Efficiently disposing archaic IT assets is a crucial function within an IT organization. It requires much care to ensure that no critical data is lost. Rapid changes witnessed in the world of technology have reduced the lifespan of IT equipment. Hence, organizations are in persistent need of upgrading operations and the devices they use to remain competitive in the market. This subsequently results in the creation of a large volume of discarded IT assets and e-waste worldwide, thereby posing a significant environmental threat. Additionally, safe disposal of these retired IT assets is also essential to ensure that data on older machines is securely transferred to their newer replacements.
As per a recent report by Transparency Market Research, the global IT asset disposal (ITAD) market, which in 2015 stood at US$9.89 bn, is anticipated to reach US$18.18 bn by the end of 2024. The market is poised to exhibit a CAGR of 7.1% between 2016 and 2024.
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Rising Threat of Data Theft from Outdated Devices Boosts Implementation of ITAD
An IT organization may have to face tremendous monetary losses in case of data breaches. Thus, it is very important that critical data stored in assets to be replaced is either migrated or destroyed. With cloud computing technologies fast replacing the older IT infrastructure, the demand for IT asset disposal (ITAD) is poised to surge exponentially in the coming years. The adoption of ITAD also plays a crucial role in ensuring the transition from older IT infrastructure to the cloud. Ensuring maximum ROI and data security during the disposal of IT assets is therefore considered essential for enterprises operating in the ITAD market.
Market Also to Gain from Growing Demand for Used Mobile Devices, PCs, and Laptops
Another significant factor giving impetus to the market for ITAD is the growing demand for used mobile devices, computers, and other electronic equipment from small-scale enterprises, educational institutions, and elsewhere as the equipment is readily available at a low cost. For this equipment to become suitable for use by new users, information already stored therein needs to be either transferred to some other device or destroyed efficiently. This is also necessary to mitigate the risk of data thefts, thus, making ITAD services crucial for the purpose.
The availability of IT components for a low price has also emerged as a crucial factor driving the global ITAD market. This market can be segmented on the basis of service, end-use industries, asset type, and geography. Based on asset type, the market can be segmented into storages, peripheral, mobile devices, computers and laptops, and other network equipment. The service segment of the market consists of data destruction/data sanitization, recovery, and recycling. Additionally, the banking, financial, and insurance, aerospace, telecom and IT, government, energy and utilities, media and entertainment, education, and others constitute the key segments of the market in terms of end use.
Favorable Government Policies to Help Fuel Demand from Market
Apart from the rising adoption of cloud technologies, the global ITAD market has been considerably gaining from the introduction of favorable government policies. Concerns relating to environmental issues—aggravated due to the increasing electronic waste dumping—have compelled authorities to create stringent regulations for disposing outdated or retired IT assets. Furthermore, IT enterprises look for ITAD service providers holding maximum certifications such as Responsible Recycling, eSteward, and others. Such high demand for quality and trustworthy services from vendors has been positively reflecting on the revenue generated by the market.