as the growing e-waste is harmful to human health and the environment, the need for IT asset disposition services is increasing worldwide, fueling the growth of the IT asset disposition market.

Segmental Analysis:

Based on service, the IT asset disposition market is segmented into de-manufacturing and recycling, remarketing and value recovery, data destruction/data sanitation, and others. The data destruction/data sanitation segment held the largest IT asset disposition market share in 2022 and is anticipated to register the highest CAGR during 2022-2030. Data destruction or data sanitation involves permanently deleting or destroying of data from any storage device to ensure it cannot be recovered. Proper data destruction can help businesses protect confidential information and ensure that they comply with legal requirements. In addition, by securely disposing of digital data, companies can protect themselves from potential risks, further fueling the IT asset disposition market growth.

Regional Analysis:

North America is expected to witness significant growth in the IT asset disposition market in the forecasted period. In the region, the US will hold the largest IT asset disposition market share in 2022 and will register the highest CAGR during the forecasted period. North American countries like the US and Canada have been pioneers in the adoption of new technology across their businesses over the years. Also, the growing product innovation, stringent regulations, and environmental consciousness are other factors fueling the growth of the IT asset disposition market in the region. Additionally, a thriving IT industry and an increase in cloud data centers in the area are anticipated to support the growth of the North American IT asset disposition market in the forecast year. Furthermore, as businesses have grown more aware of the risks connected with data breaches, the demand for IT asset disposal for safe and legal data deletion is increasing in the region. Moreover, due to the rising demand for IT asset disposition services, various global market players are expanding their presence in the region. For instance, in August 2023, TES, an IT lifecycle solution company, announced a plan to build a new Virginia-based IT asset disposition and disposal (ITAD) facility. The site will cover 128,000 sq ft (11,900 sqm) and will cater exclusively to ITAD data center asset processing, handling all aspects of the data center retirement process from decommissioning to testing or repair to disposition. Thus, all the above factors are fueling the IT asset disposition market growth in North America.

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Key Player Analysis:

Apto Solution Inc, IBM Corporation, Castaway Technologies, Dell Inc, Hewlett Packard Enterprise Development LP, Iron Mountain Incorporated, Lifespan International Inc, Sims Lifecycle Services Inc, TBS Industries Inc, and TES are among the key IT asset disposition market players. These IT asset disposition market players are focused on continuous product development and innovation.

Recent Developments: 

Inorganic and organic strategies such as product launches, partnerships, collaboration, and mergers and acquisitions are highly adopted by companies in the IT asset disposition market. A few recent key market developments by these companies are listed below:

• In November 2023, Iron Mountain, a global leader in information management, innovative storage, data center infrastructure, and asset lifecycle management, announced that 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.
• In October 2023, Full Circle Electronics (FCE), backed by private equity firm Tide Rock, announced the acquisition of an IT Asset Disposition (ITAD) business from SIPI Asset Recovery. With the acquisition, Full Circle gained ITAD geographic reach across Northern California, Illinois, Texas, Mexico, and Columbia. SIPI ITAD provides a "full ITAD pick-up scheduling system, detailed auditing, and integrated testing, wiping, and grading for optimal data security and product quality.
• In March 2023, TES, a global leader in sustainable IT asset disposition (ITAD) and IT lifecycle management services, announced the opening of its new 40,000-square-foot facility in Las Vegas in January 2023. This facility expands TES's processing capacity and offers a full suite of IT Asset Disposition services to support the large community of technology companies on the West Coast. The Las Vegas facility will provide onsite data destruction, data center decommissioning, and the redeployment or resale of parts and assets, with additional services, including testing, grading, repairing, refurbishment, and recycling. This facility will complement TES's existing infrastructure and will bring TES's investment to almost $10 million in ITAD infrastructure across its North American facilities over the previous five years.
• In November 2022, Hewlett Packard Enterprise announced that Yahoo! JAPAN has chosen HPE Asset Upcycling Services to ensure end-of-use hardware gets refurbished and reused wherever possible to meet its sustainability goals. This service is part of HPE’s full range of solutions to help customers modernize multi-generational IT estates, extend the life of legacy systems and associated software, and extract value from end-of-use technology.
• In June 2022, Apto Solutions announced the launch of its new Environmental Impact Reporting Tool - offering companies real-time data specifically designed to aid in ESG reporting. This new tool empowers the customers by putting the data right at their fingertips so that they can use it however they’d like in ESG and Sustainability reports to show the positive impact of their ITAD programs against their other emissions.